The end of personalized advertising?

Update (22.07.2024):

User information instead of cookie ban

Google is taking new approaches to handling third-party cookies, which is essentially a reversal of their previous plan to eliminate them. Instead of abolishing third-party cookies, the company is now focusing on increasing user education. Users will be given more choices. Eliminating cookies in the Chrome browser would have significant impacts on the online advertising industry and Google itself. Therefore, a new approach is being considered in consultation with regulatory authorities, the company announced.

Update (24.04.2024):

Our expectations have been confirmed: The shutdown of third-party cookies in Google's Chrome browser won't happen as quickly as announced. The company has now announced that the implementation will be postponed to early 2025. Originally, it was supposed to happen in Q3/Q4 2024.

There are still some challenges to solve, and they are working with all industry partners to find a satisfactory solution. Additionally, there are not enough test results available yet to herald the end of third-party cookies right now. So, it remains to be seen what solution Google will ultimately present and when its implementation will actually start.

What comes next after the abolition of third-party cookies in Chrome?

Google has announced that it will no longer support third-party cookies in its Chrome browser starting in 2024. This decision marks a significant turning point in the digital advertising landscape and has far-reaching implications for both advertisers and users.

For users, the shutdown of third-party cookies potentially means an improvement in privacy and a reduction in online tracking. Since third-party cookies have often been used to track user behavior across different websites, users may now have more control over their data and see fewer personalized ads. On the flip side, some users may notice that their preferred websites display less personalized content and ads as advertisers switch to alternative targeting methods.

Increased user-friendliness of websites: No more cookie consent required

Another benefit is the expected disappearance of annoying consent banners. Since the Google Sandbox no longer provides personal data, the need for and effort of obtaining consent for the processing of personal data are eliminated. This allows for smoother interaction and reduces potential disruptions for internet users.

Overall, Google's discontinuation of third-party cookies marks an important step towards data protection and privacy in the digital space. However, it remains to be seen how well alternative technologies will function and how advertisers and users will respond.

What technology will Google use in the future?

Google plans to replace its user identification technology with a privacy-first model. The company has launched the Privacy Sandbox project, which aims to enable personalized advertising without jeopardizing user privacy. This technology is based on the concept of Topics: Based on the user's browsing activities, topics that may be of interest to them are determined and assigned, such as "Travel" or "Fitness". The stored topics remain on the user's device but are shared with advertising partners of the websites visited by the user. This enables the delivery of interest-based ads without processing individual user data.

Google has already provided the Privacy Sandbox to developers. The company emphasizes that the initiative aims to maintain a balance between personalized advertising and data protection. The Privacy Sandbox is an opportunity for developers to adapt to changing privacy requirements and enable personalized advertising in a way that respects user privacy.

Privacy Sandbox scrutinized: Analysis by the IAB Tech Lab

The IAB Tech Lab has analyzed Google's Privacy Sandbox and currently does not reach a positive conclusion. There are still significant challenges to overcome. It is criticized, among other things, that there is a lack of transparency on Google's part regarding the functioning and effects of the Privacy Sandbox. Furthermore, it is pointed out that there are currently no clear standards or guidelines governing the use and implementation of this technology. Therefore, the IAB Tech Lab calls for broad participation from industry experts and interest groups to ensure that the Privacy Sandbox takes into account the needs of all stakeholders and provides the right solutions for the existing challenges. "Our results show that the industry is not yet ready and that there are numerous challenges in implementation," said Anthony Katsur, CEO of the IAB Tech Lab, about the analysis. It is even demanded that Google should postpone the discontinuation of third-party cookies once again.

What does the discontinuation of third-party cookies mean for advertisers?

For advertisers, the discontinuation of third-party cookies means a fundamental change in how they plan, execute, and measure digital advertising. Since third-party cookies were an important tool for tracking user behavior and targeting ads, advertisers must develop alternative strategies to effectively reach their target audiences. This may require increased use of first-party data, contextual advertising, and new targeting methods based on Google's Privacy Sandbox model.

The Google Third Party Policy marks a significant step in the evolution of the online advertising landscape. One of the positive aspects of this policy is the removal of the advertising industry from the shadow of cookie misuse. With the introduction of the Google Sandbox, the industry receives a privacy-friendly alternative, which means an increase in quality for advertisers. Although the ability to track every single click decreases, the quantity of matches will significantly increase through integration into the Chrome browser.

However, advertisers and publishers should not automatically switch to Google Ads now. The notion that only Google provides reliable data is incorrect. In fact, the liberalization of the market now enables all ad networks to process data on equal terms with Google. This promotes healthy competition and encourages companies to diversify their advertising strategies.

Furthermore, many networks are actively working on implementing the new Google Chrome APIs, including the Attribution Reporting API, Shared Storage API, and Topics API. These APIs offer additional opportunities for advertisers and publishers to optimize their campaigns and provide more relevant content to their target audiences.

How should advertisers proceed now?

To continue targeting users effectively, advertisers should take several steps:

Invest in first-party data: Advertisers should intensify their efforts to collect and utilize first-party data. This includes data collected directly from their own customers and website visitors, such as email lists, demographic information, and behavioral data. This data can be used to create personalized campaigns without relying on third-party cookies.

Adjust targeting strategies: Advertisers should consider alternative targeting strategies that do not rely on third-party cookies. This may include the use of contextual advertising, geolocation targeting, and behavioral segmentation. Additionally, advertisers can benefit from Google's Privacy Sandbox initiatives to target audiences based on shared interests and behaviors.

Test new technologies and partnerships: Advertisers should be open to new technologies and partnerships that can help them reach their target audiences effectively. This could include collaborating with third parties for alternative tracking and targeting solutions or using platforms and tools that prioritize privacy and compliance with privacy regulations.

Invest in content marketing and engagement: Since personalized advertising may become less effective, advertisers should invest more in content marketing and engagement strategies. Creating high-quality content tailored to the needs and interests of the target audience can be an effective way to engage the audience and build relationships without relying on personalized ads.

Monitor and adapt: As the digital advertising landscape evolves, it is important for advertisers to continuously monitor, test, and adapt their strategies. This includes analyzing performance data, testing new approaches, and adjusting strategies based on changing market conditions and consumer behavior.

By taking these steps and adapting to the changing landscape, advertisers can continue to effectively reach users and achieve their marketing goals, even without the use of third-party cookies.

A model for the future: How advanced store responds to the end of third-party cookies

Overall, Google's Third Party Policy represents a paradigm shift in the online advertising world. By creating privacy-friendly solutions and promoting competition, the industry is encouraged to evolve and pursue innovative approaches to delivering personalized advertising content.

advanced store has long been diversified and has active access to all common programmatic and non-programmatic solutions in the market. These include DSPs, specialized exchanges, marketers, social inventories, and thematic sites. In addition, we work closely with a variety of publishers, enabling advertisers to reach users in diverse ways.

"The transition will require less effort than it may currently seem," said advanced store CTO Fabian Hübner. "We are capable of quickly adapting to the new circumstances, but we advise against acting hastily. We currently anticipate that only minor adjustments to websites will be necessary."