Until recently, the fate of third-party cookies seemed clear. Now, however, Google no longer plans to deprecate them as expected. So where does this leave advertisers, publishers, and everyone else?

The process of retiring third-party has been protracted to say the least, and something that’s been extensively covered on our blog over the past few years.

But it seemed certain that once Google had abandoned support for them in its Chrome browser, they would be gone for good.

And then, in a surprising move earlier this year, the company reversed its decision and announced that Chrome would continue to support them alongside alternative solutions.

So why was this? What happens next? And given the shift towards privacy-first technologies, is third-party cookie support even tenable?

Here, we answer these questions and others, and explain what it all means for advertisers, publishers, and online users.

Why are third-party cookies being phased out?

The phase-out of third-party cookies has unfolded against a backdrop of tightening privacy regulations and concern from online users.

Regulations such as PECR in the UK, GDPR in the EU, and CCPA have been introduced in recent years to protect online users by regulating how their personal data is processed.

As a result, and as part of a broader shift toward user-centered control, several tech companies and browser providers have blocked or restricted support for third-party cookies in their products.

Apple, Mozilla, Microsoft, and Brave Software, for example, have all implemented such measures in their respective Safari, Firefox, Edge, and Brave browsers – more on this later.

Google had also begun offering manual blocking of third-party cookies in its Chrome browser. At the start of 2024, this feature was enabled for 1% of Chrome users worldwide – around 30 million people.

What did Google propose as a replacement for third-party cookies?

Google has been working on its Privacy Sandbox initiative (described in further detail below) as a replacement for third-party cookies since 2019, although this journey has been plagued by delays and setbacks.

Initially, it introduced a form of tracking called Federated Learning of Cohorts (FLoC).

FLoC worked by analyzing users’ online activity to group them into cohorts of people with similar Browse behavior, which advertisers could then target with relevant ads.

Although FLoC didn’t share specific users’ Browse data with advertisers, it faced widespread opposition due to concerns about user privacy, a lack of transparency, and the potential for fingerprinting.

Its discontinuation was widely viewed as a response to these concerns, as well as the lack of adoption from other browser providers.

It was replaced by a new initiative called Topics, which some viewed as a cynical replacement for FLoC, one that didn’t address the privacy concerns raised around FLoC.

Topics, now part of the Privacy Sandbox, categorizes users based on their Browse activity over the past three weeks.

In response to calls for greater transparency, the Topics system is set to allow users to view the topics they’ve been assigned, block certain topics, and even opt out of the Topics API entirely if they choose.

What is the Privacy Sandbox?

Google describes the Privacy Sandbox as “a secure environment for personalization that also protects user privacy.”

The initiative was established to develop new technologies that would strike the right balance between user privacy and allowing companies and developers to “build thriving digital businesses.”

This would be achieved by limiting cross-site and cross-app tracking, sharing data that is minimized and anonymously aggregated, and keeping more of the data that facilitates advertising on users’ devices.

Ostensibly, the result is that advertisers can continue to make ads relevant, online entities can keep offering their services for free, and users will enjoy greater control over what information is shared.

Why did Google drop plans to scrap third-party cookie support?

Google now states that rather than drop third-party cookie support entirely, it will “introduce a new experience in Chrome that lets people make an informed choice that applies across their web Browse”, one that they can adjust at any time.

Only Google knows exactly why it has chosen to continue supporting third-party cookies.

But given the various implications of the transition, the most likely explanation is a combination of several factors.

In its statement announcing the reversal, Google made it clear that the views and concerns of regulators, publishers, and other stakeholders partly influenced the decision.

Some may have anticipated this move, especially after the news in February that the UK’s Competition and Markets Authority (CMA) had ordered Google to pause its plans to phase out third-party cookie support.

Another likely factor is the readiness of Privacy Sandbox solutions to fully replace third-party cookies.

Google is, after all, reliant on third-party cookies for its own ad targeting, so rushing out an alternative without thorough testing presents a risk to its ability to generate ad revenue.

On the same day as Google’s statement, test results comparing the impact on programmatic revenue for publishers between third-party cookies and Privacy Sandbox solutions were released. These results showed that while the Privacy Sandbox had made progress since 2019, it still wasn’t fully where it needed to be.

What does this mean for online users?

The discussion around this issue over the last few years makes it easy to forget that Google’s announcement only applies to users of its Chrome browser.

With Chrome continuing to be the browser of choice for many – with a 65% market share at the time of writing – this is a sizable figure.

Nevertheless, those who opt to use Safari, Firefox, Brave, or another browser will not be affected by this change.

As of now, Chrome users are able to opt in and out of third-party cookies for specific sites by clicking on the eye icon in the browser bar.

This brings up a menu that provides a simple on/off toggle and a reminder that enabling cookies may activate some site functionality that may otherwise be unavailable.

The only caveat is that not everyone will be able to access this feature.

As of now, there is no information indicating that this option has been extended beyond the 1% of Chrome users who were offered it at the start of the year.

