Google Chrome to Stop Using Third-Party Cookies: What It Means for You
At the end of this year, Google announced that its Chrome browser will stop using third-party cookies. This technology allows users to be tracked across different websites to offer personalized advertising. While this move aims to protect user privacy, it could have profound consequences for the advertising industry and the user experience on the internet.
“The open web is going to suffer,” says Anthony Katsur, executive director of the IAB Tech Lab. Many websites rely on third-party cookies for targeted advertising, and without them, businesses will have less insight into their audience. This could lead to a decrease in revenue and more irrelevant ads for users.
Google Chrome, which controls 60% of global internet traffic, is the last major browser to allow third-party cookies. The transition away from cookies could result in revenue losses of 20% to 40% for some publishers, according to analyst Karsten Weide.
The end of third-party cookies could also impact consumer privacy by normalizing granular data collection. As companies encourage users to log in to replace cookies, user profiles could become more centralized and detailed.
Google plans to introduce new privacy-preserving technologies to help websites serve relevant ads without third-party cookies. The company has been working with industry players to develop these tools and is confident they will mitigate the impact of the cookie phase-out.
Big tech companies like Meta, Apple, and Amazon are well-prepared for the change, as they have their own data ecosystems and direct relationships with users. However, smaller publishers and websites may struggle to adapt to the new advertising landscape.
Overall, the demise of third-party cookies could lead to significant shifts in the advertising industry. Advertisers will need to reassess their strategies and allocate their budgets effectively in a cookie-less world.
Written by Hamza Shaban, Yahoo Finance reporter covering markets and the economy. Follow Hamza on Twitter @hshaban.
For more information on this topic, watch the video: Apple iPhones could incorporate Google AI.