Since Google first revealed plans for third-party cookie deprecation back in 2020, the digital advertising sector has been bracing for a major transformation. Yet, with the tech giant now reversing this decision, many are left wondering: What does this mean for the future of digital advertising?
Join us as we examine the implications of Google’s decision, the impact on digital marketing, and how marketers and businesses alike can strategically navigate these changes.
The Cookie Conundrum: A Quick Recap
Third-party cookies have long played a critical role in digital marketing by tracking user behaviour across different websites and enabling targeted advertising. However, growing concerns about user privacy, regulators tightening their grip, and competitors like Safari and Firefox already blocking third-party cookies were just some of the driving factors behind Google’s plans for cookie deprecation by 2024. At the same time, they announced the Privacy Sandbox initiative, aimed at creating privacy-preserving alternatives to third-party cookies.
Learn more: A Digital Marketer’s Handbook to Cookieless Advertising
Google’s Reversal on Cookie Deprecation: What Happened?
Digital advertising is not only a crucial economic driver that generates billions annually but is also one of Google’s primary revenue streams. With cookie deprecation, advertisers would have faced challenges in maintaining ROI (returns on investment), while publishers reliant on ad revenue for their business models would experience potential revenue declines. In short, the industry’s extensive reliance on third-party cookies would have made a rapid transition particularly challenging, risking substantial instability and financial strain for both the industry and Google.
Additionally, the digital advertising industry might not have been fully prepared for a cookie-less world, necessitating a more gradual transition.
What Does This Mean for Marketers & Advertisers?
The delay in Google’s cookie deprecation plans provides a temporary reprieve for digital marketers. For now, businesses can still continue to leverage on third-party cookies to track user behaviour and optimise their campaigns. However, given the continuing pressure towards privacy-centric advertising, this does not mean that preparations for the eventual loss of third-party cookies are any less relevant.
Sindy, a Performance Marketing Lead at OOm, echoes this sentiment: “Although this update is surprising, it hasn’t significantly affected our digital advertising strategies. For now, with cookies still in place, our approach can stay as it is. However, it’s important to prepare for the eventual phase-out of third-party cookies. Measures that we’ve already implemented, such as enhanced conversions, will continue to be valuable moving forward.”
Marketers should focus on strategies that will be relevant when third-party cookies are eventually phased out, ensuring that their practices remain resilient and adaptable.
1. Prepare for Privacy-Centric Marketing
User privacy concerns are more pressing than ever, highlighting the need for marketers to stay informed about best practices and emerging trends in privacy.
An alternative solution Google is working on is the Privacy Sandbox project. This initiative aims to develop a suite of APIs and tools that reduce cross-site tracking and protect user privacy while still enabling effective advertising.
Some of its key proposals include:
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CHIPS
Cookies are assigned to specific “partitions” based on the top-level site being visited. This prevents third-party cookies from being shared across different websites, reducing the ability to track user behaviour across multiple domains.
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Related Website Sets
Websites owned by the same company can declare themselves as a “related website set.” This allows limited cookie sharing within this set while restricting access to external sites.
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Topics API
Chrome categorises a user’s interests based on their browsing history and assigns topics, enabling advertisers to target ads based on these topics without third-party tracking.
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Fenced Frames
This API creates isolated environments for embedded content, preventing access to data outside the frame. This helps protect user privacy by limiting data sharing between websites.
As Google develops the Privacy Sandbox further, marketers need to stay updated and be prepared to integrate new solutions as they become available.
2. Focus on First-Party Data Collection
Xuan Qi, OOm’s SME Account Director, notes: “The trend towards privacy of data is definitely here to stay. Marketers will need to be prepared with a solid system to collect first-party data for tracking purposes.”
First-party data collection is the process of gathering information directly from your audience through your own channels and platforms. It involves collecting data from interactions that users have with your website, app, or other owned properties, with the users’ knowledge and consent. One example is this lead form below.
Enhanced conversions, a method previously recommended to be implemented in Google Ads to prepare for cookie deprecation, is a conversion tracking technique that relies on first-party data collection. This is how it works:
- Data collection: When a user converts (e.g., makes a purchase or submits a lead form), the website collects first-party data such as email address or phone number.
- Hashing: This first-party data is then hashed for privacy protection.
- Sharing: The hashed data is securely shared with the ad platform (e.g., Google Ads).
- Matching: The ad platform matches this hashed data against its database of users who have interacted with ads.
- Attribution: If a match is found, the conversion is attributed to the ad interaction, even if it occurred on a different device or browser.
- Improved tracking: This process allows for more accurate conversion tracking, especially in cases where traditional methods (like cookies) fail.
- Better insights: Advertisers gain more comprehensive data on their ad performance, enabling better optimization.
3. Rethink Measurement
Additionally, advertisers should explore alternative methods for measuring campaign performance and success. Beyond developing robust first-party data collection systems, businesses can also on leverage on:
1. Server-side tracking: This method tracks user actions on your server rather than in the user’s browser, making it less vulnerable to ad-blockers and privacy settings.
2. Cookieless attribution models: Methods of measuring the impact of marketing touchpoints on conversions without relying on third-party cookies. Various techniques can include probabilistic modelling, data-driven attribution to machine learning.
3. Alternative metrics: Rather than focusing solely on conversions, examine a wider range of metrics that provide a more comprehensive understanding of user behaviour, such as user engagement, user experience to customer journey mapping. These insights are available through advanced analytics tools such as Google Analytics and Adobe Analytics.
Rethinking campaign management and measurement strategies empower marketers to continue achieving their objectives without the use of third-party cookies.
Conclusion
While Google’s decision to reverse the deprecation of third-party cookies may seem like a much-needed breather for marketers, it is actually a crucial window of opportunity to reassess strategies and build a strong foundation for the future.
Want to navigate industry shifts like cookie deprecation with confidence? Let us help. At OOm, we specialise in guiding businesses through the complexities of digital marketing campaigns. With our expertise in Google Ads, social media advertising and more, you can be assured that you are in good hands.
Transform your digital marketing approach—reach out to us today for your free digital marketing strategy consultation. Our experts will dissect your business, uncover hidden growth opportunities, and share tailored marketing recommendations to propel your business.
About OOm
OOm has been a leading digital marketing agency in Singapore since 2006, with expertise in Search Engine Optimisation (SEO), search engine marketing (SEM), social media marketing to website design and development. Our clientele comprises small and medium businesses (SMEs) to enterprises.
OOm has won over 30+ marketing awards for the results we have delivered to clients over the years, including ‘Agency of the Year’, ‘Lead Generation Agency of the Year’, ‘Independent Agency of the Year’, ‘E-Commerce Marketing Agency of the Year’, ‘Excellence in Search Marketing, ‘Excellence in Performance Marketing’ to ‘Excellence in Data-driven Marketing’ among others. OOm is also a Google Premier Partner (reserved for the top 3% agency partners in Singapore), as well as an official Meta Business Partner.
SMEs in Singapore may qualify to receive up to 50% subsidy of our services under the Productivity Solutions Grant (PSG), for which OOm is a pre-approved vendor for Digital Marketing and E-Commerce solutions.
