Tag: Third-party cookies

After multiple delays and continued discussion about third-party deprecation, Google has announced that it is shelving its plans to phase out third-party cookies. However, it is also worth noting that Google is introducing another solution for Google Chrome, focusing more on a new experience in Chrome that lets people make an informed choice that applies across their web browsing.

“Early testing from ad tech companies, including Google, has indicated that the Privacy Sandbox APIs have the potential to achieve these outcomes. And we expect that overall performance using Privacy Sandbox APIs will improve over time as industry adoption increases,” Anthony Chavez, VP at Privacy Sandbox at Google said.

He further added, “As this moves forward, it remains important for developers to have privacy-preserving alternatives. We’ll continue to make the Privacy Sandbox APIs available and invest in them to further improve privacy and utility. We also intend to offer additional privacy controls, so we plan to introduce IP Protection into Chrome’s Incognito mode.”

With that in mind, the question is: how prepared the industry is in terms of leaning towards more privacy-centric advertising solutions? Are we really prepared to let go of third-party cookies despite Google still having it? To answer these questions, MARKETECH APAC sought insights from various industry leaders to learn more about their insights from this update, and why should the industry continue to strive away from third-party cookies.

Stephen Rhodes, Head of Emerging Markets, APAC at Quantcast

In the context of the Philippines as an advertising market, it’s important to recognise that Google’s announcement does not change the fact that a significant portion of the online landscape is already “cookieless.” Marketers must not overlook this substantial and evolving audience, as it represents a crucial opportunity in today’s digital ecosystem.

Third-party cookies were never intended for advertising purposes anyway, and they are certainly not a reliable means of measurement in a world where consumer preferences can change rapidly across channels in real-time. 

Businesses that no longer see the removal of third-party cookies as an issue are the ones who are actually ahead of the situation. Marketers who continue to rely on third-party cookies will effectively only be able to target 50% of their addressable audience as the rest are already browsing in “cookieless” environments such as Safari.

Genelle Hung, Country Manager (SEA) at PubMatic

At PubMatic, we are dedicated to enhancing user privacy while ensuring the vitality of the digital advertising ecosystem. Publishers must continue adopting diverse signals beyond third-party cookies. Google’s decisions and timelines should not hinder our industry’s progress toward a superior supply chain for digital advertising across the open internet. We have seen that alternative signals can provide better outcomes for advertisers and consumers alike and help provide a more sustainable addressability strategy.

We value the collaborative efforts across the industry, including Google’s responsiveness to feedback, and are eager to help shape a more effective, privacy-focused digital advertising landscape. We understand that APIs must evolve in light of Google’s announcement, and we will continue partnering with our peers to inform the specifics and timing. Throughout this transition, PubMatic’s goal remains supporting publishers in maximising revenue while respecting user privacy.

Niall Hogan, General Manager for JAPAC at GumGum

The industry shouldn’t interpret Google’s delay as a reason to abandon privacy-centric advertising. Consumer expectations are clear: they want control over their data and transparency in its usage. This situation presents a golden opportunity for contextual advertising, which should be the primary focus. 

Unlike third-party cookies, contextual advertising employs a privacy-first approach by analysing the content of a webpage rather than user behaviour to deliver relevant ads. This method respects user privacy and aligns with their preference for a non-intrusive experience. As consumer awareness of data privacy continues to grow, it is crucial for brands to enhance transparency and build user trust by clearly communicating their data practices and providing users with control over their data.

[Moreover] Google’s new solution remains a question mark. Their focus on “user experience” and “informed choice” sounds promising, but it’s unclear how it will balance privacy with ad effectiveness. The industry should approach these solutions with caution, as any approach that does not prioritise user privacy could face backlash from increasingly privacy-conscious consumers. 

Kat Warboys, Senior Marketing Director of APAC, HubSpot

The latest news on third-party cookies is ultimately a win-win for advertisers and consumers. But the multi-year journey on cookie deprecation has been tough on marketers who have been trying to prepare. After all of this, one thing is clear: relying on third parties is no longer enough. Businesses need to take control of their first-party data to get a complete understanding of their customer, especially given the level of personalisation expected by today’s consumers.

Chris Hogg, Chief Revenue Officer, Lotame

Google may no longer be ending third-party cookies by its own hand, but the slow march of progress will still see them rendered obsolete sooner or later. Users and regulators are increasingly privacy-focused and, given cookies will be “opt-in” across the board, there will still be a need for other signals to fill the gaps — especially across channels where cookies are long gone or were never present to begin with.

