The Death of the Third-Party Cookie

Rising consumer expectations are driving significant change in how we navigate privacy online — the death of third party cookies is a welcome beginning.

For many years, website owners have used third-party cookies to track users across the internet. These cookies allowed website owners to collect data about users’ online activity and target them with ads.

What Are Third-Party Cookies And How Do They Work?

Before we talk about the end of third-party cookies, it’s important to understand what a third-party cookie is and how they work.

First-Party Cookies Vs. Third-Party Cookies

First-party cookies are created by the website you visit. The website sends these cookies to your browser when you load the page.

How Do Brands Currently Use Third-Party Cookies?

Brands use third-party cookies for many reasons, including:

Targeted Advertising

Targeted advertising is one of the most common uses for third-party cookies. By tracking people’s web browsing activity, brands can show ads that are more relevant to each individual person.

Remarketing

This is a type of targeted advertising that is used to reach people who have already shown an interest in your product or service.

Retargeting

Retargeting is similar to remarketing. However, it’s specifically used to target people who have already made a purchase from your website.

Customer Segmentation

Customer segmentation is the process of dividing your customers into groups based on shared characteristics.

Frequency Capping

Frequency capping is the process of limiting the number of times that someone sees an ad. This is usually done to prevent people from getting annoyed with too many ads.

Conversion Tracking

Conversion tracking is a way to measure the effectiveness of a brand’s marketing campaigns. It allows them to track how many people who saw their ad ended up taking the desired action, such as making a purchase or signing up for a newsletter.

Lead Generation

Lead generation is the process of collecting contact information from people who are interested in your product or service.

Why Are Third-Party Cookies Going Away?

There are many reasons why Google and other browsers are phasing out third-party cookies. Here are some of the most important ones:

Privacy Concerns

According to a recent report, 72% of Americans believe that tech firms, like Google and Facebook, advertisers, and other companies collect too much data about them.

Security Concerns

To meet rising consumer expectations to control their own data security and limit tracking data from Google ads and similar ad platforms is forcing a sweeping business model change in the ad market.

The Introduction of Google Sandbox

The phasing out of third-party cookies is in full support of the Google Privacy Sandbox. This is an initiative that Google announced in 2019 that aims to protect consumer privacy and make the web more private and secure.

What To Know About Google’s Cookie Phase-Out

Google’s announcement in 2020 sent shockwaves throughout the online advertising industry. Third-party cookies have been around since the early days of the internet. And advertisers rely heavily on third-party cookie data. It enables them to track people across the web and gather data for ad targeting purposes.

Google Isn’t Banning All Cookies

It’s worth noting that Google’s decision to phase out third-party cookies doesn’t mean the end of all cookies.

  • the items you’ve viewed
  • and the pages you visit on a website

Google Will Still Track People

Just because Google is doing away with third-party cookies doesn’t mean the company will stop tracking people online. In fact, Google will still be able to track people across the web using first-party cookies, fingerprinting, and other methods.

What’s Replacing Third-Party Cookies?

Now that we know the death of third-party cookies is inevitable, what will replace them?

Identity-Based Tracking

Identity-based tracking is a method of online tracking that uses personally identifiable information (PII) to track people across the web. PII includes information like your name, email address, and phone number.

Google’s Browser-Based Model

As mentioned above, Google is working on a new browser-based model that will replace third-party cookies. This model is based on the Trust Token API and FLoC.

First-Party Data

First-party data is data that a website or business collects about its own customers. This data includes things like purchase history, website activity, and email interactions.

First-Party Data Vs. Third-Party Data

There are a few key differences between first-party data and third-party data.

How The Death Of Third Party Cookies Impacts Web Design & Development

The death of third-party cookies has been a hot topic in the web design and development community for a while now.

Developers And Designers Will Have To Get More Creative

The death of third-party cookies means that developers and designers will have to get more creative with their website designs and features. They will need to find new ways to track user data and analytics. This could lead to some really innovative website designs that we haven’t seen before.

Websites May Become More Personalized

Without third-party cookies, websites may become more personalized. This means that website owners will have to collect data directly from their users. They can do this through surveys, polls, or even just asking users to input their preferences.

A Focus On First-Party Data Collection

As first-party data becomes more important, web designers and developers will need to focus on clear data collection methods. This includes creating effective landing pages and opt-in forms for newsletter subscriptions.

Websites Must Be Compliant With Relevant Privacy Laws

It’s important to design websites and opt-in forms in compliance with the privacy laws relevant to your site. This could be the GDPR or the CCPA.

How The End of Third-Party Cookies Impacts Digital Marketing

Apart from developers and designers, the death of third-party cookies will also impact digital marketers and the advertising industry in many ways.

Marketers Will Have To Rely More On First-Party Data

First-party data will become increasingly important for marketers. They will no longer be able to rely on third-party cookies for ad targeting and measurement. Marketers will need to find new ways to collect and own first-party data, such as through sign-ups, surveys, and polls.

Advertisers Will Need To Shift Their Focus To Contextual Advertising

Contextual advertising is a form of advertising that takes into account the context of the content that is being displayed. For example, if a user is reading an article about cars, they may see ads for car dealerships or car parts.

Marketers Will Have To Shift Their Focus To Other Channels

When it comes to digital marketing, most marketers are used to relying on cookies to create targeted ads and marketing strategies. With the death of third-party cookies, marketers will need to shift their focus to other channels, such as email marketing and social media. This is because these channels are not as reliant on cookies.

Marketers Will Have To Invest In New Technologies

The death of third-party cookies will also force marketers to invest in new technologies, such as identity management solutions and customer data platforms (CDPs).

Final Thoughts

There is no doubt the death of third-party cookies will have a big impact on the digital advertising landscape. Many small businesses rely on third-party cookies to target their advertising and, without them, they will have to find other ways to reach their audience.

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Parachute Design Group Inc. is a boutique Toronto web design agency specializing in beautiful hand-made website design, custom logo design and branding.