Google-parent Alphabet will yet again delay its phaseout of third-party internet tracking cookies used by the advertising industry. Trade Desk stock rose on the news while Google stock was little changed.
The phaseout has been aimed at improving consumer privacy. Apple has also taken steps to improve privacy on its iPhones.
Amid negotiations with the UK's Competition and Markets Authority (CMA), Google late Tuesday announced that third-party cookie deprecation on Chrome will be delayed until sometime in 2025 from the fourth quarter of 2024. "The delayed outcome is a function of feedback from developers and regulators," said Brian Pitz, a BMO Capital Markets analyst in a report.
Advertisers use third-party cookies embedded in browsing software to follow users around the internet. The cookies enable advertisers to present targeted ads based on user behavior and to measure the effectiveness of marketing campaigns.
Google Delays Cookie Phaseout For Third Time
It's the third time Google has delayed carrying out the cookie phaseout. It originally stated plans to end support for third-party cookies in its Chrome web browser in early 2022.
"Our sense is that advertisers are not surprised by Google's decision," said KeyBancCapital analyst Justin Patterson in a report. "AdTech companies exposed to third party cookies will benefit from longer period of testing. We expect AdTech companies to continue investing in alternative identifiers as Google wrestles to deprecate third party cookies."
Trade Desk has developed an alternative to third-party cookies for the ad industry.
Some industry players have voiced concern that the cookie phaseout could reinforce Google's dominant position in digital advertising.
On the stock market today, Trade Desk stock rose 3.7% to close at 83.79. Google stock rose 0.6% to 159.13.
TTD stock had gained 12% in 2024 as of Tuesday's market close. Google stock was up 13%.
Google Earnings Due April 25
Further, Trade Desk's automated platform enables brands and ad agencies to buy online and mobile ads in real time, rather than in advance manually. In addition, Ventura, Calif.-based Trade Desk helps clients leverage online data to improve their targeted advertising.
In addition, Trade Desk earnings are due in mid-May. Alphabet will release first-quarter earnings on Thursday April 25. Google stock trades in a buy zone ahead of the earnings report.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
