G̶o̶d̶ Google Saves the Cookie. The Big Mo Will Eat It Anyway

In a sudden plot twist, Google recently announced that it will not completely deprecate third-party cookies from Chrome: instead of deprecating third-party cookies, Google plans to introduce a new experience in Chrome that will let people make an informed choice.

Google’s use of the term "choice" gives me the willies: it echoes two consumer experiences that are closely related to privacy.

• The experience many users in Europe face with GDPR compliance. Every time users access a website, they encounter (air quotes on) a "choice" dialog about cookies, often defaulting to accepting all simply to access the content quickly.
• The App Tracking Transparency (ATT) feature in iOS 14.5 that prompts users to “ask app not to track” after a new app installation.

Both forms of choice feel more like a nudge towards a default than true consumer empowerment.

Jitters aside, I doubt Google’s about face will make much of a difference. Whether this choice leads users to accept cookies (à la GDPR) or to reject them (à la ATT), the outcome for the ad technology world will be similar. 

The movement towards a privacy-aware digital world is already in full swing and shows no signs of slowing down. Consumers are increasingly aware of their digital footprint and demand greater control over their personal information. This cultural shift is driving regulatory changes worldwide, compelling companies to prioritize privacy in their strategies.

Besides, the momentum towards finding cookie alternatives has already been set in motion. Apple has already fundamentally altered the data landscape for advertisers and publishers, and the uncertainty surrounding third-party cookies has fueled significant investments in alternative technologies for data collection and targeting. These innovations are proving to be robust solutions, bridging the gap between the cookieless Safari environment and the still cookie-reliant Chrome ecosystem. 

First-party and zero-party data strategies, and Google's Privacy Sandbox are just a few examples of how the industry is adapting. These solutions are not just stopgaps, and they are not just the backbone of a more privacy-conscious advertising future. They are part of a broader movement that powers privacy-aware solutions for business data science – a movement that will be unaffected by the bare survival of some cookie-based tracking.

Take what we’re doing here at Fantix, for instance. We harness the power of federated machine learning to train GenAI models for tabular data.

Federated Machine Learning (FML): FML is a decentralized approach to machine learning where models are trained across multiple devices or servers holding local data samples, without exchanging them. Instead of collecting data in a central location, FML brings the model to the data. This means user data remains on premise while only the trained model parameters are shared and aggregated. For the advertisers Fantix supports, FML allows the development of highly personalized and effective marketing strategies without accessing raw user data, thus ensuring privacy and compliance with stringent data protection regulations.

The models we train generate synthetic data. Synthetic data is artificially generated data that mimics real-world data. It allows businesses to train models without using actual user data, thereby preserving privacy. By using synthetic data, companies can simulate and analyze user behavior, gaining insights and optimizing campaigns without compromising personal information. This approach not only safeguards privacy but also enables the creation of diverse datasets that can improve the robustness and accuracy of marketing models.

The momentum behind these emerging technologies is unstoppable. The innovative ways they provide of analyzing and deploying data while respecting user consent and enhancing trust are a leap for the advertising industry.

The cookie is dead! Long live the cookie! But, like that of the British monarchy, the role of the third-party cookie in the advertising industry will now be ceremonial at best.