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Google has delayed nearly two years in ending the plan to protect third-party cookies in the Chrome browser after pressure on an idea that is considered one of the foundations of today’s online advertising industry.
The searcher said it would take more time to discuss with regulators and companies involved in digital advertising and “not jeopardize the business models of many web publishers that support freely available content.”
The break was taken happily in the world of digital advertising, which has led to uncertainty with the end of one of the main ways to target online messaging. Shares Trade Desk, a US company, has tried to gain support alternative mode among those targeting ads, the news rose 17 percent, and French advertising technology company Criteo 11 percent. The delay will give the online advertising industry more time to improve cookie alternatives, said Truist analyst Youssef Squali.
Third-party cookies have been on fire for years to register websites that visit snippets of code planted in a user’s browser and help advertisers target a personalized ad. They block Apple’s Safari browser and Mozilla’s Firefox by default.
However, Chrome accounts for about two-thirds of the browser market, which has a much greater impact. Google’s position in many other areas of digital advertising has also raised concerns that the end of cookies – and the alternative system it plans to use in Chrome – could be used to its advantage over rivals.
Two weeks ago, the UK Competition and Markets Authority said so worried Google “decided to keep up with the changes”[to cookies]. . . in ways that benefit their businesses and limit competition from opponents. ”But he added that the additional commitment offered by Google would reduce the risk, among other things, that the company promised not to make changes without giving the regulator 60 days to review them.
This concession could lead to a debate between regulators who play a key role in overseeing Google’s advertising systems. The European Commission this week announced an anti-monopoly investigation into Google’s ad technology business, including a proposal to end cookies.
Google has proposed replacing cookies with a new, private method of tracking the online interests of users known as Floc. Personal browsing data would be stored and analyzed in a user’s browser instead of being sent to other companies. Users would be grouped into cohorts according to their interests and the rest of the online advertising industry could use this aggregate data to target their messages.
Some critics have questioned whether Google would exist unfair advantage because it would have complete control over how the cohorts design. In addition, if the new system makes targeted advertising more effective, Google can indirectly benefit from it, as direct contact with users allows access to a mountain of raw data that doesn’t match competitors. The company said its tests showed that advertisers can expect the Floc system to be as high as 95 percent of cookies.
The company has backed down privacy experts who question whether private data can still be leaked. The new floc system “could pose significant risks if it were to expand as much as it is today,” according to an analysis by the Mozilla open source team.
Google said it will test cookies at the end of next year so that advertisers and publishers will have nine months to migrate their systems to new technology. The cookies would disappear within three months by the end of 2023, he added. The company initially set a deadline for the start of next year to dispose of cookies.
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