This Tuesday (23), the Google announced that it will postpone for the third time the suspension of the use of cookies from third parties in your Chrome browser. The company cited regulatory issues and a lack of adequate industry preparation as reasons for the delay.
The original deadline for discontinuation of cookies third-party, set for January 2020, promised the elimination of user tracking technology within two years, with the aim of increasing consumer data privacy on the open web. However, the tech giant has postponed plans twice, citing that it needs to give the advertising industry more time to prepare. As a first attempt, Google phased out the cookies to 1% of browser traffic in early January this year.
The decision to postpone once again was taken in response to regulatory scrutiny, particularly by the UK Competition and Markets Authority (CMA), which has been closely monitoring the transition. In January, the agency flagged 39 “concerns” about Google’s plan to close cookies from third parties, and is primarily concerned with how this could unfairly harm competition. The CMA is evaluating how the Privacy Sandbox, a comprehensive initiative that includes a range of tools designed to replace cookies for advertisers and publishers, it may unduly prefer Google’s own advertising products and further cement the company’s dominance in the advertising market. adtech, something that is already being investigated in the United States by the Department of Justice. To date, neither the CMA nor Google have provided an explicit timeline for the new transition plan.
It’s not just regulators who see warning signs in the industry transition plan. cookies Of google. Some editors and contributors to adtechs have expressed concerns about the Privacy Sandbox auction mechanics, claiming that it creates a closed market, eliminating the need for external demand and supply platforms. Google is also involved in a heated debate with the Interactive Advertising Bureau, an industry trade group, which in February published a report identifying what it sees as fundamental problems with the Privacy Sandbox, including challenges with advertising effectiveness, media measurement, security, governance and transparency. Google disputed many of the claims in a 28-page response.
Despite widespread scrutiny of its plans, several advertising industry players are pleased with Google’s decision to delay the discontinuation of cookies until regulatory concerns are resolved.
“Google made the right choice here. The objective of discontinuation of cookies is valid and the Privacy Sandbox is flawed but powerful, and some more time will help clarify these issues and push the ecosystem forward to solve them together,” says Paul Bannister, co-founder and chief strategy officer at the company. adtech Raptive.
A delay, even a slight one, is not the end of the world, agrees Amelia Waddington, chief product officer at search intelligence platform Captify.
“If they really only delay until the beginning of 2025, it won’t make a material difference for people who were already prepared, but it could give a few more months of preparation for those who were starting to panic,” he explains.
Other industry leaders are less pleased with what they see as Google’s continued sluggishness.
“While the industry is buzzing about the pros and cons of the Google Privacy Sandbox, I wonder if the cookie it is not simply “soaked” at this point. companies adtech such as Liveramp, The Trade Desk and Magnite have already started to plant their flag with identity-free solutions”, asks Lance Wolder, head of Strategy and Marketing at the adtech PadSquad.
Wolder implores the industry not to lose the momentum it has gained in the broader transition of user identifiers such as cookiesfor safer privacy alternatives.
“As the decision to postpone becomes official, my only warning to our industry is that we do not continue to push identity in the future. Much of the depreciation of cookies has already occurred. Marketers who own their data and take a thoughtful approach to reaching and messaging their customers and prospects are poised to win the lion’s share of wallets,” concludes the executive.
The postponement of the suspension of cookies third-party advertising by Google reflects the complexity and challenges facing the advertising industry in transitioning to safer alternatives to data privacy. While some see this as an opportunity to solve problems, others urge the industry to maintain momentum towards more sustainable long-term solutions. Time will tell how this decision will impact the future of online advertising and user data privacy.
* With information from The Drum
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