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Google's cookie conundrum: What comes next?
Google's revised approach to third-party cookies shouldn't come as a surprise, and may also be welcome
Google’s approach to cookies shouldn’t come as a surprise. It’s been delaying the elimination of cookies for quite some time. This latest move is actually a very clever strategy. Instead of outright killing cookies and facing backlash from advertisers, Google is making cookies easily disabled throughout Chrome browsers, potentially with just a simple toggle. This effectively reduces the available cookie pool data across the whole web, thus diminishing the effectiveness of cookies without officially eliminating them.
This approach will help transition marketers who have been reluctant to embrace alternatives like FLoC (Federated Learning of Cohorts) that Google had previously proposed. It’s worth noting that prior studies, such as those related to GDPR implementation and Apple’s device-level tracking options on iPhones, have shown that when given a clear choice, people overwhelmingly opt out of tracking. This trend suggests that Google’s new approach is likely to significantly reduce cookie effectiveness across the web.
After years of hearing about the “demise of the cookie,” this change has significant implications for brands and consumers alike. Here’s what you need to know.
The shift: Customers in control
Google’s strategy is clever. By empowering consumers to opt out of cookies easily, it places the responsibility of killing cookies on the users. Imagine logging into Google Chrome and being asked, “Do you want cookies to follow you around the internet and share that with brands?” Most people are likely to say no. And, if 80 to 90% of users decline, cookies will be dead, but in a way that allows Google to sidestep the backlash from advertisers who have been slow to agree on alternatives to cookies.
What does this mean for consumers and marketers?
These are the three biggest changes:
Enhanced privacy control: We will all now have more control over our data. This means we can easily opt out of tracking, and marketers will need to respect these choices and find new ways to engage with their audience.
Zero-party data becomes king: As third-party cookies become less reliable, we can expect marketers will be focused more on how to gather valuable first-party data. Known as a zero-party data approach, you can expect more brands to create better opportunities for customers so they will instead willingly share information through AI-powered tools like chatbots, search, and other dialogue-based solutions.
A larger role for conversational AI: With conversational AI, it is going to become far simpler to manage privacy settings and engage in more meaningful interactions with brands. This technology will be another way zero-party data is gathered respectfully, which can then be converted into valuable first-party datasets for brands with customer permission.
How will brands adapt?
Whether customers opt out of cookies or not, there are a few key things we might expect brands to do to adapt.
Invest in AI and machine learning: AI can help create personalised experiences without relying on cookies. Using AI-powered dialogue systems engages customers on their journey, allowing them to freely share data (zero-party data). This information helps businesses understand customer needs and provide enriched personalised experiences.
Build trust through transparency: We’re going to see much more clear communication about how brands collect and use your data. As customers engage with AI-powered solutions and share zero-party data, it’s important brands are transparent about how this information benefits them. This builds trust, increasing the likelihood of customers granting permission to convert their shared information into valuable first-party datasets.
Read more about Google's cookie strategy
- Following many delays and an alternative still in development, Google has relented to advertisers on the timing of depreciating third-party cookies.
- The end of third-party cookies was on the horizon for years. For marketers, this termination meant finding new strategies and alternatives to third-party data.
- Google planned to kill third-party cookies, but in July 2024, those plans changed. What does this mean for marketers?
Embrace zero-party data collection to build first-party datasets: Encourage customers to share their preferences and feedback directly through interactive content, personalised recommendations, and AI-powered conversations. Use these interactions to gather insights and, with permission, build robust first-party datasets.
Enhanced customer experiences: As brands want consumers to share data differently, the focus is going to be on creating seamless and more enjoyable experiences, especially within AI-powered dialogue systems. The better the user experience, the more likely customers are to engage, share zero-party data, and ultimately grant permission for first-party data collection. It’s a win-win for consumers and brands.
The future of marketing in a cookie(less?) world
Google’s move is ultimately creating an opportunity for all marketers to rethink how they interact with consumers while enabling more privacy freedoms. Moving beyond reliance on third-party data will create more focus on building direct, trust-based relationships with consumers using zero-party data approaches to gather first-party data.
Brands can tailor their marketing strategies based on real-time conversations with audiences. This is going to ultimately spark more valuable exchanges that benefit both parties. As a result, customers freely share information (zero-party data) during their journey, and this can be used to inform better and more personalised experiences that respect customer privacy while building a robust first-party database.
Christian Ward is chief data officer at Yext, a New York-based digital presence management platform
