Google’s cookie pivot leaves 88% of industry in uncertainty, says IAB

Google’s pivot on deprecating third-party cookies has caused uncertainty in the digital advertising industry. Originally set for 2022, the plan faced multiple delays since its announcement in January 2020, leading to doubts about Google’s commitment. 

The move has sparked speculation about the future of privacy-focused advertising and the impact on businesses that have been preparing for a cookieless future.

Navigating the uncertainty

A recent IAB study shows that 88% of industry professionals feel Google’s decision to reverse the phase-out of third-party cookies has caused major confusion in digital advertising. 

Many companies invested heavily in preparing for a cookieless future, so this shift feels like an unexpected detour after years of planning. While Google’s new focus on user choice gives users more control over their web browsing, it has left the industry uncertain about how to move forward. 

Google has also not explained how these changes will affect Android devices, creating uncertainty about how privacy will be handled across its ecosystem. This lack of clarity makes it harder for companies to plan effective cross-platform strategies.

Dig deeper: It’s time to re-think our rejection of third-party cookies

The measurement and addressability challenge

The biggest worry for industry professionals is how these changes will affect measurement and addressability. In the IAB study, nearly 40% of respondents said they were concerned about the lack of detail on Google’s new approach and its impact on these key areas. If the changes disrupt current practices, it could create major challenges, making marketers doubt the accuracy of their metrics and the success of their digital ads.

As the industry grapples with these potential disruptions, companies are in a tough spot. Accurate measurement of campaign performance and targeting specific audiences are key to successful digital advertising. Any loss of these abilities could have wide-reaching effects for individual companies and the entire industry.

Drawing parallels: Google and Apple’s iOS 14.5+ changes

Google’s proposed user choice model in Chrome is similar to Apple’s App Tracking Transparency (ATT) feature in iOS 14.5, which requires apps to ask users for permission to track their activity. Since about 70% of Apple users opted out, if Chrome users do the same, it could greatly reduce the availability of third-party data, making targeting and measurement in data-driven advertising much more difficult.

A key difference is that Google is working with the industry, unlike Apple. At the IAB, we’re hopeful that Google will continue this collaboration to develop features that give users more control and transparency over how third-party cookies and data are used for advertising.

Dig deeper: Why your marketing strategy should still be cookie-less despite Google’s shift

Understanding Google’s motives and the industry’s response

While two-thirds of respondents think Google made this decision for its own business reasons, this discussion overlooks a bigger issue. Google faces pressure from other big tech companies like Apple, Brave, Firefox and DuckDuckGo, which are deemed user-friendly. This competition likely influenced Google’s change as it tries to stay relevant in a market that values privacy.

No matter what motivated Google’s change, the shift in cookie deprecation creates a unique opportunity for the industry. We should focus on building a stronger foundation for the future. This is a key moment to develop strong frameworks that can adapt to changing data and privacy needs. Doing so will help keep measurement accurate and ensure that we can still deliver relevant ads to users as tools and technologies evolve.

Addressing the trust disparity between industry and consumers

The IAB study also shows a troubling gap between how the industry views Google’s decision and its possible impact on privacy-focused innovation. While almost two-thirds of respondents think Google’s change is good for the industry, 51% believe it might slow the development of privacy-protecting technologies. This disconnect could hinder progress toward a more secure and privacy-centered digital ecosystem.

Accurate measurement and effective addressability are deeply rooted in consumer trust. If consumers are worried about how their data is used, they will engage less with brands and publishers. This will directly affect the effectiveness of targeting and measurement efforts. As awareness of data privacy issues increases, the industry must focus on being transparent and giving consumers more control over their data.

If the trust gap isn’t addressed, it could lead to serious consequences,  including increased regulatory scrutiny and a significant loss of consumer confidence. This confidence is the cornerstone of the digital advertising ecosystem. Without it, the industry risks losing its foundation. Ensuring that privacy-preserving technologies are both effective and transparent is not just a regulatory requirement. It is a critical business imperative for the continued growth and sustainability of the industry.

The road ahead may be challenging, but it also offers many opportunities. By taking action now, the industry can transform this uncertainty into a chance for positive, lasting change. The future of digital advertising relies on those willing to lead, innovate and work together. It’s time to rise to the occasion and create a landscape prioritizing privacy and sustainability. Those who embrace this moment will navigate the transition successfully and set the standards for the next generation of digital advertising.

Dig deeper: Why first-party data still reigns even with Google keeping third-party cookies