A cookieless future is looming on the horizon for the digital marketing industry, and many marketers are wondering what this means for them.
Will you need to find new ways to track user behaviour? How will it impact retargeting efforts? These are all critical questions, and if you don't know how your marketing org will answer them... you might be in trouble.
But not for long! This blog post will discuss what a cookieless future means for digital marketing and how you can prepare for it.
What Are Cookies?
Before diving into the cookieless future, let's briefly review what cookies are and how they're used in digital marketing.
Cookies are small pieces of data that are stored on a user's device when they visit a website. Advertisers and websites can use them for various purposes, such as remembering user preferences or tracking user behaviour.
For example, every time you log into your New York Times account, you get more sports stories than culture stories.
Ad-tech companies rely on cookies to track user behaviour across the web and serve targeted ads to those users. This has been the status quo for years — but it's about to change.
Third-Party vs. First-Party Cookies
There are two types of cookies: third-party and first-party.
- Third-party cookies: created by a domain other than the one the user is visiting.
- First-party cookies: made by the visited domain.
For example, if you visitexample.com, a third-party cookie may be set by adserver.example.com.
We generally consider first-party cookies to be more privacy-friendly than third-party cookies because advertisers can't use them to track users across different websites. However, both types of cookies can be used for ad targeting purposes.
What's Happening to the Cookies?
First and third-party cookies have long been an essential part of digital marketing, but their days may be numbered. In January 2020, Google announced plans to phase out third-party cookies in its Chrome browser within two years. Marketers can no longer track users across the web using cookies.
Why Are They Leaving?
There are a few reasons why Google is making this change.
- There's been an increased focus on privacy in recent years, and many people are concerned about how cookies are used to track user behaviour.
- Bad-faith actors can use third-party cookies to exploit user browser vulnerabilities.
- Google wants to create a more level playing field for digital advertising by giving first-party data an advantage over third-party data.
Why Does it Matter?
Aside from the ad targeting reasons we mentioned earlier, you may be wondering why this matters in the first place. After all, other browsers (Safari and Firefox, to name a few) already limit the use of third-party cookies.
However, as of December 2021, Google Chrome owns about 64% of the global web browser market share. Simply put, your customers are probably using Google Chrome — so what Google does, matters.
3 Proposed & Viable Alternatives to Cookies
FLoC: Federated Learning of Cohorts
The first proposed alternative to third-party cookies was called FLoC, or Federated Learning of Cohorts. FLoC is a browser-based technology that uses machine learning to group users into cohorts based on their shared interests. Advertisers would then be able to target ads to those cohorts instead of individual users.
However, this system didn't receive positive feedback in its early trials. This led Google to their next plan: Topics.
Google Topics
Google is also experimenting with a feature called Google Topics, which would allow users to opt-in to share their interests with advertisers. This would give the advertising industry a first-party source of data they could use for ad targeting.
UID 2.0
Another possible solution is called UID, or Universal User ID. This would be a first-party identifier that could be used to track user behaviour across the web. However, it's unclear how this would work in practice and whether or not users would be willing to share their UIDs with advertisers.
What Does This Mean for Marketers?
The cookieless future will present some challenges for marketers, but it also offers some opportunities. One of the biggest challenges will be tracking users across different devices and platforms. Without cookies, marketers will need to find new ways to identify and target their audiences.
One opportunity that cookieless advertising offers is the chance to build more first-party data. First-party information will become even more valuable in a cookieless world because competitors can’t collect it. Marketers who focus on collecting first-party data will be at a competitive advantage.
Another opportunity is to invest in alternative tracking methods, such as fingerprinting. Fingerprinting involves using information about a user's device, such as the browser type and version, to create a unique identifier. This identifier can then be used to track the user's behavior across different websites.
How Should We Deal with A Cookieless Future?
There are a few strategies marketers can adopt to achieve success in a cookieless future:
Build a strong first-party data foundation
First-party data will be more valuable than ever in a cookieless world. Marketers should focus on collecting high-quality first-party information to stay ahead of the competition. Here are some tools to help you get started:
- Google Analytics: This free tool can be used to collect first-party data about website visitors.
- Customer Relationship Management (CRM) software: CRMs can be used to track interactions with customers and prospects.
