Third-Party Cookies Going Away? Here’s What’s Actually Happening

Google’s decision to remove third-party cookies affects nearly 3.5 billion Chrome users worldwide. This represents one of the most important changes in digital marketing history.

Google announced their plans in 2020. They aimed to phase out third-party cookies for 1% of Chrome users (approximately 30 million people) and complete the removal by 2024’s end. However, the plans changed as of July 2024 with Google choosing a different path. Let’s explore what’s happening with third-party cookies in this article. Read Google’s latest plans and how these developments affect your digital marketing strategy. We will also cover practical steps to help you adapt to these changes while your targeting works and user privacy stays intact.

Are third-party cookies going away? Let’s find out.

Digital marketing faces big changes as third-party cookie deprecation alters the landscape. 

Effects on digital advertising

For years, advertisers relied on third-party cookies to track user behaviour, serve highly targeted ads, and measure campaign performance. Now, they face some serious challenges, including:

• Less personalised ads due to limited tracking
• Difficulty in A/B testing for campaign optimisation
• Challenges with frequency capping (preventing ad overexposure)
• Reduced ability to track return on ad spend (ROAS)

Research shows that 69% of advertisers believe third-party cookie deprecation will affect business more than privacy laws like GDPR and CCPA. 

Beyond that, the legal crackdowns—like the EU’s top court ruling against Meta in July 2023 made consent-based marketing the new standard. Businesses now need to get clear user permission before showing targeted ads. 

Effect on analytics tools

Analytics platforms struggle to give accurate insights. Right now, fewer than 46% of businesses feel “very prepared” for marketing without third-party cookies. These changes mainly affect:

Many online advertising vendors find it hard to calculate Return on Ad Spend (ROAS). The industry is moving towards Media Mix Modelling (MMM), though it is less effective for now.

Google’s approach to third-party cookies went through a fundamental change. The company revealed a new browser experience in July 2024 that would let Chrome users make informed choices about their cookie priorities.

Recent changes in Google’s approach

Google launched its Privacy Sandbox initiative in August 2019. The company’s latest position prioritises user control instead of complete cookie deprecation after several timeline adjustments since 2020. Chrome started testing cookie restrictions with 1% of its users (approximately 30 million people) from January 4th, 2024.

Google made this decision after receiving extensive feedback from regulators, publishers, web developers, and advertising industry participants. The Competition and Markets Authority’s (CMA) role proved vital when they asked Google to pause the rollout in April 2024.

What other browsers are doing

Major browsers have already taken decisive steps toward cookie restrictions:

• Firefox’s Enhanced Tracking Protection (ETP) blocks third-party cookies from known trackers by default.
• Apple Safari introduced Intelligent Tracking Prevention (ITP) in June 2017 which completely blocks third-party cookies.
• Brave browser’s default settings block tracking cookies.

Privacy Sandbox development continues steadily. Chrome introduced six new APIs by mid-2023. These APIs provide privacy-focused alternatives to enable key functions like identity verification, advertising, and fraud detection.

Google’s decision to keep third-party cookies marks a fundamental change in digital advertising after four years of delays and extensive industry consultation. This change came from increased regulatory scrutiny and complex business factors.

Privacy concerns vs business needs

Many stakeholders criticised Google’s Privacy Sandbox initiative, Google’s proposed alternative to third-party cookies. The industry pointed out that Privacy Sandbox couldn’t support common advertising functions like immediate reporting and brand protection.

Data tracking created a delicate balance. While people barely trust companies to make responsible decisions about their products, businesses need reliable advertising tools.

Regulatory pressures

The Competition and Markets Authority’s (CMA) role proved crucial in Google’s decision. The UK regulator identified specific issues with Privacy Sandbox implementation and focused on possible anti-competitive effects. The CMA asked for more time to review industry test results.

The Information Commissioner’s Office (ICO) showed disappointment with Google’s reversal. Yet it pushed the digital advertising industry to create more private alternatives to third-party cookies. Google’s latest strategy now focuses on giving users more control instead of complete removal.

This fundamental change shows broader industry challenges in creating privacy-protective advertising solutions that follow evolving digital regulations. Google must now balance these key factors:

• Regulatory compliance across multiple jurisdictions
• Industry stakeholder requirements
• User privacy expectations
• Effective advertising capabilities

The decision reveals the challenge of combining different feedback from industry players, regulators, and developers.

As third-party cookies become less reliable, digital marketers must rethink their strategies to maintain effective targeting and measurement. While challenges lie ahead, those who adapt will see new opportunities for growth.

