With cookies still on the menu, can marketers afford to wait on privacy reform?

Google has halted its plan to phase-out third-party cookies as it confirmed on Tuesday that it will not be rolling out a standalone prompt for third-party cookies and will maintain its current approach to offering users third-party cookie choice in Chrome. 

"As we’ve engaged with the ecosystem, including publishers, developers, regulators, and the ads industry, it remains clear that there are divergent perspectives on making changes that could impact the availability of third-party cookies," said Anthony Chavez, vice president of the Google-backed Privacy Sandbox initiative in the latest blog post. 

"Taking all of these factors into consideration, we’ve made the decision to maintain our current approach to offering users third-party cookie choice in Chrome, and will not be rolling out a new standalone prompt for third-party cookies. Users can continue to choose the best option for themselves in Chrome’s Privacy and Security Settings," he added. 

Google will continue to enhance tracking protections in Chrome's Incognito mode, which already blocks third-party cookies by default, Chavez said. "This includes IP Protection, which we plan to launch in Q3 2025. And we'll continue to invest in making Chrome the world’s most trusted browser, with technologies such as safe browsing, safety check, built-in password protections, AI-powered security protections, amongst others." 

This comes after the tech giant backtracked on its plan to remove third-party cookies in its Chrome browser and proposed an updated approach that elevates user choice last July. Chavez said Google would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing. 

The latest announcement also comes amidst legal pressure on Google, of which a US judge ruled on Thursday that tech company illegally dominates two markets for online advertising technology. US district judge Leonie Brinkema in Alexandria, Virginia, said in the judgement that Google has "wilfully engaged in a series of anticompetitive acts to acquire and maintain monopoly power in the publisher ad server and ad exchange markets for open-web display advertising". 

Industry reactions 

Google's latest announcement does not come as a surprise, as coupled with Forrester’s Marketing Survey 2025, which showed 57% of B2C marketers said that they do not believe Google will deprecate the third-party cookie, said Stephanie Liu, senior analyst, Forrester in a conversation with MARKETING-INTERACTIVE. "Still, third-party signals continue to dim around the open web: other browsers have blocked third-party cookies for years and consumers use ad blockers and other tools that block third-party cookies."

Any divestiture of Chrome will only increase competition for online audiences, she added.

Data deprecation continues with or without Google, so advertisers must continue refining their first party data strategies, testing cookieless targeting and identity resolution, and leaning on publishers for audience insights.

In fact, the reality is: third-party cookies are outdated, said Chris Ngan, general manager, Hong Kong and Taiwan, The Trade Desk. "They are rooted in a desktop-centric world, raise significant privacy concerns, and are not compatible with fast-growing channels such as connected TV (CTV) and mobile apps. Most importantly, they are out of sync with rising consumer expectations for transparency and control."

Google’s decision to retain third-party cookies offers advertisers a sense of short-term continuity in the near term, according to Nelson Tsai, solutions development director, GroupM Nexus Media Solutions. “It slows down the urgency around cookieless transformation but doesn’t eliminate the long-term trajectory while accelerating the shift towards the future of media, which is driven by AI, not IDs.” 

Smart marketers will take this moment not as a reason to revert to old habits, but as an opportunity to refine their data strategy: balancing effective targeting with sustainable data practices, he said. “The pause shouldn’t delay progress; it should fuel better experimentation and stronger transition plans.” 

Tsai added that it’s important not to interpret this as a win, as the industry has already begun shifting toward more privacy-centric models, and consumers won’t tolerate backtracking. “What matters now is building adaptable strategies, ones that work with or without cookies. The most resilient marketers will be those who understand that privacy innovation and performance aren’t mutually exclusive: they’re becoming one and the same.” 

In fact, Google’s decision to roll back on the phase-out of third-party cookies signals a reluctance to let go of outdated advertising models that may no longer be the best fit for today’s adland, according to Niall Hogan, general manager (JAPAC), GumGum. 

“Across JAPAC, we’re seeing rising expectations from consumers for greater transparency, control, and respect in how their data is used. Take Japan for example - our recent Digital Advertising Pulse Check shows us that over a third (36.6%) of Japanese consumers have a negative view of cookie-based advertising."

Although Google was initially slower to announce a concrete timeline for phasing out third-party cookies compared to Apple and Mozilla, it is not necessarily lagging; rather, it has been navigating complex considerations due to its reliance on advertising revenue, according to Gary Cheung, general manager of NP Digital Hong Kong.

