ROI better with privacy-led solutions: Google allays advertisers’ Privacy Sandbox concerns

Following numerous articles and critical assessments over the last few days, Google on Wednesday sought to address advertisers’ concerns about the third-party cookie deprecation by the deadline. 

The tech giant also shed some light on the cost and capabilities of the Privacy Sandbox, a cookie replacement, so that advertisers can make an “informed decision” sooner rather than later. 

On January 8, e4m reported that over 90% of advertisers in India are unprepared for a cookieless world, reflecting a similar trend observed in studies conducted abroad. 

“We understand some people want more time, but we have heard repeatedly from the industry that moving the timeline is likely to result in less ecosystem preparedness, not more….While the timeline to deprecate third-party cookies is subject to addressing any remaining competition concerns from the UK CMA, we are encouraging everyone to prepare for third-party cookie deprecation in 2024,” says Victor Wong, Senior Director of Product Management, Privacy Sandbox in a blog post. 

In the first phase, Google launched Tracking Protection feature on January 4, which restricts third-party cookies by default. It has been rolled out to 1% of Chrome users, roughly 30 million people globally. By the third quarter of the year, cookies are expected to be gone in Chrome forever.

Wong insists that Privacy Sandbox is already being incorporated by companies across the industry to develop “more private” solutions.

“It’s imperative we work together to transition the internet to become more private. Users deserve it, and a growing set of regulations require it. Making this transition while continuing to support free access to online content and experiences is the core of Privacy Sandbox’s mission. This requires new privacy-preserving technologies that support key developer needs—including online advertising—that today rely on third-party cookies and other identifiers that can track user activity across sites,” he says to ease out the advertisers. 

When changes are big, objections are common. We've heard concerns about the Privacy Sandbox being deemed insufficient or overly complex for adoption, Google executive said, adding that the firm is open to constructive feedback and aims to address these objections systematically, allowing everyone to make informed decisions about building with the Privacy Sandbox. 

Wong clarifies that Privacy Sandboxes are “not intended to be one-to-one replacements” for all cookies. Instead, they are designed to provide foundational elements that support core business objectives for marketers and publishers (like driving online sales and serving relevant ads), without cross-site identifiers. Developers can utilize them alongside other technologies and inputs to achieve those outcomes. 

On the cost factor involved in building on the Privacy Sandbox-led advertising, Wong asserts that the return on investment (ROI) on privacy-led solutions is “significant and growing”. He also stresses that investment in privacy-enabled solutions is necessary to rebuild user trust and also for compliance with privacy protection laws. 

Wong also denies that Google’s products could have some undue advantages with the Privacy Sandbox. All businesses and developers who use Privacy Sandbox technologies—including Google—have the same access to the same Privacy Sandbox capabilities, he noted. 

Significantly, Apple's Safari and Firefox Mozilla, which deprecated third-party cookies a few years ago, did not present alternative tracking tools, whether privacy-focused or otherwise. Google leverages its rivals' stances to its advantage. 

Wong's blog asserts, "Other web browsers have limited third-party cookies without offering viable alternatives to assist developers. This complicates the ability of publishers to sustain their content and services, posing risks to user privacy through more clandestine forms of tracking."