By: Olga Contreras
One of the most relevant items in today’s digital marketing agenda is the terrifying but fascinating phenomenon of the upcoming disappearance of third-party cookies in web browsers.
What does this mean?
To understand the impact that a cookieless world has in the field of Digital Marketing, we should start by explaining what cookies are and what they do.
When we talk about cookies in this context we don’t mean the sugary kind, although we can use these as a great comparison. When we bite into a cookie some crumbs will fall around us. Digital cookies are similar: they’re sections of code that contain data and traces about the actions that we perform in the browser. These digital “crumbs” provide insights about our actions and behaviors, which, as a whole, can offer a broad view of our interests.
There are two types of cookies: First-party and Third-Party cookies. Let’s take a look at each.
First-Party cookies are stored in the same website or domain you are visiting. These are mainly used to stash user preferences, abandoned shopping carts or log in information.
Third-Party cookies are stored in a website or domain different to the one you are currently visiting. Their main function is to track users in different websites to show them relevant advertisements later. This information allows for marketing campaigns that are focused on each person’s interests.
Emerging privacy and data security policies and new regulations such as the GDPR (General Data Protection Regulation) and the CCPA (California Consumer Privacy Act) have prompted more and more web browsers to stop supporting and using cookies. This could mean a drastic change in the way the digital ecosystem works, as advertisers now rely entirely on third-party cookies to track website visits, understand consumer behavior and collect data. It’s their main tool to create customized, relevant advertisements that improve the consumer’s experience and to get better results in their businesses.
These initiatives started a couple of years back with certain advertisements and when some browsers like Firefox and Safari started to block third-party cookies. Then in 2020 Google announced that they would be removing them completely by 2022. This means a big change since Google Chrome has a 70% share of the browser market. The transition will be gradual so the digital ecosystem doesn’t collapse and is able to evolve alongside.
What does this mean for businesses?
Most marketing and remarketing initiatives driven by data rely on third-party cookies. For example, Facebook’s Pixel and Google Tag depend on them. Big performance marketing campaigns usually base their strategies on data as that has proven to be the most efficient approach, so this shift regarding third-party cookies could return unfavorable results for these businesses unless we come up with an alternative simultaneously.
That said, marketing is now at a turning point where constant change and evolution are the new norm. The present and the future of digital marketing is uncertain, so it is crucial that professionals are up to date in terms of new policies, changes and regulations regarding cookies and other digital aspects that could affect them. They will need to find solutions and alternatives to carry on developing data-driven marketing strategies without the need for third-party cookies.
New solutions are arising already, together with trends and platforms that are gaining popularity thanks to the huge upcoming change in the industry.
