Some companies have proprietary “walled gardens” of personal data that they collect without tracking cookies – like Google or Facebook. This means they don’t need cookies to target you with ads because they already know so much about you.
Advertising companies that don’t have walled gardens of data rely on tracking cookies the most. Without cookies, the “wrong” demographics of people would click and view ads but never buy from them… which makes advertising expensive. So without tracking cookies, brands would be forced to advertise exclusively on platforms like Google or Facebook – where the “right” people that advertisers want to have clicking and viewing their ads could still be targeted, keeping ads affordable. Basically, removing cookies hurts non Big Tech advertising platforms and forces more ad spending to Big Tech.
In 2021, Google tried to shut down cookies. Instead, they wanted to target people with advertisements using their new system called Federated Learning of Cohorts (now “Topics”) which relied on their walled gardens of data they collect through Android, Chrome, and other proprietary Google interfaces. This project failed, however, with Google product director Vinay Goel telling Reuters: “In tests last year, some advertisers found FLoC less effective than cookies for choosing users to target and the system carried the risk of exposing an individual’s browsing history."
Thus, mass data collection through cookies continues to thrive, as do many advertising companies relying on them to target innocent people.