- Surveys: Surveys are a great way to collect feedback from your target audience.
- Customer Data Platform software: Customer data platforms (CDPs) can be used to collect, manage, and activate first-party data.
As you comb through your first-party data stores, there are a few kinds of customer data you should emphasize:
- Behavioral data: this data can be used to understand how customers interact with your brand.
- Demographic data: this data can be used to segment your audience and target them with more relevant content.
- Attitudinal data: this data can reveal how customers feel about your brand, products, or services.
As you accumulate increasingly more sensitive data, you'll want to beef up your data security. Here are some data privacy tools that can help:
- Data Encryption: This process scrambles data so only authorized parties can read it.
- Access Control: This restricts who can access sensitive information.
- Data Masking: This hides parts of data that unauthorized users should not see.
Invest in alternative tracking methods
While cookies won't be around forever, there are some alternative tracking methods that you can invest in today. Here are a few alternative identifiers to consider:
- Fingerprinting: As we mentioned earlier, fingerprinting involves using information about a user's device to create a unique identifier. This identifier can then be used for tracking purposes.
- Device IDs: Device IDs are unique identifiers that are assigned to devices such as smartphones and laptops. They can be used to track user behaviour across different platforms.
- User ID: A user ID is an identifier that is assigned to a specific user. It can be used to track the user's behavior over different devices.
- IP Address: IP addresses can be used to identify devices and track user behaviour — but be careful! This is sensitive information.
Here are some tips for developing a fingerprinting strategy:
- Choose the right data points: Collecting too much data can result in privacy violations. Make sure you only collect the data points you need to achieve your marketing objectives.
- Get consent: Always get the user's consent before collecting their data.
- Be transparent: Most data strategies are locked behind walls of text. Let users know how you plan to use their data, and they'll be happier to hand it over.
- Don't sell the data: Don't sell fingerprinted data to third parties. Firstly, it's unethical. Secondly — why would you hand over you competitive advantage?
- Delete the data when you're done: Once you've used the data for your marketing purposes, delete it.
And as always: ensure you relay all this information in the appropriate marketing communications, and offer your customers the chance to opt out if they wish.
Prepare for increased regulation
The cookieless future is likely to lead to more regulation around data collection and use. Marketers should keep an eye on developments in this area and be prepared to adjust their strategies accordingly.
Master contextual targeting
Contextual targeting is a form of advertising that relies on the context of the user's environment to serve relevant ads. For example, putting ads for your tech repair service on websites like WIRED.
In a cookieless future, contextual ad targeting will become even more critical. Marketers should focus on developing strategies that utilize this type of targeting.
Here are some tools to help:
- Google Display & Video 360: This tool can be used to create and manage display and video campaigns.
- The Trade Desk: This platform offers programmatic advertising solutions for brands and agencies.
- Amazon Advertising: This tool can be used to create and manage ad campaigns on Amazon.com.
As you build this strategy out, here are some tips to remember:
- Choose the right platform: Not all platforms are created equal. Make sure you choose a platform that offers the necessary features and functionality.
- Create high-quality content: In a cookieless future, users will be bombarded with ads. Make sure your ads stand out by creating high-quality content relevant to your target audience.
- Test, test, test: Always test your ads before launching them. This will help you identify potential problems and ensure your ads are effective.
Future Proof Your Marketing Strategy for a Cookie-Free Tomorrow
The cookieless future is coming, and marketers need to prepare. By diversifying your tracking methods, increasing regulation, and mastering contextual ad targeting, you can future-proof your marketing strategy for a cookie-free tomorrow.
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Our team of experts will maximize your marketing tools and automation so you can supercharge your output. Get in touch today to learn more!
Frequently Asked Questions (FAQs)
Are web cookies going away?
Yes! In January of 2020, Google announced that it will phase out support for third-party cookies in its Chrome browser within two years. This move signals the beginning of the end for cookies as we know them.
How do I prepare for a cookieless future?
The cookieless future will require marketers to change the way they collect and use data. They will need to rely on alternative tracking methods, such as user IDs and fingerprinting, to track user behavior. They will also need to be prepared for increased regulation around data collection and use.
