Third-Party Cookies and Privacy: Exploring A Post-Cookie World
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Introduction

When Google announced its plans to remove support for third-party cookies on Chrome browsers by 2022, many companies started panicking. How were they going to adjust to a cookieless world? How were they to track and identify users across the web without cookies? 

For the longest time, cookies — small text files that track user activity — have been the foundation for sales, marketing and user experience strategies. Digital marketers and advertisers have been using Google's third-party cookies to understand consumers at different stages of their journeys, customise ad campaigns and measure results.

Businesses have also spent countless hours drafting cookies and privacy policies, banners and consent forms to comply with privacy laws such as the General Data Protection Regulation (GDPR) and the Children's Online Privacy Protection Act (COPPA).

As such, this phasing out of cookies will be a game-changer for many companies, particularly advertisers and publishers. However, it's happening for a good reason: Google wants to create a more transparent internet that prioritises privacy rights.

If you're wondering how that will play out, keep reading. We'll discuss the reasons behind Google's decision to phase out cookies and the ways you can prepare for a post-cookie world.

The Importance of Cookies in Digital Strategy

Cookies have been pivotal in shaping digital strategies. Their insights allow businesses to tailor experiences, making sure users see content and ads that match their interests. For teams responsible for sales, marketing and user experience, cookies, especially third-party cookies, are essential tools.

Third-party cookies, set by domains other than the one a user is visiting, are particularly crucial for advertisers and marketers. They enable the tracking of users across the web, allowing for the delivery of targeted ads, understanding broader user behaviour and measuring campaign effectiveness accurately. Through third-party cookies, advertisers can grasp user interests beyond their websites, gaining a comprehensive view of online behaviours and preferences.

However, the world's reliance on third-party cookies is now coming to an end.

Cookie deprecation is driving companies to rethink their data strategies. This involves drafting detailed cookies and privacy policies, banners and consent forms to comply with privacy regulations such as GDPR and ensuring user consent is obtained transparently. Businesses are now prompted to explore new methods for data collection and user engagement in a world without third-party cookies, moving towards practices that prioritise privacy and trust.

Mozilla Firefox and Apple's Safari have already phased out cookies and now, after a couple of years delaying it, Google wants to begin deprecating cookies in Google Chrome too. However, they are facing resistance. In the UK, the Competition and Markets Authority (CMA) has told Google it cannot phase out third-party cookies until its concerns are addressed, tasking Google with "putting in place key steps to ensure fair market competition in the post-cookie era..." 

The CMA aren't the only body with concerns about Google's Privacy Sandbox. The Electronic Frontier Foundation (EFF) believe that Privacy Sandbox doesn't do what Google says it does. In this article, one of the EFF's security and privacy advisors,  Thorin Klosowski, said "Even if it's better than third-party cookies, the Privacy Sandbox is still tracking, it's just done by one company instead of dozens."

Advertisers will have to adapt to continue reaching their audience effectively, without infringing on privacy. This means finding innovative ways to gather insights, targeting ads based on first-party data and employing technologies like Google's Privacy Sandbox to ensure a balance between advertising needs and privacy concerns.

Why Google Is Phasing Out Third-Party Cookies

In January 2020, Google announced its goal to phase out third-party cookies for Chrome browsers by 2022. It was a response to the following trends:

Tightening of Privacy Regulations

Many new laws, including the EU's GDPR, New York's DFS cybersecurity regulation, California's CCPA, and Virginia's new data privacy law, require sites and apps to obtain explicit user consent before placing third-party cookies on their browsers, causing an increasing number of websites to stop using cookies. After the GDPR became enforceable in 2018, the number of third-party cookies found on new websites in the EU  dropped by 22%.

Increased Consumer Privacy Awareness

There's also been a significant rise in consumer awareness about privacy rights. Users are becoming more knowledgeable about how their data is collected and used, leading to a demand for greater control over their personal information. This shift in consumer attitude is prompting tech companies to reassess their data practices to build trust with users.

