Are Third-Party Cookies Here to Stay?

Are Third-Party Cookies Here to Stay?

First off, what are cookies? And we are not talking about your favorite snack!

Cookies are small files stored on your computer that companies use to track your web behavior and anonymously re-identify you for targeting and retargeting purposes.

The Rise and Fall of Third-Party Cookies

It was a significant event that most companies were preparing for—the deprecation of third-party cookies, driven by rising data privacy concerns and new regulations. Back in 2019, Apple took a firm stance on user privacy by introducing Intelligent Tracking Prevention (ITP). This development hindered advertisers from tracking user behavior and historical data across the web unless users interacted with them directly. Google also announced plans to phase out third-party cookies on their Chrome browser, initially aiming for a complete phase-out by 2022, which was later extended to 2024. Banning third-party cookies would have rendered 85% of current digital marketing strategies ineffective, prompting efforts to find alternative mechanisms, such as collecting users’ interests or browser fingerprinting.

Google's Reversal and Industry Impact

After significant industry-wide changes to accommodate the upcoming cookie ban, Google announced in a blog post that it would no longer depreciate third-party cookies for Chrome. If you are part of an ad network or an advertiser, this might be cause for celebration. However, data privacy advocates might view this as a setback. This shift did lead to increased pressure to build first-party or even zero-party data strategies, pushing companies to focus on their own data rather than relying on third-party sources. This transition meant better understanding their customers’ needs directly rather than inferring what clients might want.

Typing on a laptop

From Google’s blog post:

“Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time.”

The Privacy Battle: Apple vs. Google

Interestingly, Apple, a strong proponent of user privacy, has remained steadfast in its approach, even running ads on social media prior to the official announcement. It will be intriguing to see how Google adapts its decision and communicates these changes.

In our humble opinion, focusing on the privacy and economics of third-party cookies means they are not going away but will have to adapt to changing times.

Authors

Robyn Chen
Robyn Chen
Lead Architect – Digital Analytics
Dina Santina
Dina Santina
Practice Manager – Digital Analytics

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