Google Hits Pause on Cookie Phase-Out: What It Means for the Industry

It had been looming for a while, but now it’s official: Google is pulling the plug on its plan to block third-party cookies by default in Chrome. Rather than introducing a new standard, the tech giant has decided to stick with the existing model. Users will continue to allow third-party cookies unless they actively seek out alternatives like the Privacy Sandbox in their settings.

With this decision, Google is scrapping the most impactful component of its Privacy Sandbox initiative — originally announced in 2019 as the path toward a more privacy-friendly advertising ecosystem. Over the past few years, the plan has undergone multiple revisions and delays. Now it appears this fundamental shift in direction stems from widespread concerns across the broader ecosystem — from advertisers and publishers to regulators — regarding feasibility, market disruption, and the monopolistic power Google itself might consolidate.

So, what does this mean for the advertising industry, which has spent years preparing for a cookieless future? In this article, we explore the implications of Google’s policy reversal for the different players within the ecosystem. Below is an analysis for each category of affected stakeholders.

Agencies

Agencies that were getting ready for a world without cookies now face a new challenge.

Although third-party cookies will stick around for a while, agencies must now juggle two realities: running campaigns as usual while also preparing for stricter privacy rules and new technologies that could take over later. Flexibility is key, and smarter, future-proof data strategies are a must. Many agencies have already shifted towards cookie-free solutions. Those that haven't will need to help their clients navigate mixed messages from platforms, and the ever-changing privacy (law) landscape.

Advertisers

Advertisers may benefit from the delay, as they can keep relying on third-party cookies to target and measure their campaigns. Unfortunately, it’s only a short-term win. New privacy laws are coming, and advertisers need to invest in building their own first-party data and explore alternative targeting methods.
The real challenge is finding the right balance between what works today, and what’s needed for the future.

Publishers

For publishers, especially smaller ones, the retention of third party cookies comes as a relief. Third-party cookies help keep their ad revenues stable. But as mentioned before, with changing gears and shifts in privacy regulations, it remains risky to rely too heavily on cookies.
To stay resilient, publishers need to keep investing in identity solutions and explore new revenue models, beyond traditional ad models.

Looking Ahead

Google may be keeping third-party cookies for now, but the shift toward privacy-first advertising is unavoidable. Tech companies offering solutions like ID management, data clean rooms, or consentless traffic alternatives, may struggle to convince advertisers that haven’t embraced cookieless strategies yet. As more browsers block third-party cookies by default and new laws like the Digital Markets Act (DMA) demand greater transparency, brands will need to rethink their approach quickly.

First-party data, contextual targeting, and tools like Customer Match offer more privacy-friendly options that offer long-term value.

One thing’s clear: the future favors brands that adapt early and put user privacy at the heart of their marketing game plan. Whether you're an agency, publisher, or brand, the time to adapt is now. Those who embrace change — with smarter data strategies, user trust, and flexibility at the core — will be the ones leading the way.

Written by:

Karna Fulzele, Kinesso

Mark Wilmont, TDA