At the start of 2020, Google revealed plans to block third-party cookies in its Chrome browser within two years. However, in July 2022, the tech giant announced a delay in phasing out third-party cookies until 2024, pushing the timeline back by approximately a year. Given Chrome's massive user base, this change is set to have considerable effects on the digital advertising ecosystem. Presently, third-party cookies play a vital role in targeting, measuring advertisements, and combating ad fraud.
Immediately after Google’s announcement, there were speculations about what will replace third-party cookies in the future. In this post, we’ll open up Google’s vision on the topic a bit. But let’s start with a little recap of what even is a cookie.
A cookie is a small text file that is stored on a user’s device by an Internet browser. Cookies are used, for example, to store user information when moving from one web page to another. First-party cookies are stored directly on the website you’re visiting. In addition, the website may use external services that store their own cookies. These are called third-party cookies. Cookies do not contain user’s personal information and as such are not used to identify individual users. Some cookies expire at the end of a site session, while others remain longer on your device.
Cookies are used for many different purposes. Cookies allow you to use the functions of the website and provide the best possible user experience. For example, when a browser has information about a visitor’s choice of language and device, it is possible to provide them directly with the appropriate language and device-specific page version, thus facilitating the use of the site. Cookies also allow, among other things, different tracking tools, as well as personalised content, offers, functionalities, and ads on a per-visitor basis.
Google’s idea is to replace cookies with browser-based open standards, the "Privacy Sandbox" project has been launched to find their final forms. The open-source initiative was launched in August 2019. It’s unquestionably said to be Google’s response to the growing pressure to improve privacy, ensure free advertising-funded content, and possibly block other parties’ cookies. According to Google, the goal is to create a secure standard for personalisation while respecting user privacy. Google says that reaching this goal requires new approaches to ensure relevant advertising in the future too.
The Privacy Sandbox project aims to minimise the information that is shared between websites and advertisers and to store a larger part of the visitor's information on the visitor’s device only. Google’s project envisions targeted advertising and measuring conversions through Application Programming Interfaces (APIs) in a browser environment. Numerous different APIs are planned, each meeting different needs. These interfaces would be used by all stakeholders.
The situation may change fast, text updated 16.6.2023
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Browser resources like cookies, which allow users some measure of control, stand in contrast to other browser aspects that facilitate unregulated tracking and identification of users. Conversion tracking methods such as fingerprinting and cache inspection exploit intricate browser details, often unbeknownst to users, making it challenging for individuals to defend themselves. In response to these covert tracking tactics, Chrome is proposing several technologies designed to dismantle these hidden channels of information tracking. The current proposals aimed at limiting conversion tracking include User-Agent Client Hints, User-Agent Reduction, DNS-over-HTTPS, IP Protection, Privacy Budget, Storage Partitioning, Network State Partitioning, and Bounce Tracking Mitigations.
Testing for all the aforementioned APIs, designed to enhance privacy between websites, commenced in 2021-2022 for a partially limited audience. In May 2023, Google announced its intention to make targeting and measurement APIs generally available to all users by July, enabling developers to conduct scaled testing. In September 2023, Google announced that the interfaces are now generally available to everyone.
Speculations and gradual initiation
Google has expressed a commitment to open collaboration, ensuring that the Privacy Sandbox project benefits all stakeholders. They have also welcomed general feedback and suggestions on their Application Programming Interfaces (APIs).
Critics have suggested that Google's motivation might be to increase control over digital advertising. While this may be a point of contention, the move ostensibly represents a strategic and logical approach, capitalising on Google's extensive ecosystem, powerful data collection, and management capabilities to maintain its dominance.
There has been speculation that a shared digital identifier, accessible to the industry, is the ultimate objective of Google's Privacy Sandbox project. Yet, in March 2021, Google affirmed that they would not construct alternate identifiers to track individuals across the web once third-party cookies are phased out, nor would they utilise them in their products.
In May 2023, Google revealed that Chrome would start phasing out cookies for 1% of a randomly selected user group in Q1 2024, gradually expanding the deprecation to more users as the year progresses.
Long way to go
Although Chrome browser updates have seen rapid changes (e.g., blocking fingerprinting), Google has announced that projects of this magnitude are complex processes, and experience has shown that ecosystem changes take a long time. Privacy Sandbox proposals have changed significantly over the past year and are likely to change further in the future. Even though the proposals have potential, there is still a long road ahead.