Cookieless future: Google backs down – So what?
These well-functioning alternatives are already available.
There are good reasons not to remain dependent on third-party cookies any longer. Jasper Bosgraaf, Digital Director at Mediaplus, explains why effective alternatives have long been available.
For more than four years, Google has been involved in a drawn-out saga regarding third-party cookies. In 2020, the company announced plans to phase them out. Earlier this year, Google even began rolling back third-party cookies for 1% of its users. But recently, the decision was reversed: third-party cookies will remain in Chrome, Google’s browser, unless users adjust their default settings. The plan for a complete phase-out is thus off the table.
Did this happen due to pressure from the advertising industry? Or did Google realize its privacy solution wasn’t ready? Tests with the so-called Protected Audience—the browser interface for ad auctions—showed that publishers experienced reduced reach and revenue due to delays and other issues. In Google’s own tests, there was about a 20% drop, while external tests saw declines of up to 60%. Additionally, the UK’s Competition and Markets Authority (CMA)—which Google must comply with—indicated that the privacy sandbox might give Google more advantage over the rest of the market. With this decision, Google likely avoids regulatory intervention.
What now?
For anyone who hasn’t yet devised alternative strategies (and according to surveys, that’s a lot of people), this comes as a relief: “We’ll just continue with our campaigns using third-party cookies in Chrome.” But is that really the best approach? I wouldn’t recommend it. Google’s step back isn’t progress for the market.
There are good reasons to free yourself from reliance on third-party cookies. Consider the Netherlands: here, only part of the user base is accessible with cookies. This is because Safari and Firefox—together accounting for about 28% of the market share in the Netherlands—have already blocked cookies. Moreover, Chrome, with about 55% market share, has announced plans to block third-party cookies in the near future. Other browsers like Microsoft Edge (8.6%) and Samsung Internet (4.6%) also have a significant market share. This makes it increasingly challenging to track users via cookies and highlights the importance of exploring alternative methods.
Another key point: Google has announced that users must give consent in the browser. The exact implementation details are unknown, but insiders expect these consent requests to be introduced in 2025, partly due to pressure from regulators.
The end of third-party cookies as a marketing tool
If this happens, the number of people giving cookie consent will likely fall sharply. Currently, about half of all impressions involve a cookie, and we reach 30 to 40% of users via Chrome. With a general opt-in, that percentage would at least be cut in half, leaving us with only 15 to 20% of users reachable via cookies. In effect, that means the end of third-party cookies as a marketing instrument.
The privacy sandbox, which Google long presented as an alternative, would not only have further increased Google’s market dominance but is also not a mature or serious solution that yields good results for advertisers. From the UK, where the sandbox is already in use, we hear that it doesn’t work. Advertisers and their agencies must therefore reconsider their digital campaign objectives.
The power of AI-driven contextual targeting
A modern approach like AI-driven contextual targeting provides a solution. At Mediaplus, we have further developed our existing NE.R.O tool (Net Reach Optimization) using artificial intelligence. NE.R.O AI analyzes more than 50,000 online articles daily, processes millions of data points, and continuously trains the AI. The system uses a large language model to understand context, affinities, psychographic and emotional structures, and topics. Based on these insights, the analyzed and classified articles are linked to target audiences defined through our Mediaplus Value Planning system and used for campaign management.
Thanks to AI-driven contextual targeting, outdated mishaps—like placing a luxury hotel ad next to an article about flooding—are a thing of the past. The AI ensures that articles are accurately matched with the target audience’s interests. As a result, campaigns can be highly personalized and effective, even without cookies.
First-party data: the key to personalized marketing
In addition to AI applications, collecting first-party data is crucial. Consider gathering email addresses and phone numbers, for instance, through lead-generation campaigns. This data can then be hashed and fed back into advertising channels as retargeting data. This enables advertisers to run highly targeted and personalized campaigns in a privacy-friendly way, without relying on third-party cookies.
Investing in first-party data not only provides a sustainable alternative but also strengthens the direct relationship with the customer. In an era of increasingly strict privacy regulations and growing consumer awareness of data usage, building trust is essential.
Conclusion
While it may be understandable from a regulatory and practical standpoint that Google is choosing to keep cookies in Chrome, it’s neither a sustainable nor a smart solution. The future lies in innovative and effective solutions like AI-driven contextual targeting and the strategic use of first-party data.
By investing in these alternatives now, advertisers will be prepared for a cookieless future while already benefiting from better results and stronger connections with their target audiences.
Author: Jasper Bosgraaf, Digital Director at Mediaplus
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