"They analyzed 200 million ad impressions-or views-worldwide and found that removing cookies cut website publishers' revenue by more than a third. They also discovered that privacy-enhanced alternatives, notably a major Google project called Privacy Sandbox, only clawed back a small portion of that lost revenue."
"In our study, removing third-party cookies reduced publisher ad revenue by about 35%-and about 66% in the European Union-showing that cookies still play a major economic role in supporting the open web."
"Third-party cookies are those placed by an organization, like an advertiser, not connected to the site you're on. "Internet cookies-especially third-party cookies-have been central to how online advertising works," says Garrett Johnson, a BU Questrom School of Business associate professor of marketing."
"If digital companies, content creators, and advertisers aren't making money from our surfing, the quality and usefulness of the products they offer might suffer too. But ditching the cookies may have big implications for the free web."
Internet users increasingly reject cookies through privacy-enhancing browsers or cookie rejection settings. Cookies enable advertisers to recognize returning users and support targeted online advertising. A study analyzing 200 million ad impressions worldwide found that removing cookies reduces website publishers’ revenue by more than a third. The impact is larger in the European Union, where privacy rules are stricter, with revenue reductions reaching about two-thirds. Privacy-enhanced alternatives, including Google’s Privacy Sandbox, recover only a small portion of the lost revenue. The findings indicate that cookies remain central to the economics of the open web and that reduced ad revenue could affect the quality and usefulness of free digital content.
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