July 31, 2021

Ad tech stocks Google kills third party cookies such as wave delays until 2023

KEY POINTS

Google is modestly pushing third-party tracking cookies back to its timeline, giving the digital advertising industry more time to dress out plans for more privacy-conscious targeted advertising.

Google said last year that once it ends support for those cookies through Chrome in early 2022, it will bring out how to figure out how to address the needs of users, publishers and advertisers and the tools present below.

Now, Google is updating this timeline. The company says it now plans to phase out in late 2023 to find support for third-party cookies, starting by mid-2023.

Google said it was pushing back into its timeline from 2022 to 2023 to kill third-party tracking cookies, giving the digital advertising industry more time to plan for more privacy-conscious targeted advertising.

Several ad tech players saw the stock shoot up on Thursday following the announcement. Trade Desk shares were up 14%, up to 8% of Magnite shares, PubMatic shares were up 10%, up to about 11% of Criteo shares and LiveRamp shares were up more than 6%.

Cookies are small pieces of code that websites provide in a visitor’s browser and travel as individual sites visit other sites. They serve ads and see how they can be used to track users across multiple sites to perform. Google said last year that once it ends support for those cookies through Chrome in early 2022, it will bring out how to figure out how to address the needs of users, publishers and advertisers and the tools present below.

Google is updated on this timeline.

“While significant progress is possible with this initiative, it is clear that more time is needed across the ecosystem to get this right,” wrote Binoy Goel, Chrome privacy engineering director, in a blog post.

The company said it continues to work with the web community in a more personalized way of measuring ads, providing relevant ads and content, and providing fraud detection. It makes Chrome’s goal for developers to have the technology to start deploying by late 2022.

The UK’s antitrust authority plans to remove third-party cookies from Chrome earlier this year could hit online advertising competition. The Competition and Marketing Authority said it would look into whether Google’s plans could cause advertisers on News Netlog to shift the cost of Google’s own equipment at the expense of its competitors.