Competitive Landscape

Google's decision to deprecate third-party cookies in Chrome is also influenced by the competitive landscape. Browsers like Mozilla Firefox and Apple's Safari have already taken steps to block third-party cookies by default, positioning themselves as more privacy-conscious options for users. To stay competitive, Chrome is aligning its practices with these evolving standards.

How to Prepare for a Post-Cookie World

To survive in a cookieless world, companies need to act fast and adapt their services accordingly. Here's what you can do:

Rethink Your Data Collection Strategy

Analyse your current data collection strategy. If it's too reliant on third-party cookies, start thinking about how you can make it more independent. Consider asking yourself the following questions:

  • How privacy-friendly is my current data collection strategy?
  • How can I make my strategy more privacy-friendly?
  • What data segments am I using that are dependent on third-party cookies?
  • What alternative targeting methods can I use to maintain my ad campaign performance while respecting privacy rights?

This approach ensures that your strategies not only align with current privacy standards but also prepare your business for future changes in the digital landscape. Looking beyond third-party cookies means exploring innovative ways to gather insights and engage with your audience, such as contextual advertising and predictive analytics, ensuring that your advertising efforts remain effective in a changing environment.

Define The Value You Offer and Collect First-Party Data

DV/Sapio survey found that over two-thirds of consumers are more likely to interact with an advertisement relevant to the content they're viewing.

If you strategise value propositions and provide customers with a worthy exchange for a piece of their data, they'll be more willing to share information with you.

You can determine how potential customers will define your value by answering the following questions:

  • What makes my offerings different?
  • What benefits do my offerings provide?
  • Which customers do I want to serve?
  • How does the product or service experience make a customer feel?
  • What do my customers want? What do they need? What do they fear?
  • What price will provide acceptable profitability and value for customers?

The shift towards first-party data is crucial in a cookieless future. By leveraging direct interactions and engagements, businesses can collect valuable data that informs personalised marketing strategies and ad targeting without infringing on user privacy. This focus on first-party data not only complies with privacy regulations but also enhances customer relationships through more relevant and meaningful experiences.

Improve Trust by Using the Blockchain

Another thing to consider over cookies is integrating blockchain into your advertising and marketing solutions. As a digitally distributed, immutable ledger that facilitates tracking assets and recording transactions, blockchain has the power to improve trust in digital advertising.

Since all users on a blockchain must agree to any changes to the ledger data, the blockchain is fully transparent and is resistant to modification and tampering.

You get to access customer data for analytics purposes and users can see what you're doing with that information. The practice ensures you stay compliant with consumers' privacy rights and provide only targeted ads.

Blockchain technology offers a unique solution to the challenges of data transparency and security. By creating a transparent and tamper-proof system, blockchain can help businesses build trust with their audience, ensuring that data collection and usage are transparent and secure. This technology can revolutionise how advertisers and marketers approach data, moving towards a more ethical and user-friendly model.

Invest In New Privacy Technologies

New tools and technology can help you survive and thrive in a cookieless. These include:

  • Google's Privacy Sandbox : This is Google's response to the privacy issues created by third-party cookies. A powerful sandbox for a range of tracking solutions and experimental APIs, Google's Privacy Sandbox gives developers and companies the tools to create thriving sites and apps that respect privacy rights.
  • Federated Learning of Cohorts (FLoC) : The FLoC API aims to be a replacement for third-party cookies. It utilises browser data to create large groups of people with similar interests and behaviours, hides individuals “in the crowd,” and uses on-device processing to keep users' web history private.
  • TURTLEDOVE : Like FLoC, TURTLEDOVE uses browser data to create segmented groups that advertisers can target with on-device bidding. It also includes FLEDGE, which aggregates data from “trusted servers.” However, Google has not yet named these “trusted servers.”

Investing in new privacy technologies and strategies like Google's Privacy Sandbox, FLoC, and TURTLEDOVE presents an opportunity for businesses to align with privacy regulations while maintaining effective advertising practices.

