Google announced plans last week to end support for third-party cookies. Third-party cookies fuel much of the digital advertising ecosystem. Other browsers have already begun a phased removal of third-party cookies. This is a significant blow to the advertising industry and will definitely affect your digital advertising strategy. Let’s discuss why this is a big deal.
Third-party cookies are placed on a website by someone other than the owner of the website – this is the third party. The cookie collects data for the third party, enabling businesses to monitor online user activity and develop behavioral targeting by tracking users across domains. This enhances their success at marketing the right message to the right user at the right time because they are seeing a full picture of behavior across sites and not by just looking at data from when the user interacted with the owner’s site.
Third-party cookies are a powerful way to help drive sales up and increase website traffic. Here’s how:
1. Target Messaging
Data can be gathered from online purchases, frequently visited websites, Internet searches, etc., to better understand and predict consumer behavior. Using this information, marketers can target the right consumer and feed them relevant content.
2. Optimize Results
Third-party cookies provide the ability to track and value all marketing touch points specific to each consumer, which leads to campaign optimization. This also leads to the ability to measure the impact of each gathered touch point and approach with a higher degree of accuracy. This insight into how individual channels are performing against one another helps determine where to spend marketing dollars for optimum results.
If Third-Party Cookies Are So Great, Why Are They Going Away?
Good question. It’s because of enhanced data privacy laws that aim to make things more transparent about how consumer data is being gathered, used, and shared. They also work to give consumers greater choice and control over how their data is used. This move has led some businesses to implement permission-based third-party cookies. Others are choosing to phase third-party cookies out completely and are seeking new solutions.
What Will Replace Third-Party Cookies?
While there is no one single solution as of yet, there are several workarounds coming:
The Privacy Sandbox – This is Googles solution that works to protect consumers while also helping marketers. Google will create targeted groups based on anonymous data that can be used by marketers to target, retarget, measure, optimize, etc.
It’s important to remember that third-party cookies while incredibly valuable, they are one part of the marketing whole. For example, businesses that put the time in to building their CRM database already understand the value of the first-party and zero-party data they collect. Another option along those lines is direct partnerships with publishers and businesses to collect first-party and zero-party data about customers to target them directly.
The demise of third-party cookies has been in the works since the beginning due to consumer privacy concerns. It’s taken awhile to get to this stage. I’m certain additional solutions will be offered, and Google will eventually create a new standard for marketers to adopt that will be an effective replacement for third-party cookies.
If you need someone to help you navigate through this, let’s talk.