Experts weigh in on cookie deprecation and data privacy

The crumbling of the third-party cookie has been up for debate for a good four years since Google made their initial announcement to deprecate the cookie - but how quickly things have changed.

In the beginning, Google heavily cited consumer privacy concerns as its reasoning for removing third-party cookies. But after repeatedly delaying cookie deprecation over the years, Google recently decided not to crumble the cookie after all.

So what does this mean for the digital ecosystem that impacts thousands of retailers, brands, marketers and advertisers? We speak with industry experts to uncover their views of the announcement that cookies are here to stay (for now, anyway).

Cautious optimism 

For many industry experts, the decision has caught them by surprise, sending shockwaves across the digital ecosystem.

'Surprised, but not surprised,' says Janice Chan, VP Platform and Client Services, APAC at Nexxen. "As a beta partner with Google's Privacy Sandbox, Nexxen had a close understanding of the developments and concerns that led to this reversal. I expect brands and marketers will continue to move through this cookie-less journey, meeting their marketing and business objectives with scalable and future-proofed solutions. That said, an announcement of this magnitude is always going to send shockwaves through the industry."

"I was surprised, adds Yang Liu, Marketing and Communications Lead, Pacific at consumer data insights platform NIQ. "The years-long effort to phase out third-party cookies led me to believe that a cookieless future was imminent. Google's decision to retain third-party cookies while offering a new user preference prompt is a significant development that, as always, presents both opportunities and challenges. Overall, I'm cautiously optimistic about Google's commitment to enhancing user privacy through the new preference prompt." 

Liu also highlights the ongoing availability of third-party trackers may offer many a sense of relief, given we can continue to use familiar targeting and measurement techniques. 

"However, it also means that the industry must grapple with the ongoing privacy concerns and regulatory scrutiny that come with the use of third-party data, he says. "The proposed user preference prompt may introduce greater transparency and control for users, aligning with the growing and increasingly global demand for data privacy. In the long run, its effectiveness in balancing privacy with advertising activities needs further evaluation."

Common sense prevails

According to Ronny Raichura, Managing Director of Impressive, common sense has prevailed here, as it was a completely unworkable solution. Raichura sees the news as a huge sigh of relief for marketers that were unprepared for the cookie crumbling.

"As a result, any temporary data loss of cookie deprecation has been mitigated and advertisers can breathe easier knowing that cookies remain a short term solution to ensure measurement of their campaigns stay intact," he says. But regardless of this news, as the world is increasingly cross-device and fragmented, it's important to be ready for a cookieless environment by continuing to utilise first party data to optimise and measure campaigns. 

"We will continue with this approach using the most future-proofed technology - but it's nice to now have more time without the spectre of the cookie apocalypse looming large," he adds.

Jonathan Reeve, Vice President, APAC at Eagle Eye, agrees. He says although many people will be breathing a sigh of relief today, this change was forcing a shift away from third-party cookies, which is inevitable, even if it's constantly delayed.

"There are so many performance and privacy challenges with the use of cookies that it seems likely that alternatives – such as Google's Privacy Sandbox and in-house loyalty programs – will continue to emerge, albeit now at a slower rate," Reeve explains.

"I'm happy. The move away from third-party data helped Eagle Eye's sales because of the increased focus on developing in-house loyalty programs. However, many industry players were clearly still unprepared for the change. As noted, the shift away from cookies can't be delayed forever, but pushing out the deadline gives the poorly prepared more time to transition."

Skepticism and a critical eye of the motivation behind the decision

For Billy Loizou, Area Vice President at Amperity, the sentiment towards Google's decision to retain third-party cookies is 'primarily skeptical.' This skepticism stems from Google's move contradicting the industry trend, with competitors like Firefox, Safari, and Apple already abandoning cookies for new privacy-focused approaches, he notes.

"Google's reliance on advertising revenue explains its reluctance to change, highlighting the tension between business interests and privacy concerns. The phrasing "so-called cookie-based advertising solution" in the content suggests doubt about Google's stated motivations," he says. "This decision underscores the complex balance Google is trying to strike between maintaining its business model and addressing growing privacy concerns."

"Overall, the skepticism reflects a critical view of Google's motivations, questioning whether this decision truly serves user interests or primarily protects the company's bottom line. It encapsulates the ongoing debate in the tech industry between privacy protection and profit generation."

Breathing space to tackle data privacy challenges

Experts agree brands would be wise to focus on strengthening their first-party data strategies during this time. As privacy concerns continue to grow, the ability to effectively utilise data that customers willingly provide will become increasingly valuable. 

"Ultimately, while this news offers perceived relief, the ultimate destination remains unchanged, Billy says. "Forward-thinking brands will use this time to innovate and adapt, rather than simply maintaining the status quo."

Loizou highlights this delay doesn't alter the industry's trajectory towards increased privacy measures. While brands have been granted additional time, it's crucial they use it strategically. This period offers an opportunity to refine and test new technologies and approaches without the stress of an impending deadline.

"This move will continue to offer a welcome reprieve, allowing companies to continue with their current strategies without the immediate pressure to overhaul their systems," he concludes. "The challenge now lies in striking a balance between marketing effectiveness and respect for user privacy - in a world where consumers are becoming more aware of data usage practices, and are likely to favour brands that demonstrate a commitment to protecting their information."