I always feel like somebody's watching me. And, at least on the internet, someone probably is. But good news for the paranoid, Google announced yesterday they plan to completely
phase out the cookie from Chrome.
On most sites you visit, a cookie unique to you is inserted into your browser. Advertisers use that cookie to track your online behaviour so they can serve you more targeted ads. This technology has been the backbone of the online advertising industry but it appears to be coming to an end.
Less cookies, more crumbs
Regulators around the world are increasingly critical of how big tech manages your privacy. With that as the backdrop, Google announced in January that it plans to '
phase out' third party cookies in Chrome.
- This announcement particularly hurt the ad tech industry whose current business is dependent on cookies.
Yesterday, Google went even further and said that they themselves will also stop tracking you and transition its Google Chrome browser — the most used in the world — to be privacy-first.
Their replacement: Instead of cookies unique to you, Google is going to aggregate your data with a cohort of similar users so advertisers can target groups of users rather than individuals.
- Google's own ad business is reliant on cookies so their decision to transition to aggregate data could have an effect on their bottom line.
Big Picture: Phasing out cookies is a huge decision for Google and doing so indicates that the threat of regulation and shifting public sentiment is forcing big tech players to rethink core parts of their business models.