Google's U-Turn on Third-Party Cookies Sparks Ad Tech Frustrations
State of Play: Over the summer, Google announced they are (finally) canceling plans to depreciate third-party cookies in Chrome. After a long four-year-long battle marked by ongoing challenges with regulators, industry stakeholders, and developers, Google shared in a blog post that it would no longer pursue a complete phase-out of third-party cookies. Instead, the company is pivoting to a new strategy that allows users more control over their privacy settings while continuing to support third-party cookies for those who choose to use them.
The gist is:
Google will not phase out third-party cookies in Chrome next year.
Google will continue to invest in the Privacy Sandbox APIs and enhance privacy controls.
Other browsers, including Apple’s Safari and Mozilla's Firefox, have already eradicated third-party cookies that track users across the web and target them with adverts amid concerns about privacy. Although as the world’s biggest browser with more than 60% share, Chrome’s decision to phase out cookies was set to be the final nail in the coffin for the intrusive trackers. The news, of course, came as a bit of a surprise to all parties. So why has Google undergone such a seemingly large U-turn on third-party cookies, how will Chrome include the online trackers going forward, and how will that impact your privacy?
Let's take a look back at how we got here.
Why it Matters: Google says its updated approach allows people to “make an informed choice that applies across their web browsing,” and says you’ll be able to “adjust that choice at any time.” The plan is for this to be as usable as possible. Sources familiar with the matter confirmed Google’s current plan would be a prominent global prompt, meaning users would not be asked to make choices on a site-by-site basis.
While Google’s decision provides a temporary reprieve, it does not eliminate the need to prepare for a future where third-party cookies are less reliable. This period should be seen as an opportunity to refine data collection and targeting methods, ensuring long-term success in an evolving digital landscape.
Curious to learn more? Reach out to our digital team digital@fgsglobal.com
Brazil Unblocks X After Musk Backs Down
State of Play: Brazil’s Supreme Court announced that X can resume operations in the country after a five-week ban. This decision follows the platform's compliance with court orders, including removing certain accounts, paying fines of up to 28.6 million Brazilian reais (approximately $5.2 million USD), and appointing a new representative.
Why it Matters: Brazil represents one of X's largest and most valuable markets. The previous suspension not only affected the platform's user base but also its revenue potential in the region. Moreover, recent data shows a significant decline in user engagement in the US and UK, with X's active daily users dropping sharply in key markets. This combined trend raises concerns about X's long-term viability and suggests that regulatory challenges and declining user interest could weaken the platform's global influence.
U.S. States Sue TikTok Over Youth Mental Health Harm as Platform Launches New Well-being Initiatives
State of Play: More than a dozen U.S. states and D.C. have filed lawsuits against TikTok, alleging that the app is intentionally designed to be addictive and harmful to children's mental health. The lawsuits claim that TikTok's algorithm delivers “dopamine-inducing” content that encourages excessive use, leading to issues like anxiety, depression, and body dysmorphia among young users. Prosecutors also accuse TikTok of targeting users under 13, collecting their data without parental consent, and profiting from the exploitation of teens through its live-streaming feature. Coincidentally, TikTok has announced new initiatives for World Mental Health Day, including a partnership with Headspace to provide free access to mental health resources for up to 20,000 creators, aiming to help them manage burnout and advocate for mental well-being.
Why it Matters: These lawsuits highlight concerns about social media's impact on youth mental health and could lead to stricter regulations for TikTok and other platforms. TikTok's new mental health initiatives aim to address these issues, but ongoing legal pressures may still result in significant changes to protect young users.
Google AI Overview Ads Launch on Mobile in the U.S.
State of Play: Google has announced the launch of its AI Overview Ads, which will start appearing for mobile users in the U.S. These ads will be displayed directly below the organic AI-generated answers in response to commercial queries. Advertisers do not need to take any additional actions to participate, as existing AI-powered Search ads, Shopping, and Performance Max campaigns will automatically be included. However, Google will not provide segmented reporting for these ads, making it challenging for advertisers to assess their performance.
Why it Matters: AI Overview Ads occupy prime real estate on Google, potentially boosting clicks, sales, and revenue for advertisers. However, their lower placement compared to traditional search ads raises questions about effectiveness and ROI. The absence of detailed performance reporting makes it essential for businesses to closely monitor their overall campaign metrics.