Google also operates on a much larger scale than its competitors. The transition involves a more intricate balancing act between maintaining advertisers' needs and addressing privacy concerns.

"Advertisers and marketers will need to adjust to a landscape where cookies remain in use, said Gary Cheung, general manager of NP Digital Hong Kong. "This means continuing to utilise third-party data while also enhancing first-party data strategies. A diverse marketing mix will be essential, focusing on sustainable channels such as content, SEO, and contextual advertising.” 

Risk in performance and consumer trust 

As users demand more transparency, control, and choice over how their data is used over time, outdated tracking methods will increasingly be seen as intrusive and irresponsible, said Ngan.  

Brands that continue relying on surveillance-based tactics risk falling behind - not just in performance, but in consumer trust, Hogan added. “By pivoting towards attention-based solutions that enable relevant, respectful engagement without compromising privacy, we can instead focus on building the privacy-first strategies consumers have already been calling for.”  

According to Twilio’s 2023 report titled “When consumers control data: How to build trust and succeed in the new digital era”, 92% of marketers in APAC believe that scrapping third-party cookies can actually help strengthen trust in advertising among consumers in the long run.  

Consumer trust is shaped more by brand perception than by site visits tracked from pixels, said Tsai, adding that users worldwide are increasingly sensitive to how their data is used, whether cookies are present or not. “Brands that demonstrate transparency, choice, and meaningful value exchange will earn long-term loyalty.” 

“Building trust needs to go beyond the technology in play. And the real opportunity lies in building deeper relationships with consumers through AI-powered personalisation that respects their privacy and delivers relevant experiences based on context and intent.” 

NP Digital’s Cheung said the retention of cookies may hinder the transition to privacy-focused advertising, which could negatively impact consumer trust. “Brands must prioritise transparency and authenticity in their messaging to maintain and build trust with consumers. Understanding consumer intent and creating meaningful connections that avoid invasive tracking will be crucial.” 

What’s next for agencies and marketers? 

For agencies focused on first-party data, this development doesn’t change the strategic imperative, but it only changes the timeline of urgency, said Tsai, adding that clients still need help breaking down silos, activating CRM data intelligently, and building data and tech infrastructure.  

In fact, this pause gives agencies more room to embed robust, privacy-compliant systems that don’t depend on third-party identifiers, he added. “The ones who continue investing in scalable, future-ready architectures will remain highly valuable. It’s also worth noting that agencies (also within WPP) have invested heavily in upskilling talent, building data products, and scaling cleanroom solutions.” 

“The cookie news doesn’t invalidate that work; it validates the need for modular, adaptive infrastructure. Those who built capabilities around interoperability (the ability of different systems to work together) rather than any single ID signal will find themselves better positioned,” he added. 

As Google’s plan to kill third-party cookies came to a pause, agencies that emerged to help clients navigate a cookie-less environment may face challenges as cookies continue, said Cheung. “They will need to adapt their services, emphasising the importance of first-party data while integrating it with existing cookie-based strategies. This dual approach can help position them as vital partners in a mixed advertising landscape.” 

On the marketing front, brands should not only focus on tactical adjustments but also return to the core principles of effective marketing, he said. “Creativity, empathy, and a genuine understanding of the audience will be key to fostering trust and engagement.

Privacy-first strategies should be viewed as essential for long-term success, rather than just a response to regulatory changes.

Nikhil Lai, senior analyst at Forrester, said agencies specialised in first-party data solutions remain well-positioned. "Advertisers won’t revert to third-party cookie-dependent retargeting because of this. Third-party cookies have already disappeared from Firefox, Safari, and Brave. Martech’s momentum towards first-party data will strengthen despite Google’s announcement."

Lai suggested brands should focus on deepening their moat of zero-party data; invest in second-party data relationships through direct publisher deals or retail partnerships; retest the waters of the open web, which remain warm for those with identity resolution capabilities and modelling skills; test contextual targeting, develop more compelling creative, and mitigate the risk of serving bad ads.

While some clients may temporarily deprioritise first-party data efforts in light of this decision, smart agencies know this is the time to double down, said Ngan. "The significance of first-party data is steadily increasing—not only because it reflects real user behaviour closest to business outcomes, but also because it gives brands full control and ownership over both data and insights."

Unlike the black-box metrics of walled gardens, it gives brands the power to design agile and accountable marketing strategies, he added. "Agencies with expertise in data integration, insight generation, and cross-platform identity resolution will continue to play a critical role in helping clients stay ahead of the curve."

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