Navigating a Future With or Without Third-Party Cookies

Laura Cerimele

Navigating a Future With or Without Third-Party Cookies

Google’s On-Again, Off-Again Relationship with Third-Party Cookies

Google's latest decision in July of 2024 has thrown the ad industry a curveball—again. Just when it seemed third-party cookies were gone for good, Google decided to give them a second (or third?) chance. Initially set to phase them out in Chrome back in 2020, the deadline has been postponed, and brought back, and postponed again as Google tries to come up with an alternative solution. Now, the plan is to introduce new experiences that let users choose data tracking preferences across their entire web experience, offering a choice between third-party cookies and other tech in their browser. In other words, third-party cookies aren’t entirely gone just yet. For advertisers, this “will they or won’t they” has been frustrating when it comes to strategic planning for ad efforts, leaving marketers and advertisers searching for ways to diversify targeting strategies.

The Role of Third-Party Cookies and Their Benefits

There’s a reason that third-party cookies have been around for so long. They’re powerful when it comes to targeting.

Ads seem to follow us all around the internet and that’s because of third-party cookies. These cookies act as trackers, connecting a user’s browsing activity across different websites. This data allows advertisers to serve qualified, targeted ads to users across their open web and in-app journey.

These benefits come with a cost, though. Third-party cookies have raised eyebrows over privacy concerns, which is exactly why we’re seeing a push for change.

Why Are Third-Party Cookies on the Chopping Block?

The rise of privacy-focused concerns and regulations, like the GDPR in Europe and the CCPA here in the U.S., reflects the growing demand for transparency in data usage. These regulations give individuals the ability to see what data is being collected about them and the option to opt in or out altogether.

Cookies don’t have a reputation for being user-friendly or “privacy conscious”. So, despite their advertising perks, third-party cookies have lost a lot of trust with the public, and there’s a rising demand for ethical alternatives.

Apple, for instance, has been championing privacy-friendly tracking solutions for years. “Privacy is a fundamental human right that people have, and we're going to do everything that we can to help maintain that trust”, said Apple CEO Tim Cook. This commitment began with the introduction of the Intelligent Tracking Prevention (ITP) feature in their Safari browser in 2017. It continued with software updates like iOS 14 in 2020, which allowed users to opt out of any type of targeting or tracking across Apple’s entire product portfolio.

Apple is just one of many companies that have already adopted cookieless solutions.

How to Target Consumers Without Third-Party Cookies

The impending depreciation of cookies opened up a world of additional, often more successful targeting options for advertisers:

1. First-Party Data Collection

First-party data, data collected directly from users on your own platforms, is becoming more valuable than ever. This is data that you gather from website interactions, social media, CRM systems, and more. Because it’s collected with users’ consent, and often stems from an interest in connecting, it offers an authentic way to collect audience information without crossing privacy lines.

First-party data is unique to your business and your customers, making it a great tool for building strong customer relationships. When done right, it allows you to offer personalized experiences that build trust over time.

2. Contextual Targeting

Contextual targeting aligns ads with the content users are already consuming. For example, if someone’s reading a recipe, they might see an ad for a cast iron skillet.

It’s an approach that doesn’t track users but still reaches them in a meaningful way. Plus, since contextual ads appear next to relevant content, they’re often more engaging and can lead to better engagement rates.

3. Google’s Privacy Sandbox and Other Alternatives

Google is working on a privacy-focused initiative called the Privacy Sandbox. This initiative consists of privacy preserving technologies, advertising solutions and industry collaborations that have already shown promising outcomes related to successful targeting solutions.

Beyond Google, other industry solutions like Universal IDs are being explored. These approaches use encrypted user identifiers across platforms and devices, providing new ways to deliver targeted ads.

4. Machine Learning and AI for Predictive Analytics

AI is stepping up to the plate as privacy concerns and regulations continue to rise. With AI, you can dig into patterns in your first-party data to predict consumer behavior and tailor your campaigns. Rather than tracking users, AI helps to serve ads based on what it predicts an audience is interested in, without compromising privacy.

Embracing Change and Staying Adaptive

No matter what happens with third-party cookies, one thing’s for sure: the advertising landscape is changing. By getting comfortable with alternative strategies now, you’re not just preparing for a potential future without third-party cookies—you’re setting up a more resilient and privacy-friendly approach to targeting.

Navigating a Future With or Without Third-Party Cookies

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