The Cookieless Future: Why Are Cookies Becoming a Thing of the Past?
Marketers have been concerned about the cookieless future since Google announced third-party cookie phase-out and Apple introduced modifications that make IDFAs (Identifiers for Advertisers) much less valuable than previously. The Identifier for advertisers is a unique, random, and resettable device identifier (IDs) assigned to an iOS device.
The one thing that hasn’t changed is that customers still want personalization. Specifically, consumers are increasingly interested in personalization, demanding more information from their partner in the digital marketing agency, to rely on, to keep them safe and accurate.
So, the truth is that, without cookies, it will become much harder to track users across the web and serve personalized ads. This could lead to a decrease in ad revenue for publishers and platforms that rely on advertising.
So, if third-party cookies have always been so effective for both customers and advertisers, why are they being phased out? Why cookieless future is happening? If you’re a marketer who depends on third-party cookies to provide tailored insights as people surf the web, what should you do now? In today’s blog, we are discussing these changes and their effects, starting from why cookies are important to digital marketing to tracking user behavior.
The importance of Cookies
Cookies are text documents sent when a user visits the site. This site is designed to help you save valuable information for future usage. They can be found virtually on all sites and they are an everyday practice when using the internet.
But why are cookies really important? Because they save the user’s access history on websites and applications. So, whenever the user visits the website which sends the cookie, it will receive the data back and it will display the page faster. Also, cookies contain preferences and other prior information of the visitors.
Having that in mind, cookies are a great asset to help marketers not only improve users’ web experience but also, the advertisements and content displayed based on their interests. With cookies, you can collect not only behavioral data but also sensitive data.
Furthermore, there are different types of cookies on websites. Now, we’re going to explain some of them. These classification systems can be divided into various types and these sections show the most commonly used on websites.
Sit tight and let’s start!
Cookies for performance
This cookie is used to collect statistics and information regarding visitors to a website. The data that is gathered by Google Analytics can help us track how a user is using a website, and what pages a user is looking at.
Strictly necessary cookies
These technical cookies are necessary for web operation. In such cases, users are not allowed to access the site and services offered on the site. They do not use advertisements or communication. This service includes website security such as loading web pages faster without having to reload certain resources every time the user opens a new page.
Functionality cookies
These cookies allow basic functions and are necessary for the operation of the website. They mainly store preferences such as language, currency, or location. Examples of these types of cookies used on sites are to remember the user’s username and password so that they don’t have to enter it every time they visit the site and to store the user’s preferences such as font size, font type, or other display options.
Targeting cookies
These cookies are used to show users personalized ads. They also help limit the number of times a user sees an ad and help measure the effectiveness of advertising campaigns.
There are other types of cookies that don’t fit into any of these categories, but the ones we’ve just mentioned are the most common. Now that you know what cookies are and what types of cookies exist, you may be wondering how do they work?
How do Cookies Work?
When a user visits a website, the server sends a small text file to the user’s device (computer, tablet, smartphone). This file is generally known as a “cookie.” The cookie is then stored on the user’s device and is used to track the user’s activity on that website.
Some cookies are deleted as soon as the user closes their web browser. These are known as “session” cookies. Other cookies remain on the user’s device for a set period of time after the browser has been closed and are known as “persistent” cookies. Cookies can be set by the website the user is visiting (first-party cookies) or by another website that serves content to that website (third-party cookies).
A first-party cookie can be used to track a user’s activity on a website and store information such as preferences and login credentials. A third-party cookie, on the other hand, is generally used for advertising or tracking purposes.
Differences between first and third-party cookies
Cookies are gathered from a website, that is logged into your computer with your browsing history. What differentiates a first cookie from a third-party cookie is the way it collects data. The first-party cookie was created from the site a user was on. It can collect information on languages and payment methods preferences from information like a username and password, product lists and more. First-party cookies are used to maintain a user’s preferences on a specific website. It also lets websites know when a user returns to the site.
On the contrary, a third-party cookie is created from a domain that is not the website a user is currently on. It can be used to track a user’s activity across multiple websites. They are mostly used for advertising purposes and they collect data such as a user’s browsing history and demographics.
In Cookieless Future First-party data will become more important
For too long, marketing has relied on third-party information to identify the customer base. Marketers now recognize their need for individualized approaches that involve gathering a lot more first-party information and implementing first party data strategies. This may include email address, phone number, address history, and a cookie if the customer consents. The proposed removal of third-party cookies is now more crucial to users.
What does a Cookieless future mean?
The cookieless future is a change in the digital world, as Google’s planned elimination of third-party cookies in Chrome browsers announced in January 2020 (now delayed to 2023).
This cookieless future is one in which marketers will have to increasingly rely on first-party data. The cookieless future will present challenges for marketers, who will need to find new ways to identify and reach their audiences. The most significant challenge will be how to target ads without cookies.
Another cookieless future challenge is how to measure advertising effectiveness without cookies. Advertisers will need to find new ways to track conversions and optimize campaigns.
The cookieless future will also present opportunities for marketers. The focus on first-party data will give marketers a better understanding of their audiences. Additionally, the cookieless future will create a level playing field for all companies, as the use of cookies will no longer be an advantage.
How do we deal with a cookieless future?
How does digital marketing become more cookie centric? Developing an adaptable strategy based on cookies can be tricky. As it has already been mentioned, chrome plans to eliminate third-party cookies by 2023, so the cookieless future is coming sooner than most people think.
So, how can we truly adjust to a cookieless world? What can we do too?
