“Cookies are going to be the exception rather than the rule,” analyst Evelyn Mitchell-Wolf said on a recent edition of our “Behind the Numbers” podcast. “Advertisers and publishers are going to need cookieless strategies going forward.”
Despite Google’s decision to keep third-party cookies in Chrome for now, preparations that have been underway since the initial 2020 announcement will not be wasted. For now, marketers should continue pursuing targeting and measurement alternatives that do not rely on cookies.
Here’s what marketers need to consider:
Consumer will have a choice
Only 17% of US consumers say they always accept cookies when they receive a notification that a website uses them, according to a May 2024 EMARKETER survey. If that’s true of Chrome users, Mitchell-Wolf explained, over 80% of US browsers could be cookieless long term.
However, Apple’s AppTrackingTransparency (ATT) opt-in rates for US users nearly doubled from 13.7% in Q2 2021 to 26.1% in Q2 2024, Adjust found. For ATT, individual apps controlled the prompt rollout, influencing opt-in rates over time. Google may see different results.
Unless Chrome users notice a decline in functionality or that they’re being served irrelevant ads, they may not update their preferences. “There’s a chance that opt-in rates could go up over time, but like a lot of this, it’s TBD,” Mitchell-Wolf said.
Continue to test and adopt cookie alternatives
Google’s Privacy Sandbox will still be developed, but its adoption might slow down due the lack of a clear timeline and uncertainty over Google’s plans to refine it.
“I completely understand if brands take a step back from the Privacy Sandbox or push back plans to test it, but I don’t think it’s time to write it off completely,” Mitchell-Wolf said. “I think there’s still more to this story.”
Leverage existing insights from cookie-free browsers
Safari, Firefox, Microsoft Edge, and Chrome make up over 90% of the US browser market, according to Statcounter.
“We know that Safari and Firefox are already cookieless, so if you’re not at least testing cookieless strategies, you’re missing out on a full third of US browsing activity,” Mitchell-Wolf said. That’s likely to increase by the end of 2024, when Microsoft Edge says it plans to phase out cookies.
Keep an eye on data privacy legislation
“It’s always been a tough sell to proactively part ways with the status quo and invest in privacy-preserving tech and data sources, especially when the finish line keeps getting moved,” Mitchell-Wolf said.
Digital advertising is entering a privacy-centric era. “The ongoing wave of privacy legislation in the US will not slow down and it will not be rolled back,” she said.
The best move for marketers is to stay informed and compliant with evolving privacy laws.
To avoid disruption, marketers should invest in and develop privacy-compliant data strategies and plan for a future where cookies are not readily available. Doing so not only avoids legal issues, but will build trust among consumers who opt-in.
Listen to the full episode of “Behind the Numbers” for more insights into Google’s U-turn on cookies and what it means for marketers.
This was originally featured in the EMARKETER Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.
First Published on Aug 7, 2024