The discussion about the future of third-party cookies has been quite intense. Google has already initiated the process of eliminating third-party cookies. Starting in early January, Google has started to implement this change on a limited basis, with the goal of phasing out third-party cookies entirely by the end of 2024.
So, what does this actually indicate and why is it relevant?
It’s important to mention that Google is lagging behind in its attempts to eliminate and block third-party cookies.
Google’s recent decision to block third-party cookies on Chrome has caused quite a commotion, despite Safari, Firefox, and Opera already implementing this feature. The reason for the uproar is the massive user base of Google Chrome, which is larger than all other browsers combined.
The decision by Google to change its approach has had a major effect on the advertising and targeting economy that relies on third-party data.
Understanding how third-party cookies function is crucial in order to fully comprehend the implications of eliminating them.
Cookies are small text files that allow websites to store user information, including login credentials and browsing history. First-party cookies are created by the website you are currently visiting, while third-party cookies come from different domains that are not related to the site you are on.
By tracking user activity on different websites, third-party cookies help companies build detailed profiles of browsing habits.
Google’s choice to eliminate third-party cookies is driven by worries about data privacy. Yet, with Google Chrome’s strong presence in search and advertising earnings, the change creates a complicated situation. Marketers have depended on third-party cookies to boost interaction and sales, creating a profitable business model that now faces additional hurdles. Google has benefited greatly from this setup.
Google Ads platform is responsible for generating approximately 90% of the search engine’s revenue.
Chrome and its third-party cookies have laid the groundwork for numerous individuals to build their platforms and achieve success. This has created a mutually beneficial eco-system that has thrived for a long time.
Expected modifications
The end users will likely experience the most substantial changes in actuality.
The removal of third-party cookies is set to make a big impact on businesses and brands that heavily rely on targeted advertising and tracking data. They will need to find new ways to target their core audiences, both for themselves and their clients. From an advertising, marketing, and re-marketing standpoint, those who previously relied on third-party data will have to make a shift.
What other options do we have?
Google’s Privacy Sandbox APIs, the proposed proprietary alternatives, are still surrounded by uncertainty about their future. Testing on these products has been delayed, and Google has not provided much information about how they will work.
It’s hard to give definite answers until we have a better understanding of these new products. Additionally, there are questions about whether they comply with GDPR regulations in the UK
Google’s Privacy Sandbox APIs are being considered as a replacement for third-party cookie tracking, along with options like device fingerprinting, OS-level tracking, and hardware tracking.
Ethical concerns have been raised regarding this matter. There is a potential risk of them becoming ethically ambiguous and vulnerable to misuse. This could result in exchanging one morally questionable solution for another, thus adding more complexity to the field of data tracking and audience segmentation.
Google has not provided clear guidance on alternative solutions, causing uncertainty about the future of online targeting. Different options like device fingerprinting and contextual targeting are being considered, but they bring their own challenges and ethical issues.
Changing our thinking and approaches
The discussion about third-party cookies highlights a wider trend towards ethical data practices that prioritize first-party data. This refers to data collected directly from users on websites and apps that are owned by the company.
Contextual targeting is another option that is currently being discussed. It involves analyzing the content of a visited page without revealing any personal user information. This approach brings about fresh possibilities, but it also calls for regulatory frameworks to guarantee accountability and transparency.
While contextual targeting can be advantageous, it also brings about challenges. One potential downside is that websites may need to increase their text and content to extract meaningful data. In contrast to third-party cookies, contextual targeting lacks the same level of precision in understanding user interests and intent.
Additionally, models that utilize contextual targeting are dependent on advanced natural language processing algorithms. The creation and integration of these algorithms would require a unified worldwide AI legislation and regulation, which is currently absent.
The move away from third party cookies highlights the intricate regulatory aspects that come into play.
SEO influence
Removing third-party cookies may not have a direct impact on organic search rankings, but it could influence the importance of promoted search results and snippets. This may lead to less relevance for users.
To maintain visibility in organic search results, businesses should shift their focus towards creating top-notch owned content.
Adjusting to change
A fundamental change is taking place in online advertising and marketing methods as we move away from third-party cookies. This transition represents a significant shift in how businesses approach reaching out to their audience and promoting their products or services.
As targeting capabilities continue to advance, it is important for strategies across multiple channels, including content creation and digital PR, to evolve in order to effectively grab the audience’s attention.
In conclusion, the discontinuation of third-party cookies signals a new phase in digital marketing, defined by a mix of ethical data practices and efficient audience engagement strategies. Although there are challenges ahead, adapting and innovating will be essential for navigating this evolving landscape.