Google’s plan to phase out third-party cookies
BY KATH RATHBONE, PAID MEDIA EXECUTIVE
Last year, Google announced it would phase out third-party cookies in late 2023, replacing them with new tracking technology. However, recently, they revealed that they will not be building alternate identifiers to track users as they browse, which has brought the topic into the news again.
WHAT ARE THIRD PARTY COOKIES?
In case you didn’t know, third party cookies are placed on a website by someone other than the website owner, a third party. Third-party cookies track the same information as first-party cookies, or sometimes more. However, all the tracked information goes to the third party.
Online advertising is the most common use of third-party cookies. It uses the data the cookies collect to create user profiles and then present personalised ads to consumers.
This data from third party cookies identifies consumer’s likes and dislikes, age, gender, user-behaviour etc, which provides powerful information that’s useful in enhancing online marketing, and in presenting personalised ads.
WHY ARE THEY BEING PHASED OUT?
It all boils down to user privacy. Third-party cookies let other sites access a user’s data. For example, organisations can serve an ad on social media platforms like Facebook or Instagram for the same shoes a user viewed on a company website. Third parties can also track user behaviour across multiple sites. If a user shops for kayaks, an advertiser can use that information to place relevant ads in the user's social media feeds or email inbox.
However, Google isn't the first company to phase out third-party cookies due to privacy concerns. Apple eliminated them from Safari and requires applications to get user permission before tracking activity. Similarly, Mozilla's Firefox began to block third-party cookies in 2019. Additionally, privacy-conscious consumers can download extensions to block Google's third-party cookies already
WHAT DOES THIS MEAN FOR DIGITAL ADVERTISERS?
Given the widespread use of Google Chrome, the advertising industry may wonder how they can still serve personalised ads and reach consumers in a post-cookie world. While marketing teams have other digital advertising options, they may need to adopt new technologies.
But for advertisers and publishers, the effect will be much greater. For users surfing the web, the end of third-party cookies might bring an end to personalised ads. Publishers will take a big hit.
However, in such a fast evolving industry as this, there are alternatives being tested. Publishers could create their own ad solutions based on information received from customers, and advertisers and publishers may need to work more closely together to produce targeted ad campaigns.
Relying more on First-Party Data could become the norm. With third-party cookies gone, the data from first-party cookies will become more valuable. On the flip side, brands will need to find ways to collect data straight from users in order to enhance their marketing campaigns. This could be achieved by:
Email login before sharing free content.
Direct contact through email or text messaging.
Guided selling experiences that ask for customer input.
Post-purchase and customer surveys.
Contextual Advertising will become ever more relevant with the removal of third party cookies; becoming the closest thing the industry will have to personalised advertising by putting adverts in contextual relevant placements. It would also benefit advertisers to show Pay-Per-Click ads on websites that rank for similar keywords as theirs.
People-based targeting views online user behaviour across devices. It doesn’t store any information that could lead to identifying the user. Marketers can use a people-based targeting method to understand user insights better. For instance, they could combine tools such as first-party cookies with contextual advertising and people-based targeting. This will help marketers to forge ahead while respecting privacy rights.
The best thing for marketers to do right now is implement these advertising strategies soon. Then when more changes come, they can adapt with ease instead of falling behind. The internet is changing, but it doesn’t stop you from adapting.