December 25, 2024

Programmatic

In a world where nearly everyone is always online, there is no offline.

Google’s cookie backflip has us talking for all the wrong reasons

Marketers may have been relieved to hear Google finally changed its mind on deprecating third-party cookies, but Tom Acheson-Gray, Head of Performance and Data at D3, believes this reversal is no reason to change course.

Google recently changed its mind on deprecating cookies. The question is – why do we actually care?

After years of umm-ing and ah-ing following the initial announcement that Google would be deprecating third-party cookies by 2025, it has finally opted for a much more palatable solution to focus on user experience rather than a blunt elimination. 

Despite all the many signs (ie. constant delays) pointing towards the fact this would eventually happen, this announcement still sparked a flurry of reactions across the marketing world. However, savvy marketers shouldn’t be swayed by this change in direction. 

The truth is, third-party cookies have been a flawed system long before Google’s initial announcement, and this backflip doesn’t alter the fundamental issues that have plagued this space for years. 

Third-party cookies have been the backbone of digital marketing, enabling targeted advertising and tracking user behaviour across the web. But this method has always had significant shortcomings. 

Cookies are inherently unstable, easily deleted by users, and increasingly blocked by browsers concerned with privacy. The cookie will still crumble, but this time it won’t be because of Google’s policies, but due to its inherent weaknesses.

The recent announcement from Google shouldn’t lead marketers to fall back on old habits. The deprecation of third-party cookies was, in my opinion, a wake-up call that prompted the industry to innovate and develop more robust, privacy-centric solutions. 

What does need examining, however, is the wider long-term consequences this will have on the industry, particularly in New Zealand, which, for better or worse, somewhat lags behind the rest of the world in privacy legislation updates.

When I first moved to New Zealand from the UK last year, it was with all the experience that living in a market affected by the GDPR gave me. New Zealand did introduce an updated Privacy Act in 2020, but it differs in a few key areas from the GDPR – the latter of which being extremely impactful on how the world regards data privacy and online consent. 

I would encourage all marketers to get up to speed with what the local legislation is, as it is probably safe to assume that many of us here have largely depended on guidance from major platforms like Google when it comes to online privacy. This dependency now faces scrutiny.

New Zealand businesses must recognise that Google’s indecision underscores the need for a more proactive approach to privacy and data management. Relying solely on platform-driven policies is no longer viable. Legislation is a good start, but businesses should also look to global best practices and continue to innovate independently of Google’s shifting strategies.

We also need to consider the fact that Google’s announcement about cookies years ago posed a great challenge to the industry – a challenge that a number of businesses have since been born to solve. 

We have seen a wave of innovation in the martech world, dedicated to providing businesses with the options they need in a cookie-less world. These businesses are not going away. On the contrary, their relevance has only increased as they provide sustainable alternatives to third-party cookies.

From first-party data strategies to advanced contextual advertising, it’s these innovations that really represent the future of digital marketing. The businesses that provide a value exchange for their customers’ first-party data are the ones that are thriving, and will dominate in the future. 

A good example of this is loyalty points cards for supermarkets. These provide their marketers with rich data sets for targeting and product recommendations, with customers receiving the value of loyalty rewards and discounts.

Finally, I would like to see Google’s flip-flopping as something of a learning moment for any business. Trust is crucial in the relationship between platforms and businesses. With this latest move, Google has shaken that trust, highlighting the risks of over-reliance on any one company for critical aspects of digital strategy.

One thing we do tend to forget, however, is that Google was actually following in the footsteps of Apple and Firefox, which were already making moves against third-party cookies. But Google Chrome is used much more widely, which made its announcement so much more alarming. 

That’s why the news felt like it was shaking the very foundations of modern marketing. It was a reminder that the digital landscape is always changing, and we shouldn’t take anything for granted. Instead, we need to be proactive, anticipate changes, develop flexible strategies, and diversify our tools and tactics. 

Dependence on big platforms like Google should be balanced with investments in independent, reliable, and innovative solutions.

Third-party cookies have always been a flawed foundation for marketing, and their eventual decline is inevitable, regardless of Google’s decisions. Marketers in New Zealand and globally should continue to pursue new, privacy-focused strategies, test to validate their tactics, and not revert to a technology which will be phased out eventually anyway.

After all, as the old adage goes, the only constant we have is change. It’s those who will embrace this change that will be best positioned to thrive. 

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