After years of pledging to phase out the tiny packets of code meant to track users on the internet, Google has reversed its plan to remove third-party cookies from its Chrome browser.

Google has revealed that ad companies testing Privacy Sandbox, which was created with the goal of finding innovative solutions to improve online privacy while preserving an ad-supported internet, are satisfied with its potential to achieve the outcomes.

Given this, Google, which earlier announced it would be deprecating third-party cookies completely over time, has now stated that it will instead be giving users an option to make an 'informed choice' and will not be getting rid of the cookie

According to a blog post published by Anthony Chavez, VP, Privacy Sandbox, Google is now proposing an updated approach. 

"Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time. We're discussing this new path with regulators, and will engage with the industry as we roll this out," said Chavez.

Through the blog he added, "As this moves forward, it remains important for developers to have privacy-preserving alternatives. We'll continue to make the Privacy Sandbox APIs available and invest in them to further improve privacy and utility. We also intend to offer additional privacy controls, so we plan to introduce IP Protection into Chrome's Incognito mode."

He concluded, "We’re grateful to all the organisations and individuals who have worked with us over the last four years to develop, test and adopt the Privacy Sandbox. And as we finalise this approach, we’ll continue to consult with the CMA, ICO and other regulators globally. We look forward to continued collaboration with the ecosystem on the next phase of the journey to a more private web."

In April 2021, Apple allowed users to determine whether they were comfortable with app tracking.

While only 11% of its users allowed app tracking in 2021, a year later the number was upto 25%.

We reached out to industry experts to get their opinion on this move by Google.

Abhinay Bhasin, senior vice president, product and technology, dentsu

Developments with the Privacy Sandbox have been collaborative with the wider ecosystem. As such, Google's update allowing for user consent is surely a welcome move. However, the viability and method of this update are yet to be discussed with the CMA, ICO, and other regulatory bodies. Consent-based marketing and data collection is back at the forefront of advertising and the proposed changes address this. This move will leave room for better insights and better targeting depending on how many opt in or opt out. Additionally, the Privacy Sandbox APIs and signal resilience should improve over time, depending on adoption.

Dippak Khurana, founder and CEO, Vserv

Google may have announced the scrapping of the plan to remove third-party cookies, and advertisers/brands may silently feel relieved. However, Google cannot scrap the idea of consumer consent. They will soon find a way to enable opt-in/opt-out measures on Chrome.

Mandeep Malhotra, founder and CEO, Shrishti Media

The general availability of Google’s Privacy Sandbox is a pivotal step in the ongoing evolution of online privacy and digital advertising. By replacing third-party cookies with privacy-preserving technologies, this initiative addresses growing concerns about user privacy while still enabling effective ad targeting. Having said that, the world has different challenges and doesn't really bother about privacy, so it may just be a few people's problems.

Parag Pandya, founder, Salt Worldwide

It shows a commitment to user privacy and data security as third-party cookies can often lead to a collection of user data without their consent. This move responds to increasing regulatory pressures and consumer demands for greater control over their personal information, prompting the industry to explore alternative ways to target and track ads that prioritise user consent and transparency.

Prady, CEO and managing partner, NP Digital India

Google’s decision to delay the rollout of third-party cookies underscores the need for the marketing industry to pivot towards privacy-first strategies. At NP Digital India, we embrace this as an opportunity to innovate with privacy-first strategies. Our focus is on solutions that prioritize user consent and data security, ensuring ethical marketing. By adopting privacy-centric approaches, we aim to build trust-based relationships and deliver impactful results while upholding the highest standards of user privacy.

Prashanth Kumar, chief digital officer, Infectious Advertising

How digital India will make the most of this is something I'm waiting to see. With a growing emphasis on data localisation and regulations like GDPR and India's own Personal Data Protection Bill (PDPB), digital marketers in India have a unique opportunity to innovate around first-party data and build trust with consumers through transparent data practices. This transition could foster a more sustainable and ethical digital ecosystem.

