What exactly are cookies?
There are two different types of cookies: first-party and third-party. First-party cookies are stored by the website the user is visiting and are often used to collect analytics data that will help marketers, designers and developers to improve user experience. On the other hand, third-party cookies tend to collect marketing data such as age, location, gender and user behaviour. These cookies actually get placed on the user’s computer, and gather information to send over to a third party, such as an advertiser.
Third-party cookies don’t just collect data about you, they track how long you spend on a page, frequently visited websites, interests, purchase history and so much more… Whilst this is really useful for an advertiser who wants to create a targeted list for ad redirecting, it can also be seen as an infringement on privacy. However, websites that use third-party cookies should always give you the option to accept or reject their cookie policy if you don’t want to be tracked.
Are cookies getting phased out?
Both Firefox and Safari have already phased out third-party cookies, but in February 2020 Google made the shocking announcement that they would be doing the same over the next 2 years. The statement explained that Google have made this move in order to cater to the growing number of users who are demanding greater privacy and transparency over how their data is actually used.
But what does this mean for advertisers and remarketing? Google understands that by blocking third-party cookies, they are effectively remodelling advertising companies. Google have promised that they will be working alongside advertisers to ensure that this decision does not destroy the advertising business.
However, first-party cookies will not be blocked. Therefore, it will still be possible to gain analytics information on how your visitors use the site. Whilst you will be able to see what a user did on your website and how often they visit, you won’t be able to see data which is related to their behaviour and interests. First-party cookies come with less privacy concerns and are much more useful to the consumer. For example, when Amazon remembers your login, your card details and the items in your basket, you don’t see this as an infringement on privacy – you see it as useful! Unlike third-party cookies, first-party cookies are solely used to improve on user experience.
What comes next?
This is certainly a wake-up call for marketers to break their third-party data dependency and review the data strategies within their business. Google announced that once third-party cookies have been phased out, they will definitely not be building an alternative type of user-level identifier to track individuals as they browse across the web. So, what does this mean for advertisers who rely on targeting in-market audiences and remarketing? How will they access any data which will allow them to segment their audiences?
Google will not be leaving advertisers high and dry… they have been successfully testing a new technology called FLoC, which allows you to track groups of people rather than individuals. With FLoC, you can hide individuals within large crowds of people with common interests, in order to protect their privacy. Using this technology, advertisers will no longer have access to an extensive list of your interests and behaviours as an individual, they will only be able to understand that an unknown individual within a group is interested in a certain topic.
What are some other alternatives to third-party cookies?
1) Email newsletters and sign-ups
When someone signs up to your newsletter or content, it indicates that they are interested in what you have to offer. Learn more about your subscribers and segment your lists to offer content that is highly relevant to what they have told you they are interested in.
2) Social media advertising
Social media advertising allows you to create ads that will be shown to people who follow accounts similar to yours. This is a great way to target audiences who will be interested in your content type, without using their personal information.
3) Focus on first-party cookies instead
Many people underestimate how much data you can gather from your first-party cookies. You can track basic demographics, visits, settings and other preferences which can help you create campaigns and content strategies.
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Whilst learning about cookies may not feel like a priority, it is important to ensure that you are complying with GDPR regulations and giving your users the option to accept or deny your cookies. Whilst third-party cookies will eventually be phased out – the law remains for the next 2 years. If you would like to discuss your requirements, please get in touch. We would be really happy to discuss what may work for you and your business. Email at info@xist2.com or call us on 01993 835 117.
