No More Cookies For You! Google Joins the Cookie-Blocking Movement and Spices Up the Future of Online Marketing
A recent press release from Google made online marketers uneasy when the tech giant announced that its browser, Chrome, would be pulling support for third-party cookies for web users. The decision is part of a larger package of new measures, called the “privacy sandbox”, that is intended to protect users’ privacy and allow users to have more control over what and how their information is tracked while using the web. Third-party cookies have already been blocked by major browsers such as Safari and Firefox, but since Google Chrome makes up for a larger market share and has so many affiliate/connected products, the decision has caused a stir from online retailers. In this blog entry, we’ll break down what cookies are all about, explore some of the proposed alternatives to this technology, and discuss possible coping strategies for marketers and retailers who want to succeed in a post-cookie world.
What is a Cookie?
Cookie is a rather strange name when you consider what a cookie really does: but maybe “parasite” or “tracking device” sounded a little too scary for something consumers have to agree to multiple, maybe dozens of times a day. A cookie is a small piece of tracking code that a user consents to have downloaded onto their computer when they visit a website. There are two main types of cookies: first-party cookies, which are only used when you are visiting a given website, and third-party cookies, which stick around after your browsing session and follow you around the web, scribbling down notes on your favorite sites, the things you buy, your budget, your location, etc. These cute-sounding little cookies are actually pretty invasive of users’ privacy, and have become something of a nuisance as more and more websites have begun using them. If you spend a lot of time on the computer, you may rack up up to 50–100 cookies in a single day, sometimes more. That’s lots of little pieces of code watching everything you do on the web.
Some Cookies are Delightful… Others, Not So Sweet
What do these cookies do? It depends. Some of them are more or less innocent, even helpful. For example, if you enjoy having websites remember your login information, purchase history, shopping preferences, etc., there may be some cookies which are favorable for you to keep. But many cookies collect more than just relevant information for your browsing experience. They may track your location, spending, demographic info, information on other accounts you may have, but what’s worse, the information from these cookies may be sold to third-party information brokers who do not share the reputation or credentials of your trusted brands. This can expose you to scams, identity theft, and fraud. Plus, it seems unfair that in order to shop for shoes or makeup online, you may be asked to sign away the rights to all that personal information.
Joining a New FLoC
Google has taken the side of consumers demanding improved privacy measures, and the new Chrome update will not support third-party cookies. However, that does not mean it will be sacrificing its astronomically profitable first-party advertising and ad tracking partnerships. Using a new technology called FLoC, or Federated Learning of Cohorts, artificial intelligence and machine learning will be put to use to group users into cohorts of people with similar preferences and habits. Rather than collecting unique data about you, FLoC will lump you in with a subset of people who will see the same ads that are still targeted, just slightly less specific and invasive. FLoC relies on multiple levels of encryption and privacy that allow the server to access the aggregate of all the data, but not the individual data points themselves. Google hopes to use this model to continue data-mining its users without compromising their privacy or safety on the web. This comic strip from the Google AI team (one frame pictured here) helps to put this complex technology into layman’s terms.
Fast Forward or Rewind? How Marketers Can Survive the Cookie-apocalypse
The history of human innovation usually follows a cycle something like this: a new idea or method is introduced, people who are used to the old idea panic and complain about the change, and then eventually everyone gets used to the new idea and realizes how much better or more efficient it is. The current cookie panic is no exception. Long before a cookie was anything but a tasty baked treat, people were coming up with creative, clever ways to sell products, and long after Internet cookies are a thing of the past, they will still be doing so. While it’s true that cookies have been a helpful and convenient tool to collect consumer data, their value has been waning as customers become weary of being constantly tracked and accosted by bots pretending to know what they want. Cookies have made marketing more like farming; more large-scale, mechanical, and less personal, and people are getting sick of being treated like livestock.
What can a marketer do to brace for this turn of the tide? Looking backwards, as well as forwards, may provide some insight. In decades past, customers have always displayed a preference for sales experiences with a personal touch; makeup counters with personal consultants, Tupperware parties, custom fitting sessions, all make the seller feel more like a friend and confidante than a faceless machine. Even now, sites like Etsy, Ebay, and Poshmark use a personalized model with many sellers who include little extras and handwritten notes thanking customers for their business.
As this Wired article states, a coming reliance on first-party cookies will only benefit sites that people already spend a lot of time on, such as Facebook and Google. Smaller websites where users don’t typically spend a lot of time browsing will be able to gather considerably less data. In order to stay relevant and continue to draw customers, companies will have to go back to the basics: customer interactions, brand image, and narrative marketing are great places to start. Building one-on-one customer interactions, even through virtual means, is a surefire way to spread positive buzz about your business — people are tired of talking to bots, and even if using AI for mundane sales tasks like answering FAQ saves on costs it may not be worth it in the long run if it alienates customers.
Building a positive brand image is also extremely important, as it encourages people to talk about your company of their own volition — turning customers into mini marketing agents themselves. Customers will do this on their own social media accounts and in their in-person interactions in ways that no automated scheme can ever replicate. Finally, by building powerful narrative marketing messages to share the story of your brand, it is possible to achieve buy-in from customers who have been alienated by the over-farming of their data and attract them to your products without relying on shady technology like cookies. Companies such as Wegmans and Trader Joe’s will be able to survive the cookie purge because their customer-centered marketing model (sometimes jokingly called a cult) is just as powerful without digital data collection tools.
While some online businesses fear going bankrupt after building their platforms for the cookie empire, it is clear that Google’s decision to stop supporting cookies is only another turn of the wheel in the fast-paced, constantly-evolving world of technology. Companies will sink or swim based on their adaptability and their cleverness in innovating new ways to connect with customers — going beyond the harvesting of customer data and hopefully reconnecting with the human side of sales.
