Google just set the date for when it will kill third-party cookies. Here’s how advertisers’ retargeting strategies could change.

Sundar Pichai

Google is rolling out new privacy controls in its Chrome browser and plans to eliminate third-party cookies in the next two years, the company wrote in a blog post Jan. 14.
The change will most likely make advertisers resort to less-targeted ads via first-party data or contextual targeting based on what people are reading.
The change comes as Google and other advertising companies face privacy laws like California’s Consumer Privacy Act and Europe’s General Data Protection Regulation.
With their own first-party data, so-called walled gardens like Google, Facebook, and Amazon could gain more control over ad budgets.
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In the face of growing privacy concerns and regulatory scrutiny, Google plans to crack down on third-party cookies in its Chrome browser, leaving advertisers with lots of questions.

After announcing in 2019 that it would enable people using its Chrome browser to block ads that use third-party cookies, Google said in a blog post Jan. 14 that it would eliminate third-party cookies altogether by 2022. Third-party cookies help advertisers target digital ads, and Google’s move has big ramifications for dozens of ad-tech companies that help marketers with that kind of targeting.

“Users are demanding greater privacy — including transparency, choice and control over how their data is used —and it’s clear the web ecosystem needs to evolve to meet these increasing demands,” Justin Schuh, director of Chrome engineering, wrote in the blog post.

In place of third-party cookies, Schuh wrote that Google is working on its “Privacy Sandbox,” which is aimed at developing standards and tests for cookie-less advertising. He also described Google’s move as less “blunt” compared to how browsers like Apple’s Safari block third-party cookies. Google said it would start testing cookie-less advertising by the end of the year to measure conversion and personalization.

“Some browsers have reacted to these concerns by blocking third-party cookies, but we believe this has unintended consequences that can negatively impact both users and the web ecosystem,” Schuh wrote. “By undermining the business model of many ad-supported websites, blunt approaches to cookies encourage the use of opaque techniques such as fingerprinting (an invasive workaround to replace cookies), which can actually reduce user privacy and control. We believe that we as a community can, and must, do better.”

How the changes could benefit Google

Google’s move may encourage advertisers to use its own first-party data like log-in information or email addresses to target ads along with spending on first-party data measurement, including, of course, Google’s technology.

Google may also pitch advertisers its own audience segments that are based on its first-party data collected from search, Gmail, YouTube, app downloads, and visits to publishers that run ads through the Google Display Network.

Marketers say Google’s move could cause the same privacy headaches that marketers have with the European Union’s General Data Protection Regulation and California’s Consumer Privacy Act.

Google’s audience segments are based on its own data and are not as expansive as data provided by third parties, Jason Hartley, SVP and national head of search at 360i, …read more

Source:: Business Insider


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