Third-Party Cookies: Where We Are and What’s Next
The digital advertising world is in a stalemate between two opposing forces: the growing demand for user privacy and the need for effective, data-driven advertising. Third-party cookies are caught in the middle.
How we got here
Since 2017, when Apple first blocked third-party cookies in Safari, the focus on user privacy has only intensified. Mozilla’s Firefox and Microsoft’s Edge followed suit, building momentum toward a third-party cookie-free future.
For years, advertisers found ways to adapt, minimizing the impact of these changes. With Apple, Mozilla, and Microsoft representing just 26% of the global market (31% in Europe), the vast majority of internet users—those on Google Chrome—remained untouched. The industry worked around the limitations, but the balance was always delicate.
Then, in 2023, that balance was disrupted. Google’s Chrome, commanding 65% of the global market (61% in Europe), woke a sleeping giant with its plan to phase out third-party cookies by 2024, sending shockwaves through the industry. A phase-out in Chrome would be a decisive blow to advertisers, impacting most internet users in one stroke.
However, Google soon hit pause. Citing the need for more time to refine alternatives, the phase-out was delayed to 2025. Then, in July, the decision was further postponed, creating an air of temporary relief for advertisers and uncertainty for everyone else. While some interpret this as indecision, others see it as a carefully calculated move to preserve balance in a rapidly shifting landscape.
What to Expect Now
With our focus on data collection, quality and compliance, Cloud Nine Digital has been closely watching Google’s decisions. The tug-of-war between privacy advocates and the advertising industry is intense, and Google is positioned right at the center. The company’s approach is clear: it seeks to maintain a balance between respecting user privacy and preserving the effectiveness of online advertising.
Chrome and Google’s marketing division operate separately, allowing Chrome to lead the charge for greater privacy without directly threatening Google’s broader advertising business. Yet, these teams aren’t isolated. Their collaboration is evident in Google’s investments in Privacy Sandbox APIs and first-party data solutions (such as Enhanced Conversions and Customer Match), which provide alternatives to third-party cookies.
As these privacy-focused tools become more sophisticated, the tension between privacy and advertising is likely to ease. Once these tools reach maturity, Google could resume its plan to phase out third-party cookies, trusting that the new alternatives will keep advertisers in the game. It’s a balancing act, ensuring that advertisers can still thrive in a privacy-first environment.
Rather than abruptly eliminating cookies, we believe Google will take a softer approach, introducing a user consent banner in Chrome. This would let users opt-in to cookies or similar tracking methods, much like Apple’s in-app permission system. The famously low opt-in rates seen by Apple (roughly 25%) could be exactly what Google is looking for. This solution allows users to exercise control over their data, and organically phase out cookies while keeping the door open for advertisers to deliver tailored experiences. In the process, Google may strengthen their position in the advertising landscape, as by then they will have made sure its alternative solutions perform well, while other vendors with a higher dependency on third-party cookies and fewer options to team up with Chrome may still suffer a big blow.
Impact on the Industry
The tension between privacy and advertising is especially clear in the ongoing reliance on third-party cookies. Audits of Cloud Nine Digital customers show that around 50% of vendors still depend on them, particularly in top-of-funnel and retargeting solutions like Criteo and RTB House.
Other platforms, like Google Ads, Meta Ads and Bing Ads, have built much of their success on third-party cookies to drive marketing performance. And although they have made many changes to switch to a more first-party focused setup, they continue to use them to power their user recognition and targeting capabilities. The potential loss of third-party cookies threatens to disrupt this balance, making it harder to deliver effective ads and pushing up costs for advertisers.
Preparing for the Shift
The delicate balance between privacy and advertising is shifting, but the bell certainly tolls for the third-party cookie. While the exact timeline remains uncertain, what’s clear is that the industry must be prepared. Keeping an eye on developments—particularly user consent mechanisms within browsers—will help you stay ahead of the curve.
Marketers should also audit their tech stacks, assessing how much they rely on third-party cookies and determining which platforms contribute most to traffic, conversions, and revenue. By understanding the role cookies currently play, businesses can adapt to the coming changes and remain competitive in a privacy-conscious world. The key will be finding new ways to strike that balance between user privacy and advertising performance