The fate of third-party cookies will be as a small part of an ever-expanding array of data points, becoming less relevant over time as more privacy-first, platform-agnostic solutions evolve. No one that wishes to remain competitive should think they can take their foot off the pedal of first-party data collection and strategic data collaboration.

Xiaofeng Wang, Analyst at Forrester

It’s no surprise that Google eventually scrapped its cookie deprecation plans after three delays in four years. Most marketers in APAC have seen this coming. According to Forrester’s Marketing Survey 2024, 53% of B2C marketing decision-makers in APAC do not believe that Google will deprecate the third-party cookie, increased from 49% in 2023. This would further dampen advertisers’ urgency to adopt Privacy Sandbox, Google’s initiative to replace third-party cookies with privacy-preserving technologies.

Marketers who strive to use personalisation to improve customer experiences must also adopt a privacy-first approach to earn consumer trust and ultimately win a competitive advantage. Marketers should be transparent and granular about data collection and usage and learn to communicate to consumers that the value is not just in free content or free samples but better personalisation, more customised services, and products that ultimately yield better customer experiences.

Giovanni Gardelli, Vice President of Ads Data Products at Yahoo

We remain committed to supporting efforts that align with our focus on transparency and providing user choice, which includes continuing to invest in our own proprietary Yahoo Identity Solutions. Additionally, we will continue partnering with industry leaders to integrate and develop privacy-friendly solutions enabled by emerging web browser technologies that balance advertiser and publisher goals, while respecting user privacy.

Harshana Ariyaratne, Chief Marketing Officer at Affinidi

At Affinidi, we prioritise consumer rights to data control and privacy. We were encouraged by Google’s initial plan to deprecate third-party cookies, recognising it as a significant step towards honouring consumer data rights and rebuilding trust between consumers and businesses. 

While the decision to abandon third-party cookie deprecation may appear to be a setback for user privacy, Google’s commitment to developing solutions that enhance user experience and informed choice is promising. This approach presents an opportunity for businesses to adopt privacy-by-design, user-centric solutions, even in the presence of third-party cookies. 

Google’s efforts to create a privacy-conscious and user-centric framework have the potential to rebuild trust and meet evolving privacy expectations. However, the success of these initiatives will hinge on their ability to address the needs of all stakeholders and provide genuine privacy improvements. 

Our privacy-by-design suite of solutions within the Affinidi Trust Network, and the Affinidi Iota Framework (the world’s first consent-based data-sharing framework built on open standards) adheres to latest privacy regulations while giving consumers true data sovereignty. By prioritising consent-first principles in digital transactions, we ensure that the data collected is accurate and relevant, enabling brands to create personalised solutions that enhance user experience and satisfaction based on trust and transparency.

Focusing on users’ needs and rights [also] fosters a trustworthy and enjoyable online environment. By embracing this direction, we protect privacy while fostering innovation, creating a digital world that is transparent, responsive, and built on trust. 

Timmy Bankole, Director, Advertising Business Operations at South China Morning Post

At SCMP, we are continuing to invest in advertising strategies that put users first, including first-party data, zero-party data, and contextual approaches. We’ve been moving towards an ecosystem that respects user privacy and builds real trust with our audiences. 

As an industry, we’ve actually been given more time to get ahead of this and work towards a more user-centric, data-driven ecosystem. Whether that is identity IDs, Topics API, or contextual strategies, the smart play is to reduce dependency on third-party cookies It’s not a revolutionary concept, but it is an important one for us to start addressing head-on. The sooner we can adapt and move in this direction, the better off we’ll all be in the long run.

Benjamin Combe, Senior Director, Data Optimization and Personalization, APAC at Monks

Google’s data shows that 80% of APAC consumers feel that transparency on their data is a must-have, so the move toward giving users greater control over their preferences in Chrome is broadly in line with consumers’ growing expectations for data/privacy controls. It remains to be seen how far these features go. Still, if anything like Apple’s rollout of ATT, it appears likely that these new Chrome controls will essentially see a ‘user-driven’ deprecation of 3rd Party Cookies via opt-outs rather than a Google-enforced one as a tech vendor. Whether it’s best to give users a choice vs deprecating them entirely is a different debate. But, if executed properly, the move toward transparency and controls for end users does align with how consumer sentiments and regulations have evolved over the years.

Tyler Stewart, Media Solutions Architect Lead, APAC at Monks

Google’s change of step on 3PCD doesn’t change the imperative for privacy-centric advertising strategies—between regulatory changes and 3PCD across other browsers and devices, the need for privacy-preserving alternatives is still as pressing as ever.