Here’s the deal:
Collect data directly from consumers
Instead of relying on cookie providers, use other aggregation methods to collect information directly from consumers. You can also conduct social surveys or customer satisfaction surveys. Offer interactive material free in exchange for user input. In that way, you can create better relationships with the consumers and improve data security, collecting the right customer data.
Transparency
Brand transparency has become necessary in an effort to protect the rights of the user. There’s not much space for shady attitudes hiding legitimate uses. It’s important for them to understand what you want them to learn about. Currently it’s a purely statutory obligation and also a means of building an enduring relationship with consumers.
While the cookieless future may present challenges for marketers, it also presents opportunities. As cookies become less important, other data sources will become more valuable. First-party data, for example, will become more important as a way to identify and target audiences.
Without cookies, many of the things we take for granted on the web would become much more difficult, if not impossible. Personalized content and ads would be a thing of the past, as would the ability to save your shopping card or login information for later.
Is there any alternative for replacing cookies?
What is the best way to prevent cookies in your web browser? Google knew that the move could affect the ad market, and launched Privacy Sandbox – this tool enables users to define digital advertising operation parameters that guarantee the user privacy. Among the proposed algorithms are FLoCs (Federated Learning for Cohort). It is used by large groups of users to collect user habits and target targeted ads according to their characteristics and interests. This way the algorithm blends people into larger communities with the same interests.
In addition, some believe that contextual targeting, an advertising method, will be tremendously benefit from third-party cookie removal. This is a system that analyzes the content of a web page and displays related ads. This technique does not require cookies or user data, as it only uses the information on the page to select the ad.
Why is Google phasing out cookies?
Google says the reason for eliminating cookies is that consumers want data privacy and more flexibility. Google is “evolving,” suggesting “there is an Internet ecosystem to satisfy these growing requirements “, according to the announcement of Justin Schuh, Google’s Director of Chrome Engineering.
What does a cookieless future mean for data-driven marketing?
A popular online marketing tool for gaining information on customer behavior is disappearing, and industry professionals must seek new methods. Browsers have decided to stop tracking cookie data — which track users’ behavior on websites — due to privacy concerns. Apple, Safari is blocking cookies, and Google plans similar moves by 2023 for the market-dominant Chrome browser. This is a significant change in a traditional advertising strategy using cookies. The third-party cookies are particularly affected.
Advertisers will still be able to place google ads on websites and track how many times they are seen. But they will not be able to track individual users as they move around the internet and build up detailed profiles of their interests.
What impact will this have? The cookieless future is likely to lead to a shift in how advertising is bought and sold online, away from the current system known as real-time bidding, or RTB. Currently, when someone loads a web page with an ad space on it, an auction is held in milliseconds, with advertisers bidding to have their ad shown. The winner of the auction pays the price they bid on, and their ad is displayed. Cookieless future will make this process more difficult because there will be no way to identify individuals as they move around the internet.
How prepared is the advertising industry for a cookieless future?
The cookieless world is coming, and the advertising industry is far from prepared for a cookieless. The ad market is booming, with new ads being released every day. While significant progress has been achieved in advance of the impending sea change in digital targeting, measurement, and attribution, the clear picture remains unchanged as Google continues to change its timeline and privacy policies.
Widespread panic and confusion about how to move forward has not yet set in, but it is only a matter of time. Many are still hoping for a cookieless future where they can continue to track users, but that seems increasingly unlikely.
What does cookieless mean for marketers in 2022?
As technology evolves, digital marketing generates and collects additional data. Whenever a person visits a web page, users can see their own trace on their web browsing. Imagine how much data is in Big Data. Websites collect user data via cookies. This helps brands improve visitor experiences on their websites by better understanding their profile.
The problem is collecting and using data on the site can be challenging as it relates in part to privacy. Google Chrome has announced a new policy on deleting cookies. The cookieless future is a challenge for the marketing industry, but it’s also an opportunity. Marketers need to find new ways to collect data and understand the customer journey. They also need to be prepared to answer difficult questions about privacy and data collection. Marketing communications will also be affected.
The impact of a cookieless future
The impact of a cookieless future is unknown, but it could mean big changes for the online advertising and marketing industries. Cookieless future may also spell the end of personalized ads and targeted content.
It is possible that a cookieless future could result in a more private and secure internet experience for users, but it is also possible that it could lead to a less effective and useful internet overall. Only time will tell what a cookieless future will truly mean for the internet as we know it.
Are cookies really going away?
Yes, but only some. At this stage, Google only removes third-party cookies already weakened by blocking Apple’s primary web browser, Safari, and the open-source platform, Mozilla Firefox.
And there’s good news: With a greater emphasis on collecting first-party data, marketers and businesses are more likely to optimize highly relevant and targeted marketing campaigns and provide a high return on investment.
Although the loss of third-party cookies collected across the web can make it difficult to identify individuals, cohorts and contextual advertising can fill gaps by ensuring the right message is still reaching the right people.
The best thing you can do now as a marketer is to stay updated on third-party cookies and other privacy practices that may impact your business or your client’s business. If you’re using third-party data in your advertising, you should immediately consider the alternatives above.
Conclusion
The cookieless future will have a profound impact on the digital marketing landscape. The most immediate consequence is that it will become more difficult to track users across devices and platforms. This, in turn, will make it harder to deliver targeted advertising and measure the effectiveness of campaigns.
In the long run, however, the cookieless future may actually be a good thing for digital marketing. The reliance on cookies has led to some questionable practices, such as dark patterns and ad fraud. Without cookies, marketers will have to find other ways to reach their audiences. This could lead to more creative and innovative campaigns that focus on delivering value rather than just selling products.
So, while the cookieless future may seem daunting at first, it could actually be a positive development for the industry as a whole.