Raghav Bagai, co-founder, SW Network (Sociowash)

While we were prepared to adapt our working mechanisms with the elimination of third-party cookies, this change makes our job slightly easier, as not all brands are digitally savvy enough to make the switch or have the budgets to streamline API-led tracking. That being said, we still encourage our performance marketing-focused brands to make the switch to API-led tracking instead of relying on cookies for better accuracy.

Siddharth Devnani, co-founder and director, SoCheers

As the top digital platform monetising internet traffic by showing highly relevant ads, Google is dependent on the fundamental model of segmenting users for delivering this relevancy to brands. While they announced initiatives to replace third-party cookies, we all knew it would come at the cost of a significant part of the digital advertising ecosystem. Maintaining third-party cookies within browsers such as Chrome now maintains the status quo of the industry. This is a win for all the digital ad networks. Is it a loss of user’s privacy? I don't think so yet. The pressure will be on from all fronts - regulators, internet privacy advocates, and consumer rights activists.

Shams Jasani, strategic advisor, Frodoh

The introduction of Privacy Sandbox represents a critical juncture in the development of digital advertising. Though the transition may present numerous challenges, it also opens the door to innovation and a reimagined approach to consumer engagement. By adopting privacy-focused advertising methods, we can create a more sustainable and reliable digital environment, securing the long-term success of the advertising industry.

Shradha Agarwal, co- Founder and CEO, Grapes

The recent development of Google withdrawing the cancellation of third-party cookies aspires to revolutionise the advertising industry. Previously, third-party cookies were invariably sought by the ad industry to exercise ad targeting by conducting user tracking. However, the approach raised privacy concerns for the users. To address the issue, Google had previously considered abandoning the cookies. But gauging that the ad industry lacked the necessary infrastructure to undergo the transition, it took the innovative approach of introducing Privacy Sandbox to strike the right balance between protection of user privacy and free availability of content on the open web.

The feature opens the gateway for new Chrome experiences, allowing people to make informed choices with the flexibility to make adjustments to their choices across web browsing at any given point in time. Seeking to prioritize user privacy while ensuring advertising efficacy, there are plans to roll out a one-time prompt in the future. It will empower users to set their preferences for all Google browsing experiences. With Google making up the majority of the search market, the move marks significant progress on the online privacy and digital advertising fronts.

Furthermore, the trials to assess the performance of Privacy Sandbox showcase an 89% recovery of ad spends in Google Display ads, followed by an 86% recovery of ad spend in Display & Video 360 (DV360). Moreover, the feature comes with a lot of potential that remains to be observed in the near future with more development and upgradation of the Privacy Sandbox. Google intends to further add necessary privacy controls and even introduce IP protection into Chrome’s incognito mode to not compromise the privacy of its users.

Tejinder Gill, general manager, The Trade Desk 

Google has finally acknowledged what the advertising industry has been asserting for years: the Privacy Sandbox is not a good product. It fails to sufficiently protect consumers’ privacy, empower advertisers, and likely hurts publisher monetization the most.

While Google spent years developing Privacy Sandbox, the advertising industry has moved on. Marketers now recognize that the fastest-growing parts of the internet extend beyond the Chrome browser. Consumers in India are increasingly embracing OTT, CTV, and music streaming platforms that operate in cookie-less environments. This shift has led to better identity solutions, like Unified ID 2.0, which represents a significant upgrade to the internet, and support the needs of modern marketers.

Now, while Google seems to have finally acknowledged that the best option is to give consumers a choice, the question remains—will Google truly offer consumers choice? Or will they make decisions on their behalf and then bury consumers' access to change it? And - will they change their minds again?  Regardless, we should all continue to make the internet better and put both advertisers and publishers in control of their own destiny.

Vikas Chawla, co-founder, Social Beat

Brands will rejoice in this decision in the short term but users are increasingly wary of their privacy and personal data. It's plausible that increasingly users will opt for more private browsers but it's likely to take time. Companies that have invested in first-party data will continue to have an edge, but not as much as envisioned before as cookies will continue to exist. From regulators globally, this could be a challenging move and it remains to be seen how it impacts Chrome.