At the end of the day, consumers globally have significant concerns about their data privacy and want the businesses they transact with to address these and treat the information they share with respect – rather than as a commodity. It was never really Google’s place to be the arbiter of the private web (in many ways, it never wanted to be) and its decision here will hopefully better enable the industry at large to act more openly and collaboratively to develop solutions that meet both the needs of the industry and the rights and expectations of consumers.

Brands that have already started exploring initiatives like the judicious use of first-party data, consent management, modeled measurement solutions, and conversion recovery mechanisms will continue to see benefits from these investments and should continue down this road. Those who haven’t shouldn’t see this announcement as an excuse to “kick the can down the road” like the many 3PCD postponements that have come before. To avoid being left behind – both in terms of advertising capability and trust with their customers – they, too, need to take the path towards privacy.

Despite the shelving of third-party cookie deprecation, industry leaders continue to advocate for the exploration of alternative measures. This encouragement underscores the necessity of evolving towards a privacy-by-design advertising ecosystem. Such a shift is crucial not only for maintaining consumer trust but also for fostering a more sustainable and ethical digital landscape. By prioritising privacy in the foundational design of advertising practices, we can ensure that the future of digital marketing aligns with the growing demands for user data protection and transparency.

Singapore – After multiple delays to phase out its use across its own browsers, tech giant Google has stated that it will abandon plans on deprecating third-party cookies and instead introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing.

In a new blog post by Anthony Chavez, VP at Privacy Sandbox at Google, he stated that this updated approach elevates user choice. Moreover, they also recognize that their proposed transition requires significant work by many participants and will have an impact on publishers, advertisers, and everyone involved in online advertising.

“Early testing from ad tech companies, including Google, has indicated that the Privacy Sandbox APIs have the potential to achieve these outcomes. And we expect that overall performance using Privacy Sandbox APIs will improve over time as industry adoption increases,” he said.

Chaves further added, “As this moves forward, it remains important for developers to have privacy-preserving alternatives. We’ll continue to make the Privacy Sandbox APIs available and invest in them to further improve privacy and utility. We also intend to offer additional privacy controls, so we plan to introduce IP Protection into Chrome’s Incognito mode.”

He also noted that they will continue to work with UK’s Competition and Markets Authority (CMA) and Information Commissioner’s Office (ICO), publishers, web developers and standards groups, civil society, and participants in the advertising industry in order to materalise this new solution.

It is worth noting that Google had previously announced that it will delay the deprecation of third-party cookies to 2025, with the initial phase-out initially intended to roll out back in 2022. At the time, multiple industry leaders have remarked that the advertising scene should continue to adopt to changes and experiment on new platforms encouraging the use of zero and first-party data.

Singapore – The phase-out of third-party cookies by Google is hitting yet another roadblock, as the tech giant announced that the move will most likely be delayed until early 2025. This is the latest cookie deprecation delay from Google, with the phase-out initially intended to roll out back in 2022.

In a blog post in Google’s The Privacy Sandbox page, it stated that they recognise that there are ongoing challenges related to reconciling divergent feedback from the industry, regulators and developers and that they will continue to engage closely with the entire ecosystem.

“It’s also critical that the Competition and Markets Authority (CMA) has sufficient time to review all evidence including results from industry tests, which the CMA has asked market participants to provide by the end of June. Given both of these significant considerations, we will not complete third-party cookie deprecation during the second half of Q4,” Google stated.

The first delay on the Google third-party cookie phase-outs happened by late 2023, then again to late 2024, and now to early 2025.

In light of yet another year of delay of third-party cookie phaseout, MARKETECH APAC reached out to multiple industry leaders in the region to learn more about what does this delay means for the future of a privacy-centric advertising strategy for marketers moving forward, and how brands should continue in their efforts to utilise first-party or zero-party data strategies for their marketing initiatives moving forward.

Genelle Hung, Country Manager for SEA at PubMatic

Adapting advertising technology for a more privacy-centric future is paramount and is an effort worth taking the time to get right. Google’s new timeline does not change our commitment to creating a vibrant ecosystem around Privacy Sandbox as well as other addressability innovation areas like alternative IDs, contextual signals and commerce media. At PubMatic, we are not taking our foot off the gas. We are continuing to test and innovate around Privacy Sandbox initiatives so we can best prepare our publishers and media buyers for an inevitable cookieless future.

