‘Explain Like I’m Five’: Cookieless Advertising

“Google bans cookies” — do you accept or reject?

Every time you surf the internet and open a new website, there is always a small annoying pop-up blocking your way: do you want to accept or reject all cookies?

And these are not the sweet simple cookies everyone likes, but some techy kind (that also come in different flavors) but have been storing your data (like chocochips) for years.

On a personal level, the question has always bothered me. What privacy risk am I undertaking by accepting? And will the website not allow me the right to its content if I choose to reject?

So, if you are a layman like myself, I am going to spare you the research and explain the terms in the simplest tech-less way possible.

Have you ever visited a website and then later saw ads for that same website or product on other websites? That’s because of tracking cookies.

Think of cookies like little notes that your computer or phone can leave on a website that you visit. These notes help the website remember things about you like what you did on their website, pages you visited or things added to your cart.

First-party cookies are notes that a website leaves for itself. It’s like you leaving yourself a note so you can remember something later.

Third-party cookies are notes that a website leaves for someone else. It’s like you leaving a note for your friend, but your friend’s mom reads it and learns something about you and judges you. Third-party cookies can be used by advertisers to learn things about you from different websites and form a “persona” of you.

Third-party tracking cookies have been under the radar due to rising online privacy concerns, and since a long time Google has been trying to phase out the use of third-party cookies. Meanwhile, Apple’s iOS 15 update also now allows users to block their IP address, eliminating tracking altogether.

Let’s explore the consequences of the end of tracking cookies as both a user and a marketer:

As a user, the bright glaringly obvious positive is the amplification of privacy. The end of tracking cookies means that websites won’t be able to track your every move anymore so your online activity will be more private, and you’ll have more control over your personal information.

Negative impact is that we may see less personalized ads. Some people like seeing ads relevant to their interests and discovering new products or services. Without tracking cookies, ads might be less relevant and personalized, which could be a downside.

Advertisers and marketers have always relied on third-party tracking cookies to get information like user location, age and browsing history to better target their ads.

Without tracking cookies, it will be harder to know what people are interested in and what they’ve been looking at online. This could make it more challenging to target ads effectively, which could result in lower ad engagement rates and potentially lower sales.

While it may seem as a setback for marketers, there is a break in the clouds. I believe the end of third-party cookies is far from the end of online advertising.

The Internet is a dynamic, ever-evolving world and marketers always need to stay on top of it. True marketers saw the phase-out coming and there already are new alternatives to ad targeting:

1. Not all cookies are dead: So far, Google says it’s only planning to phase out the third-party cookie on its browsers. However, first-party cookies that track basic data about your own website’s visitors are still safe. Marketers can still rely on first-party data to personalize their messaging and target their audience effectively.
2. Contextual Advertising as the new Cookie: With contextual targeting, the ads you see are based on the content you are looking at instead of your overall behavior profile.
3. Privacy Sandbox: Google has already announced its own solution — the Privacy Sandbox as an initial replacement for third-party cookies.
4. Zero party data: Zero-party data is that which a customer intentionally and proactively shares with a brand.

Conclusion:

With plenty of alternative ways to connect with potential customers already available in lieu of the tracking cookies, I believe digital marketing is growing towards more “ethical” targeting of sorts where users can enjoy a more private and secure online experience, without having their behavior tracked and their personal data collected.

This may even present an opportunity for marketers to build more transparent and trustworthy relationships with their audience. It could also make the internet a more level playing field for smaller businesses that can’t afford to use tracking cookies like big corporations do.

As the digital landscape continues to evolve, it is crucial for both users and marketers to adapt and embrace new technologies that prioritize privacy and trust.

However, as Google ends third-party tracking cookies, the only thing I am excited about is the end to the question, “do you accept cookies?”.

Let me know what you think about the cookieless future of digital marketing?