Google’s U-turn on marketing cookies and what it means for B2B

Third-party cookies have long been a cornerstone of digital advertising. These small files, stored on users' devices, allow advertisers to track user behaviour across different websites. This tracking enables the creation of detailed user profiles, which are then used to deliver highly targeted ads based on users' interests and online activities. For marketers, especially those in the B2B sector, third-party cookies have been essential in understanding and reaching their target audience effectively.

In an effort to enhance user privacy, Google announced a plan four years ago to phase out third-party cookies in its Chrome browser. This initiative, known as the "privacy sandbox," aimed to develop new technologies that would protect user privacy while still allowing advertisers to target audiences effectively.

Key points about the privacy sandbox:

• • Designed to create a more secure and private web by limiting user data collection.

• • Intended to balance user privacy with advertisers' needs for effective targeting.

However, this plan faced significant opposition from various stakeholders due to:

• • Concerns that removing third-party cookies would disrupt effective ad targeting.

• • The UK's Competition and Markets Authority intervening, fearing harm to competition in the digital advertising market.

In response, Google made commitments to:

• • Work closely with regulators and the industry.

• • Develop privacy-focused technologies to address these concerns.

Despite these efforts, the implementation of the privacy sandbox proved challenging. Technical hurdles, combined with ongoing regulatory scrutiny, led to delays and growing uncertainty within the industry.

In July 2024, Google decided to reverse its plan to block third-party cookies. Instead, the company announced it would pursue a dual approach:

• • Maintain third-party cookies while developing new privacy-focused solutions.

• • Provide users with more informed choices about their data and its use across the web.

This decision marks a significant shift in Google's approach to digital advertising and user privacy. For B2B marketers, it means that the tools and strategies they have relied on for tracking and targeting will remain available, at least for now. However, they must remain vigilant and adaptable as Google continues to refine its privacy-focused initiatives and as regulatory landscapes evolve.

Google's new approach

Google will keep supporting third-party cookies in its Chrome browser. This decision ensures that advertisers can continue using these cookies for tracking and targeting purposes, which are crucial for personalised advertising and measuring campaign effectiveness. The tech giant aims to develop a system that gives users more informed choices about their data. Users will see pop-ups asking them to enable or disable cookies, providing transparency and control over their web browsing data.

Statements from key figures

Google's decision has drawn mixed reactions from industry leaders and regulators. Some view it as a necessary step to balance user privacy with advertising needs, while others are concerned about its implications for competition and user data protection.

• • Google's perspective: Google has stated that maintaining third-party cookies will allow them to develop a more robust and user-friendly system, emphasising that the new approach will give users more control and transparency over their data.

• • Regulatory reactions: The UK's Information Commissioner's Office (ICO) expressed disappointment with Google's decision, highlighting the need for stronger privacy protections. The Competition and Markets Authority (CMA) is also assessing the potential impact of this change on the digital advertising market.

Jeff Green, head of advertising platform The Trade Desk, welcomed the move, stating that it aligns with the industry's need to maintain effective advertising strategies while respecting user choice.

Some industry players are concerned that continuing with third-party cookies may slow down the progress towards more privacy-focused advertising solutions. There is also a fear that this move could increase reliance on Google's ecosystem, potentially harming competition.

Implications for B2B marketers

For B2B marketers, Google's decision to keep third-party cookies means that the current methods of tracking and targeting will remain intact. This continuity allows marketers to maintain their advertising strategies without immediate disruption. However, it's essential to stay informed about potential regulatory changes and be prepared to adapt to new privacy-focused technologies as they emerge.

• • Short-term stability: For the immediate future, B2B marketers can confidently use third-party cookies to deliver personalised advertisements and glean detailed audience insights. These cookies enable brands to track user behaviour across multiple platforms, facilitating tailored messaging that resonates with target audiences. With third-party cookies still in play, marketers can optimize their current strategies, ensuring messages reach the right audiences at the right times. Additionally, the ability to collect and analyse data from various sources will help enhance campaign effectiveness and ROI.

• • Long-term adaptation: While the current landscape may seem stable, B2B marketers should remain vigilant and adaptable. The digital marketing environment is evolving rapidly, driven by an increasing focus on privacy and data protection. Regulatory changes, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), highlight the importance of compliance and ethical marketing practices. Marketers must proactively monitor these developments to ensure they remain compliant and ready for any shifts in policy. 

Essential cookies vs. Functional cookies 

Essential cookies 

Essential cookies, also known as strictly necessary cookies, are: 

• Required for the website to function properly and provide basic information requested by the user 

• Essential for a website to work correctly 

• Exempt from the requirement of consent under GDPR and ePrivacy Directive 

• Used to provide an online service or facilitate communication over a network 

Examples include: 

• Cookies that enable user logins 

• Cookies for payment processing 

• Cookies that manage user accounts 

• Cookies that keep users logged in as they navigate the site 

• Cookies that remember items in a shopping cart 

Functional cookies 

Functional cookies are: 

• Non-essential cookies that help personalize the user's browsing experience 
• Used to remember user preferences and settings 
• Not strictly necessary for a website to function, but enhance user experience 

Examples include cookies that remember: 

• Language preferences 
• Font size and style settings 
• User location 
• Name and login details 

Opportunities and challenges

The decision to keep third-party cookies allows B2B marketers to continue refining their targeting and personalisation techniques. This period of stability provides an opportunity to optimise current strategies and prepare for future shifts. The ongoing debate over privacy and data usage means that marketers must navigate a complex landscape, where balancing effective marketing with user privacy concerns will be a significant challenge.