<A BCG study shows that companies adapting their strategies without third-party cookies achieved better results. Large enterprises saw 10% performance improvements while small businesses achieved gains of up to 100%.>

Immediate effects on campaigns

Even though third-party cookies will remain, 56% of marketers have tested cookieless alternatives, which are expected to see widespread adoption due to growing privacy concerns around the use of tracking cookies.

Here’s how these changes are affecting digital campaigns:

• Tracking and attribution reporting challenges – Without third-party cookies, connecting ad spending to conversions requires new attribution models and privacy-friendly tracking solutions.
• Retargeting limitations – Ads that once followed users across sites are losing precision, impacting eCommerce and direct-response marketing.
• Reduced user behaviour insights – Businesses cannot perform cross-site tracking, making it harder to understand customer journeys.
• New budget allocation strategies – With fragmented user data, marketers must rely on first-party data, contextual advertising, and predictive analytics to allocate ad spending effectively.

The biggest challenge? Many marketers still depend on third-party cookies for campaign execution, making this a difficult transition for businesses that haven’t started testing alternative solutions.

Long-term strategic changes needed

Businesses must revolutionise their marketing approach. Companies should build stronger first-party data collection through interactive content, priority centres, and loyalty programmes. Use privacy-safe alternatives like contextual advertising that targets based on website content instead of user behaviour. Additionally, use reliable consent management systems to build user trust.

New opportunities for marketers

These changes bring new possibilities for breakthroughs despite the challenges. Contextual advertising offers a promising alternative. Google ads can appear on relevant sites based on specified keywords and topics. Marketers can keep their targeting precise while protecting user privacy.

Companies that invest in first-party data strategies gain an edge over competitors. Starbucks partners with Marriott Bonvoy and Delta SkyMiles to share second-party customer data and create detailed user profiles. Netflix and Spotify show successful zero-party data collection by asking users directly about their priorities.

The move toward privacy-focused marketing requires adaptation but creates opportunities for stronger customer relationships. Marketers must test new campaigns quickly and measure incremental sales rather than click-through rates to succeed.

Marketing practices need strategic adaptation to prepare for a privacy-first future. 

Building first-party data capabilities

First-party data has become crucial as privacy regulations evolve. This data gives detailed explanations about customer behaviour, priorities, and needs. Businesses should focus on these elements to build reliable first-party data capabilities:

• Newsletter subscriptions and loyalty programmes
• Interactive content and preference centres
• Forums and gated articles
• Customer feedback and surveys

First-party data delivers higher accuracy and authenticity compared to third-party tracking. The right analysis of this data creates precise customer segmentation and tailored marketing strategies.

Exploring privacy-safe alternatives

Several cookie alternatives have emerged as businesses adapt to changing privacy landscapes. Device fingerprinting collects information about the user’s device and offers targeting capabilities even when privacy-enhancing tools are active. Contextual advertising and Topics API have also become prominent by displaying ads based on webpage content and user interests rather than user behaviour.

Privacy-safe ID solutions work as another viable option. Universal IDs use first-party cookies and permanent user identifiers to maintain targeting capabilities while respecting privacy concerns. Data clean rooms have become secure environments where advertisers create scenarios using first-party data and generalised advertising datasets from media giants.

Implementing consent management

Building customer trust and ensuring regulatory compliance depends on consent management. A reliable consent management system (CMS) covers these critical components:

1. Consent collection: Transparent methods to gather user permissions
2. Centralised repository: A single source for all consent data
3. Preference management: User control over data sharing priorities
4. Lifecycle management: Regular auditing and updating of consent records

Effective consent management platforms (CMPs) provide customisable consent forms and automated record-keeping features. These platforms must support multi-jurisdictional compliance and ensure consistent data privacy experiences in all devices due to increasing privacy regulations.

Businesses must prioritise getting explicit consent from users. This approach builds lasting customer relationships while deepening their commitment to privacy practises. Companies that implement transparent data collection practises often see improved customer loyalty and reduced churn rates, according to research.

While they still play a role in digital marketing, their purpose is evolving. With Google prioritising user choice over full deprecation, businesses have a crucial window to adapt. Strengthening first-party data strategies and exploring privacy-safe alternatives is now essential.

Success in this shifting landscape depends on proactive action. Brands that invest in consent management, contextual advertising, and direct user relationships see better long-term results. The future of digital marketing lies in balancing effective targeting with user privacy.

Leading companies are already deepening their first-party data strategies through interactive content, preference centres, and loyalty programmes. These approaches respect privacy while fostering stronger customer relationships.

The way forward is clear: embrace privacy-first marketing while maintaining control over targeting. Audit your cookie usage, implement robust consent management, and develop a sustainable first-party data strategy. Taking these steps now will future-proof your marketing and build lasting trust with your audience.