Nishanth Raju, Managing Director for Asia at Lotame

Deja vu, Google. It’s really no great surprise that Google has pushed back the third-party cookie deadline again. It’s in an impossible polyamorous relationship where none of its partners (legislators, regulators, industry execs) are satisfied by its commitment. The message for brands and agencies is crystal clear. Do not slow down on divesting your advertising from cookies, as they will be retired at some point. It’s a matter of who controls your fate. Give into waiting on Google, and you’re unfortunately wasting precious time building a solid portfolio of options, whether it’s identity frameworks or data collaboration. 

Dan Richardson, Director of Data & Insights for AUSEA at Yahoo

Google’s new timeline helps the industry continue to test and adapt. Beyond even cookies, non-addressable inventory will only increase and the industry should act now to prepare for these changes. Either way, Yahoo is ready to support advertisers today, with solutions for addressable and non-addressable environments, as well as testing in the Privacy Sandbox.

Gary Cheung, General Manager at NP Digital Hong Kong & Taiwan

From our point of view, the delay comes to no surprise, but the deprecation of cookies will happen eventually, and marketers and advertisers need to prepare for it. This further delay will allow marketers additional time to prepare for the loss of third-party cookies and how we should adopt a first-party-driven data strategy to drive accurate and impactful marketing. 

It is crucial for marketeers and brands to focus towards in maximising the acquisition of 1st-party data. This includes different types of data such as CRM, loyalty data, as well as online behavioural data gathered from digital assets like websites, apps, and media data such as clicks and views.

Bharat Khatri, Chief Digital Officer, Omnicom Media Group Asia Pacific

The cookieless future is not the whole story but one part of where we are headed in a privacy-first world. Effective advertising is powered by a wide variety of signals not just cookies. These traditional signals are bound to deprecate next year or soon due to high privacy concerns.

But there is a bigger issue — our industry is so focused on these declining traditional signals that they are not considering new developments like Google PAIR and The Trade Desk’s Unified ID 2.0. Privacy centricity is the now and the future for our industry. 

Nonetheless, this news does not slow down the comprehensive approach we are taking to help clients stay ahead of the curve. OMG is taking a privacy by design approach with clients and accelerating towards privacy-safe future signals to continue our commitment towards responsible advertising.

Fai-keung Ng, Director of Data Partnerships at The Trade Desk

This is a quintessential illustration of why tethering the future of your business to a highly uncertain solution is not advisable. Advertisers ought to persist in their first-party data building endeavours, while publishers must prioritise expanding their base of authenticated users, regardless of Google’s cookie deprecation decision.

It is worth noting that this third-party deprecation delay by Google doesn’t comes as a surprise for many of the industry leaders in Asia-Pacific, as many are optimistic in the alternative strategies they use for a privacy-centric advertising era ahead. Moreover, utilising first-party and zero-party data using various advertising strategies are becoming more and more commonly applied across the industry, with some saying as well that this delay will not slow down their approach for responsible advertising, as they aim to guide their clients to stay ahead of the curve. From a general perspective, this new delay from Google is another indication for many industry leaders to continue evolving towards a future where understanding of users’ privacy is at the heart of their responsible advertising mantra online.

Global – Google has announced that it will begin testing its ‘Tracking Protection,’ a new feature that limits cross-site tracking for Chrome users. This is a step in their ‘Privacy Sandbox’ program, which aims to phase out third-party cookies internationally by the second half of 2024, pending resolution of antitrust concerns from the UK’s antitrust and Markets Authority.

In a blog post by Anthony Chavez, vice president for Privacy Sandbox at Google, he notes that for nearly 30 years, third-party cookies have been necessary for the internet environment. While they can be used to monitor people’s online actions, websites have also made use of them to improve other aspects of the online experience, such making logins easier and showing relevant ads.

The company has also stated that they are taking an orderly approach to gradually removing third-party cookies from Chrome by deploying the Privacy Sandbox. New tools have been developed to aid websites in critical use cases, and developers have been given adequate time to adjust to the transition.

The initial release of Tracking Protection begins with a small fraction of Chrome users, allowing developers to test their readiness for a web environment free of third-party cookies.

Participants in the Tracking Protection program are chosen at random, and upon selection, notifications will be received when accessing Chrome on desktop or Android. As a result, while browsing the web, third-party cookies will be automatically disabled by default, limiting the ability to monitor individuals across several websites. 

