Goodbye Third-Party Cookies in 2024? How Brands Can Mine Visitor Data

Contents

1. What do cookies do?
2. What are third-party cookies?
3. What are first-party cookies?
4. What does the end of cookies mean for brands?
5. Companies that own first-party cookies don’t fear policy changes
6. How a CDP helps once third-party cookies are gone

Google’s plan to drop third-party cookies has been one of the biggest topics in online advertising in recent years. Google first said in 2020 that it would phase them out within two years, but perhaps because the stakes were so high and the impact so broad, the date kept slipping. In 2021 it pushed the deadline back to 2023.

Finally, on January 4, 2024, Chrome began testing Tracking Protection, a new feature that limits cross-site tracking by restricting websites’ access to third-party cookies by default.

Google announced: “We’re rolling this out to 1% of Chrome users globally. This is a major milestone in our Privacy Sandbox initiative, which will phase out third-party cookies for everyone in the second half of 2024.”

On April 23, Google announced that, in response to ongoing feedback from regulators and the industry, it would again delay third-party cookie deprecation (3PCD). Specifically, Google now expected 3PCD not to move forward until early 2025.
On July 22, 2024, Google announced that it no longer plans to phase out third-party cookies in the Chrome browser. Because of opposition from many partners, it said that it will not fully remove third-party cookies.

Google said it will introduce a new user experience that lets users make their own informed choice about cookies across all their web browsing, adjust those choices at any time, and that Incognito mode will add IP protection.

What do cookies do?

Cookies track your activity on websites, but sites also use them to support a range of online experiences, such as keeping you signed in or showing you relevant ads. As a tool for identifying site visitors, cookies fall into two main types: first-party and third-party. The distinction depends on the site the user is currently visiting. Both serve the same purpose of tracking browsing behavior, but they collect and use information in very different ways.

What are third-party cookies?

Third-party cookies are small data files created by advertisers, analytics providers or other external parties on a domain different from the site being visited. They are mainly used to track users’ activity across multiple sites to support ad targeting, behavioral analysis and other kinds of personalized content. Third-party cookies may be shared across many sites to build a profile of a user’s online activity.

Third-party cookies often raise privacy concerns because they allow different parties to collect and share data about users’ browsing history and behavior. Because these cookies span different sites, users may feel they have no control over their data. Some browsers and privacy tools let users limit or block third-party cookies.

What are first-party cookies?

First-party cookies are small data files collected by the browser directly from the site the user is visiting. They are created and stored by that site to record information about the user’s activity on it. First-party cookies mainly provide basic site functions, remember user preferences, and collect analytics data to improve site performance and user experience. Because they are tied directly to the site being visited, they count as first-party data.

For example, when a user is shopping on a site and adds products to the cart, first-party cookies let the site recognize that user, and we can later use that data for remarketing.

What does the end of cookies mean for brands?

The disappearance of cookies would have a major impact on brands’ data collection, ad targeting and user experience. Cookies are widely used across the web and provide an important data foundation for personalized advertising, user tracking and analytics. Possible impacts include:

1. Ad targeting suffers:
   Cookies are a key targeting tool in advertising. Brands typically use this data to define target audiences, deliver personalized ads and measure ad performance. Without cookies, brands may need new ways to target ads, which could include relying more on contextual targeting, partnerships or other alternative technologies.
2. User tracking is restricted:
   Cookies let brands follow user behavior across different sites and deliver a more consistent experience. Without them, brands may struggle to track users across platforms and devices, which can make the user experience feel disjointed.
3. Data analysis gets more complex:
   Brands typically use cookies to collect and analyze behavioral data to measure site performance, understand user preferences and conduct market research. Without cookies, analysis may become more complex, and brands may need other ways to obtain valuable data.
4. Privacy becomes a key focus:
   As concern about privacy grows, the end of cookies can be seen as an opportunity: brands can win user trust by improving data security and privacy protection. New privacy-friendly technologies and standards are likely to get more attention.

Companies that own first-party cookies don’t fear policy changes

First-party cookies are data files created and used by a brand’s own website, mainly to record users’ activity on that site. Here is why they matter in this situation:

1. User data collection:
   First-party cookies let brands collect user data directly from their own websites. This becomes the main way to understand user behavior, preferences and interactions, and helps deliver a more personalized experience.
2. Site analytics and optimization:
   Brands can use first-party cookies to analyze how users behave on their sites, measure site performance and optimize it. This is essential for improving user experience, raising conversion rates and enhancing site features.
3. Direct connections:
   First-party cookies let brands build direct connections and engage users more deeply. This helps build stronger brand loyalty, because users can trust how the brand manages and uses their data.
4. Personalized marketing:
   First-party cookies provide the foundation for personalized marketing. Brands can use the data collected on their own sites to tailor and optimize campaigns more effectively to meet user needs.
5. Privacy protection:
   Because first-party cookies are a tool for brands to interact with users directly, they are relatively more trusted. Brands can strengthen users’ trust in data privacy by offering transparent privacy policies and appropriate data protection measures.
   
   Without third-party cookies, first-party cookies will become an important tool for brands to keep visibility and control over user data. Brands need to manage and use first-party cookies more proactively and responsibly to build a strong relationship of trust with users.

How a CDP helps once third-party cookies are gone

1. Unify data from every channel:
   A CDP can bring together first-party data from many channels, including websites, apps and social media. This helps brands build a complete user profile without relying solely on third-party cookies.
2. Build a single user profile: A CDP can integrate and unify user data into a comprehensive, cross-channel profile. This lets brands better understand users’ preferences, behavior and value, and deliver more personalized experiences.
3. Enable personalized marketing: Based on these unified profiles, a CDP helps brands run smarter, more personalized marketing. This supports reasonably accurate targeting without relying on third-party cookies.
4. Improve engagement:
   A CDP provides deeper insights so brands can better understand users’ needs and expectations. These insights can be used to improve interactions and raise engagement between the brand and its users.
5. Strengthen data privacy and security: A CDP can provide stronger privacy and security measures to ensure data is handled and protected properly. This helps brands meet stricter privacy regulations and user expectations, and build trust.
6. Cross-device tracking:
   A CDP helps brands track users across devices more effectively, giving a fuller picture of how users behave on different devices.

A CDP provides a central platform that lets brands manage and respond to changes in user data more flexibly. With a CDP, brands can build stronger, more personalized and more privacy-conscious user experiences, and soften the impact of losing third-party cookies on data collection and marketing.

Want to learn more about the customer data platform (CDP) and how to get started? Visit our website for more information: Customer data platform (CDP)

Further reading:

• The 80/20 rule of membership: how to keep your most valuable customers
• Data-driven decisions: how MarTech helps brands succeed at digital transformation