Google abandons cookies plan: APAC experts weigh in

After four years of efforts to phase out cookies, Google has decided to keep them in its Chrome browser. Instead of eliminating cookies, Google will now offer users a new experience in Chrome that allows them to make an informed choice regarding their cookie preferences, which they can adjust anytime.

This decision prompts businesses worldwide, which had been preparing for a future without cookies, to rethink their strategies again. Although this shift might seem sudden, it follows a series of delays and setbacks. 

Google first announced its intention to remove cookies in 2020, with an initial phase-out target of the following year. However, the plan faced significant resistance from advertisers and close scrutiny from regulators worried about potential anti-competitive impacts, leading to repeated postponements.

Campaign speaks to industry experts to find out what Google’s decision means for advertisers in Asia Pacific and the industry at large.

Ash Dharan
Head of paid media, Australia
NP Digital

Is this a smart decision by Google?

Given the intense scrutiny from the UK's Competition and Markets Authority (CMA) and the Information Commissioner's Office (ICO), particularly the 39 “unique concerns” raised by the CMA in January, it's in Google's best interests not to proceed with the Privacy Sandbox. The Privacy Sandbox, proposed as a replacement for third-party cookies, has had a controversial history, with some research suggesting it might infringe on privacy laws. Therefore, pausing the deprecation of cookies seems prudent for now.

How does this impact APAC specifically?

The delay in cookie deprecation offers APAC marketers a prime opportunity to innovate and lead in privacy-centric strategies. By focusing on customer privacy, localised compliance, and advanced technologies like AI and ML, they can enhance targeting and personalisation without relying on third-party cookies. This shift encourages industry collaboration and the adoption of contextual advertising, positioning APAC as a leader in transforming digital marketing practices.

What impact does Google’s decision have on adland in the short and long-term?

Many in the advertising industry feared that moving from third-party cookies to the Privacy Sandbox would negatively affect digital advertising. Criteo research indicates a potential 60% drop in publishers' ad revenue.

However, the latest announcement is unlikely to have a significant immediate impact. The industry has grown accustomed to delays in cookie deprecation and has been preparing for data loss since 2020. In the mid-to-long term, we can expect a further shift towards contextual placements, compelling advertisers to focus on the value they provide to users, partnering with publishers who have already built deep first-party data, and an increase in the deployment of advanced attribution models.

Madelin Farrington
Head of client solutions, APAC
Kinesso

How does this impact APAC specifically?

APAC is a unique region often funded based on smaller country-level budgets needed to justify fast performance. The over-reliance on third-party cookie-enabled tracking and measurement only perpetuates this vicious cycle. Brands become hooked on the drug of bottom-funnel performance, often leading to over-investment in walled gardens due to the illusion of low-cost performance metrics.

How will small and large businesses need to pivot their strategies as soon as possible to adapt? 

Whether Google or the broader landscape continues to support third-party targeting and measurement, the choice to participate is entirely up to us. However, a lack of inaction will make your brand a liability in the long run. Four actions that brands can take to move forward:

• Brands should invest and prioritise in 1st-party insights. 
• We know that 99% of audiences do not click on display banners. Shifting to attention-based metrics ensures that we plan primarily with the intention of ads being seen, not attempting to influence behaviour that is proven not to exist. 
• Move beyond CPA/Click metrics and look at performance indicators that reflect the total impact of their campaigns. On-site conversions typically come at the cost of quality media placements and targeting, indicating inflated performance. If performance is too good to be true, it probably is. 
• Explore new techniques, such as predictive AI targeting for performance or intentional placements.

Suz Chaplin
Founder and CEO
ESBConnect

 

What can we expect to see from Google next regarding privacy now that cookies are staying?

Google’s announcement to stop the deprecation of third-party cookies may seem a shock for many, but you could argue it was a shrewd move. It was clear they were in for a challenge, with fierce feedback from industry regulators and groups like the CMA and the ICO.

In the short term, there may be breathing space for the industry, particularly for publishers, but in the long term, everyone should continue to invest in first-party data. Privacy concerns will only increase, so it’s unwise to depend on a solution that is out of your control. We have seen signal loss across all major platforms (e.g. Meta and Apple), and this will only continue. What’s more, first-party addressable data and other methods of targeting will continue to drive higher performance than cookies.

Whether large corporation or SME, your focus should be on how you educate your consumers on the value you bring and how you respect their privacy. Changes to privacy requirements can come from anywhere—ICO, Google, Apple—and so it’s our job to remain consistent and to resist seeing this reversal as a signal to return to what was comfortable.