“Google is dedicated to providing businesses with the resources they need to succeed online while maintaining the free and open access of high-quality content, such as community sites, videos, educational materials, news articles, and other web content types, for improving online privacy. By means of programs like Privacy Sandbox, Tracking Protection, and other features that Chrome has brought to the table, they continually work to make the internet a more private place that is open to all users,” Chavez stated.

Singapore – In spite of initial scepticism around the phase-out of third-party cookies, marketers in APAC are now more welcoming of this imminent shift as they acknowledge the opportunity of building even greater trust through the use of other data sources, particularly zero and first-party data. This was according to the latest data from customer engagement platform Twilio.

According to the data, 92% of marketers in the region believe that phasing out third-party cookies can help strengthen trust in advertising among consumers in the long run. Meanwhile, 84% of organisations in the region are advocating consumer data privacy and welcoming the phasing out of third-party cookies, and 49% of organisations in the region feel more prepared to ride off to the third-party cookie sunset than they were in 2021.

Furthermore, around 92% of marketers surveyed in APAC are already collecting zero-party data, primarily through surveys (58%), social media polls (52%), and email campaigns (51%).

Around 75% of marketers already have at least a basic understanding of the positive value of first-party data — among which include being more useful in personalising engagement, targeting the right customers, and providing more accuracy, flexibility, and control.

Lastly, the data also notes that the most pressing challenge in data collection amongst marketers in the region is customer resistance, necessitating a more refined approach to consumer data collection. Around 51% of marketers understand the value of first-party data in theory, but remain uncertain about applications in day-to-day operations. Despite these challenges, most organisations (58%) remain committed to exploring alternative ways of gathering consumer information and insights.

Nicholas Kontopoulos, vice president of marketing for Asia-Pacific & Japan at Twilio, said, “In the new consumer data revolution, it is critical that businesses rethink their approach to data to drive more impactful customer engagement. Trust is now the underpinning factor for marketing success, so brands need to be more transparent in communicating how they are using data to unlock meaningful value for consumers.”

Singapore – While a privacy-first internet is the pot of gold at the end of the rainbow, advertisers and companies are not withheld from disclosing the real pains of transitioning and adapting to a cookieless digital space when Google dropped the news of cookie deprecation in 2020. 

Advertisers were, however, granted a breather, when the cookies phase-out, originally eyed by the tech giant in 2022 had been delayed a bit further into 2022.

Shortly after the announcement, data solutions provider Lotame released a poll among 200 Singapore-based senior decision-makers in digital media and marketing to further learn their sentiments on the future of cookieless internet. 

First off, half, or 55%, said they were happy with Google’s decision to delay citing that they needed “more time to prepare.” 

A top concern among digital media professionals is losing revenue amid weakened ad-targeting opportunities, where about 57% of marketers believe in reduced ad-targeting opportunities, with over two-thirds (66%) expecting a 10% to 25% drop in revenues as a result of the loss of third-party cookies. Meanwhile, almost 60% (57%) of publishers anticipate a reduction in the workforce brought by revenue loss. 

In adopting new identity solutions, the primary reason for Singapore-based marketers is to support audience targeting (59%), while among publishers, 64% would foremost adopt identity solutions for data privacy. 

With the optimal number of ID solutions, 36% of Singapore marketers were open to using any number, while 35% of publishers cited two, with 30% saying three.

“A cookieless future is closer on the horizon and whether or not the industry ‘feels prepared,’ the end result is inevitable,” said Luke Dickens, Lotame’s managing director for ANZ.

Dickens adds, “Digital advertising is changing, and identity solutions will be part of that new future. Addressability and connectivity are at greatest threat in the post-cookie world.”

With a stronger call for privacy, Apple, aside from Google, had digital media players also rethinking their ad strategies with an update on its privacy features earlier this year.

Apple’s new iCloud Private Relay has been designed to protect users’ privacy by ensuring that when browsing the web in Safari, no single party, including Apple itself, can see a user’s identity and the sites he or she is visiting.

The same survey found that 53% of Singapore-based respondents are concerned about their ability to monetize the email channel amid Apple’s new privacy feature, while 46% said they are concerned for the impact on email hash identifiers.

Relatedly, email-based identity solutions (69%) were the most popular choice when asked what types of ID solutions marketers and publishers were planning to test in the next six months to one year. Contextual (44%) was in second place, followed by cohorts (33%) and probabilistic (27%).

The current report ‘Beyond the Cookie: Identity Solution Adoption & Testing Among Marketers and Publishers’ is part two of Lotame’s cookie-focused study, where the pilot study was released in February and examined how organizations are beginning to plan for the phase-out of third-party cookies.