Google’s Cookiepocalypse Countdown: Should Marketers Prepare for a Cookieless Future?

‍For a long time, marketers kept anticipating the 'Cookiepocalypse', and its dark clouds were looming over advertising agencies. It meant preparing for a cookieless future. Google has been going back and forth on its decision to phase out third-party cookie data from Chrome. 

Currently, around 3.45 billion to 3.69 billion people use Chrome, making it the most popular web browser. Chrome has 63.45% of the global browser market share, and the decision to remove third-party cookies will surely have a huge impact. 

In this blog, you'll find out the reasons behind Cookiepocalypse and whether cookies are actually going away. Furthermore, you will learn how to leverage cookieless marketing strategies to make the best use of the current circumstances. 

Chrome, Cookies, and Chaos for Marketers

In 2020, Google decided to phase out third-party cookies. The reason behind the decision was to address increasing privacy concerns and regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). Hence, Google decided to remove third-party cookies by 2023. 

However, Initial tests to remove cookies led to around a 60% drop in web advertising revenue. After receiving huge backlash from advertisers and facing technical issues, in 2024, Google took a step back on the decision.

Google dramatically shifted its plans. Now, instead of a full removal of third-party cookies, Chrome will allow users to control cookie preferences. The move will keep cookies alive but changes how marketers must operate. 

Other major web browsers like Safari, Firefox, and Brave have been phasing out third-party cookies. They now block third-party cookies by default. It shows that the relevance of third-party cookies is eroding, and no matter what Google decides, marketers must be prepared for cookieless advertising. 

Before we dig more into the issue, it's important to understand the fuss over cookies. Let's take a quick look at first, second, and third-party cookies. 

Types of Cookies

The cookies stored by a website when you directly visit it are called first-party cookies. They remember your preferences, login details, and on-site behavior. These cookies are important in delivering a seamless and personalized experience to users. The data stays within the site and does not track users elsewhere.

Second-party cookies work like a middleman, but a trusted one. They start out as first-party cookies collected by one brand and then shared directly with a trusted partner. It is done through an agreed data exchange or partnership. 

For example, a hotel website might share your information with a travel website partner to better understand what you want, while still respecting your privacy. Second-party cookies are used by the partner to improve their own audience insights and targeting. These cookies are more privacy-friendly, but less commonly used than other types.

Now comes the infamous third-party cookies, created and set by domains other than the one you directly visited. They come from other companies, like advertisers, who want to watch what you do, often without your clear consent. They track your activity across many sites to enable retargeting and deep behavioral profiling for advertising. 

Since third-party cookies follow you around the internet, they are a focal point of privacy regulations and are being limited by many browsers. Here’s a comparative table for better understanding. 

New Headaches for Marketers

Third-party cookies have been the backbone of ad targeting and measurement. Nearly 99% of businesses still use third-party tracking cookies to buy ads online automatically. In fact, 70% of senior marketers support Google's decision to continue supporting them.

The survey done by Statista also shows some interesting results. As per the survey, around 21% agencies and 32% marketers  are still heavily dependent on third-party cookies. Only around 3% plan to abandon them while they're still available.

‍

It is clear from the figures that the erosion of third-party cookies will lead to several new headaches for marketing and advertising agencies. It means: 

• Less effective retargeting and conversion tracking.
• Difficulty in campaign attribution and frequency capping.
• Reduced insights into cross-channel user journeys.
• Attribution models/ad spend ROI will become unreliable unless marketers pivot.
• Analytics tools will struggle to deliver actionable insights. 

Privacy Regulations Tighten the Screws

Privacy regulations are tightening the screws around third-party cookie-based advertising. The European Union (EU), the Competition and Markets Authority (CMA) in the UK, and the Information Commissioner's Office (ICO) in the UK are actively making and enforcing legislation. If you still want to rely on third-party cookies for now, then you have to follow GDPR and CCPA. 

GDPR applies to any business serving EU customers. It officially considers cookies as personal data. That means you can't just drop them into a user's browser without permission. Agencies are required to: 

• Get explicit consent before setting non-essential cookies
• Clearly explain what data is being collected and why
• Allow users to withdraw consent at any time
• Keep detailed records of consent for audits

On the other hand, the CCPA sets a different but equally strict standard. It gives California residents the right to opt out of the "sale" of their personal information, which is collected through third-party cookies.

The penalty for not adhering to these regulations isn't light. Violating GDPR can cost up to 4% of annual global revenue, while the CCPA can fine businesses up to $7,500 per intentional violation. The Central Consumer Protection Authority (CCPA) Act of India also imposes varying penalties and imprisonment for misleading advertisements. 

All of this makes one thing clear: privacy regulations have pushed cookies into heavily restricted territory. Many new laws are still in the process. Hence, marketers must balance legal compliance with building user trust while maintaining campaign effectiveness. And that's not an easy task. 

A recent study found that 69% of advertisers believe that their business will be hurt more by the complete removal of cookies than by privacy laws. In other words, whether you still use third-party cookies or move toward cookieless strategies, the legal and customer trust-building scenario has changed for good.

Preparing for a Cookieless Future: What Marketers Can Do Now

The increasing speculations about the phasing out of third-party cookies don't signal the end of digital marketing. It signals a shift. A BCG report highlights that companies reworking their strategies without using third-party cookies have attained better results. Large businesses had 10% performance improvements while small businesses achieved gains of up to 100%.

