In July, Google published an announcement on the current and future status of Privacy Sandbox, called A new path for Privacy Sandbox on the web. The update contained news that might come as a surprise: despite what they had been announcing for several years, Google shelved their plans to phase out third-party cookies in Chrome.

What does this update entail, and what are the implications for your business? We walk you through the changes.

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What is Google’s Privacy Sandbox?

Privacy Sandbox, introduced in 2019, is an initiative by Google that aims to create web standards that simultaneously give websites access to aggregated data about user behavior and preferences and protect people’s online privacy. The project has undergone several developments as Google consulted with various regulators and stakeholders.

The main goals of Privacy Sandbox are to

  • build new technology to keep information private for people browsing the internet
  • enable publishers and developers to keep online content free and ensure they don’t have to rely on intrusive tracking
  • collaborate with the industry to get involved and build new internet privacy standards

Privacy Sandbox was first implemented to function as an alternative to third-party cookies.

What does the new update entail?

In their most recent Privacy Sandbox update, Google introduced a new approach to enhancing online privacy while maintaining an ad-supported internet service that benefits publishers, businesses, and users. Previously, they had planned to phase out third-party cookies by 2025. Now, they are focusing on informed user choice, meaning third-party cookies will not be deprecated in Chrome—at least not now.

Note that the Privacy Sandbox path hasn’t been fully rolled out yet. In fact, it has been delayed several times due to its unforeseen complexity. As Google notes, the transition requires significant work from all those involved before they can finalize how Privacy Sandbox looks. Google is currently discussing its new approach to data privacy with regulators and stakeholders. No clear deadline has been given as to when these changes come into effect, but it’s important that companies are aware and prepare their future strategies.

How will the Privacy Sandbox update affect my business?

It depends on many factors.

We know that doesn’t answer your question. But the good news is that you can broadly estimate the impact based on the data you have about your users. One of the most important factors is the percentage of current visitors using Google Chrome as a browser.

While Chrome is the biggest internet browser globally, with a market share of 63.6%, different countries, industries, or businesses might see very different numbers. That’s why it’s so important to do the legwork: look into the data you have on browser usage and go from there. Do you know what percentage of your users use Chrome, and do you have the tools to collect and store such data? Data collection is only half of the work. It’s important to leverage the right technologies to analyze this data and gain insights.

Another thing to remember is that Privacy Sandbox requires additional development to provide you with the information you need. Previously, tracking could be as simple as implementing a so-called “tracking pixel” in the HTML of your web pages. Privacy Sandbox is less straightforward. Businesses will need to invest in development work to set it up in the most optimal way. This includes API integration. Companies must shift from a mindset that prioritizes convenience towards more sustainable strategies to achieve this.

So, does that mean third-party cookies are safe now?

It’s easy to think that Google’s U-turn means that advertisers will continue to have all the “benefits” of third-party cookies available to them.

In reality, it’s not that simple.

While Google is no longer pushing for the deprecation of third-party cookies, Privacy Sandbox puts great emphasis on informed user choice. As Google makes it easier for people to opt out of sharing their data with websites across the board, businesses will undoubtedly no longer be able to collect the same amounts of third-party data they had before.

Let’s also not forget that many other browsers have already taken steps to remove third-party cookies and user tracking. Firefox, for instance, disables cross-site tracking by default and has done so for a few years at this point.

The short answer is that while third-party cookies might not disappear in Chrome, the cookie landscape is ever-evolving and won’t look the same tomorrow as it did yesterday. Data privacy has gained tremendous momentum during these past few years, heralded by the GDPR regulations in Europe and the CCPA in the US. It’s safe to say that the trend towards a more privacy-centric user experience is here to stay. Businesses that still rely heavily on third-party data will risk falling behind unless they adapt to these changes.

What to remember about the Privacy Sandbox update?

If there’s one thing you should remember about Google’s Privacy Sandbox update, it’s this:

While Google isn’t deprecating third-party cookies (yet), Privacy Sandbox will require efforts on your end, both in terms of analysis and development, to provide you with the information you need to know your customers.

Not sure where to start to prepare for Google’s Privacy Sandbox? Vaimo can help with that. Our experts in data strategy and data management are ready to help you with an approach that works for your company and is future-proof.

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