After multiple delays and much back-and-forth, Google’s third party cookies have begun their final crumble. On January 4, Google began testing Tracking Protection, a new feature that limits cross-site tracking by restricting website access to third-party cookies by default. This was rolled out to 1% of Chrome users globally, a key milestone in the tech giant’s Privacy Sandbox initiative to phase out third-party cookies for everyone in the second half of 2024, “subject to addressing any remaining competition concerns from the UK’s Competition and Markets Authority.”

In a blog post, Anthony Chavez, VP, Privacy Sandbox, said,“Third-party cookieshave been a fundamental part of the web for nearly three decades. While they can be used to track your website activities, sites have also used them to support a range of online experiences — like helping you log in or showing you relevant ads.”

“With the Privacy Sandbox, we’re taking a responsible approach to phasing out third-party cookies in Chrome. We’ve built new tools for sites that support key use cases, and provided time for developers to make the transition. And as we introduce Tracking Protection, we’re starting with a small percentage of Chrome users so developers can test their readiness for a web without third-party cookies.”

Beginning of the End 

As third-party cookies will be fully depreciated by Google by the end of 2024, brands will need to future-proof their digital marketing strategy by taking a multi-faceted approach to target and measure their digital ads, while respecting user’s privacy and data compliance. First, brands need to collect first-party data through loyalty programs, website personalisation tools, and opt-in surveys.

“This data, owned and controlled by the brand, will be crucial for creating targeted campaigns and measuring their effectiveness. Second, brands need to adopt contextual targeting strategies that involve placing ads on a website based on the content or a user’s recent search query rather than a user’s profile, keeping Thirdly, brands will rely on privacy-centric targeting methods like Google’s privacy sandbox API and unified ID solutions,” says Siddharth Dabhade, Global Commercial board member, MiQ.

Indeed, these changes will reflect across the ecosystem, with Shrenik Gandhi, Co-founder, Chief Executive Officer, White Rivers Media, pointing out that consumers can expect greater control over their data, with the ability to decide who has access and how it's used. As transparency and control become the norm, consumers may develop a more trusting relationship with brands that prioritise ethical data practices.

“Marketers, on the other hand, may need to pivot to first-party data and context, forging partnerships and reinventing measurement. Ads may evolve from intrusions to personalised interactions, enhancing online marketing efforts. From crumbs to creativity, the digital landscape opens up possibilities for a more privacy-focused and personalised future for both consumers and brands,” notes Gandhi.

Abhishek Maity, Co-Founder, Adbuffs, also believes that customers might experience fewer targeted ads leading to a more private online experience, as the deprecation will reduce the ability of brands in getting customers tracked across websites. This in turn will lead to increased awareness amongst customers, so they can make more informed decisions about the data they share.

Starting Over 

According to Himanshu Arora, Co-Founder, Social Panga, strategies may involve encouraging users to opt into data collection through incentives or improved personalized experiences.  Contextual targeting, AI-driven insights, and other emerging technologies will gain prominence," he says, adding, "Advertisers may shift towards creating compelling content and focusing on the context in which ads are displayed, as opposed to relying solely on user behavior data.”

Raghav Upadhyay, Head of Performance Marketing, Roisted, also believes the removal of third-party cookies, will cause significant shifts in consumer behavior as well as marketing strategies. “In the world of internet advertising, removing third-party cookies could be a challenge for brands. Consumers who are more familiar with online privacy issues are likely to appreciate the increased privacy measures.”

While brands will have to change their approaches to advertising, focusing more on first party data, looking into different ways to target consumers, and perhaps even working with platforms that protect user privacy. Experts agree that this move can offer chances for brands to be creative, adopt cutting-edge technology, and cultivate more open, privacy-focused connections with their customers.

“At MiQ, we have developed Identity Spine to help marketers realize the value of their first-party data without depending on cookies. It’s a data-heavy tool that stitches together multiple disparate ID’s from various third-party and first-party data sources into unified user profiles and households to help brands build, scale, and activate first-party data strategies,” adds Dabhade.

Shlok Hari, Group Head - Media, Sociowash, points out that with any such change also comes opportunity. “Two things that will play a pivotal role in the future are going to be first-party data through direct server connections and contextual targeting solutions. Meta, for instance, already introduced conversions API last year which reduces the dependence on pixel codes for tracking user data.”

In summary, the decline of cookies is likely to reshape the digital advertising ecosystem, prompting both consumers and brands to adapt. Indeed, brands and consumers will experience this transition together, but eventually, modified strategies and systems will cover up for any gaps that this cookie migration causes.