Google decides to abandon its plan to gradually phase out cookies, user privacy still lacks a comprehensive solution

Google announced that it will not eliminate browser cookies. This news immediately shocked digital advertisers. In 2020, Google first announced plans to gradually phase out third-party cookies on Chrome, no longer allowing them to track users' browsing habits and history. This initially caused panic among ad agencies, prompting them to scramble for alternative solutions.

Dilemma between interests and privacy! Google disables third-party cookies for two years, but where is the solution for the advertising economy?

Regulatory authorities in the UK are concerned that Google's complete elimination of cookies will lead to Google monopolizing the business of online digital advertising agencies. In February of this year, UK regulators requested Google to pause its plans. According to Axios report, Google recently announced externally that it will "not eliminate" cookies, sparking further discussions. By retaining cookie functionality, it means that users will still have their personal data tracked when using Chrome.

At the same time, Google is allowing users to choose how they share data. Users can choose to turn off cookies and select the desired ad messages, giving them more autonomy to protect their privacy and personal information.

Nevertheless, in recent years, many users have voluntarily disabled cookie functions, with some even using VPNs to conceal their IP addresses. Google's decision not only signifies a significant policy reversal but also indicates a shift in user behavior. Without better alternative solutions to capture consumer behavior and market data, Google has decided to revert to the original method and keep cookie functionality for now.

Google Attempts to Replace Cookies with Privacy Sandbox API

Over the past few years, Google has introduced several experimental projects to replace cookies, testing them across various industries, but none have garnered comprehensive support from industry partners and regulatory bodies.

FLoC, Google's initial cookie alternative, was abandoned in 2022, partly due to privacy experts' concerns that the experiment could inadvertently make it easier for ad tech companies to collect users' personal data.

Google later introduced a product called Topics, which allows marketers to target ads based on users' browsing activity on Chrome.

Last year, Google began testing a new Tracking Protection feature that limits cross-site tracking on Chrome.

The overall situation is that despite Google's various experimental solutions, there is no single solution that can garner support from all industries.

Anthony Chavez, Vice President of Google's Privacy Sandbox APIs, wrote in a blog post:"Abandoning the elimination of cookies requires many participants and involves a great deal of work, impacting publishers, ad tech companies, and all users involved in online advertising."

Our goal in developing the Privacy Sandbox is to find more innovative solutions that preserve user privacy in a meaningful way while supporting ad tech and publisher ecosystems, connecting customers with businesses, and providing everyone access to a variety of content for free.

Throughout the process, we have received feedback from various stakeholders, including regulatory bodies such as the UK Competition and Markets Authority (CMA) and the Information Commissioner's Office (ICO), publishers, web developers, industry organizations, individuals, and advertisers. The feedback helps Google coordinate a competitive and thriving market between ad tech companies and publishers and encourages the strengthening of privacy features.

Advertising companies, including Google, have indicated potential success with the Privacy Sandbox API in early tests. We expect that as adoption of Privacy Sandbox APIs increases among industry players, the overall impact will also improve over time. At the same time, we recognize that this transition requires significant effort from many participants and will impact publishers, advertisers, and everyone involved in online advertising.

Chavez added: "We will not completely abandon third-party cookies but will introduce new ways of experiencing the web in Chrome, allowing users to make informed choices while browsing the web and adjust their options at any time. We are discussing this new path with regulatory bodies and will communicate with the industry upon its launch."

Ad Tech Companies Introduce Contingency Plan: Unified IDs 2.0

The Trade Desk (TTD) is actively promoting Unified IDs to strike a balance between protecting personal data privacy and ad business activities. The new encrypted online identity authentication, called Unified IDs, is an open-source online identity card. The new version is known as Unified ID 2.0, providing a new open-source standard system for digital advertising using encrypted email and phone number data. News media and companies currently using Unified ID 2.0 include Disney, BuzzFeed, HK01, Adobe, SalesForce, iQIYI, Kobe Shimbun, and more.

Features of UID 2.0 include integrating individual online identities, offering users the option to opt-out freely to enhance user control and transparency. Personal data is processed through Hash, Salt, and key Encrypt encoding to provide additional protection and prevent illegal misuse. It integrates identity verification for traditional and mobile applications and internet TV without using third-party cookies, supporting cross-device and cross-channel identity.

Industry Players Criticize Google and Apple's Covert Tactics Towards Users

In response to Google's policy shift, The Trade Desk's CEO and founder Jeff Green criticized Google and Apple's dark tech tactics on LinkedIn.

He stated: "Google is once again centered around cookies. For years, I have been telling advertisers, Google, and even Wall Street that I believe Google's abandonment of third-party cookies is a wrong strategy. Now they seem to agree. Google has finally admitted what the advertising industry has been saying for years, that Privacy Sandbox is not a good product, does not adequately protect consumer privacy, or empower advertisers. This may have the biggest impact on publishers' profits. Google finally seems to acknowledge that the best choice for them is to give consumers a choice. The remaining question is, will Google really let consumers choose? Or will they make decisions for consumers and then hide the ability for consumers to change their decisions?"

Apple has already taken this measure and has the power to counteract users' user experiences, arguing that if users really want and are willing to click multiple times to find the button, they can change permissions.

User Awakening

Everyone is a user and consumer in the digital age, where paying for services is a given. If using for free, then users themselves are the platform's product. Most internet users understand that they leave traces online wherever they go. Digital advertising and platform systems all seek ways to obtain more useful and effective data in compliance. Users are increasingly concerned about the extent of data sharing. Whoever best meets their needs, users will choose. The challenging questions are left for those who want to sell you products to ponder.