Strategic recommendations

We recommend the following:

Stay informed

Regularly monitor updates from Google and regulatory bodies to understand the evolving landscape of digital advertising and privacy. Keeping abreast of developments in the digital advertising and privacy landscape is essential for B2B marketers. Regularly monitor updates from Google, such as changes in cookie policies and new features in their advertising platforms. Subscribe to industry newsletters, attend webinars, and participate in relevant forums to stay ahead of the curve. Additionally, pay attention to evolving regulatory standards from organisations and institutions e.g. the Europeans Union. Being proactive instead of reactive can save your business time and resources in the long run. 

Invest in privacy-focused solutions

It’s vital to explore and invest in privacy-focused advertising technologies. Look for solutions that prioritise user privacy while delivering effective targeting capabilities. For instance, consider platforms that use first-party data and context-driven advertising. These technologies allow you to engage with your audience meaningfully without relying solely on third-party cookies. Initiate conversations with vendors that specialise in privacy-centric tools, and assess how these solutions can integrate with your current marketing strategies. Investing early in these technologies will not only prepare you for regulatory changes but also position your brand as a forward-thinking leader in privacy-conscious marketing. 

Enhance data transparency

Users are increasingly concerned about their data privacy. To build trust and foster long-term customer relationships, it's crucial to enhance transparency in your data collection and usage practices. Clearly communicate what data you collect, how it's used, and why it matters. Offer users straightforward options to control their information—with easy-to-find opt-in and opt-out mechanisms for data sharing. Consider providing insights or reports on how their data contributes to personalized experiences. Transparency not only helps comply with regulations but also strengthens your brand's reputation in the eyes of clients. 

Google's decision to maintain third-party cookies offers a temporary reprieve for B2B marketers, but it also underscores the need for vigilance and adaptability. By staying informed and proactive, marketers can navigate this changing landscape and continue to deliver effective, compliant campaigns.

A ripple of reactions

Google's decision to maintain third-party cookies has sparked varied reactions from regulators and industry leaders. Understanding these perspectives can provide valuable insights for B2B marketers as they navigate the evolving digital advertising landscape.

Regulatory reactions

The ICO expressed disappointment with Google's decision, emphasising the need for stronger privacy protections. Stephen Bonner, a senior official at the ICO, highlighted that blocking third-party cookies would have been a positive step for consumers' privacy.

The CMA, which had previously intervened to address competition concerns regarding Google's Privacy Sandbox, is now assessing the implications of Google's new approach. The CMA aims to ensure that Google's actions do not harm competition and are in the best interest of consumers and the market.

Industry reactions

Some industry leaders have welcomed Google's decision. Jeff Green, as noted before, has praised the move. Green has long argued that removing third-party cookies would be a strategic mistake for Google. Others in the industry are wary of the implications. There is a fear that maintaining third-party cookies may slow down progress towards more privacy-focused advertising solutions. Additionally, there are concerns that this move could increase reliance on Google's ecosystem, potentially stifling competition.

Implications for the industry

The digital marketing industry must balance the need for effective marketing tools with increasing demands for user privacy. This decision underscores the ongoing challenge of achieving this balance. The industry must continue to innovate and adapt to new privacy standards, with marketers exploring alternative tracking methods and privacy-focused technologies to stay ahead of the curve.

Long-term effects

In the short-term, third-party cookies will remain a key tool for tracking and targeting. However, their long-term future is uncertain as Google and other industry players develop new privacy-focused solutions. Technologies like Google's Privacy Sandbox and other privacy-preserving ad tech solutions will continue to evolve; providing effective advertising capabilities while enhancing user privacy.

Marketers must keep a close eye on regulatory changes and be prepared to adapt their strategies to comply with new privacy laws and guidelines. Investing in and testing new advertising technologies that prioritize privacy will be crucial. This includes exploring alternatives to third-party cookies and implementing more transparent data practices.

What you need to do now

• • Be proactive: Don't wait for regulatory changes to force adaptation. Start exploring and integrating privacy-focused solutions now to stay ahead of the curve.

• • Educate and communicate: Ensure your team and clients understand the importance of data privacy and the steps you are taking to comply with regulations. Clear communication about your data practices will build trust with your audience.

Google's decision to maintain third-party cookies offers a temporary reprieve for the digital marketing, but it also highlights the ongoing need for innovation and adaptation. By staying informed and proactive, B2B marketers can navigate this evolving landscape, ensuring their campaigns remain effective and compliant with emerging privacy standards.