'Cookie Deprecation Was Always Overrated'
After news broke in July that Google was dropping its years-long plan to retire third-party cookies in the Chrome browser, marketers were thrown for a loop.
Background: After years of tests and multiple delays, Google scrapped its plans to join Safari and Firefox in blocking web trackers by default, which would have made it more difficult to track users across the web and deliver targeted ads. Instead, Google will now have users choose.
In a July 22 blog post, Anthony Chavez, vice president of Privacy Sandbox (an initiative Google created to phase out support for third-party cookies), wrote, “Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time.”
Naturally, marketers had much to say about Google's change of plans as many prepared for a cookieless future for years. For many, a loss of third-party cookies meant a loss of personalization capabilities and, ultimately, a need to find alternative solutions to deliver relevant and targeted messages.
Now, with Google ditching its plans, we asked industry leaders what this means for the commerce marketing community?
Here’s what they said:
“The fundamental truths haven’t changed: trusted first-party data performs better than third-party cookies. In a world where every ad dollar needs to work harder, the trajectory for retail media remains the same. Brands and publishers – including CTV and social media – will keep looking to retail signals for both relevant audiences and sales attribution.”
— Brian Spencer, Marketing Director, Kroger Precision Marketing
“Google's reversal of its cookie-less future means brands might be forced to balance their investments in alternative IDs with a return to cookie-based approaches. From our perspective, retailers and advertisers should also be building foundations based on first-party data instead of third-party data as it allows them to better understand shoppers and learn about their real customer bases rather than approximations of audiences. That’s exactly how we operate at CVS Media Exchange – our strategy has always been focused on gleaning insights from high-fidelity, first-party front store data from more than 74 million ExtraCare members. This places us in a strong position to deliver personalized communications, driving maximum value and brand growth for our supplier partners. This news reaffirms the value of our current approach and underscores the importance of first-party data in the evolving landscape of commerce marketing. Despite this reversal, the trend toward greater data transparency and user control remains paramount.”
— Parbinder Dhariwal, VP, General Manager, CVS Media Exchange
"There’s no better time to continue testing and learning with alternative solutions for retailers especially. If anything, the news gives advertisers more time to understand the impact and ensure their paid media efforts are effective. Retail data poses a value to consumers to receive relevant ads that support their purchasing needs. It also incorporates the ability to measure what works and what doesn’t. The future of the advertising ecosystem will require multiple identity solutions (for instance, at Goodway Group, we’re exploring the efforts our partners at Criteo have done)."
— Andrea Kwiatek, Director, Strategic Partnerships, Goodway Group
“The Future is Now: While Google's recent announcement may provide temporary relief, it's vital not to lose sight of the bigger picture. Modern marketers and commerce leaders should maintain focus on strategies that move away from relying on third-party cookies, such as prioritizing first-party data collection and building direct relationships with customers. These are the essential building blocks for long-term success in the ever-changing digital landscape.
Privacy is Key: Regardless of the perceived fate of third-party cookies, privacy concerns are here to stay. Consumers expect transparency over their data and are more in tune with how brands and the products they love handle this sensitive topic. Brands that prioritize privacy-centric solutions and build trust with their customers will have a significant advantage in the evolving market.
Embrace Change: This is just another example of how marketing tech and measurement capabilities are constantly shifting. To thrive, marketers must adopt a mindset of continuous learning and adaptation. Don't get too comfortable with the status quo – always be on the lookout for ‘what's next’ to stay ahead of the ‘now.’”
— Carter Jensen, Senior Manager, Digital Strategy, General Mills
“Google's position reversal on cookie deprecation should have minimal impact on the growth of commerce media. To begin with, cookie deprecation was always overrated as a driver of commerce media growth — in the past, I called it only a 'mild accelerant' to the trend. For one, it impacts only off-site retail media, and within that segment only open web programmatic.
Secondly, the benefit of retail data powering open web display and video has always been predicated on having better data than what currently exists with behavioral advertising. That is still very much the case, so dollars should still gravitate in that direction over time--albeit a bit more slowly as brands rely on cookies longer than they would have otherwise.
Lastly, it appears likely that Google will require an opt-in for tracking, which would still have the effect of diminishing cookie coverage and making cookie-based targeting increasingly impractical. The net effect of all these factors is that the change in policy is likely to only impact commerce media growth on the margins and in a way that is largely unnoticeable in a sector expected to continue growing around 20% annually.”
— Andrew Lipsman, Independent Analyst & Consultant, Media, Ads + Commerce
“As a digital marketer, I welcome this news. We can maintain the best of both worlds.
The looming fear of cookie deprecation accelerated the demand for audience identity technology and solutions. Retailers and corporations refocused efforts on their CRM data and tech stacks. They are now better able to provide valuable and relatable experiences for their consumers across devices and platforms.
The prominence of the cookie is a result of its long-standing success. Agencies and brands heavily rely on ad serving, ad verification, and site tagging data to provide them with campaign and behavioral insights (e.g., frequency, retargeting, site usage etc.).
For those of us obsessed with enhanced targeting, advanced analytics and measurement – bringing cookie and cookieless data together gives us an immersed view of consumers. This in turn drives results and efficiencies in strategy and media.”
— Dalia Youssefi, VP, Retail Media and Data Strategy at Mars United Commerce
"Despite Google's about-face on third-party cookie deprecation, consumer privacy control remains a driving factor in the evolution of our industry. As consumers continue to take advantage of the increased ability to opt out of tracking while simultaneously expecting more personalized digital experiences, developing methods to collect and leverage first-party data on active consumers remains an important priority for marketers."
— Patrycja Malinowska, Director of Retail, Path to Purchase Institute
“The privacy genie is out of the bottle: marketers have already found cookieless, privacy-safe ways to connect data for insights, activation and measurement. With ever-evolving privacy regulations and a shift toward more opted-in tracking, old school cookie syncing won't return.
Commerce media networks are highly reliant on reaching ‘offsite’ audiences that go beyond web browsers, such as social media and CTV walled gardens. We believe data connectivity is key to delivering accurate audiences across digital channels, while the ability for identity services to operate natively in the cloud ensures privacy and compliance.”
— Mark Rose, Senior Director, Strategy and Development, TransUnion Marketing Solutions
“Google dropping its plans will not reduce the need for brands to collect customer data, but will allow brands to breathe a sigh of relief that select third-party data as well as zero and first-party data is still available, which is critical for personalization. Consumer promotions and loyalty programs continue to provide a wealth of purchase and behavioral data for customer engagement and personalization. Also, as customers become increasingly aware of the value and power of their data, brands need to work toward meeting their needs in exchange for this data.”
— Atul Sabharwal, CEO, Snipp
"Cookies have been with us for a long time, and while less useful at this point in the evolution of targeting, they still play an important part in the digital ecosystem, especially for the financial health of content publishers. Identity-based commerce and first-party data may well eventually displace cookies, but some tech or enablers last a lot longer than one would think. For the commerce marketing and retail media industry, some entities will continue to rely on cookies for the foreseeable future, so I see it as a reasonable decision from Google. But the best thing a retailer or advertiser can do is to develop direct, trusted relationships with their core and occasional customers." — Matt O'Grady, President, Americas, Dunnhumby