7 FAQs on the Future of Cookie Tracking

The phase-out of third-party tracking cookies is reshaping how advertisers and marketers operate online. Here’s 7 FAQs on the Future of Cookie Tracking.

What are tracking cookies?

Also known as third-party marketing cookies, is a small text file (unique identifier) that a website places on a user’s browser to collect data about their activities online such as browsing history, geographic location, purchase trends, etc. 

This information is then used by advertisers and marketers to target and retarget ads to users who visit your website.

Why are third-party cookies being phased out?

Third-party cookies are being phased out due to privacy concerns, regulatory pressures like the General Data Protection Regulation (GDPR), and user demand for data control. Major browsers, including Chrome, Firefox, and Safari, are eliminating them to enhance privacy and security.

How will the phase-out of third-party cookies affect website tracking?

In short, the phase-out of third-party cookies will significantly reduce the ability to track users across multiple sites. This means that advertisers would need to adapt and rely more towards first party data more than ever. Google’s privacy sandbox is a new technology that advertisers and marketers can use to track (while limiting) their marketing efforts while prioritising users’ ability to protect their privacy online. This is still in development and trial grace period. Learn more about the Privacy Sandbox here!

What alternatives can we use to replace third-party cookies?

The 3 main alternatives right now are privacy-focused technologies like Google’s Privacy Sandbox. Secondly, marketers are starting to shift to server-side tracking where first-party data can be used more securely. There are also more available options such as utilising contextual targeting, unified ID solutions on several platforms, and using a business’ own First-party data.

What is contextual targeting, and how can it help?

Contextual targeting refers to serving ads on web pages that are relevant to the on-page content. This method analyses keywords, topics and overall context of content on a webpage to determine whether an ad is relevant to display on the page.

The aim is to create relevancy between the ad and the page they are placing for better user engagement and improve under experience. First-party data will not be negatively affected by the phase-out of third-party cookies. In fact, it will likely become more valuable as it enhances data quality when it comes to tracking.

How can advertisers and marketers leverage first-party data?

There are many ways to answer this, but personally I think that 1 PD is a great resource to do cross-channel marketing as it creates cohesiveness and consistent user experience. This will also help marketers and advertisers analyse users’ behavioral tendencies, their pain points and gain to create segmentation for your advertising efforts.

Based on Hubspot, 41% of marketers believe that their biggest challenge will be their inability to track the right data. In order to tackle this, marketers and advertisers should look into the quality of their first party data collected directly from interaction with users on their site, Investing in a good CRM systems.

Secondly, advertiser should also look into collaborating with publishers with access of high-quality first party data and adapting to new technologies like privacy sandbox, contextual targeting.

How can websites prepare for the end of third-party cookies?

Websites can prepare for the phase-out by strengthening their data collection practices to gather and leverage first-party data more and more. This goes in line with clearly communicating user about the data collection and invest in a robust user consent and privacy-enhancing technologies which build trust and hence, create a more robust 1PD.

Stay agile and informed to navigate the changing landscape of digital marketing effectively. Or better, contact an ADMATICian today to get advised!