The issue of internet privacy has become a primary concern for many internet users, and Google’s third-party cookie phaseout is the tech company’s efforts to address it. While the said cookies are highly valuable tools in digital marketing, privacy standards and regulatory pressures are pressing for a shift in marketing practices.
What are Internet Cookies?
If you’ve been browsing the internet, you probably have already encountered cookies. You may have seen websites asking your permission to allow cookies when visiting them. But what are internet cookies, exactly?
Cookies help marketers and website owners do several functions online. They are essentially small data packets used by websites to “remember” some information about a user visiting, such as authentication of login information, tracking items in a shopping cart, and storing browsing history, among others.
Since their inception, cookies have been a reliable way of passing and storing information about users’ online behavior.
What are Third-Party Cookies For?
While there are many types of cookies, the two most important and popular ones are first-party and third-party cookies.
Websites use and store first-party cookies, allowing them to remember a user’s settings. This makes the user experience better and more convenient.
On the other hand, external websites create and store third-party cookies. This type is used to track the user as they switch across domains.
Essentially, third-party cookies are data packets containing tracking codes kept in the browser by a website that’s not what the user is currently browsing. Some data found in third-party cookies include browsing history, user settings and preferences, and user interaction for the websites visited.
These cookies are commonly used by advertisers and analytics companies to track an individual’s browsing habits. By doing so, marketers and online businesses can better understand user behavior, which is useful when creating and delivering personalized and relevant ads.
Why is Google Chrome Getting Rid of Third-Party Cookies?
Somewhere in the history of internet cookies, more and more people have started exploiting their capabilities. While they remain helpful, issues about privacy invasion have begun to arise.
Because of improper “Big Data” practices, especially in the 2000s, consumers and regulators became wary of data privacy violations. Scandals like Cambridge Analytica and Ashley Madison have put a bigger spotlight on the issue, leading to the establishment of Europe’s General Data Protection Regulation and the current state of internet privacy rules and regulations worldwide.
Google’s decision to decommission third-party cookies is part of a trend that has been going on for the past decade, prioritizing and focusing on user privacy. The move is part of an effort to provide an approach that prioritizes privacy in its offerings.
Impact on Digital Marketing
Google phasing out third-party cookies for Chrome will significantly impact current practices in digital marketing. Here’s what will likely happen:
Targeting Strategies Will Need Revision
Before the third-party cookie phaseout, digital marketers used third-party cookies as the foundation for their personalized or targeted ad campaigns. They base what content they put on the user’s browsing habits.
With the change, tracking and personalizing ads will be significantly reduced and limited, so marketers must find an alternative. These revised strategies must also comply with the new privacy trends and norms while reaching their target audience.
Marketers to Rely on First-Party Data More
With third-party cookies being decommissioned, marketers may focus on first-party cookies. Traditionally, marketers do not use first-party cookies for campaigns but still provide valuable information about user behavior. They can get an idea of a person’s browsing habits, albeit only for one website.
Given this change, marketers will likely need to invest more in direct customer engagement to gather insights into their customers and target audience, such as email marketing and customer feedback.
The Rise of New Platforms
The third-party cookie phaseout can also cause digital marketers to shift and look for other emerging technologies and platforms for tracking and personalization. Some new resources they can now use include contextual advertising, AI, and machine learning. By adopting these platforms, marketers can better understand how to integrate them into an effective marketing strategy.
The Need to Diversify Marketing Strategies
When Google eliminates third-party cookies, it’s best to diversify its strategies and advertising portfolios. Before the phase-out, advertisers can start testing different approaches relying on only one tool.
Google’s Alternative
Besides new marketing practices, Google has presented an alternative to replace third-party cookies in online advertising.
With Google’s third-party cookie phaseout on the horizon, the tech giant has revealed that it has been developing the Privacy Sandbox. This solution aims to be a less intrusive tool for targeted advertising. According to the company, it is a collection of technologies that allows businesses to launch targeted ad campaigns successfully while protecting users’ privacy on the internet.
Part of the Sandbox is Topics API, which “can be used to observe and provide access to topics that appear to be of interest to the user, based on their activity.” This solution will give ad platforms access to topics a particular user is interested in but will not reveal any sensitive additional information.
Frequently Asked Questions
Are Other Browsers Blocking Third-Party Cookies?
Other browsers have been blocking for years, and Google Chrome is following up on the trend.
When Will the Phaseout Happen?
While it was initially planned for 2024, Google has delayed the depreciation of third-party cookies for Chrome to 2025.
Can you Retarget Without Third-Party Cookies?
Yes. While third-party cookies make gathering the necessary information for retargeting easier, other data collection methods, including social media engagement or customer feedback, can be used.
A Shift in Targeted Advertising
The impending phaseout of third-party cookies signals a shift in digital marketing. It dramatically impacts the quality of online privacy and the methods marketers will have to use for collecting data and creating personalized marketing campaigns.
This shift is also an excellent opportunity to diversify your marketing portfolio and explore new strategies for online advertising. Tanner Grey provides various digital marketing services to website owners and businesses. Contact us now at 844.500.1339 or contact us online for more details!
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