Google Cookie Deprecation Update Q4 2023

In January 2020, Google announced its plans to deprecate third-party cookies from Chrome. The original deadline for this was early 2022 but Google pushed this back.

Google has recently provided an update and their intention now is to gradually eliminate support for third-party cookies starting next year. The initial step will begin in Q1 2024 and Google will disable cookies for 1% of users. This step precedes a broader phase-out for all Chrome users scheduled for Q3 2024.

The motivation behind Google's decision to phase out third-party cookies lies in the cookies' role in facilitating cross-site tracking of users during web browsing. Google aims to eliminate this tracking capability while introducing new standards that prioritize fraud prevention and the delivery of relevant ads.

The initial 1% deprecation in 2024 provides a crucial period for websites, advertisers, and industry players to assess compatibility and prepare for the broader rollout. Given Google's dominant position in web browsing, scrutiny will likely be high.

The full-scale removal of third-party cookies for all Chrome users set to begin in Q3 2024 is contingent upon regulatory approval. This move is expected to bring significant changes to the digital advertising landscape, potentially prompting sites to adopt alternative, more opaque tracking methods.

To mitigate the challenges posed by the removal of third-party cookies, Google is launching new Privacy Sandbox APIs tailored for identity, advertising, and fraud detection use cases. However, uncertainty lingers regarding how the advertising ecosystem will evolve in response to these changes.

The impact on the digital advertising industry is anticipated to be controversial, particularly for ad tech firms reliant on third-party cookie tracking. Advertisers and publishers will need to explore new methods for delivering relevant ads to users, potentially benefiting walled gardens like Google, Facebook, and Amazon, which have substantial logged-in user data.

While privacy advocacy groups applaud the move, some express caution about the effectiveness of Google's Privacy Sandbox in restricting covert tracking.

Publishers may witness changes in revenue from programmatic website advertising due to the removal of third-party cookies. However, alternatives like user ID solutions such as ID5 or Audigent's Hadron ID may offer privacy-focused replacements. Demand-side platforms like Teads and Adform have also produced cookie-less solutions using ID Fusion.

Looking ahead, Google aims to have its new Privacy Sandbox APIs thoroughly tested before the broader phase-out. The uncertainty surrounding how digital advertising will function without third-party cookies remains a key challenge. Industry groups are actively working on developing new standards for targeted ads that prioritize anonymity, recognizing that Chrome's extensive market share requires sites to adapt to the evolving privacy landscape.

In summary, Google's plan to phase out third-party cookies signifies a pivotal shift in digital advertising and website tracking. While the primary goal is to enhance user privacy, the change introduces uncertainty about how the ad ecosystem will adapt. Website owners are urged to conduct audits of their cookie usage and initiate preparations to ensure seamless functionality as third-party cookie support is progressively removed in 2024.