Google says it will give consumers a choice by ‘letting them make an informed choice that applies across their web browsing, and they are able to adjust that choice at any time’. If they follow Apple, this may be a pop-up on Chrome on first use, which won’t prompt the user to change if they choose to reject at first, despite having the ability to. This could, therefore, have the same impact as cookies being removed.

In APAC, Chrome is still the dominant browser, so believing this change will safeguard your marketing is short-sighted. Privacy changes from Chrome will be coming and you need to continue to commit to developing a first-party strategy.

Joshua Kennedy-White
Director
DivisionX Global

 

How does this impact cost for CIOs who factored a cookies phase-out into their budgets and from a data infrastructure point of view?

CIOs who had planned significant investments in transitioning away from third-party cookies can now pause these expenditures, resulting in immediate cost savings. Funds initially allocated for new data infrastructure and compliance measures can be redirected or delayed. Existing systems that support third-party cookies remain relevant, avoiding additional expenses for transitioning to new systems. This pause gives CIOs more time to strategically plan for an eventual transition to privacy-preserving technologies, allowing for a more phased approach. Instead of rushing to meet an immediate deadline, they can consider the 'if' rather than the 'when' of third-party cookie deprecation, leading to potentially more cost-effective and measured investments.

What impact does Google’s decision have on adland in the short and long-term?

The decision to retain third-party cookies highlights how we have forward-traded our privacy, giving away something we were often unaware we valued or understood. The implications are significant, as personal data collected through these cookies can be used in highly targeted ways. We all remember the story of Target sending teenagers targeted mailers with baby product coupons. Outraged, the girl's father saw the mailers and went to a Target store to complain. He later apologised to the store manager after learning his daughter was pregnant. Based on her online search habits, Target's algorithm had identified her pregnancy before her family knew about it. One can only imagine how pervasive this knowledge is 12 years later.

Filippo Gramigna
Co-CEO
Onetag

 

What can we expect to see from Google next regarding privacy now that cookies are staying?

As an early tester and contributor to Privacy Sandbox we look forward to continuing to work with Google on those APIs and providing ongoing feedback. The industry will be waiting for the implementation specifics on how Chrome introduces the user choice option, including how this can be changed at any time. The nature of the execution and ease with which users can alter their preference will have a significant bearing on the result.

David Nelson
Co-founder and CEO
Limelight

 

Is this a smart decision by Google?

There is a common belief that Google and other whales of ad tech have a skillfully crafted master plan. In some way, their executives and senior directors have insight and abilities that minnows don't possess. Yet repeatedly, these whales demonstrate that this is not the case. It's time ad tech woke up to the fact that following a whale will only get you into deep water.

No motive exists here other than Google acting in the best way for Google today. I am sure that a new decision will be made as soon as Google thinks a new direction is best for them. I don't mean that as a criticism, just a statement of reality. We can't and shouldn't expect Google to do anything else. So why do we think that they will act differently? Why are so many publishers, agencies and ad tech firms so eager to follow in their wake? The answer is simple, of course: it's money. Yes, this is a sensible decision by Google. It gives them options for when they are possibly broken up, and they are sensibly hedging their bets.

What can we expect to see from Google next regarding privacy now that cookies are staying?

This overwhelming control of ad spending is terrible for our industry, and I hope we will see a future where the Google we know today is broken down into its constituent parts. I don't wish Google any damage, but hope for a more open and cooperative digital marketing world. One where standards of all kinds are governed by the whole industry, not dictated to by one company.

Will Harmer
Chief product officer
Utiq

What can we expect to see from Google next regarding privacy now that cookies are staying?

Google's choice not to universally deprecate third-party cookies but to offer users the option to decide whether to keep them aligns with Utiq’s mission to provide user consent and control over their data.

However, this move creates a chaotic consumer experience. Users who opt out of third-party cookies will still see consent requests on websites, although the technologies will not actually function. Privacy should be a default setting.

The critical factor will be how Google presents cookie choices. Given the low opt-in rates for Apple’s App Tracking Transparency (ATT), the proportion of users with third-party cookies enabled will plunge below 10%, making them almost obsolete anyway.

But non-cookie-based tech faces a significant challenge. The deprecation of third-party cookies would have represented an immediate reset of all cookie-based campaign spending for frequency, targeting, and optimisation. Now, advertisers will likely shift gradually over time as cookies become increasingly absent.