Google’s recent announcement that it will not fully deprecate third-party cookies has sent shockwaves through the digital advertising industry.
Instead, Chrome will introduce a new mode that gives users control over data sharing.
While this decision offers a temporary reprieve for advertisers and publishers heavily reliant on third-party data, it also underscores the need to adapt to a privacy-centric digital landscape as private technology evolutions, although unpredictable, continue to prove value.
What does Chrome’s cookie update mean for Advertisers and Publishers?
The decision to retain third-party cookies, albeit with user consent, is a complex one.
While it provides a short-term buffer, the long-term implications are far-reaching:
- Decreasing reliance on third-party data: XPON predicts a significant decline in the number of users who will opt-in to third-party tracking. This will force advertisers and publishers to explore alternative data sources and privacy-first measurement strategies regardless.
- Increased complexity: The new Chrome mode introduces additional layers of complexity for advertisers and publishers. Understanding and navigating user consent preferences will require a distinct and aligned privacy, technology and data strategy.
- Accelerated privacy-first strategies: The writing is still on the wall: a privacy-first future is inevitable. The industry must accelerate its adoption of privacy-preserving technologies and data strategies.
So does it really change anything? Not really.
What Australian Leaders are already saying about the change
The market’s immediate reaction to Google’s announcement has been mixed.
While some have welcomed the decision to delay cookie deprecation, most have already moved on.
As Mi3’s article highlights, a significant portion of Australian marketers anticipated this outcome but will continue to move forward investing in first-party data strategies.
Media companies like Nine, Seven, and News Corp have made substantial strides in building their own data infrastructures, reporting impressive results in terms of audience engagement and return on ad spend.
However, the industry remains cautious. Concerns persist around the effectiveness of Google’s proposed consent model, with questions about whether it will genuinely give users control over their data or simply create new opportunities for data collection.
Additionally, the potential impact of upcoming privacy regulations in Australia adds another layer of complexity for businesses navigating the evolving landscape.
XPON’s client OFX is a prime example of a business that has successfully transitioned to a privacy-first ecosystem.
By focusing on building deeper customer relationships and leveraging AI-powered insights, OFX has achieved significant growth in new customer registrations, reduced customer acquisition costs, and improved overall ad performance.
The path forward: Embracing privacy and first-party data will pay dividends
The future of advertising and publishing lies in data privacy, personalisation, and customer relationships.
XPON believes that the best way forward for advertisers and publishers is to:
- Embrace privacy-preserving technologies: Invest in solutions that enable effective marketing without compromising user privacy.
- Leverage AI-powered solutions: AI can help unlock the value of first-party data and drive more personalised customer experiences.
- Build stronger customer relationships: Focus on collecting and activating first-party data to create deeper customer connections.
XPON’s guidance to advertising partners remains steadfast: prepare for a cookieless future by embracing innovation, leveraging AI, and prioritising customer relationships.
While Google’s decision to retain third-party cookies may provide temporary relief, it reinforces the need for a fundamental shift in the industry, and as highlighted by The IAB Australia, Google’s Privacy Sandbox APIs will have continued importance for effective ad campaign management and measurement.
Those who can adapt to a privacy-first world and harness the power of first-party data will be best positioned for long-term success.
XPON is committed to helping businesses navigate this evolving landscape. Contact us to learn more about how we can help you.