Third party cookies have long been considered the backbone and base for all targeted advertisements, but within two years Google Chrome will have completely phased out third party cookies tracking from the browser, according to AdExchanger. Chrome’s solution is implementing their own Privacy Sandbox. Their “privacy sandbox” will increase protections to user privacy without breaking programmatic advertising that funds publisher content.
How would this work? Chrome is removing the use of third party cookies, but not removing targeted advertising from their Internet browsing experience. Chrome plans on doing this by offering targeting and measurement options without drilling down to the use-specific level that third party cookies currently enable. By the end of this year, Google plans on running different trials and scenarios to measure the browsing experience and functionality of advertising without the use of third party cookies.
How it affects the digital advertising industry: Google released a study last year showing that removing third-party cookies reduced publisher ad revenue by 52%. Google makes a lot of their money from third party cookie advertising, so they will want to make sure they have a viable way to still digitally advertise without negatively impacting their partners. For example, Google Display Network relies upon third party cookies as does their Google AdManager that a lot of other publishers and partners use. These companies would still be able to use personalized data, but it would now have to be through Google’s Privacy Sandbox API.
Two years seems like a long time, but it does take time to rebalance the entire digital advertising landscape, as this update will cause seismic shifts to the business model of the Internet. Google is finally catching up to privacy-first browsers like Safari o Firefox, and they are doing it in a way to still positively maintain and manage the revenue stream for publishers, websites and free content across the Internet. Loginhood supports this decision by Google to create a fair ecosystem that honors privacy in a responsible way.