No More Cookies - Google's Privacy-Focused Web Standards
A closer look at a cookie-free future and what it means for consumers and advertisers
Third-party cookies are small pieces of data that websites store on your browser to track your online activity across different sites. They are widely used by advertisers and publishers to deliver personalized ads, measure campaign performance, and segment audiences.
However, they also raise serious privacy concerns, as they allow companies to collect and share sensitive information about users without their consent or awareness.
Google’s move to eliminate third-party cookies is part of a broader initiative called Privacy Sandbox, which aims to create a more privacy-friendly web that respects user preferences and protects personal data. Google claims that its new approach will offer better alternatives to cookies that are more transparent, secure, and fair for everyone involved.
The primary goal of Google's Privacy Sandbox initiative is to support online advertising by allowing the sharing of a limited set of user data without relying on third-party cookies.
Chrome is taking steps to limit third-party cookies by default for a small group of users (1%) for testing purposes, in line with their earlier announcements. This testing phase will gradually extend to encompass all Chrome users, reaching 100% by the third quarter (Q3) of 2024.
Not everyone is convinced that Google’s cookie changes will be beneficial for the advertising ecosystem. In fact, some fear that they will have negative impacts on advertisers, publishers, and consumers alike.
Critics contend that Google's decision to eliminate cookies is driven more by its corporate interests than genuine privacy concerns. According to them, Google will retain substantial access to user data through its own platforms like Gmail, YouTube, and Google Search, potentially giving it an unjust advantage over other advertisers and publishers dependent on cookies. Additionally, some skeptics raise doubts about the efficacy and transparency of Google's Ad Topics system.
Therefore, the answer to why Google killed cookies is not simple or straightforward. It involves a trade-off between privacy, advertising, and competition in the online ecosystem.
What is Google’s Private Sandbox?
Google’s Privacy Sandbox is an initiative led by Google to create web standards for websites to access user information without compromising privacy. Its core purpose is to facilitate online advertising by sharing a subset of user private information without the use of third-party cookies. The Privacy Sandbox has two main goals:
Phase out support for third-party cookies when new solutions are in place.
Reduce cross-site and cross-app tracking while helping to keep online content and services free for all.
The Privacy Sandbox proposes several new APIs that will allow browsers to act on the user’s behalf, locally on their device, to protect their identifying information as they navigate the web. The proposals are being developed in public forums, in collaboration with members of the industry and regulators.
Okay, what’s the alternative to Cookies?
Google is introducing a substitute for cookies known as Ad Topics or IBA - Interest Based Audience. This system categorizes users into specific interest "topics" based on their recent browsing activities on Chrome. These topics serve as a basis for displaying tailored ads to users, all while maintaining user anonymity and without divulging personal information. Google asserts that this approach prioritizes privacy and respects user preferences.
Benefits of Ad Topics
Preserves privacy by withholding browsing history and personal data from advertisers or other websites.
Provides increased control over ad preferences and settings.
Enhances browser performance and speed by minimizing the number of requests and data transfers.
Drawbacks of Ad Topics
Potential for less precision or effectiveness compared to cookies in delivering personalized ads.
Concerns about granting Google an unfair advantage over advertisers and publishers relying on cookies.
Criticisms regarding transparency and accountability for users and regulatory compliance.
There are other alternatives
Google has proposed several alternatives to third-party cookies, such as:
Federated Learning of Cohorts (FLoC): A method for grouping users based on their browsing behavior, without revealing their individual identities. FLoC allows advertisers to target ads to large cohorts of users with similar interests, rather than relying on individual profiles.
Federated Identity Management API (FedCM): A web API for privacy-preserving identity federation. FedCM allows users to sign in to websites using their existing accounts, without exposing their personal information to third-party providers.
Trust Tokens API: Now called Private State Token API is a web API for issuing and redeeming cryptographically signed tokens that can help combat fraud and abuse. Trust Tokens can be used to verify the authenticity of a user or a website, without revealing their identity or browsing history.
Conversion Measurement API: A web API for measuring the effectiveness of online ads, without linking them to individual users or devices. Conversion Measurement allows advertisers to track how many users clicked on their ads and completed a desired action, such as making a purchase or signing up for a service.
These are some of the examples of how Google envisions a cookie-free web in the next few years. However, Privacy Sandbox is still an ongoing project, and Google is working with the web community, regulators, and other stakeholders to refine and improve its proposals. Therefore, the final outcome may differ from the current plans, and there may be more changes and challenges along the way.
The Implications
A cookie-free web is a scenario where third-party cookies and other personal identifiers are no longer used for online advertising and tracking. This will have significant implications for both consumers and advertisers. Here are some possible impacts:
For consumers
They will have more control over their privacy and data, as they will need to give explicit consent for their data to be collected and used by websites and advertisers.
They will see less relevant and personalized ads, as advertisers will have less access to their behavioral and demographic data.
They will experience more friction and inconvenience, as they will need to log in or register more often to access content and services that were previously free or supported by ads.
For advertisers
They will face challenges in measuring and optimizing their return on investment, as they will have less data to track and attribute conversions and outcomes.
They will need to overhaul their advertising strategies and adopt new methods of targeting and reaching audiences, such as using first-party data, second-party data, contextual advertising, and interest-based advertising.
They will need to create and sustain strong consumer relationships and trust, while protecting the privacy of users and complying with data regulations.
These are some of the possible impacts of a cookie-free web, but the exact outcomes will depend on how the industry and the consumers adapt to the changes. A cookie-free web will require a lot of innovation and collaboration among different stakeholders to create a sustainable and effective digital advertising ecosystem.
What will a cookie-free future look like in the next 5, 10, & 15 years
In 5 years (2029)
Google Chrome, the most popular browser, will have phased out third-party cookies by 2024. This follows the steps of other browsers like Apple Safari and Mozilla Firefox, which have already blocked third-party cookies by default.
This will force advertisers and marketers to rely on alternative methods of identifying and reaching users, such as first-party data, contextual targeting, and consent-based solutions.
Users will have more control over their online privacy and data, but they may also face more frequent requests for consent and login. Publishers will have to balance between monetizing their content and respecting user preferences.
In 10 years (2034)
The cookie-free web will be the new normal, and the online advertising industry will have adapted to the new reality. New technologies and standards, such as federated learning of cohorts (FLoC), unified ID 2.0, and privacy sandbox, will have emerged to provide more privacy-preserving and effective ways of segmenting and targeting users.
Users will have more transparency and choice over how their data is used and shared, but they may also face trade-offs between personalization and privacy. Publishers will have to innovate and diversify their revenue streams, such as subscriptions, donations, and e-commerce.
In 15 years (2039)
The cookie-free web will be a mature and stable environment, where users, advertisers, and publishers will have reached a mutual understanding and trust. New technologies and standards will have evolved to address the challenges and opportunities of the cookie-free web, such as cross-device and cross-platform measurement, attribution, and optimization.
Users will have a seamless and customized online experience, but they will also have to be vigilant and responsible for their data and privacy. Publishers will have to provide high-quality and relevant content that attracts and retains loyal audiences.
Disclaimer: The insights presented and predicted here are based on current information and may be subject to change due to evolving external factors. The dynamic nature of the business environment suggests that projections and analyses could be altered in the future. Also, please note that the sources presented for reference do not directly correspond to the provided data; rather, they represent forecasted outcomes derived from the analysis and emphasis placed on the underlying data.