Google's Cookie Crumble: How A Browser Update Could Reshape $600B Ad World
Portfolio Pulse from Anusuya Lahiri
Google, a subsidiary of Alphabet Inc (GOOG, GOOGL), is testing restricted cookie use on 1% of Chrome users, with plans to eliminate cookies by year-end, affecting the $600 billion online advertising industry. The move, part of the Privacy Sandbox initiative, aims to balance user privacy with business needs, despite industry concerns over preparedness and technical challenges. The U.K.'s Competition and Markets Authority is overseeing the transition to ensure fairness. Ad-tech companies are apprehensive about the impact on ad targeting and prices. GOOG shares saw a slight decline of 0.37%.
January 04, 2024 | 3:42 pm
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NEGATIVE IMPACT
Google's testing of restricted cookie use and plans to eliminate them by year-end could lead to changes in the online ad industry, potentially affecting Google's ad revenue. The market is showing concern with a slight decline in GOOG shares.
The testing and eventual elimination of third-party cookies by Google could disrupt the online advertising model, which may lead to uncertainty and potential short-term negative impact on Alphabet's stock (GOOG) as the market assesses the implications on ad revenue.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100
NEGATIVE IMPACT
Alphabet's Class A shares (GOOGL) could experience similar short-term impacts as GOOG due to the testing of restricted cookie use in Chrome, which may affect the online advertising landscape and Alphabet's ad revenues.
As with GOOG, the Class A shares of Alphabet (GOOGL) are likely to be impacted in the short term by the same factors affecting the company's approach to user privacy and advertising revenue.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100