Third-Party Cookie Removal: What Marketers Need to Know About Google’s User Privacy Updates
Surprise, surprise. Another significant privacy change implemented by a tech giant is underway. Google Chrome is set to remove third-party cookies. This was announced in February 2020 and its implementation is quickly approaching. No specific date has been given, but it will be implemented ‘by 2022’.
As information is released, it’s likely to have a larger impact than the industry initially thought. As marketers and advertisers who rely heavily on third-party pixel data, it may feel as if the rug is being pulled out from under you. Thus far, third-party cookies have been invaluable for audience targeting, data clarity and informed decision making.
Google isn’t the first to remove third-party cookies, following Firefox and Safari which led the charge. However, Google is certainly the biggest browser, holding 50-60% market share of the web browser industry. It’s just another response to the sweeping reforms in online privacy over the past two years, driven by new legislation like GDPR or CCPA, and Apple’s IOS 14 privacy update.
I’m sure few of us would disagree that the larger agenda around privacy protection and cybersecurity should be supported. It’s important. That said, as marketers and operators, we must adapt so we can continue the growth of the businesses our livelihoods depend upon.
So let’s refresh ourselves on what cookies are, the implications of their removal, and what you can do to prepare. Google still has to make further announcements to provide full clarity, but in the meantime, we can work with the available information to begin necessary research and preparations.
What Are Cookies and What Do They Do?
Cookies are short text files that are stored in a visitor’s browser directory when they visit a website. The first time a user visits a website, a record is made on the website server and a cookie is placed in the user's browser files. The cookie is only a short line of text containing the URL of the website that generated it, a unique identifying number, and sometimes a cookie expiration date.
The unique identifying number is used by the website server to store all of the users’ activity and retrieve it each time the users navigates onto another page. Cookies can retain login details, payment details, track website usage and provide customized experiences like remembering a customer’s name and providing product recommendations. Any personalization features that a website has utilizes this information to populate each webpage’s contents every time the visitor loads a new one.
Cookies are essential for ecommerce websites. Without them, users would have to log in every time they navigated between pages of a site and tried to add another item to their cart or wish list.
There are two types of cookies:
- Session cookies - These only stay on a users' browser until the window is closed, then they are deleted. When a new session is started, the person is seen as a new visitor.
- Persistent cookies - These have a designated lifespan and will stay active until the period ends, or the cookie is manually deleted by the user. They enable features such as persistent shopping carts, meaning your cart is still present when you return to the website in a new session at a later time.
Is Google Removing all Cookies?
No, Google is only removing third-party cookies. First-party cookies will stay put so websites can continue providing basic on-site tracking and personalization functionality.
‘What’s the difference between first-party and third-party cookies?’ I hear you ask.
First-party cookies only track activity or behavior on pages affiliated with your website domain. Users are automatically opted-in to first-party data to enable your website’s functionality.
Third-party cookies, on the other hand, are generated by a website not affiliated with your domain. They’re usually inserted by advertising platforms after you install their tracking pixel on your website. They track a user’s activity across multiple websites over time, even if it’s not affiliated with your website domain. Users are not automatically allocated third-party cookies under new regulations - you need to provide a notification pop-up for them to opt-in.
*Insert image of notification example*
Use this tool now to check if your website’s cookies are GDPR and CCPA compliant. See what data your website collects and which third parties it shares with.
How Will Marketers Be Impacted If They Don’t Take Action?
As an industry, we currently rely heavily on third-party data for user data collection, targeting, and decision-making. Without the ability to capture deeper metrics about user behavior across multiple websites, there would be significant impact on the ability to remarket to high-intent users with the same accuracy or personalized content.
Although, we’re actually being effected by privacy changes already - whether it’s limited data integrity on traffic from Safari or Firefox, or more users opting out of data tracking due to the required notification pop-ups.
Unfortunately, the blunt announcements that have been made about third-party cookie removal has led to dis-ease, prompting increased usage of some more malicious data collection approaches. Fingerprinting is one such method, developed by hackers to identify software, network protocols, operating systems and hardware devices.
However, Marketers certainly shouldn’t resort to illegal hacker tactics! Google fully intends to support publishers and advertisers through their user privacy changes, creating a cookie-less future that works for everyone. Not all data is going to be shut off.
What Data Tracking Alternatives Are Available?
It’s time to research alternative approaches that leverage your first-party customer data to greater effect, improve your own data integrity, and plan for using new API integrations…
You’ll be relieved to know that Google has seen successful ad results from testing ‘Privacy Sandbox’ technology for interest-based advertising (FloC).
Privacy SandBox is an alternative tracking solution that Google will provide for the ad industry, relying on anonymized signals (that aren’t cookies) from within a person’s Chrome browser. It’s an innovative API-based solution that tracks groups of people rather than individuals.
Google’s Chrome dev team say that they “are confident that… Privacy Sandbox can sustain a healthy, ad-supported web in a way that will render third-party cookies obsolete.”
It will set the standards by which Google wants ad targeting, measurement and fraud prevention to happen. They plan for cookies to replaced by five APIs. Each API will provide you with aggregated data about issues like conversion and attribution. Let’s quickly break them down:
- Trust API: Google’s alternative to CAPTCHA, it will ask a Google Chrome user to fill out a CAPTCHA-like program just once. It can then rely on anonymous ‘trust tokens’ going forward, proving that this person is a real-life human.
- Privacy budget API: This will limit the amount of data that websites can glean from Google’s APIs by giving each one a budget.
- Conversion measurement API: An alternative to cookies, this will let an advertiser know if a user saw their ad and then eventually bought the product or landed on the promoted page.
- Federated Learning of Cohorts: This program will rely on machine learning to study the browsing habits of groups of similar users.
- PIGIN: Designed to let each Google Chrome browser track a set of interest groups a user is believed to belong to.
There’s even been speculation that Google may want to roll this tech into a universal identifier to expand their marketing share in the AdTech industry.
Conclusion
So to conclude, take heart! Advertising data is not dead quite yet.
The main changes you’ll need to adjust for are in increase in the value of your first-party and CRM data, and increased scarcity of third-party data and brokers.
Investing in your tech stack to support enhanced customer data capture, increased automation, and ensuring your data capture processes support high data integrity are more crucial than ever.
Use that data to build relationships with your customers, and make sure to provide as much personalization in your communications and on your website as you are able. This should help you improve your website conversion rates and retain customers. Although at the end of the day, digital advertising is rarely going to become redundant for any business in today’s world, especially with COVID-19 creating more online dependency and competition than ever.
Another crucial preparation is keeping track of your advertising KPIs over time. Alongside a strong ad strategy and execution, they will help you understand how any data privacy changes are impacting your returns on ad spending. If you’re in ecommerce, don’t forget to check out our article on the advanced ecommerce KPIs you should be tracking.
If you’d like to have a chat through your ad strategy and required preparations ahead of the cookies removal, then please do just get in touch. Half Past Nine is always here and happy to help!