Third-Party Cookies: Are They Here to Stay?

For years, third-party cookies have been a cornerstone of digital advertising, enabling businesses to track user behaviour across websites, deliver targeted ads, and measure campaign effectiveness. However, until recently their future has been in limbo, with Google’s plans to phase them out in Chrome creating waves across the advertising and tech industries.

In July last year, Google backed down on its plans to deprecate third-party cookies completely. So, as we roll into 2025… whats the deal? How have things changed in the last few years, and what does the future look like now 3rd party cookies are here to stay?

Read on to find out what third-party cookies are, why they were being phased out, the alternatives being developed, and what this decision means for the future of digital marketing.

What are third-party cookies, and why were they being deprecated?

Cookies are small text files stored in a user’s browser that allow websites to remember information about them. First-party cookies are created by the website a user visits directly and are used for things like saving login details or maintaining shopping carts. Third-party cookies, however, are created by external domains, often ad networks, and track users across multiple sites.

For advertisers, third-party cookies have been indispensable for understanding user behaviour, serving personalised ads, and performing tracking and analytics tasks. However, these cookies have raised significant privacy concerns. As users became more aware of how their data was being tracked and used, public backlash grew. Regulatory frameworks like the GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act) highlighted the need for greater privacy and transparency. In response, many browsers, such as Safari and Firefox, began blocking third-party cookies by default years ago.

Google, with Chrome being the dominant browser worldwide (68.3% market share in December 2024), announced in 2020 that it would phase out third-party cookies by 2022, later extending the deadline to 2024, then early 2025, and now backtracking completely. The aim was to replace them with privacy-friendly alternatives, a shift that many believed would redefine digital advertising.

The search for alternatives: Replacements in the works

As the industry prepared for a cookie-less future, several alternatives and frameworks emerged:

1. Google’s Privacy Sandbox
   • Google’s Privacy Sandbox proposed solutions like Topics API and FLoC (Federated Learning of Cohorts). These technologies aimed to allow ad targeting without revealing individual user data, grouping users with similar interests.
   • FLoC faced criticism for potential privacy issues and was eventually replaced by Topics, which assigns interests to users based on their browsing history.
2. First-Party Data Strategies
   • Companies started relying more heavily on first-party data — information collected directly from their own websites and apps. This data, combined with customer consent, allowed businesses to personalise experiences while complying with privacy regulations. My advice to clients was to focus here. In my view, good quality, consented and transparent first-party data is likely to significantly de-risk cookies, and improve opportunities for digital marketing in future.
3. Contextual Advertising
   • Instead of relying on user behaviour, contextual advertising uses the content of the webpage to determine which ads to display. This approach respects privacy while still allowing relevance. With the advent of AI models contextual advertising opportunities have improved in quality. An AI’s ability to more effectively understand the relevance and context of a page around a topic is a huge step forward compared to more primitive ‘keyword’ focussed targeting.
4. Unified ID 2.0 and Other ID Solutions
   • These initiatives aim to replace cookies with email-based identifiers or encrypted user IDs that allow tracking across platforms with user consent.
   • I love this concept and am a huge advocate for people being able to own their own data. Being able to make better choices about who gets my data, and how it’s used I think is critical for a safe and effective digital ecosystem. BUT….
   • In my opinion, most of the public aren’t clued up enough about the need for this solution. For example, the recent All About Cookies survey showed that of 1000 US adults, less than half understand what cookies are, and 40% blindly accept cookies regardless. In my view there is a long way to go before a universal ID and why you need one can be understood by the public, let alone used as the standard.
5. Browser-Level Privacy Enhancements
   • Browsers themselves are implementing privacy measures, such as enhanced tracking prevention (ETP) in Firefox and Intelligent Tracking Prevention (ITP) in Safari, to block tracking mechanisms beyond cookies.
   • Google’s announcement for Chrome was that they would “introduce a new experience” that “lets people make an informed choice that applies across their web browsing”… We’re still waiting to see what that look like of course.

What does Google’s decision mean for the future?

Google’s decision to retain third-party cookies indefinitely has thrown a curveball at the digital advertising industry. While this might seem like a reprieve for advertisers, I think the reality is more nuanced.

A resurgence of third-party cookies? Not likely

The ecosystem has already moved forward in many ways. Browsers like Safari and Firefox—which account for a significant share of global web traffic—have blocked third-party cookies for years. Advertisers and tech companies have adapted to these changes by investing in alternatives, as described earlier.

Additionally, consumer expectations have shifted. Users are demanding greater transparency and control over their data, and relying solely on third-party cookies may alienate privacy-conscious audiences. Regulations continue to evolve, making it increasingly difficult to depend on traditional tracking methods.

New solutions are already gaining traction

While Google’s delay has bought time, it has also highlighted the urgency of developing sustainable alternatives. First-party data, contextual advertising, and other privacy-friendly methods are already being adopted widely. These strategies align better with user expectations and regulatory requirements, offering a more future-proof path for advertisers.

A hybrid future

The future of digital advertising may lie in a hybrid approach. Third-party cookies may remain a tool for some use cases, particularly within Chrome’s ecosystem, but they will coexist with newer, privacy-centric solutions. Companies that balance both will likely see the most success, leveraging the strengths of each while respecting user privacy, while being transparent and proactive with consent.

A key message for marketers

I’m hopeful that Google’s decision to stop the deprecation of third-party cookies doesn’t trigger a full reversal in the industry’s shift toward privacy.

While third-party cookies may linger for now, the broader trends—consumer demand for privacy, regulatory pressure, and the rise of innovative alternatives—suggest they won’t regain their former dominance. Instead, the future will likely be defined by a blend of traditional and emerging approaches, with privacy and trust at the forefront.

For marketers, the message I’m sending is still the same: don’t wait for third-party cookies to disappear entirely to start evolving your strategy. The tools of tomorrow are already here and embracing them now is the best way to stay ahead.

If you need any help embracing the tools of tomorrow today, we’re here to help. Get in touch today to give us our next challenge.