Google’s announcement last week about its cookie U-turn coincided with mounting legal challenges, including its ongoing battle with the U.S. Justice Department over the company’s monopoly power in online search and a separate antitrust ruling that found the company guilty of monopolizing adtech. Interestingly the timing seems to be like a chess move—less about privacy, more about survival.
According to an industry insider, Google’s backpedaling is like setting fire to its own credibility. Years of discussion, massive investment, and no meaningful progress on privacy have deepened the industry’s skepticism toward Google.
Yet not everyone sees the delay as purely negative. In a social media post, Gowthaman Ragothaman, media, advertising and marketing professional and CEO of Aqilliz suggested that while Google’s delay was dramatic, “This is the best thing that could have happened because It has raised the awareness and the obligations of a data fiduciary; and how to be responsible in managing consumer data; not just Google. But all of them.”
“It has recognised the importance and need for the deployment of privacy enhancing technologies in the AdTech and MarTech ecosystem. Not just Google. But all of them. Significant focus on all the ecosystem players who are NOT data fiduciaries as to how to restructure themselves around privacy by design. Gives Google, lots of time to focus their attention towards building GenAI capabilities and not waste time on the AdTech business, which so far made a lot of sense, but not be anymore,” he added.
New Winners Emerge
As Google hits pause, companies that balanced traditional cookies with alternative ID initiatives are positioned to benefit. Leading the pack is The Trade Desk, whose Unified ID 2.0 has gained significant traction as an open web targeting solution.
Tejinder Gill, Managing Director, The Trade Desk says, “Google’s delays only reinforce what we’ve long anticipated: a single-platform solution was never going to be the future of identity. Whether the delay stems from technical constraints or strategic hesitation, the reality remains – advertisers cannot afford to wait.”
“Third-party cookies are outdated,” he states. “They are rooted in a desktop-centric world, raise significant privacy concerns, and are not compatible with fast-growing channels like connected TV (CTV) and mobile apps. Most importantly, they are out of sync with rising consumer expectations for transparency and control.”
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Similarly, agency leaders believe that different industries will adapt at different speeds. Rishabh Mahendru, VP, Client Success & Growth, AdLift pointed out that maybe an e-commerce brand is more concerned about this update than a healthcare brand, where people are still more dependent on walk-ins and footfall. While some clients proactively explore first-party data and contextual targeting, others are more cautiously observing how the cookie phase-out unfolds. It’s clear that a shift towards more privacy-conscious, data-centric strategies is happening, but how quickly this transition happens depends on the individual business’s priorities and readiness for change.”
Gill further reinforced that what the industry truly needs is a transparent and accountable digital advertising ecosystem, where marketers can measure performance using third-party verification and evaluate campaigns effectively to make more informed decisions that drives better performance. “And we’re already seeing this shift take shape. According to our recent survey, an overwhelming 92% of Indian marketers agree that brands and agencies here are too reliant on big tech platforms for campaign delivery. And change is on the horizon, with 58% actively diversifying their digital media partnerships, signalling a shift towards the open internet.”
“As privacy concerns grow and regulations accelerate, the digital ecosystem must stay focused on a future rooted in transparency, interoperability, and user empowerment. In this transformation, capabilities around the open internet, identity solutions like UID2, and first-party data management will define the next wave of growth, and we’re committed to helping marketers lead the way.”
Privacy-First Strategies
Beyond identity solutions, broader changes are underway. Jacob Joseph, VP – Data Science, CleverTap shared a real world example of a fashion retailer that had strong offline stores and a growing online presence but was heavily dependent on third-party cookies to track customer behavior. With these cookies going away, they faced challenges connecting customer data scattered across their POS, CRM, loyalty, and email systems. This meant their retargeting campaigns became less effective, making it harder to clearly understand customer journeys across multiple devices and channels.
Joseph explained that to address this, they implemented a Customer Data Platform (CDP) to act as a central hub and unify their data sources along with enabling accurate identity resolution. By integrating data from e-commerce, POS, email marketing, and loyalty systems, they created a single, comprehensive customer profile. They also revamped their digital platforms to encourage logins and capture zero-party data via quizzes and preference centers, enriching customer profiles. With unified data, the brand enhanced personalized engagement through strategies like product recommendations, targeted loyalty offers, improved customer service, abandoned cart recovery and win-back campaigns. This led to higher retention, improved engagement, and increased lifetime value.
This shift reflects a broader trend where retention strategies are increasingly being built on a foundation of trusted, high-quality data.
Contextual Advertising gaining prominence
Meanwhile, contextual advertising is seeing a resurgence. With privacy regulations tightening and the gradual phase-out of third-party cookies, advertisers are rethinking their data strategies and are prioritizing relevance without relying heavily on personal identifiers. This is the reason Contextual targeting is rapidly emerging as a key performance channel in India, highlighted by a remarkable surge in revenue from contextual ad campaigns in 2024. This significant growth underscores the shifting perception of contextual advertising from a mere fallback option to a strategic asset for advertisers. As more brands recognize its value, there’s a noticeable increase in the adoption of ad tech solutions that leverage context-based targeting, showcasing broader acceptance and integration of these innovative ad strategies in the market, says Alok Pandey, VP Sales, Xapads Media.
As user privacy takes priority, we’re guiding brands to adopt a balanced approach by prioritizing transparency and user consent by leveraging a mix of contextual targeting, AI-powered audience segmentation, and real-time optimization—all without compromising on scale or performance. We ensure ethical use of data by utilizing first-party data collected with clear consent, where 74% of consumers are open to sharing their information for a better experience, says Xapads Media.
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However, the ecosystem remains in a transitional phase. “Brands are definitely experimenting. First-party data is stealing the spotlight, contextual advertising is getting its comeback. But, in all honesty, a huge chunk of the market still relies heavily on Google. So, until things change completely, marketers will continue finding workarounds instead of thinking something entirely new, says Sahil Chopra, Founder and CEO of iCubesWire.
Clients want outcome-driven buys and guarantees, which is a tough thing to promise in this environment. Now, more and more clients are open to experimentation, they’re asking for cleaner reporting, and they’re starting to value metrics beyond just the last click, Chopra adds.
Echoing this broader shift, Joseph points out that innovation today is being driven by trust, transparency, and a privacy-first mindset. “Rather than slowing innovation, the current environment is encouraging more thoughtful and trust-driven approaches to marketing. As data privacy becomes central to both consumer expectations and evolving regulatory frameworks like the DPDP Act, there is a growing emphasis on building user trust through transparent and ethical data practices. This shift presents a clear opportunity for martech platforms to lead with responsibility.”
At the same time, trust and transparency are emerging as competitive advantages. “We are seeing increased interest in privacy-preserving technologies, such as clean rooms, contextual targeting, and privacy-enhanced data collaboration. These methods allow for meaningful insights and audience targeting without compromising individual privacy, aligning with the regulatory push for informed consent and data minimization,” Joseph highlights.
Finally, omnichannel personalization is becoming a new north star. Nishant Arora, Senior Vice President of Marketing, Netcore Cloud says Balancing customer intimacy and data privacy is key in evolving omnichannel marketing. “The strategy shifts from broad targeting to fostering intimacy via direct, transparent, consent-driven interactions on owned channels. This builds trust and allows collecting valuable first-party data directly from customers. The aim is ‘personalization to a segment of one’ based on known, consented data. Omnichannel marketing, powered by a unified view of this data, ensures consistent, relevant, and privacy-respecting experiences across all touchpoints, boosting loyalty and long-term value.”
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