Google finds a new cookie recipe; brands plan new taste tests

By Priyanka Nair , Director - Brand Solutions, GOZOOP Group

A wise man once said, "Promises are meant to be broken," and Google has been taking that seriously. In 2020, the tech giant announced plans to phase out third-party browser cookies in Chrome. Four years and several delays later, Google has a new approach. Instead of deprecating third-party cookies entirely, Google plans to introduce a new Chrome experience that will allow users to make informed choices about their web browsing data.

Some experts believe this move is Google's attempt to mimic Apple's strategy of eliminating third-party tracking on its devices. Others view it as a consumer-driven shift towards privacy. Regardless of the inspiration, only time will tell if Google's new approach is effective.

Interestingly, Forrester's Marketing Survey, 2024, found that 61% of B2C marketers didn't believe Google would actually deprecate the third-party cookie. This recent announcement, therefore, isn't entirely surprising to the industry. Advertising veteran and former Global Head of Digital at GroupM, Rob Norman , believes the cookie never was a silver bullet and its survival merely delays the inevitable.

“Marketers still need to become independent of individual ‘person’ level identifiers," Norman told GOZOOP. "This means better collection of permissioned first party data, better collaboration between advertisers and publishers and better deployment of proprietary corporate data in the bid stream." 

So, what should advertisers do now?

Since 2019, Google has been developing its Privacy Sandbox initiative to enhance online privacy while supporting digital businesses. However, Sandbox has faced controversies in various markets and isn't yet foolproof. As a result, advertisers worldwide have been exploring alternative data models to achieve their business goals.

Shashank Srivastava , Member Executive Committee, Maruti Suzuki India, personally thinks the new Google system will allow users to select their tracking preferences across Google’s search products. He also thinks this probably will take care of the demerit of unwanted tracking leading to privacy issues that made consumers wary of the earlier system. 

“If done well, this could be positive to those marketers who lack the ecosystem of building first party data either because of investment constraints or due to business size. For most businesses it would probably be better to build first party data as this is not only comforting to their consumers but also enables marketers to take a long term view of their marketing framework irrespective of future changes at search engines policies,” he says.

Ahmed Aftab Naqvi , Global CEO and Co-Founder of GOZOOP Group has similar views. According to Naqvi, if marketers and publishers are already collecting data with the users consent, they needn’t worry about Google’s new experiment. “For those who haven’t put in this model, they should immediately. To gain authentic audience insights, create a personalized experience for your users, improve retargeting strategy, identify patterns and predict future trends, first party data is the most important and least expensive option. There are multiple creative ways to achieve this while still maintaining and in some cases increasing  brand love” he adds.

However, there is more to this. It is important to note first-party data is limited to information collected directly from consumers on a brand's own platforms. To gain a broader understanding of consumer behaviour, second-party (2P) data can be valuable. Experts told GOZOOP that 2P data can provide scalability and insights into consumer activities outside of a brand's platforms. This information can help brands identify shopping patterns, interests, and content preferences, leading to more targeted campaigns.

A study by Accenture revealed that 73% of Indian consumers are willing to share personal data if they trust the company and its commitment to data privacy. Additionally, 71% of consumers are more likely to shop with companies that have strong data protection policies.

Therefore, a balanced approach that combines first-party, second-party, and third-party data is essential for developing effective ad campaigns, even as Google will continue to evolve its cookie policies.