Crushing Cookies with Google Chrome
Cookies — Chocolate chip, gingerbread, sugar, oatmeal raisin, snickerdoodle….. the list goes on. Everyone loves a good cookie. But are all cookies good for you?
Google announced the phasing out of third-party cookies in 2021. What does that mean? What do cookies have to do with Google?
The HTTP Cookie
A cookie online is a piece of data from a specific website that is stored in your computer while surfing the web. This form of web tracking was originally created to enhance a user's experience online by allowing websites to identify you and remember preferences. Some ways we see cookies working every day is a website remembering our login information, eCommerce websites remembering our sizes and keeping our shopping cart that was left during a previous visit, and showing relevant suggestions or advertisements. For brands, cookies allow them to count unique visitors to the site, track how often a user visits, understand traffic habits with access to web pages visited before and after their own.
In recent years there has been an increase in Cookies online and how they have been used by advertisers. Digital advertising has evolved to target consumers based on search history and trends collected by third-party cookies. This is why you will see ads for that product you searched up once last week all over your social media feed almost instantly. This aggressive form of retargeting has sparked a conversation about how this may be an invasion of privacy or intrusive advertising online at the cost of a consumer.
Addressing Privacy Concerns
As users began to understand that their data was being used in ways they didn't realize, the internet began to see a shift.
75% of Americans say they are not OK with tech and social media companies collecting and using their personal data, even if it is used to personalize their advertising. 76% would say that they are concerned with how tech and social media companies use their data and location information.
Government regulations began to enforce privacy policies. For example, the European Union enforced General Data Protection Regulations (GDPR) in 2016. We have seen browsers like Mozilla and Safari already phase out third-party cookies and increased data protection since 2013, however, 60% of web traffic today comes from google chrome.
Google has made efforts to help users feel more in control of their data by allowing them access to data controls. In 2020 Google announced that by 2022 they will no longer support third-party cookies. This will be a massive step forward for a more free and open web experience where users can feel confident that their data and privacy are safe.
What this means for Advertisers
Cookies have been used by advertisers and digital marketers for years in order to increase sales and better target their advertising efforts online. Since the announcement of Google's plans to phase out cookies, advertisers have been frantically trying to figure out what to do and how this will impact their business.
“The third-party cookie is — for all of its faults — the underlying mechanism by which really the whole digital advertising ecosystem transacts and communicates.” — Forrester analyst Joanna O’Connell
Without cookies, advertisers will not have access to various types of data they have been using to maximize their advertising budgets and targeting will be much harder. It will be harder to understand how users interact with their promotions and ultimately personalize for their needs. Google has announced that they will replace cookies with a less invasive system that protects user identity moving forward.
It is important to note that Google is not removing all cookies, First-party cookies will still continue to function and collect data for the website owners as Google has stated that it is important for creating a user-friendly online experience.
What this means for Google
Google will be replacing third-party cookies with a more user-centric system. Instead of individualized data attached to IP addresses, Google will create a Privacy Sandbox which they claim will protect user's data without hurting digital advertising. This spring Google will begin testing a new AI system called Federated Learning of Cohorts (FloC)
This new system will group users into Flocs or Interest-based audiences. Google says that this privacy-first alternative to third-party cookies can be just as effective and with proper integrations and development — more effective than third-party cookies. With time the algorithm and clustering capabilities will grow stronger and more accurate and advertisers can expect to see at least 95% of the conversions per dollar spent when compared to cookie-based advertising.
This system creates anonymity for users while still providing advertisers the tools to target online visitors with relevant ads. This new system will take time to perfect but digital advertisers have seen it coming. Those who rely heavily on third-party cookies have been discussing and preparing for this change for over a year now. Good Digital Marketers know how to adapt to the changing online ecosystem. Those who do not adapt fall behind.
So goodbye cookies! Hello to the future of digital marketing, whatever that may look like, I'll be ready for you.