These technologies offer alternatives to third-party cookies, enabling targeted advertising in a way that respects user privacy. By adopting these privacy-enhancing technologies, businesses can ensure their digital strategies are prepared for a post-cookie world, staying ahead in the evolving digital landscape.

Future of Digital Advertising and Privacy

The digital advertising industry is at a pivotal juncture. The deprecation of third-party cookies in major browsers like Google Chrome, Mozilla Firefox and Apple's Safari signals a significant shift towards prioritising user privacy over pervasive tracking. This transition challenges long-established practices but also opens up new opportunities for innovation in how businesses engage with their audiences.

Navigating the Shift to Privacy-First Advertising

Now, the focus is on developing advertising strategies that are not only effective but also respect user privacy. This involves leveraging technologies and approaches that allow for targeted advertising without compromising the privacy of individuals. Contextual advertising, for example, offers a way to serve relevant ads based on the content being viewed rather than the behaviour of the individual viewing it. This method aligns with privacy laws and the growing consumer demand for more control over personal data.

Another area of growth is the use of first-party data, which is information directly collected from your audience. This data is inherently more privacy-friendly, as it is gathered with the user's consent and knowledge. It provides a solid foundation for building direct relationships with customers, offering personalised experiences that can drive loyalty and engagement without relying on intrusive tracking methods.

The Role of Privacy-Enhancing Technologies (PETs)

As businesses navigate away from third-party cookies, the adoption of Privacy-Enhancing Technologies (PETs) becomes more important. PETs enable the collection and analysis of data in ways that protect user privacy. Techniques like data anonymisation and encryption ensure that personal information is not exposed, while still providing valuable insights for advertisers and marketers.

Google's Privacy Sandbox is an example of a PET that aims to address the industry's need for effective advertising tools that do not compromise privacy. It proposes a set of web standards for targeted advertising, fraud prevention and other uses that safeguard the anonymity of users. This and similar initiatives reflect a broader industry move towards finding a balance between effective marketing and respecting user privacy.

Preparing for a Cookieless Future

For businesses, preparing for a cookieless future means embracing change and seeking out new solutions. This includes investing in technology and platforms that offer privacy-compliant ways to reach audiences. It also means rethinking engagement strategies to emphasise value exchange, transparency, and trust.

Education and adaptation will be key as the landscape evolves. Businesses must stay informed about developments in privacy regulations, technological innovations and shifts in consumer expectations. By doing so, they can ensure their advertising strategies are both effective and aligned with the new norms of digital privacy.

Zendata's whitepaper, "Context-Aware Consent Management in a Post-Cookie World", offers invaluable insights into navigating the post-cookie landscape. It explores the importance of redefining consent management practices in an increasingly privacy-conscious world. Through a detailed exploration of principles, implementation strategies and the potential benefits of context-aware consent, this resource provides a roadmap for businesses looking to adapt their data practices for a future without third-party cookies.

The paper highlights how embracing context-aware computing and consent can not only ensure compliance with evolving privacy laws but also unlock strategic advantages by building deeper trust and engagement with customers.

Download it here.

What's Next For Cookies and Privacy?

Cookies have played a central role in every major conversation about privacy rights and advertising since the 90s. Since many companies build their data collection strategies on third-party cookies, their growing concern comes as no surprise.

Fortunately, surviving in a post-cookie world isn't as daunting as it sounds. By rethinking your data collection strategy, strategising value propositions, reading up on blockchain and adopting new tools such as Google's Privacy Sandbox and FLoC, you will be able to thrive in a freer, more transparent digital landscape.

Think of this brave, new cookie-free world as a chance to reinvent yourself, take control of your data and revamp your targeting and tracking strategies.

If you want to learn more about cookies and privacy, trackers and the risks associated with third-party technologies,  Zendata can help you stay up to date. Try our platform for free and evaluate the privacy on your website within a few clicks.

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Contact Us For More Information

If you’d like to understand more about Zendata’s solutions and how we can help you, please reach out to the team today.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.





