The cookie has crumbled: the end of third-party cookies with Google.

Google Chrome has announced it will no longer support third-party cookies as of next year. ‘Own’ data will therefore be more important than ever. Have you done your homework for the data-driven marketing of the future?

The digital advertising world is ready to be turned upside-down now that cookies for third parties are silently singing their swan song. Third-party cookies are—the name gives it away—cookies that are managed and placed by a third party. But what are cookies? Time for a quick refresher: 

Cookies are small files that a website puts onto the hard drive of your computer the moment you visit a website. Their most important function is in differentiating between one user and another. The servers can use cookies to recognize your browser and keep track of which sites you’ve visited in the past. As a result, cookies contain a lot of information about your travels on the internet: the pages you’ve visited, the products you’ve looked at, and so forth. It’s these cookies that help people in the world of online marketing track user behavior.

A whole different ball game

Hiding away in all this is the exact reason why third-party cookies are being discussed more and more frequently. They mean that your data is not restricted to the site you visited. Instead, it is made available to third parties. And third parties include, for example, advertisers and publishers. They happily make the most of this opportunity and, by means of web-tracking, collect, store, and share information about the activities of internet users. Prompted by increased concerns about the privacy of online consumers who yearn for more control, the major web browsers are taking steps to gradually end this practice.

The disappearance of third-party cookies will not go unnoticed. On the contrary, the user experience will radically change, with personalized advertisements dropping in number. Publishers and advertisers will also face an important challenge: collecting user information without being dependent on cookies.

General Data Protection Regulation (GDPR)

The General Data Protection Regulation (GDPR) is the first major (r)evolution in the collection of data. It standardized the rules for the processing of personal data by individual companies and government organizations across the entire European Union, guaranteeing stronger protection of this data.

Nonetheless, Europe has exhibited a noticeably varied approach when it comes to the GDPR. It’s the local regulations of the different countries that are responsible for this. Their interpretations are far from similar. Across the European Union, an average of 5% of internet users say ‘No’ to cookies. In the United Kingdom, just 2% refuse them. In 2021, research by Statista in the United States showed that less than 32% of the people surveyed always allow cookies. Young adults are more tolerant than older people.

It’s the end of the world as we know it

The imminent end of third-party cookies is making a lot of advertisers and marketers uneasy. Until now, they’ve leaned quite heavily on the cookie profile of their clients to collect their data and approach them. 

Nearly 44% of marketers estimate that their expenses will need to increase by 5% to 25% to achieve what they did in 2021. In fact, 41% of marketing experts believe that the inability to trace user data in detail will be the challenge of the future. As well as this, 23% of marketers admit they—due to the updated Google policy—will rely more on email marketing software.
Source: GetApp

What are the alternatives to third-party cookies?

With the plan to stop supporting third-party cookies in Chrome in 2024, Google is giving the internet world a clear signal. By agreeing with the privacy concerns of consumers. By being concerned about how their data has been recorded and used all these years. And, above all, by offering other options, such as: 

•    First-party cookies.
•    The Privacy Sandbox: a Google initiative to create standards for websites for gaining access to user information without bringing privacy into danger.
•    Retail media for targeting information: an innovative way for marketers to offer personalized advertisements. Its use may range from recommendations to on-site search optimization. 

For some time now, HighCo DATA has been focusing on promotional solutions that are based on first-hand, first-party data. The solutions include cashback, gamification, and e-coupons—all ways that considerably enrich the consumer data available to manufacturers.

First-party data first!

The name says it all: first-hand data. It’s user data that you’ve collected on your own website. How? Examples include log-in forms, or by placing web beacons on certain pages. 

By collecting this data first-hand, you’re able to target the same group in your scope as a brand or retailer. It’s somewhat more complex and less expansive than the targeting process that was used with third-party cookies. The GDPR prescribes the need for the data collected to be handled with care. 

The most important benefit of first-hand data is that it is collected directly from the users of your own website. As a result, as an advertiser, you have more control over the data. You are no longer dependent on third-party cookies or the companies that sell them. Furthermore, it’s possible to use the data to create more targeted campaigns. Campaigns that more accurately reflect the interests and needs of your target group. This leads to a higher ROI and more conversions. 

First-party cookies still contribute to the possibility of keeping certain data. For example, user passwords, their choice of language, and a number of elementary analysis details. This means that advertisers are, for example, still able to help users to log in. They can also see what users do on their site, just not access any information that has been recorded by other websites.

What does the end of third-party cookies mean for advertisers?

The answer to this question is easy: a major change! Both in working methods and workflow. This is logical; advertisers will no longer have insight into the behavior of their clients on other websites. Targeting on the basis of this information is no longer permitted. As a consequence, advertisements will lose relevance and advertisers will have more difficulty reaching their target groups. In this new world, the players who have access to relevant consumer data will always be a step ahead of those who missed the opportunity to collect the information. 

It’s unlikely that the influx of disappearing third-party cookies in Google Chrome will rock the boat. It is possible that visitors will spend less time on a website; they’ll have fewer relevant advertisements in front of them and therefore feel less reason to explore. 
 
The above changes make it important for marketers and advertisers to find innovative ways of offering personalized but cookie-independent advertisements. The loss of third-party cookies will undoubtedly lead to an increase in retail media and first-hand data. That is where the marketers will find new possibilities. Investing in data managers and projects that culminate in data collection will land higher on the priority list. HighCo DATA has already guided numerous manufacturers in the pursuit of this very goal. 

It remains to be seen whether this evolution will actually have a positive effect on the privacy of users. For the time being, it’s unclear what digital marketing will look like in the future, but one thing is certain: the end of third-party cookies is a real game-changer.

And that’s where HighCo DATA comes in

Are you looking for a targeted way to collect first-party cookies and expand your list of email addresses? Stop searching: HighCo DATA has the solution for you. 

We offer tailor-made banners and landing pages with which you can gather first-party cookies in a reliable, user-friendly way, entirely in line with the GDPR legislation. As well as this, we are here to help you expand your email database, and we provide you with e-coupons, cashback, gamification, and competitions to strengthen the loyalty of your clients. 

Our expertise makes us the perfect companion for the creation of powerful, attractive digital experiences that don’t jeopardize the privacy of your consumers.