Google is initiating a major shift in online tracking by planning to end third-party cookie tracking in its Chrome browser by mid-2024. This move, which is an important part of the Privacy Sandbox project, aims to strengthen users' privacy and limit the tracking of their online activities across different websites.
The change is in line with growing global data protection requirements, including the EU's General Data Protection Regulation (GDPR). It requires companies to ensure the protection of personal data and give users more control over their information. This development is likely to meet with a positive response, particularly in Germany with its large proportion of Chrome users and strict data protection laws.
For users, the end of third-party cookies in Chrome means an increase in data protection. Google's new Tracking Protection feature limits websites' access to third-party cookies by default, reducing the tracking of users on the internet. Users are given more control over their data and can actively allow tracking by third-party cookies again if required.
However, this change could result in users receiving less personalized advertising. Since third-party cookies play a key role in the creation of personalized advertising, their absence could mean that ads are less tailored to individual interests. However, Google is working on alternative approaches such as the Privacy Sandbox project to continue to offer advertisers the ability to serve relevant ads without compromising user privacy.
Other leading browsers such as Apple Safari and Mozilla Firefox have already taken similar measures, underlining an industry-wide trend towards greater privacy. Platforms such as Facebook, which rely heavily on third-party cookies, could suffer from this development, while companies such as Amazon, which have extensive first-party data, may be less affected.
For Google's business model, the end of third-party cookies in Chrome is a challenge, especially since Google Analytics relies on these cookies. However, Google has other resources such as DoubleClick that enable targeted advertising based on first-party data. Google is developing alternative tracking solutions and working on cohort-based approaches such as Federated Learning of Cohorts (FLoC) to strengthen or even expand its position in the digital advertising market.
Newspaper publishers that have previously relied on third-party data for targeted advertising are facing challenges. They could suffer significant revenue losses and will likely need to focus more on first-party data, paywalls and direct subscriptions. Advertising networks such as Outbrain and Taboola are already adapting to the new landscape by shifting to contextual and interest-based advertising. However, publishers could develop a greater dependence on Google, as they may need to rely on its technologies to deliver targeted advertising without third-party cookies.
To address the challenges, newspaper publishers could take steps such as increasing the use of first-party data, developing new monetization models, partnerships and data sharing, using contextual advertising, creating innovative user experiences, building their own platforms and strengthening their own digital advertising clientele. This will not only enable them to compensate for potential revenue declines, but also strengthen their independence and develop more robust business models for the digital era.
Source: publizer
