Google’s Privacy Sandbox, introduced in 2019, promised to reshape digital advertising by phasing out third-party cookies and introducing privacy-focused alternatives -- fundamentally altering how marketers, publishers, and retailers operate online. However, the journey has been anything but straightforward, with multiple delays, technical challenges, and unexpected reversals leaving the industry in a state of uncertainty.
At the heart of the Privacy Sandbox initiative is a fundamental contradiction: while 79% of Americans express concerns about online tracking and data collection, 91% still prefer personalized recommendations from brands. This dichotomy has driven Google’s efforts to balance privacy with effective advertising through the Privacy Sandbox, but results have been mixed at best.
Since its inception, the Privacy Sandbox timeline has undergone numerous revisions:
This constant state of flux has created significant confusion in the industry. An IAB study revealed that 88% of professionals reported “major confusion in digital advertising” due to Google’s shifting stance on third-party cookies.
What even is the Privacy Sandbox? The Privacy Sandbox is a set of open standards developed by Google in collaboration with the World Wide Web Consortium (W3C). Its primary goal is to enable personalized advertising without relying on invasive tracking methods like third-party cookies -- theoretically, allowing advertisers to deliver personalized ads and measure campaign effectiveness without compromising users’ privacy.
The Privacy Sandbox comprises several key technologies:
The UK’s Competition and Markets Authority (CMA) has closely monitored Privacy Sandbox developments. In its November 2024 assessment, the CMA stated that “competition concerns remain under Google’s revised approach” despite the tech giant’s shift in strategy.
The Interactive Advertising Bureau (IAB) Tech Lab has also voiced criticism. In its June 2024 Privacy Sandbox Fit Gap Analysis, the IAB Tech Lab concluded:
“The Privacy Sandbox may limit the industry’s ability to deliver relevant, effective advertising, placing smaller media companies and brands at a significant competitive disadvantage. The stringent requirements could throttle their ability to compete, ultimately impacting the industry’s growth.”
These concerns reflect a broader fear that Google’s dominant position in the digital advertising market could be further entrenched by the Privacy Sandbox initiative.
In a surprising turn of events on April 22, 2025, Anthony Chavez, VP of Privacy Sandbox at Google, announced in a blog post that Chrome would continue to support third-party cookies. This decision effectively reverses years of planning and preparation by the ad tech industry.
Chavez stated, "We've made the decision to maintain our current approach to offering users third-party cookie choice in Chrome, and will not be rolling out a new standalone prompt for third-party cookies." Users will still have the option to manage their cookie preferences through Chrome's existing Privacy and Security Settings.
This unexpected move has left many in the industry frustrated and questioning the resources invested in preparing for a cookieless future. As one industry insider put it, "Endless millions have been wasted" in adapting to the anticipated changes.
The ongoing uncertainty has driven substantial changes across the ad tech landscape. An IAB State of Data survey reported that over 90% of companies have adjusted their strategies, shifting personalization tactics, reallocating ad spend, and rebalancing their use of first- and third-party data.
However, the effectiveness of Privacy Sandbox alternatives remains questionable. Criteo, a Google partner testing the Topics API, reported that it was five times less effective than third-party cookies after a year of testing. This had led many companies to explore alternative solutions, including:
While some companies have seen success with Privacy Sandbox technologies, others have faced significant hurdles. In January 2025, NextRoll and Audigent announced a successful test using the Protected Audience API, delivering nearly 5 million impressions across 42,000 domains in a two-week campaign.
However, many in the industry have reported challenges with the system’s design, particularly its inability to accommodate the multi-party nature of ad tech. This has hindered scalability and real-time data processing, leading to a slowdown in experimentation within the Privacy Sandbox.
Concerns persist regarding the impact on smaller players in the ecosystem. Brady Gadberry, head of data products at Acxiom, highlighted the risks:
“That kind of negative impact on advertising revenue could reduce the diversity of content overall if smaller publishers can’t thrive. Similarly, for smaller advertisers, the increase in complexity to reach their intended audience may well increase their overall advertising costs or result in less effective campaigns."
The fear is that without robust alternatives, smaller publishers and advertisers may struggle to compete in an increasingly complex and fragmented digital ecosystem.
Google’s decision to maintain third-party cookie support in Chrome has left many questioning the future role of Privacy Sandbox technologies. While certain initiatives, like IP Protection for Chrome Incognito users, are still set to proceed, the overall direction of the project remains unclear.
Google plans to engage with the industry to gather feedback and share an updated roadmap for its technologies in the coming months. However, the trust deficit created by years of uncertainty and shifting timelines may prove challenging to overcome.
For advertisers, publishers, and ad tech companies, staying informed and adaptable will be crucial in navigating this evolving landscape. The Privacy Sandbox saga serves as a stark reminder of the complexities involved in balancing user privacy with the needs of the digital advertising ecosystem.
As the industry grapples with these challenges, one thing remains clear: the future of digital advertising will require innovative solutions that respect user privacy while enabling effective targeting and measurement. Whether Google’s Privacy Sandbox will play a role in that future remains to be seen.
Thinking about launching your own in-house ad program, powered by first-party data? Talk to an expert at Kevel today.
