Third-party cookies are something you probably know if you have implemented digital marketing in your company strategy, or created a successful online platform. We are not talking about the sweet treats you can buy at bakeries around the globe. Third-party cookies, in digital marketing terms, are small pieces of code that track user behavior on the internet.
Third-party cookies are becoming increasingly important in recent years due to their ability to accurately track user trends. Modern consumers are more concerned about privacy than ever, so third party cookies are being closely scrutinized. They don’t always provide a safe environment for their users.
Google announced in February 2020 a series of safety changes that would make the industry safer, including the removal of third-party cookie from Chrome.
Lemonads works closely with publishers and advertisers so we know the extent of this change. We also took the time to research what stakeholders should do next and how Google can help publishers to mitigate the impact. We’ll be sharing our findings with you and highlighting the 5 most important points to remember during the phase-out.
What is the Secret to Third-Party Cookies’ Success?
Although Google has officially stated its intention to remove third-party cookies by 2020, it is important to remember that privacy movements have been growing steadily for some time. Google users have demanded better privacy features for their products for years. The company is now transitioning towards a more controllable environment.
This is not all. Popular browsers such as Firefox and Apple’s Safari have already removed third-party cookies, leaving Chrome the outlier. Google clarified that it did not follow the lead of other browsers, as it wanted to protect the data that tech companies rely on to keep them afloat.
Chrome is more popular than Safari and Firefox combined. It makes sense that the company took a little longer to make sure all its partners are successful and consumers are happy.
The Phase-Out is delayed — but it’s coming
The Google team announced in its initial announcement that third-party cookies would be removed as soon as 2022. Instead, Google has announced that the phase out will be spread over three months beginning in 2023 and ending at the close of the year.
This is part of the Privacy Sandbox initiative. Its goal is to create online technologies that can protect privacy and give digital stakeholders sufficient information to enable them to thrive online. Google has made all phases of its public development process transparent in the name of transparency. This is in line with open-source platforms, which are the pinnacle for transparency.
Five Things to Remember About Google’s Cookie Phase Out
We have witnessed major changes in online advertising regulations over the past decade. This has had a profound impact on the digital promotion landscape. It is not surprising that the possibility of Google removing third party cookies has sent the whole online advertising industry into frenzy.
This will change the way publishers and affiliate advertisers do business online. However, it is important to remember that all stakeholders are able to adapt to the new standard. This will increase your chances of success.
Let’s say this: When data-driven online advertising first appeared, it took time for publishers, advertisers, and networks to understand how the ecosystem worked. Stakeholders who focus on how to succeed without the use of third-party cookies will be able to gain an edge over their competition.
Let’s look at the five most important things you need to remember in order to prepare for the demise of the third-party cookies.
1. The Phase-Out Will Not Impact All Cookies
Many publishers and advertisers panicked when they heard the news. They imagined their cookie-based activities would disappear. You can take a deep breath, however, as the change will only affect third-party cookies. You can use first-party cookies to gather basic information about visitors.
Google has clarified that the first-party cookies are necessary for the user experience. This means that they will not be changing. You will still be able leverage the data that was collected by the first party.
As much as possible, leverage First-Party Cookies
When a user visits a website, first-party cookies are stored on their computer. This cookie is used by most websites and businesses to store passwords and preferences. This cookie reveals information about your users, such as how long they stay on your site, their session duration, and how frequently they visit, among other things.
Although you cannot see what users do on third-party websites, you can still use first-party data to get a better understanding of your entire audience. You can create segments based on language, location and other variables to see the behavior of different audiences.
Learn How Third-Party Cookies Impact Your Efforts
Even if the individual has not visited the site where the tracking script originated from, a third-party cookie may be placed on the user’s browser. These platforms can be used to track users on the internet, so you can see their behavior in other sites.
Both publishers and advertisers benefit from cookies in different ways. Publishers place cookies because they are useful to advertisers and media buyers. Third-party cookies are used by advertisers to gather information about visitors, their websites, and the relationship between them.
This update will impact you regardless of your stakeholder status. You should therefore be vigilant about the end of the third-party cookies and begin to develop alternatives that use first-party data or similar resources.
2. Warning shots were fired
It’s not surprising that Google has decided to eliminate third-party cookies. It shouldn’t be surprising, however, as the online privacy movement has been ongoing for many years.
Recent changes have highlighted the possibility of the phase-out consumer tracking technology such as third-party cookies. These include the European implementation of GDPR laws.
The GDPR rules require European consumers to consent to platforms tracking their behaviour. Website owners cannot assume they have permission to collect data. Before they can collect any information, they must have explicit consent.
3. The Industry Will Be Affected by the Change
The third-party cookie phase out will have a significant impact on advertisers, marketers, publishers and ad networks. The effects of this change can have a negative impact on the entire industry.
Leading ad tech experts have expressed concern about Google’s decision to eliminate cookies from third-party websites. Google Ads will still allow for extensive targeting, which many believe is a sign that Google is trying to tighten its grip on online advertising.
The Association of National Advertising (ANA) and the American Association of Advertising Agencies (AAA) have jointly asked Google to stop third-party cookies from being used until better alternatives can be found.
4. Google will still be able to track users
Google still allows first-party trackers, as we have mentioned. This is one way that Google tracks its users. Even though it will lose some of its monitoring capabilities, the search giant will still have the ability to closely monitor its users.
FloC is a group-tracking platform developed by the company. It is currently being evaluated as an alternative to third party cookies. FloC is a group-tracking platform that tracks users who share the same interests. It does not provide any individual user information. It creates a safe environment by hiding individual user data from large groups of people with similar interests.
5. Similar tracking will be possible with new innovations
This was something we have said before and will say again: Advertisers, publishers and networks who focus on adapting to change are more successful than their competitors. Google has already begun to develop alternative third-party cookies, and this should be a signal to other stakeholders.
Google’s plan includes FloC and dedicated APIs to improve privacy and give advertisers access to data they can use to succeed.
Are You Interested in Learning More About Lemonads? Contact lemonads Today
It is clear that Google’s decision to eliminate third-party cookies from its website will have a significant impact on the online advertising market. Having said that, the quicker you make adjustments, your chances of success are higher.
Lemonads is happy to assist you with any questions or concerns about the changes in the online advertising market.
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