Contact Us For More Information

If you’d like to understand more about Zendata’s solutions and how we can help you, please reach out to the team today.

Third-Party Cookies and Privacy: Exploring A Post-Cookie World

April 9, 2022

Introduction

When Google announced its plans to remove support for third-party cookies on Chrome browsers by 2022, many companies started panicking. How were they going to adjust to a cookieless world? How were they to track and identify users across the web without cookies? 

For the longest time, cookies — small text files that track user activity — have been the foundation for sales, marketing and user experience strategies. Digital marketers and advertisers have been using Google's third-party cookies to understand consumers at different stages of their journeys, customise ad campaigns and measure results.

Businesses have also spent countless hours drafting cookies and privacy policies, banners and consent forms to comply with privacy laws such as the General Data Protection Regulation (GDPR) and the Children's Online Privacy Protection Act (COPPA).

As such, this phasing out of cookies will be a game-changer for many companies, particularly advertisers and publishers. However, it's happening for a good reason: Google wants to create a more transparent internet that prioritises privacy rights.

If you're wondering how that will play out, keep reading. We'll discuss the reasons behind Google's decision to phase out cookies and the ways you can prepare for a post-cookie world.

The Importance of Cookies in Digital Strategy

Cookies have been pivotal in shaping digital strategies. Their insights allow businesses to tailor experiences, making sure users see content and ads that match their interests. For teams responsible for sales, marketing and user experience, cookies, especially third-party cookies, are essential tools.

Third-party cookies, set by domains other than the one a user is visiting, are particularly crucial for advertisers and marketers. They enable the tracking of users across the web, allowing for the delivery of targeted ads, understanding broader user behaviour and measuring campaign effectiveness accurately. Through third-party cookies, advertisers can grasp user interests beyond their websites, gaining a comprehensive view of online behaviours and preferences.

However, the world's reliance on third-party cookies is now coming to an end.

Cookie deprecation is driving companies to rethink their data strategies. This involves drafting detailed cookies and privacy policies, banners and consent forms to comply with privacy regulations such as GDPR and ensuring user consent is obtained transparently. Businesses are now prompted to explore new methods for data collection and user engagement in a world without third-party cookies, moving towards practices that prioritise privacy and trust.

Mozilla Firefox and Apple's Safari have already phased out cookies and now, after a couple of years delaying it, Google wants to begin deprecating cookies in Google Chrome too. However, they are facing resistance. In the UK, the Competition and Markets Authority (CMA) has told Google it cannot phase out third-party cookies until its concerns are addressed, tasking Google with "putting in place key steps to ensure fair market competition in the post-cookie era..." 

The CMA aren't the only body with concerns about Google's Privacy Sandbox. The Electronic Frontier Foundation (EFF) believe that Privacy Sandbox doesn't do what Google says it does. In this article, one of the EFF's security and privacy advisors,  Thorin Klosowski, said "Even if it's better than third-party cookies, the Privacy Sandbox is still tracking, it's just done by one company instead of dozens."

Advertisers will have to adapt to continue reaching their audience effectively, without infringing on privacy. This means finding innovative ways to gather insights, targeting ads based on first-party data and employing technologies like Google's Privacy Sandbox to ensure a balance between advertising needs and privacy concerns.

Why Google Is Phasing Out Third-Party Cookies

In January 2020, Google announced its goal to phase out third-party cookies for Chrome browsers by 2022. It was a response to the following trends:

Tightening of Privacy Regulations

Many new laws, including the EU's GDPR, New York's DFS cybersecurity regulation, California's CCPA, and Virginia's new data privacy law, require sites and apps to obtain explicit user consent before placing third-party cookies on their browsers, causing an increasing number of websites to stop using cookies. After the GDPR became enforceable in 2018, the number of third-party cookies found on new websites in the EU  dropped by 22%.

Increased Consumer Privacy Awareness

There's also been a significant rise in consumer awareness about privacy rights. Users are becoming more knowledgeable about how their data is collected and used, leading to a demand for greater control over their personal information. This shift in consumer attitude is prompting tech companies to reassess their data practices to build trust with users.

