Although many publishers have shifted away from relying solely on third-party cookies, Google’s recent decision to backtrack on its commitment to eliminate them is a tough blow, not least the time and money invested by publishers over the past five years. Questions need to be asked.
Regarding the planned sunsetting of third-party cookies, and the subsequent pivot late last month, did Google just pull a fast one on publishers?
No, of course not.
With our legal friends artfully sidelined I’d like to share a story.
In 2022 I conducted a personal study tour of a number of UK publishers including, amongst others, Hearst Publishing, Bauer Media, Haymarket Publishing, Condé Nast, Immediate Media and other industry specialists including WARC, the World Advertising Research Center.
Every publisher I talked to was doubling down on alternative privacy and identity strategies following Google’s announcement in 2020 that they’d be making third-party (tracking) cookies obsolete. It was impressive to see the dedication and seriousness with which publishers approached the issue. £Millions were being thrown at the problem.
However, in the same year, I was shocked by what I heard at Cannes LIONS, the ad industry’s yearly shindig. It was chalk and cheese.
Here’s what I wrote at Cannes in 2022, “Third-party cookies won’t go away in 2023. A bold call to be sure, but new estimates range from 2024 to 2028, with one influential ad exec telling us that he “wouldn’t be surprised if it never happened”.”
Soaked in cynicism, many ad execs I talked to on the French Riviera were uniform in their view that amidst threats of regulation – example here – Google had ensured their Privacy Sandbox replacement was ‘good enough to pass the regulator sniff test’ but with enough flaws for it to be kicked endlessly into touch.
Time to wake up
Most tellingly of all, and on condition of anonymity, one ad exec told me to “wake up” before remarking that “there is so much money at stake, it’s in Google’s interest for there to be endless delays. It’s not going to happen, take my word for it.”
It’s gratifying to see Madi Bachar, VP Global Sales at MGID be brave enough to go on record and state, “Google’s decision wasn’t a massive surprise – too much money was at stake.”
There it is again: Too much money at stake.
He added, “and Google couldn’t find a solid alternative.”
To which I’d enquire ‘couldn’t’ or ‘wouldn’t?’ It’s easy to mistake the two when $billions are at stake. It’s enough to make anyone go misty eyed….on purpose.
Anyway, if there are two positive aspects to this FUBAR it’s this:
- Publishers have once again been burned at the tech platform’s stake, and it’s yet another timely reminder for them to forge their own independent path. As we advised publishers following our visit to Cannes, “you must keep your options open”.
- The five years spent investing in identity and privacy solutions hasn’t been wasted with first party data now firmly at the forefront. Bauer Media’s Illuminate solution is a case in point, which has seen them witness a revenue uplift of 75% by harnessing first party data and shifting from a brand-centric strategy to an audience and portfolio strategy.
Perhaps the final word should go to the News Media Association’s CEO, Owen Meredith, who told me, “Privacy Sandbox has stood to illustrate Google’s ability to fundamentally change the landscape that entire industries navigate and decide the tune to which the rest of us must dance, and now they’ve chosen to stop the music.
“The Sandbox is a case in point as to why the new pro-competition framework established by the Digital Markets, Competition and Consumers Act is needed to restore balance and fairness to digital markets.
“Going forward, Google’s alternative proposals must be carefully considered and introduced with consultation and full transparency. They cannot result in another back-door route to more power and control being handed to big tech at the expense of news publishers’ ability to deliver relevant, personalised services to their readers; and to monetise appropriately.”
Stick it to ‘em, Owen.
Leveraging first-party data to boost ad revenues is a key theme at our Revenue Europe summit in Berlin on 1st October 2024, as well as Austin, TX on 9th October. Full agendas and more information here.
