Google Might Replace Cookies To Track Online Activity For Advertisers

Google Inc (NASDAQ:GOOG) is contemplating on replacing cookies as method in tracking people’s browsing activities over the internet for advertising, according to report from the USA Today based on information from an individual with knowledge about the search engine giant’s plan.

The report indicated that Google is developing an AdID (anonymous identifier for advertising) as a replacement for cookies used by third parties for advertisers. The search engine giant plans to provide the AdID to advertisers and ad networks, but must agree to basic guidelines to ensure consumers privacy and control over their browsing activities online.

A cookie is a tiny line of text with identification tag integrated in web browsers. Third parties use cookies to collect data to determine the interest of a person and show the right advertisements.

Google plans to present its plan to the advertising community, consumer groups, and government agencies over the next few weeks and months, according to the source who requested anonymity because the company’s plan is still private.

Ron Shilkin, spokesperson for Google said the search engine giant and other entities have several concepts in the area, but are still in the very early stages. He added, “Technological enhancements can improve users’ security while ensuring the Web remains economically viable. “

The advertising online industry is worth nearly $120 billion, and Google accounts 33% of the overall digital ad spending worldwide.  The search engine giant is the leader in mobile advertising (estimated at around $16 billion), and it is expected to capture 53.17% market share globally, according to eMarketer.

The advertising community will definitely monitor Google’s next move given its dominance in the industry. Take note that that is Chrome exceeded the popularity of the Internet Explorer of Microsoft Corporation (NASDAQ:MSFT). Chrome is now the the world’s most popular web browser.

Clark Fredricksen of e-Marketer stated that shifting a system that shifts more of the benefits and control operators like Google or Apple would raise concerns in the advertising industry.

On the other hand, Zach Coelius, CEO of Triggit, an advertising technology firm commented, “Restricting third-party cookies isn’t going to make relevant advertising go away; it just hands more power to big companies.”