Cookies: From Where to Where?

Google has planned on replacing third-party cookies from 2021 but has been delaying the process since then. The latest news is that the cookie-cutting will hold off until 2024. In no doubt, this will be a significant impact on both users and marketers. Before discussing it, let’s first ask a question I had in mind when I first saw the word “cookie” on the website years ago.

What are cookies?

According to Wikipedia,

HTTP cookies (also called web cookies, Internet cookies, browser cookies, or simply cookies) are small blocks of data created by a web server while a user is browsing a website and placed on the user’s computer or other devices by the user’s web browser.

The term cookie was coined by web browser programmer Lou Montulli in 1994. It was derived from the term magic cookie, which is a packet of data a program receives and sends back unchanged, used by Unix programmers.

Third-party cookies are cookies that are added by the domain you visit and usually track users after they click on ads, and associate with the referring domain.

How do marketers use cookies?

Marketers can use cookies to target, retarget, and track customer information and behaviors. This includes not only demographic information like age, gender, and location but also involves social media behavior and search engine behaviors. Therefore, ads can be pushed to target customers precisely.

What’s happening?

According to California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA), consumers now have more rights over their personal information. If third-party cookies are cut, huge impacts may occur.

For users…

Deleting cookies can offer advantages, especially regarding privacy. By removing cookies, users can prevent website owners from collecting information about their online activity. Also, website owners won’t be able to create a digital profile based on personal information or track how frequently you visit their sites, leading to fewer targeted ads.

However, deleting cookies can also have disadvantages. Without cookies, the browser won’t retain user preferences. This can make browsing less convenient, as users may need to manually enter login details and website settings. Additionally, the online ads and suggestions may not be as relevant, as they won’t be based on prior browsing history.

For marketers…

The replacement of third-party cookies presents significant challenges for marketers. They have relied on these data to target their audience for a certain time. Without precise audience data, marketers may struggle to optimize their campaigns and personalize their customer experiences.

What’s more, marketers are worried about the motivation behind Google’s decision to phase out third-party cookies on Chrome.

The big question behind all of this for me is what’s motivating Google to phase third-party cookies out? Is it to improve privacy for the end-user or is it to gain a further grip on the ad market by forcing the adoption of Chrome’s own first-party cookie, which would likely result in many of those dollars being previously spent on third-party platforms moving in Google’s bottom line.

However, marketers can still use first-party data to engage with their audience effectively by collecting customer data through direct interactions and email subscriptions. Furthermore, this shift towards privacy-conscious marketing may create new opportunities for marketers who prioritize transparency and customer privacy.

Also, Google is expanding the testing windows for Privacy Sandbox APIs as part of their initiative to find alternatives to tracking cookies and remains confident about third-party alternatives. The Privacy Sandbox initiative was launched in 2019 to mitigate the impact on publishers and other players. Digital marketers must remain sensitive and adaptable to new technologies in adjusting the approach to audience targeting and engagement.

Conclusion

Despite difficulties in technology, I still hold a positive attitude about cutting third-party cookies. This is a must step for user privacy, despite causing inconvenience for some marketers. Alternative solutions like the Privacy Sandbox create opportunities for adaptation and innovation in reaching consumers while respecting privacy. In long term, this leads to greater trust and loyalty from customers, benefiting both users and marketers.