Help, third party cookies are disappearing!

Why is Google phasing out third-party cookies?

Google has a lot at stake with the disappearance of third-party cookies. Through Google Ads, they make significant profits by collecting data for free and then selling it to the highest bidder. So why would Google ever want to give up third-party cookies? The answer is simple: competition. For several years, users have been expressing concerns about inadequate privacy protection. Cookies are not transparent enough, and it’s unclear where the data is being sold. The European Union has also addressed this issue and is introducing new regulations. Safari (Apple’s browser) eliminated third-party cookies a while ago, and Mozilla Firefox soon followed. If Google wants to remain relevant and trustworthy with Chrome, they need to follow suit.

What alternatives can you explore before third-party cookies disappear?

Let’s start with the alternatives you can already begin using:

First-party cookies: This is the data you collect yourself on your website, for example, with Google Analytics. Since only you as the website owner have access to this data and no third party is involved, it remains a legal method of data collection. For example, you can track which devices your website visitors use, how long they stay, and which pages they visit the most. This data helps you optimize your website and set up campaigns. Combine this with a good cookie consent banner and server side tagging and you will have optimal data retention.

Offline marketing: it may seem obvious, but not all marketing campaigns need cookies to be effective. Don’t focus solely on Google Ads and don’t underestimate the power of offline marketing campaigns. Your product or service might benefit much more from billboards, bus shelter ads, TV commercials, or posters.

Contextual advertising: With third-party cookies, the focus is often on retargeting. A user searches for bike bells and then sees the same ad for bike bells on various other websites. The ad essentially follows the user around. An alternative to this is contextual advertising. Instead of tracking individual users, you place your bike bell ad on websites about cycling gear or bike routes, targeting an audience based on broader interests.

In an era where users are increasingly aware of privacy and the amount of data collected about them, those retargeting ads serve more as a reminder of the lack of privacy rather than an incentive to purchase. Contextual ads are much more appreciated. For example, the Dutch public broadcaster (NPO) experimented for half a year with using only contextual ads and completely eliminated third-party cookies, and they saw their conversions increase every month. Users clearly appreciate contextual ads much more!

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Third-Party Cookies are Disappearing - Difference Between First-Party and Third Party Cookies - Ministry of Marketing

What alternative will Google provide?

To maintain their market position and the associated profits, Google has been working on a new system for some time. Google aims to retain users while still benefiting from advertising revenue. This is why they have been developing the ‘Privacy Sandbox,’ which is designed to protect user privacy while still enabling targeted advertising. The Privacy Sandbox was based on two initiatives, but currently, only one remains: the Topics API. This system operates based on advertising groups. Google tracks what a user searches for and indicates which advertising groups had the most interest that week. As a result, this system will be less specific, making retargeting no longer possible. Contextual advertising and collecting data yourself is the future!

Overall, the fact that third-party cookies are disappearing is not a reason to panic. However, it is a good opportunity to review your current digital marketing strategy to ensure you are not impacted when third-party cookies are gone. Need someone to discuss your marketing strategy with? Let us offer our advice.