How a Cookieless Future Will Impact Your Digital Strategy

By late 2023, Google is set to eliminate third-party cookies on Chrome, its web browser. Chrome is estimated to be used by about sixty percent of individuals, over 3 billion people worldwide. Additionally, Apple has also announced several new measures for data protection. For a good part of the past decade, marketers have relied on third-party cookies in their strategies. Third-party cookies allow marketers to have a wealth of data available to them, supporting their decisions, optimizing their strategies, and targeting campaigns. 

So why is this practice of removing third-party cookies happening? The answer is simple. It comes down to data privacy. Companies like Google have recently come under fire for their data practices, and the European Union passed the General Data Protection Regulation (GDPR) a few years ago, to protect consumer privacy, and the California Consumer Protection Act soon followed. 

What does a cookieless future look like for marketers, and how will they affect marketing strategies in the future? Here’s what you can expect.

What is a Cookie?

Before we take a closer look at the new laws surrounding cookies, let’s dive a little deeper in to what a cookie is, and examine a few of the most prominent types of cookies. 

A cookie are text files containing small pieces of information. These files are used to identify your computer while you use any computer network-whether it be Google, Firefox, Safari, etc. These cookies are created when a person visits a website, storing important data and improving the users website experience. Cookies also serve to enhance Digital Marketing strategies by personalizing the experience and aligning content to the interests and behaviors of each user.

There are many types of cookies, however. To understand why this has become such a hot-button topic lately, we need to discuss the difference between first and third-party cookies.

The difference between them comes down to how they are collected and what they are used for. First-party cookies are created by the same website that the user is visiting and create data such as language preferences, items saved to a cart, or username and passwords. Third-party cookies are created by a separate domain and are generally used for marketing and advertising. These cookies can monitor cross-website tracking, ad serving, and direct retargeting ads.

How Will These New Changes Affect My Marketing Strategy?

The most important thing to know is that companies like Google aren’t banning all types of cookies. Google is only planning on banning third-party cookies, while first-party cookies will still be able to be used on your websites. Tracking customers without the use of third-party cookies may sound scary but take into consideration that every company will be in the same boat when it comes to pivoting its strategies. Additionally, this information has been made public with sufficient time to strategize and effectively plan different ways to collect similar data, while still offering a personalized experience. 

In response to Google eliminating third-party cookies, they have offered an alternative, called the Privacy Sandbox. This Privacy Sandbox aims to protect online privacy by exploring new methods of tracking users, without letting personally identifiable information leave their Chrome browser. Among these proposals is the idea of Federal Learning of Cohorts (FLoC.) FLoC’s technology groups users into cohorts with similar browsing habits, and then target relevant ads based on those shared interests and characteristics. This would allow companies to access to the data from the cohorts, rather than individualized data. 

One of the most crucial things companies can do right now is work towards strengthening first-party data. First-party data improves the strength of user’s trust in brands, ultimately offering clients a more meaningful and and engaging experience on their site journey. It is becoming more and more important to establish close and more direct relationships with their clients rather than relying on third-party cookies. You can collect this data from market research, social media polls, and client satisfaction surveys. Another smart strategy is to offer interactive content or materials complimentary in exchange for their data. 

There are also some additional tactics companies can start developing and putting in to practice even before these new laws go in to effect. With concerns over privacy of personal data continuing to swirl, you can best relate to your clients by being clear and transparent. Creating a privacy policy isn’t just a legal obligation anymore, but it pulls the veil off of how and why you want to use your clients’ data. Additionally, by incorporating a more transparent data policy, you are also empowering clients to exercise control over their data- allowing them to opt-out or edit information for their registration as they see fit.

The "cookieless future" is rapidly approaching, and you’ll need to adapt sooner rather than later. If these changes have your head spinning, or you are unsure how to begin, you aren’t alone. At Integrate, we pride ourselves on keeping abreast on all the latest developments to marketing strategies, so we can help.