What are Cookies?
Brands worldwide have been utilizing cookies to track website visitors for as long as the internet has been around. These cookies improve the user experience, collect data to help with targeting ads and track website metrics. This has become the societal norm for tracking data across platforms up until now. Recently, however, more and more governing bodies and search engines are cracking down on cookies and in some cases, getting rid of them entirely. Consumers are protesting cookies, saying they breach their internet privacy, and don’t want their data to be tracked every moment they are online. Tech giants are discussing removing cookies from their platforms, and some, including Mozilla, Safari, and Facebook, have already done so. Google is looking to be the next big company to make this transition. But the question remains: what cookies are becoming obsolete, and what will replace this way of tracking data and consumer preferences?
The main difference in cookies is whether they are first or third-party cookies, and the differentiation will be vital for how marketers continue to conduct business moving forward. First-party cookies are codes generated and stored on your website visitor’s computer by default when they visit your site. These cookies are responsible for remembering passwords, tracking primary data about your visitors, and learning about other analytics that can help you develop or automate your marketing strategy. This data only goes as far as your website, and you cannot track what your website visitors do on other websites not affiliated with your domain.
On the other hand, third-party cookies are tracking codes placed on a web visitor’s computer after being generated by another website other than your own. They allow you to learn about website visitors’ overall online behaviors. This could include websites, purchases, interests, and whatever else they interact with online on any given day. By doing this, marketers can create retargeting lists that send ads to any specific person.
What is Google doing about its Cookies?
Google has been making plans to phase out third-party cookies from their platform since 2020. They decided to make this shift to protect users, who have been asking for more and more privacy. Google believes that third-party cookies aren’t a sustainable long-term solution for marketers, and because of this, they are trying to evolve their web ecosystem to meet increasing demands. As of 2019, Google Chrome made up more than 56% of the web browser market and accounted for more than half of global web traffic. Their decision to end the use of third-party cookies is being considered the “death of the third-party cookie.” They also announced that they wouldn’t build alternate solutions to third-party cookies. Their pages will now be powered by privacy-preserving APIs that prevent individual tracking while still delivering results for advertisers and publishers.
The transition from cookies to a more privacy-focused option didn’t surprise many people, as many other large platforms have begun to crack down and make the shift as well. This shift will be good for Google financially because third-party ad platforms will have to switch from cookies to whatever Google decides to use next, which looks like their Privacy Sandbox. Google is toying with a new idea, their Privacy Sandbox, which creates a secure environment for personalization to protect user privacy. It would include new approaches to ensure that advertisements remain relevant for users, but users would have a higher expectation for their privacy levels. In turn, however, this could have a significant impact on digital advertisers and businesses’ healthy competition. Google is currently testing four out of the thirty Privacy Sandboxes they have, and their focus will be on key areas such as ad measurement, ad relevance, content, and fraud detection. They delayed their rollout of these products to mid-2023 and plant to replace individual user tracking with group-based ad targeting. Their goal is to implement the first stage at the end of 2022, which will last approximately nine months, then move forward with the next step in 2023 and remove third-party cookies entirely. Google aims to give advertisers time to make the switch and incorporate the opinions from external web developers, advertisers, publishers, and regulators throughout the process to create a middle ground for advertising that satisfies everyone.
How does this affect marketers moving forward?
Marketers are reacting negatively to Google’s decision and believe it will impact them as they try to track the correct data and create appropriate marketing budgets. Digital advertisers predict that they will have to increase their ad spending by 5%-25% to reach the same previous goals when third-party cookies were allowed. But even though this is causing a significant shift in the digital marketing sphere, it does not mean it’s the end of the world. Some ways to still market and target audiences without using third-party cookie data includes:
- Content Personalization. 80% of consumers are more likely to shop with brands that offer a personalized experience, and these experiences can be created with first-party cookies. In addition, 90% of consumers are willing to share behavioral data for a better brand experience. This data can meet marketing needs; it will just be different from utilizing third-party cookies.
- Use first-party data to suggest specific recommendations to target users. This will allow you to increase people’s time spent on your pages and better understand who your customers are and where they are falling in your funnel. Consumers will still opt into first-party cookies if they know you are using them for the right reasons, and in doing this, they get a better experience, and you get to profit!
- Context Targeting. For example, place a leggings advertisement if the article or information is about a famous athlete. These are sports-related, and if you already know your target audience is women aged 21-26, you are more likely to gain more exposure or be successful in a sale. It is easier to do and costs less than many other marketing strategies. In addition, it isn’t impacted by privacy regulations, and you can see results and change your strategy quickly if need be.
These are all ways to continue targeting audiences successfully while avoiding third-party cookies entirely!
Does this impact SeniorComm?
Here at SeniorComm, we will not be negatively impacted by eliminating third-party cookies. We have already been utilizing a first-party method that collects the data and allows you to start a conversation with the anonymous visitor via direct mail or email. At our agency, we know that 98% of unique website visitors typically don’t convert. Our product, Prospector, allows us to gather the information of 40-50% of these anonymous visitors that would be lost and turn them into potential leads or sales. We insert a first-party tracking image that enhances data by matching it against permission-based consumer lists. We also grab the landing page URL that triggers an email drip campaign and a postcard mailing based on which segment bucket they match. Based on the visitor’s website navigation, we dynamically sort the data into audiences and start communication with your new prospects via email and direct mail automatically.
We guarantee emails dripped over a customized timeline and a postcard printed, posted, and in the mail within days of the anonymous website visit. With our product, you have access to a real-time reporting platform that helps you quickly see your campaigns, media channels, and responses. It will also show you what markets and strategies perform best and allow you to interact with your customer directly from the system. By utilizing this strategy, anonymous leads are now being converted into sales, and you aren’t missing out on anonymous website visitors anymore! Click on this link below to learn more about how we use Prospector to avoid third-party cookies entirely:
https://seniorcomm.com/prospector/
In conclusion, third-party cookies are going away sooner than anyone ever thought they would. But this doesn’t mean that the era of digital marketing is over. By implementing the strategies above, you will be in better shape than ever to target users and remain profitable now and in the future to come.
