Apocalypse not now: Google’s cookie rug pull points to ‘deprecation by default’ but market has already moved on

In a recent article on Mi3 our partners were all interviewed for their view on Google's U-turn on cookie deprecation.
https://www.mi-3.com.au/23-07-2024/uncrumbling-cookie-google-regulators-brands-media-data

Four years in, Google has officially pulled the rug on cookie deprecation. Consensus is Google read the runes on the upcoming report from the UK Competition and Markets Authority (CMA) report in the UK and factored in the DOJ's anti-trust case that kicks off in September. Mi3 spoke to brand, media, agency, and regulatory leads to gauge the impact for marketers and the supply chain – and they see deprecation happening by default, and trouble brewing for Google either way. Meanwhile, the market has already moved on to first-party approaches because cookies were "leaving money on the table". But there are questions about how Google implements consent opt-ins or opt-outs, and risks of marketers getting caught out by ignorance of where cookies operate as local privacy laws change.

Andrew Brain, Seven West Media Director of Audience Development and Growth, said almost 80 per cent of ad impressions it delivers across connected TV, mobile and web use its first part data. Those using legacy approaches, he suggested, will have to face reality sooner rather than later.
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“With Google finally taking the deprecation of third-party cookies off the table, publishers and brands reliant on cookie enrichments may celebrate, as marketers can continue tracking 'interested' audiences across the web, and publishers can continue to sell ‘interested’ audiences," said Brain. "However, with data and privacy reforms looming, this celebration may be short-lived."
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He said it is important for publishers to continue to find ways to create a true value exchange with audiences and speed up the creation of a first party data device graph through registration. "If that's not feasible, engage with first-party cookie tech partners."

He rates AdFixus. "In the past six weeks, deploying AdFixus has allowed us to gain insights on nearly 600,000 unique 7News.com.au browsers, with many coming from Safari, or social referrals which [previously] meant little to zero insight – simply put, a blind cookie we knew nothing about. Now we can drop them into cohorts."

Chris Brinkworth, Managing Partner at consultancy Civic Data said brands need to prepare for these changes but also question why Google “might not fully educate them on impacts already seen in other browsers, or why they push the industry towards their preferred advertising methods versus those complementary to a truly open web". It’s important to think beyond Chrome, he said.
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"Consider that Google's own GA4 analytics tool as a first-party cookie generally can only track unique visitor information for a maximum of seven days within Safari as a first-party cookie, yet much much longer in Chrome.  Understanding these basic limitations outside of Chrome is crucial for businesses in today's digital ecosystem, but somehow Google does not feel it relevant to educate or warn businesses against such complacency in announcements like this.”
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"Ignoring the need to understand which tools utilise third-party cookies, due to complacency, will lead to serious compliance issues under Australian privacy law. Brands must diligently understand where and why these elements are used, ensure their use is fair and reasonable, and navigate the inconsistencies in technology."
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"Long story short - it’s not just about performance and compliance; it’s about safeguarding the brand’s future in a tightening regulatory landscape."

News Corp’s Paul Blackburn, Director of Commercial Data & eCommerce, cited 150 per cent increases in click-through rates for travel business Beyond Journey via News' first-party data stack.
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News Corp's Paul Blackburn likewise stressed the ongoing issue of signal loss and said there are now far better solutions available, claiming tests with advertisers are showing "four times the return on ad spend when we go up against current third party cookies."
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In the long run, he said brands and advertisers "will only find greater value in partnering with media organisations that are powered by deeper and more robust data-driven insights delivering high-value audiences delivering better campaign outcomes.”
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Nine's Suzie Cardwell, Chief Data Officer said that the media majors had long recognised the need to create direct relationships with audiences - hence the likes of Nine getting people to log-in seven years ago and subsequently amassing email addresses for most Australians – circa 22 million.
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"That was a recognition of the fact even back then, that first-party data gives us the ability to deeply understand what the audience likes and it gives our advertisers a really clear understanding of who those audiences are, who to target, and how to target them."
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With brands likewise investing in their first-party data efforts, the effect is multiplied - delivering efficiency through matching data so that, for example, new customers can be sought and existing ones suppressed, making budgets go further and improving returns.
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...pointed out the publisher-broadcaster has been developing first-party data infrastructure since well before cookie deprecation kicked off with Apple's Safari in 2017 – and cited data matching boosting online visits for Coles by 32 per cent."

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