Company introduces new privacy experience with Privacy Sandbox.
O Google Google Inc. announced this week that it will keep third-party cookies operational in its Chrome browser, a significant change in its stance after promising to disable them since 2019. The company will now let users decide whether or not to accept these trackers, while it continues to develop Privacy Sandbox, an alternative to serving ads without cookies.
With a 75% share of the browser market in Brazil, Chrome is crucial for programmatic advertising. The initial plan to disable cookies was postponed until next year due to industry pressure. Google said that instead of eliminating cookies, it will introduce a new experience in Chrome, allowing users to make informed choices about their privacy preferences.
“We recognize that this transition requires significant work from many stakeholders and will impact publishers, advertisers and everyone involved in online advertising. With that in mind, we are proposing an updated approach that gives users choice. Instead of discontinuing third-party cookies, we would introduce a new experience in Chrome that would allow people to make informed choices about how they browse the web, and they could adjust those choices at any time. We are discussing this new path with regulators and will engage the industry as we roll it out,” said Anthony Chavez, vice president of Privacy Sandbox at Google.
The Privacy Sandbox, while promising, still faces challenges. Tests indicate that it can replace cookies in many areas, but its effectiveness in retargeting is still lower. Tests showed an 89% recovery in Google Display Ads and 86% in Display & Video 360. For campaigns focused solely on conversions, the recovery was 97% in conversions per dollar (CPD) in Google Display Ads and 95% in Display & Video 360. For remarketing campaigns, the recovery was 55% in advertiser spend in Google Ads and 49% in Display & Video 360. These results reflect the current reliance of remarketing on third-party cookies, which enable a highly precise level of ad personalization.
Cookies, introduced in the 1990s, are small data files that personalize a user’s online experience. Third-party cookies, however, raise privacy concerns because they track user behavior across multiple platforms. Pressure to disable these cookies has increased with regulations such as the General Data Protection Regulation (GDPR) in Europe, the Lei Geral de Proteção Da Dados (LGPD) in Brazil, and the California Consumer Privacy Act (CCPA) in the United States.
Despite the intention to eliminate cookies, almost half of companies do not feel prepared for this change, according to a survey by IAB Brasil and Nielsen. Google is now seeking to balance user privacy with the need to maintain commercial functions online.
*With information from EXAME
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