No cookie for you!
Early this year, Google released a statement to phase out the support of third-party cookies in Chrome within two years. It means all major browsers like Google Chrome, Firefox and Safari will block the use of third-party cookies to appease users demand for privacy and transparency. Users want control over how their data is being used and the digital advertising ecosystem is adapting to those requests.
What is a cookie and what is it for?
They are little pieces of code that act like your ID card for that website. It usually has a site name and a unique user code but sometimes it keeps track of your website activity and any information you may have shared like name and interests. It gathers information to provide a better browsing experience through advertising companies that manage the digital advertising by serving you customized ads.
First-party cookies are owned by the website domain that the user visits. They are used by the website to get analytical data, remember preferences and provide users with customized experiences. These are not the cookies that are going away.
Third-party cookies are created and stored by companies other than the one that you are visiting. These cookies are put on the website you visit but not necessarily by the owner of that site. They are used to track ads and cast a wider audience profiling and targeting. These are the cookies that will be blocked by 2022.
Cookies are meant to provide users with a more personalized experience on the Internet. It gives users content that are interesting and engaging to them based on their previous browsing habits. They allow advertisers to target the right audience with messages that are relevant to their personal interests.
With the benefits of cookies, there is also the downside which is data privacy. To some users it can be seen as creepy and invasive. Users have no idea what companies are doing with their data or who they are sharing it with. The data could land in the hands of companies that are not trustworthy or risky.
What does it mean for advertisers without cookies?
It’s not the end for the digital advertisers without third party cookies, it just means they have to be more creative on how they reach the specific audience. Advertisers could consider contextual advertising versus audience targeting. Brands should also consider partnering with publishers that have scale and their own proprietary data to develop segments to reach your desired audience.
Times are definitely changing as the digital advertising industry adjusts to the cookie-less future, but it is not the end. This is just an opportunity for consumers to take control and a challenge to advertisers to be creative.