Google has dropped its long held, and long delayed, plans to kill off third-party cookies in its Chrome browser.
Instead the users of the Google browser will be prompted to decide whether or not to turn cookies off or on.
Both regulators and the advertising industry had objected to the way Google planned to keep user details private.
The reversal, revealed in a blog post by Anthony Chavez, vice president of Google's Privacy Sandbox, has significant implications for the advertising industry.
"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," Chavez said.
"We're discussing this new path with regulators, and will engage with the industry as we roll this out.
"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."
Google in 2020 revealed plans to phase out third-party cookies allowing advertisers to track users. But the plans kept getting delayed, with the latest schedule the end of this year.
The plans pushed publishers to concentrate on building out their own first party data, to give advertisers the ability to fine tune targetting.
Google said it had received feedback from regulators such as the UK’s Competition and Markets Authority (CMA) and Information Commissioner's Office (ICO), publishers, web developers and standards groups, civil society and the advertising industry.
"This feedback has helped us craft solutions that aim to support a competitive and thriving marketplace that works for publishers and advertisers, and encourage the adoption of privacy-enhancing technologies," Chavez said.
ADMA, the Association for Data-Driven Marketing & Advertising, says Google's decision to give consumers more control over their online data settings aligns with the transparency requirements under Australia’s proposed privacy reforms.
"Customers expect to have control over how their data is used, and any move to provide better control should be welcomed by marketers. It is a key factor in building consumer trust in the marketing ecosystem," said Andrea Martens, CEO, ADMA.
“For marketers, the proposals put forward in the Privacy Sandbox to date have been concerning due to the negative impact they would have on advertising effectiveness and campaign performance, whilst still not meeting privacy laws.
"ADMA is encouraged to see that Google has taken a different approach, rather than dogmatically pursuing a solution that would not benefit either the consumer or the marketer. We look forward to Google engaging with industry as it rolls this out.
“While putting more control into consumers' hands will likely see a reduction in third-party cookie tracking over time, the ability to still use third-party cookies will take some pressure off those who are still heavily reliant on them.
"While today’s announcement may provide some marketers’ relief, ADMA urges the industry not to be complacent or throw away the good work they have done in developing a post-cookie strategy.
"There is already a move away from relying on third-party cookie strategies as deprecation has already taken place across other browsers and consumer expectations regarding how their data is used, with consent, in fair and reasonable ways, is becoming the required standard. Those who embed their marketing strategies in these more evolved fundamental principles will be ahead of the curve in this new paradigm."
Scott Opiela, CMO, Acoustic, a global marketing and customer engagement provider, said the uncertainty Google has created since the company began promising the demise of cookies underscores why brands shouldn’t rely heavily on third-party data sources.
"Because big tech companies like Google create walled gardens around consumer data, brands have struggled to understand their customers on an individual level and form closer customer relationships.
"Brands must own their customer data rather than relinquishing control and relying on the unpredictable policies, roadmaps, and strategies of external sources.
"First- and zero-party data collected through brands’ owned channels — like websites, email, SMS, and mobile push notifications — remain critical to engaging consumers effectively, future-proofing marketing operations, and creating a customer engagement strategy that prioritizes consumer privacy."
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