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After years of planning, teasing, and rescheduling, Google announced earlier this year that it won’t be deprecating third-party cookies in Chrome anymore. Instead, the company plans to introduce a new experience, inviting users to decide whether to retain third-party cookies themselves.
While it’s still unclear what this will look like in practice, now is as good a time as ever for a refresher on the Privacy Sandbox, to look at the latest updates revealed alongside Google’s third-party announcement, and to consider some of the steps you should take to get ready.
What is the Privacy Sandbox?
The Privacy Sandbox is an initiative led by Google to create web standards and technologies that promote privacy practices while giving organizations the tools to run successful digital advertising operations.
On its website, the organization highlights three main goals:
- Building new technology to keep user information private
- Enabling publishers and developers to keep online content free
- Collaborating with the industry to build new internet privacy standards (source: The Privacy Sandbox)
As of September 2024, The Privacy Sandbox technologies are under development, but some innovations by Google are already designed to facilitate the transition away from third-party cookies, protecting user privacy while providing advertisers with the tools they need:
- Topics API: This API replaces the deprecated FLoC and focuses on enabling interest-based advertising without individual tracking. It works by selecting a few topics that represent the user’s top interests for that week based on their browsing history.
- FLEDGE (First Locally-Executed Decision over Groups Experiment): This allows for interest-based advertising while keeping the decision-making process on the user's device. This means user data doesn't need to be shared with external parties, further enhancing privacy.
- Trust Token API: This API aims to combat fraud without revealing user identity, ensuring that fraudulent activities are mitigated without compromising user privacy.
- Conversion Measurement API: This API helps advertisers measure ad performance without tracking individual users, allowing for effective campaign analysis while respecting user privacy.
What is particularly interesting and relevant for us today is Google's July 2024 announcement regarding the planned deprecation of third-party cookies.
Understanding the latest updates regarding the Privacy Sandbox and the end of third-party cookies
The prospective end of third-party cookies in Chrome is nothing new. We’ve covered it extensively in these pages and have long worked with Google to facilitate their privacy efforts, from Google Consent Mode V2 to its CMP Partner Program.
Last summer, however, Google surprised (some of) the digital industry by announcing that the company decided not to deprecate third-party cookies in Chrome after all, after engaging in conversations with the UK’s Competition and Markets Authority (CMA) and Information Commissioner's Office (ICO), publishers, and participants in the advertising industry at large.
Instead, Google has decided to give users direct control over third-party cookies through a new experience:
“Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time.”
- Anthony Chavez, VP, Privacy Sandbox (Source: The Privacy Sandbox)
The specifics of this new plan remain to be determined (the current rumor evokes a user prompt, but it has yet to be confirmed by Google), but the announcement has already stirred the pot in the industry. Our CEO, Romain Gauthier, covered some of the implications and concerns stemming from this decision in an opinion piece on our blog shortly after the announcement:
“Critics argue that Google's decision to manage cookies at the browser level is a strategic move to maintain its dominance in the digital advertising space. By keeping a privileged eye on Chrome's data, Google can preserve its competitive edge while ostensibly promoting user privacy.
This approach, however, has been perceived by many as another potential "recipe for disaster," particularly in the context of the European Union's General Data Protection Regulation (GDPR), which emphasizes stringent user consent and data protection standards.”
- Romain Gauthier, CEO and co-founder at Didomi
In concrete terms, what does this move mean for you, your organization, and the digital advertising industry in general?
What does this all mean for the digital advertising industry?
Ultimately, this big update from Google and The Privacy Sandbox doesn’t change the fact that organizations must prepare and implement solutions to face a world with limited access to third-party cookies. Indeed, whether Google officially deprecates them or not, this decision will likely effectively render third-party cookies obsolete for marketers, based on Apple's similar App Tracking Transparency (ATT) framework, which averages only a 25% opt-in rate (source: Statista).
For marketers, this change means rethinking how to target and measure the effectiveness of their ads:
- Ad Targeting: With third-party cookies gone, traditional methods of tracking user behavior and serving personalized ads will no longer work. Marketers must rely on new technologies like the Topics API to reach their audience effectively.
- Ad Measurement: Measuring the success of ad campaigns will become more challenging. The Conversion Measurement API offers a solution but requires new strategies and integrations.
- User Privacy: The focus on user privacy is more critical than ever. Ensuring their advertising strategies align with privacy regulations and user expectations is paramount.
To face these challenges, digital marketers will need to explore alternatives to third-party cookies, from server-side tracking to data clean rooms, universal ID solutions, and, of course, first- and zero-party data.
Contrary to popular belief, a Consent Management Platform (CMP) will remain an essential part of your privacy tech stack, as consent will continue to be the primary legal basis for data collection:
“Digital advertising is evolving rapidly, but you can navigate these changes effectively with the right strategies and tools. A CMP remains crucial to ensuring compliance, building user trust, and maintaining effective advertising strategies. By staying informed and proactive, you can adapt to these changes and continue to thrive in this new era of privacy-first digital advertising.”
- Jeff Wheeler, VP of Product at Didomi
Organizations can start preparing today by running an audit to assess their reliance on third-party cookies, exploring alternatives, and implementing a robust CMP to ensure exemplary data collection practices.
Are you concerned about the evolving news surrounding Google and third-party cookies, or interested in bouncing ideas to prepare your organizations for the next steps? Get in touch with our team to see how we can help:
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