When it becomes available to everyone, however, it seems that almost 40% of people will be looking to take advantage of it.

What does this mean for advertisers?

Advertisers have been preparing for the end of third-party cookies for some time, so the news that they will not be going away completely may surprise many.

Nonetheless, since this change only applies to Chrome users, advertisers focused on less invasive targeting approaches are likely to maintain their current strategies, particularly as Google plans to allow Chrome users to disable third-party cookies altogether.

This does not necessarily mean that advertisers will abandon strategies based on third-party cookie tracking, particularly if there is still demand for this type of inventory. Some may find success in a hybrid approach, combining traditional cookie-based methods with privacy-focused solutions.

If, however, 40% of Chrome users disable third-party cookies as expected, and assuming users of other browsers have also opted out of these – whether intentionally or not – these companies will need to assess whether it makes sense to continue offering this approach over more privacy-friendly solutions.

Things will no doubt continue to evolve here. Advertisers and tech providers will likely invest in, and experiment with, new technologies that place user consent and transparency at the forefront. Solutions such as clean rooms, which allow secure data sharing without revealing personal information, and privacy-preserving algorithms are likely to gain greater prominence.

What does this mean for publishers?

Many forward-thinking publishers have been developing their first-party data strategies for some time.

This data is typically used to create more relevant content, improve ad targeting, and refine marketing strategies. With the current uncertainty around third-party cookies, initiatives like this are likely to receive even more focus than before.

A key objective for many publishers is to build stronger relationships with their audience, usually by creating a more personalized and engaging user experience.

Currently, this happens through a mixture of subscription models, gating the majority of content behind registration walls (thus encouraging subscriptions), and providing more tailored options across various touchpoints (website, app, newsletter, and so on).

Contextual targeting, which considers the content users are consuming and the environment in which it appears to show relevant advertising, is also gaining greater attention. The contextual ad industry as a whole is expected to more than double by 2030, reaching just over $562bn.

Growing newsletter lists and advertising to this audience are also likely to be a focus, particularly as this approach shields publishers from algorithm changes that can affect their prominence in search engine results pages and on social media.

Should I disable third-party cookies on my browser?

The answer to this depends on which browser you’re using. You may find that third-party cookies are already disabled by your browser without you realising it.

For example, Firefox users will find this to be the case, thanks to the browser’s on-by-default Enhanced Tracking Protection option.

Similarly, Safari, which has blocked third-party cookies by default since 2005, has its Intelligent Tracking Protection (ITP) feature enabled as standard. Apple claims this is to ensure that websites continue to function normally without tracking data being shared.

Although third-party cookies are typically associated with targeted advertising, they can also be used for general functionality.

Some of these uses are easily appreciated by the user. Common examples include cross-site authentication – allowing you to sign in to multiple websites within a publisher’s portfolio without having to log in to each one – product page reviews, and social media integration. Some features simply won’t work until these cookies are enabled, even if the site in question does not make this clear.

Other uses may not be obvious to the user, but many may find them perfectly acceptable. This includes performance analytics, fraud prevention, and A/B testing.

The decision of whether to activate third-party cookies for a particular site will be influenced by your experience with that site when the cookies are deactivated. If you find the user experience compromised, you may wish to enable them, even if just temporarily.

What else is changing?

Outside of developments within the Privacy Sandbox, Google has stated that it plans to offer additional privacy controls in the future.

One such proposed control is IP Protection, which anonymizes a user’s IP address to prevent it from being shared with third parties, thereby making cross-site tracking more difficult.

Google states that its intention is to offer it when users are Browse using Chrome’s Incognito mode.

At the time of writing, the feature is still in an early stage of development. Google has said that testing and launch timelines “will be determined in accordance with our commitments to the UK’s Competition and Markets Authority, and informed by ecosystem input.”

Summing up

Google’s decision to scrap the phase-out of third-party cookies underscores the ongoing challenges of balancing privacy, data collection, and ad effectiveness.

However, the shift toward privacy-first controls highlights the industry’s commitment to greater transparency and user control.

The publicity surrounding these changes may also be viewed positively, as it is likely to make users more aware of their options for protecting their privacy.

That said, the next few years are likely to introduce further confusion for users.

Some of this will arise as the Privacy Sandbox is developed. Additional uncertainty may stem from regulatory changes or future browser functionalities.

It’s also likely that Google will wait to see how users respond to the new controls in Chrome once they become available, which may determine the options it offers in the future.

In the meantime, online users are advised to familiarize themselves with the privacy options available in their most commonly used browsers and to check whether these options align with their preferred level of privacy. Those who find their browser lacking in this regard may consider switching to a privacy-focused alternative.

For advertisers and publishers, prioritizing first-party data strategies will be crucial. This means investing in direct relationships with audiences, leveraging subscription models, and creating personalized content that resonates with users.

Embracing these changes will take time and effort, but brands that demonstrate care and respect for their audiences are more likely to earn their trust and loyalty.