Competitive Landscape

Google's decision to deprecate third-party cookies in Chrome is also influenced by the competitive landscape. Browsers like Mozilla Firefox and Apple's Safari have already taken steps to block third-party cookies by default, positioning themselves as more privacy-conscious options for users. To stay competitive, Chrome is aligning its practices with these evolving standards.

How to Prepare for a Post-Cookie World

To survive in a cookieless world, companies need to act fast and adapt their services accordingly. Here's what you can do:

Rethink Your Data Collection Strategy

Analyse your current data collection strategy. If it's too reliant on third-party cookies, start thinking about how you can make it more independent. Consider asking yourself the following questions:

  • How privacy-friendly is my current data collection strategy?
  • How can I make my strategy more privacy-friendly?
  • What data segments am I using that are dependent on third-party cookies?
  • What alternative targeting methods can I use to maintain my ad campaign performance while respecting privacy rights?

This approach ensures that your strategies not only align with current privacy standards but also prepare your business for future changes in the digital landscape. Looking beyond third-party cookies means exploring innovative ways to gather insights and engage with your audience, such as contextual advertising and predictive analytics, ensuring that your advertising efforts remain effective in a changing environment.

Define The Value You Offer and Collect First-Party Data

DV/Sapio survey found that over two-thirds of consumers are more likely to interact with an advertisement relevant to the content they're viewing.

If you strategise value propositions and provide customers with a worthy exchange for a piece of their data, they'll be more willing to share information with you.

You can determine how potential customers will define your value by answering the following questions:

  • What makes my offerings different?
  • What benefits do my offerings provide?
  • Which customers do I want to serve?
  • How does the product or service experience make a customer feel?
  • What do my customers want? What do they need? What do they fear?
  • What price will provide acceptable profitability and value for customers?

The shift towards first-party data is crucial in a cookieless future. By leveraging direct interactions and engagements, businesses can collect valuable data that informs personalised marketing strategies and ad targeting without infringing on user privacy. This focus on first-party data not only complies with privacy regulations but also enhances customer relationships through more relevant and meaningful experiences.

Improve Trust by Using the Blockchain

Another thing to consider over cookies is integrating blockchain into your advertising and marketing solutions. As a digitally distributed, immutable ledger that facilitates tracking assets and recording transactions, blockchain has the power to improve trust in digital advertising.

Since all users on a blockchain must agree to any changes to the ledger data, the blockchain is fully transparent and is resistant to modification and tampering.

You get to access customer data for analytics purposes and users can see what you're doing with that information. The practice ensures you stay compliant with consumers' privacy rights and provide only targeted ads.

Blockchain technology offers a unique solution to the challenges of data transparency and security. By creating a transparent and tamper-proof system, blockchain can help businesses build trust with their audience, ensuring that data collection and usage are transparent and secure. This technology can revolutionise how advertisers and marketers approach data, moving towards a more ethical and user-friendly model.

Invest In New Privacy Technologies

New tools and technology can help you survive and thrive in a cookieless. These include:

  • Google's Privacy Sandbox : This is Google's response to the privacy issues created by third-party cookies. A powerful sandbox for a range of tracking solutions and experimental APIs, Google's Privacy Sandbox gives developers and companies the tools to create thriving sites and apps that respect privacy rights.
  • Federated Learning of Cohorts (FLoC) : The FLoC API aims to be a replacement for third-party cookies. It utilises browser data to create large groups of people with similar interests and behaviours, hides individuals “in the crowd,” and uses on-device processing to keep users' web history private.
  • TURTLEDOVE : Like FLoC, TURTLEDOVE uses browser data to create segmented groups that advertisers can target with on-device bidding. It also includes FLEDGE, which aggregates data from “trusted servers.” However, Google has not yet named these “trusted servers.”

