Eternal cookies

Eternal cookies

Statement by Google on retaining the ability to work with third-party cookies in the Google Chrome browser has come as an unexpected turn in the longstanding history battle for user privacy. This decision follows four years of debates, delays, and pressure from the advertising industry and regulators.

Third-party cookies pose a risk as they can track user actions across different websites without their knowledge. This violates user privacy as advertising companies and other organizations can collect data on preferences, visited websites, and online behavior for targeted advertising. The response has been the development and spread of cookieless technologies.

Reasons

Reasons

Since the announcement in 2020 to remove third-party cookies from Chrome, Google has faced numerous challenges. Pressure from advertisers worried about potential budget losses and regulators concerned about potential monopolies of Google's new tool significantly altered the company's plans.

Many industry specialists noted the shortcomings of the proposed alternative Privacy Sandbox technologies. According to Criteo, testing these technologies showed that they could lead to significant revenue reductions for publishers, raising additional concerns among market participants.

Many browsers restrict or stop supporting third-party cookies to enhance user privacy:

  • Safari. Apple has long restricted the use of third-party cookies through Intelligent Tracking Prevention (ITP) technology, starting in 2017. This limits the ability of websites to track users without their consent.
  • Firefox. Mozilla introduced Enhanced Tracking Protection (ETP) in 2019, automatically blocking third-party cookies and preventing user tracking by default.
  • Edge. Microsoft Edge also included tracking and blocking third-party cookies in its browser, using SmartScreen and other technologies to protect user privacy.

In the Yandex browser, the use of third-party cookies is also gradually being limited. Starting from version 20.8.3, Yandex Browser blocks third-party cookies in Incognito mode and extends these restrictions to other platforms, including desktop and Android.

New Strategy

New Strategy

Instead of completely abandoning third-party cookies, Google proposed a new approach that allows users to decide whether to use third-party cookies themselves. Chrome will include a notification that allows users to customize their cookie preferences for all visited websites. This will enable users to more consciously manage their privacy while surfing the web.

Google will continue to develop Privacy Sandbox. The company's plans include the introduction of IP Protection to protect IP addresses in Incognito mode and other mechanisms that enhance privacy. The company also plans to develop features that will improve the effectiveness of advertising.

Privacy Sandbox is a Google initiative designed to replace third-party cookies and improve user privacy. It offers new technologies such as FLoC and Topics API, which allow for relevant advertising without tracking individual users. Privacy Sandbox creates anonymous groups of users with similar interests, preserving their privacy while ensuring effective advertising.

Industry Reaction

Industry Reaction

Google's decision elicited mixed reactions. On one hand, advertisers and publishers felt relieved knowing they did not need to urgently adapt to new conditions. On the other hand, many continue to doubt the effectiveness of Privacy Sandbox and other tools proposed by Google.

Some experts believe that the refusal to remove third-party cookies will only delay the inevitable, and the industry should still prepare for more private and secure alternatives.

«Those who have already started developing solutions without using cookies will ultimately benefit in the long run,» noted one of the executives of Snopes in a comment to Digiday.

Market Impact

Market Impact

For advertisers who have begun transitioning to alternative identifiers, the news from Google signals the need to accelerate this process. Using new tools such as UID2 from The Trade Desk and RampID from LiveRamp becomes even more relevant. Implementing AI-based technologies for analyzing user data and extensive use of contextual targeting can also gain new momentum.

Alternative methods of collecting user information:

  • First-party cookies. Cookies set by the website itself, which the user visits. Examples: Amazon, Netflix, Yandex, Ozon.
  • Device fingerprinting. Collecting unique device characteristics such as screen resolution, installed fonts, and browser plugins to create a unique digital "fingerprint" of the user. Examples: BlueCava, ThreatMetrix, Kaspersky Lab.
  • Server-side tracking. Tracking user actions through server logs and analyzing data on the server side, independent of cookies. Examples: Google Analytics 4, Adobe Analytics, VK.
  • User authentication. Collecting data about users through registration and login, allowing tracking of user behavior on the site and between sessions. Examples: Facebook, LinkedIn, Sberbank.
  • Contextual targeting. Displaying ads based on the context of the page the user is on, without the need to track their actions on other sites. Examples: GumGum, Outbrain, Yandex.Direct.
Future Steps of Google

Future Steps of Google

Google needs to implement a new plan, ensuring users have control over the use of cookies, and the introduction of notification in Chrome allowing to customize cookie preferences will be only the first step. The company will continue to work closely with regulators and market participants for the successful implementation of this strategy.

Google will further develop Privacy Sandbox, offering additional tools to protect privacy and improve the usefulness of advertising. It is important for all market participants to adapt to new conditions and use advanced technologies to ensure user privacy and the effectiveness of advertising campaigns.

Conclusion

Google's decision to retain third-party cookies in Chrome temporarily eased the situation for the industry but emphasized the need to continue searching for and implementing new technologies to protect user privacy. It is important for all market participants, from publishers to advertisers, to adapt and evolve in the ever-changing digital environment.

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