Masketers have to change their old ways and start working with first-party data for a cookieless world, along with other strategies. 56% marketers have already tested cookieless alternatives. These alternatives are expected to be more widely adopted.  Let's look at some of these alternatives below: 

Double Down on First-Party Data (The Foundation)

First-party data is the new gold standard in a cookieless world. In fact, 78% of businesses consider first-party data to be the most valuable source of data for personalization. It is collected directly from your audience through interactions like:

• Newsletter sign-ups
• Account logins
• Purchase histories
• Loyalty programs
• Feedback forms and surveys

By using first-party data, marketers can directly know their customers without relying on outside trackers. Agencies will have to invest in robust CRM systems, CDPs (Customer Data Platforms), and consent management tools. These tools make it easy to responsibly gather, organize, and activate first-party data without getting caught in the vicious trap of data silos. 

Leverage Second-Party Data Partnerships

Agencies can form alliances with trusted brands to get valuable customer data and insights. Forming data-sharing collaborations will expand reach without violating privacy standards. Let’s take an example of Marriott and Starbucks. 

Last year, Marriott Bonvoy and Starbucks teamed up and shared second-party customer data with each other. The partnership was hugely successful for both as Marriott expanded its offering for its 203 million members. Hence, leveraging second-party data partnerships will be fruitful for marketers. 

Embrace Privacy-First Marketing Tactics

Marketers will have to adopt privacy-first marketing tactics to earn customer trust and abide by legislation. Some steps include: 

• Transparent opt-in forms
• Value exchanges (e.g., discounts for signing up)
• Clear privacy policies
• Real-time consent management dashboards
  

If brands want to strengthen customer loyalty and reduce churn, then user privacy will have to be respected. Even though Google still enables third-party cookies by default in Chrome, change is still coming. The tech giant still plans to develop new privacy-centered alternatives. 

Alternatives like Google’s Privacy Sandbox, Unified ID 2.0, and publisher-led ID frameworks are rising as strong contenders as replacements for cookie tracking. Let’s take a look at two main frameworks in a little more detail: 

Google’s Privacy Sandbox

In early 2019, Google introduced the Privacy Sandbox to the world. It is a suite of APIs designed to give users greater control over their personal data. 

Privacy Sandbox also provides marketers with new tools for targeting and measurement in a privacy-first way. It aims to phase out third-party cookies and limit covert tracking methods such as fingerprinting. However, the project is currently under development and facing some backlash from experts. Nevertheless, Google is working on removing technical issues from the project and making it more marketing-friendly.

Unified ID 2.0

Another alternative is Unified ID 2.0. It is an open-source and privacy-conscious identity framework. It strategically uses first-party data directly collected from users. It is increasingly being adopted in the digital advertising ecosystem and is expected to replace the need for third-party cookies altogether. 

Unified ID 2.0 is beneficial for both advertisers and users. It allows cross-channel targeting and monetization through the use of encrypted email and phone numbers. The framework is being supported by Adobe, Lotame, and The Trade Desk. It is being integrated into ad tech platforms to provide personalized advertising experiences that respect user privacy. 

Privacy-first marketing is increasingly becoming important. The ad tech space is going through some major changes. Users are more conscious of their data than ever before and demand more privacy on the internet. Even though Google has stopped phasing out third-party cookies in Chrome, forward-thinking marketers will have to prepare for their gradual disappearance. 

Adopt Advanced Analytics Models

As third-party cookies become more regulated, attribution models must also evolve. Marketers can no longer solely rely on cookie-level tracking for precise user journeys. One must explore privacy-friendly measurement methods like: 

• Server-side tracking shifts data collection from browsers to secure servers. It reduces data loss and provides cleaner insights. 
• Media Mix Modeling (MMM) gives a holistic view of different channels. It is used to get cross-channel performance insights.
• Incrementality testing is used to measure the true impact of campaigns.
  

Although the use of these methods is rising, they aren't as granular as cookies. Nevertheless, these models are reliable decision-making frameworks. They can be used for smarter budget allocation and performance optimization.

Contextual Advertising Makes a Comeback

A strong cookieless marketing strategy doesn’t mean showing irrelevant ads. Marketers must move beyond simple keywords and rediscover ways to use contextual advertising. It places ads based on the content of a page rather than tracking user behavior across the web.

Contextual advertising ensures privacy-first targeting while still reaching the right audience at the right moment. AI can further strongly analyse page themes, tone, and intent. It will boost ad relevance. For example, you must have seen energy drinks and sports gear being used during live cricket matches. 

Let's look at another example. As you can see in the image below, the Cleveland Clinic is a popular American academic medical center, but they have mentioned several products for treating Eczema in one of their blogs on skincare. It drives natural engagement and promotes a brand. It also builds customer trust for a product when it is promoted on the right and reputable platform. 

Pro Tip: For modern marketers looking for a first-party data management suite, choosing CM Galaxy can make all the difference. CM Galaxy is a MarTech platform which helps brands responsibly collect, unify, and activate customer insights. With its AI-powered attribution tools, campaign performance is measured accurately even in a privacy-first environment.

Summing Up

Currently, Google’s "Cookiespocalypse" has paused. But whether it has actually paused or completely stopped is still in question. Several other browsers have already restricted the use of third-party cookies. Google keeps allowing them in Chrome but also continues to develop other privacy-first alternatives. The direction is clear: privacy-first marketing is here to stay.

The changes are not about the end of digital marketing but about transforming user privacy. For a safe and smart move, Marketers shouldn’t solely rely on third-party cookies. They should start preparing for the cookieless future, in case Google also completely phases out third-party cookies from Chrome. 

The way forward is exploring contextual advertising and adopting AI-driven attribution models. MarTech platforms like CMGalaxy are the best choice for first-party data management along with smart AI attribution.

Survive the cookieless era with smarter data strategies. Explore how CMGalaxy can help you future-proof your marketing.