Investing in new privacy technologies and strategies like Google's Privacy Sandbox, FLoC, and TURTLEDOVE presents an opportunity for businesses to align with privacy regulations while maintaining effective advertising practices.

These technologies offer alternatives to third-party cookies, enabling targeted advertising in a way that respects user privacy. By adopting these privacy-enhancing technologies, businesses can ensure their digital strategies are prepared for a post-cookie world, staying ahead in the evolving digital landscape.

Future of Digital Advertising and Privacy

The digital advertising industry is at a pivotal juncture. The deprecation of third-party cookies in major browsers like Google Chrome, Mozilla Firefox and Apple's Safari signals a significant shift towards prioritising user privacy over pervasive tracking. This transition challenges long-established practices but also opens up new opportunities for innovation in how businesses engage with their audiences.

Navigating the Shift to Privacy-First Advertising

Now, the focus is on developing advertising strategies that are not only effective but also respect user privacy. This involves leveraging technologies and approaches that allow for targeted advertising without compromising the privacy of individuals. Contextual advertising, for example, offers a way to serve relevant ads based on the content being viewed rather than the behaviour of the individual viewing it. This method aligns with privacy laws and the growing consumer demand for more control over personal data.

Another area of growth is the use of first-party data, which is information directly collected from your audience. This data is inherently more privacy-friendly, as it is gathered with the user's consent and knowledge. It provides a solid foundation for building direct relationships with customers, offering personalised experiences that can drive loyalty and engagement without relying on intrusive tracking methods.

The Role of Privacy-Enhancing Technologies (PETs)

As businesses navigate away from third-party cookies, the adoption of Privacy-Enhancing Technologies (PETs) becomes more important. PETs enable the collection and analysis of data in ways that protect user privacy. Techniques like data anonymisation and encryption ensure that personal information is not exposed, while still providing valuable insights for advertisers and marketers.

Google's Privacy Sandbox is an example of a PET that aims to address the industry's need for effective advertising tools that do not compromise privacy. It proposes a set of web standards for targeted advertising, fraud prevention and other uses that safeguard the anonymity of users. This and similar initiatives reflect a broader industry move towards finding a balance between effective marketing and respecting user privacy.

Preparing for a Cookieless Future

For businesses, preparing for a cookieless future means embracing change and seeking out new solutions. This includes investing in technology and platforms that offer privacy-compliant ways to reach audiences. It also means rethinking engagement strategies to emphasise value exchange, transparency, and trust.

Education and adaptation will be key as the landscape evolves. Businesses must stay informed about developments in privacy regulations, technological innovations and shifts in consumer expectations. By doing so, they can ensure their advertising strategies are both effective and aligned with the new norms of digital privacy.

Zendata's whitepaper, "Context-Aware Consent Management in a Post-Cookie World", offers invaluable insights into navigating the post-cookie landscape. It explores the importance of redefining consent management practices in an increasingly privacy-conscious world. Through a detailed exploration of principles, implementation strategies and the potential benefits of context-aware consent, this resource provides a roadmap for businesses looking to adapt their data practices for a future without third-party cookies.

The paper highlights how embracing context-aware computing and consent can not only ensure compliance with evolving privacy laws but also unlock strategic advantages by building deeper trust and engagement with customers.

Download it here.

What's Next For Cookies and Privacy?

Cookies have played a central role in every major conversation about privacy rights and advertising since the 90s. Since many companies build their data collection strategies on third-party cookies, their growing concern comes as no surprise.

Fortunately, surviving in a post-cookie world isn't as daunting as it sounds. By rethinking your data collection strategy, strategising value propositions, reading up on blockchain and adopting new tools such as Google's Privacy Sandbox and FLoC, you will be able to thrive in a freer, more transparent digital landscape.

Think of this brave, new cookie-free world as a chance to reinvent yourself, take control of your data and revamp your targeting and tracking strategies.

If you want to learn more about cookies and privacy, trackers and the risks associated with third-party technologies,  Zendata can help you stay up to date. Try our platform for free and evaluate the privacy on your website within a few clicks.