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Third-party cookies have been the foundation of targeted advertising for a long time. Around 75% of marketers worldwide rely on third-party cookies, with approximately 42.2% of websites using them to gather user data. These tiny bits of code silently track our online activities, collecting search history and product preferences to help advertisers tailor their campaigns to our needs.
However, as fears over online privacy have grown, the third-party cookie era is ending. A 2020 Deloitte survey revealed that 65% of respondents had major concerns about excessive cookie use; consumers want personalized ad experiences but don’t want to feel like marketers are tracking their every online move.
While some other search engines have already eliminated third-party cookies, Google Chrome — which holds 65% of the global browser market — is just beginning to phase them out as new alternatives are tested. Google’s third-party cookie deprecation is expected to impact marketers in a big way.
Let’s talk about what that impact will look like and how marketers can reconcile consumer demands for browsing privacy with their preference for personalized ad experiences.
What is cookie deprecation?
Cookie deprecation is a process where web browsers, like Google Chrome, phase out the use of a specific cookie type. In the context of this article, we’re referring to third-party cookies, small pieces of data stored on a device by websites a person visits.
Advertisers and other companies use third-party cookies to track a person’s actions on the web. They help those companies learn about an individual’s interests and show them targeted ads. But over time, internet users have become more aware of cookies and how much companies know about them, so browsers are phasing out third-party cookies to respect user privacy.
The timeline and reasons behind the shift
In January 2020, Google announced it would no longer allow third-party marketing cookies by 2022. Realizing it needed to find an alternative first, it pushed the deadline back several times over the years, eventually confirming that third-party cookies would be deprecated by the end of 2024 — a big deal for the advertising industry. So, what’s the motivation behind this change?
Many people are becoming increasingly worried about online privacy and the intrusiveness of third-party cookies. In recent years, lawmakers have pressured tech companies to make changes in response to their constituents’ concerns about online privacy rights. By getting rid of third-party cookies, browsers like Chrome are trying to give users more control over their data and respect privacy demands to create a more privacy-friendly browsing experience.
This shift is part of a broader trend in the digital world toward greater privacy protections, with browsers like Firefox and Safari having already phased out third-party cookies. We’ve also seen other significant moves in this direction, including the following. These regulatory efforts reflect a growing awareness of how important it is to protect data privacy and consumer rights in a world gone digital.
- Apple’s App Tracking Transparency (ATT) framework was introduced in iOS 14.5, requiring users to get permission before tracking their data across other apps or websites.
- The Global Privacy Control (GPC) strives to improve users’ control over their internet privacy by letting them signal their preferences for data sharing.
- Europe’s General Data Protection Regulation (GDPR) and California’s Consumer Privacy Act (CCPA) have strict guidelines for how companies handle personal data to prioritize transparency and user consent.
Google’s most popular browser, Chrome, recently made its first big move toward third-party cookie deprecation. On January 4, 2024, Google announced the rollout of a new “Tracking Protection” feature, limiting cross-site tracking by default. They’re doing this gradually, activating the feature for 1% of random Chrome users worldwide, about 30 million people.
Google Chrome’s cookie phase-out impact
Chrome’s third-party cookie deprecation is expected to have the farthest-reaching consequences for marketers like you, as it has almost two-thirds of the browser market worldwide. It’s important to note that this phase-out specifically targets third-party cookies, not first-party cookies, which are generated and stored by the website a user visits directly and will be unaffected by this change.
Here are a few of the impacts to prepare for.
Reduced tracking capabilities
Once third-party cookies are eliminated, you may face challenges in understanding consumer behavior across different websites. Without this tracking capability, understanding your audiences and effectively tailoring advertising campaigns might become more difficult.
Required shift in strategy
It will be key for you to adapt your advertising strategies to rely less on third-party data and more on alternative targeting methods. This shift may involve greater emphasis on contextual advertising, which targets people based on the content of the websites they visit instead of browsing history, and first-party data gathered directly from site users to personalize advertising campaigns.
Additionally, in order to move beyond reliance on cookies and third-party identifiers, activation platforms like demand-side platforms (DSPs) must evolve to identify addressable IDs within bid streams. This adaptability is essential as digital advertising shifts toward privacy and cookieless environments. By being able to recognize addressable IDs in bid streams, DSPs can help facilitate more accurate, personalized targeting and help advertisers reach their audiences across channels and devices without privacy concerns. As a marketer, you should understand the capabilities of your chosen platforms and inquire about their support for evolving targeting methods and data sources.
New compliance regulations
By limiting the ability to track users across the web, Google aims to enhance user privacy and control over their data. You’ll need to embrace privacy-centric approaches to advertising to comply with evolving privacy regulations and build trust with consumers.
Challenges posed by Google’s cookie deprecation in 2024
Marketers are responding to the announcement of third-party cookie deprecation with an eye toward innovation as they proactively seek new solutions. As of early 2024, 56% of marketers in the United States were testing cookieless alternatives. Knowing their customer acquisition will be less efficient without these cookies, they’re looking for ways to maximize the value of their existing customers, increase retention, and make better use of first-party data. Others have been slow to react due to a lack of awareness or uncertainty about how to handle the changes.
Here are some additional challenges advertisers can expect to face as third-party cookies begin to be phased out.
Impact on targeting and personalization
The decline of third-party cookies is expected to have a major impact on targeting and personalization strategies. As advertisers will no longer have access to individual browsing histories, some may struggle to reach specific audiences and deliver personalized content. As a result, they have begun to explore using first-party data and contextual targeting to preserve relevance and consumer engagement.
Attribution and measurement challenges
The future removal of third-party cookies may also make it harder to measure the effectiveness of advertising and accurately attribute conversions. Marketers are currently searching for reliable alternatives to track users across channels and touchpoints. Google’s Attribution Reporting API and private aggregation methods are being explored as potential solutions to these attribution and measurement challenges.
Data privacy and compliance challenges
Future third-party cookie deprecation makes data privacy and compliance a top priority. With the introduction of stricter regulations like GDPR and CCPA, you need to ensure your data collection and usage practices comply with privacy laws. To maintain the trust of consumers and abide by regulatory requirements, it has become essential to shift toward first-party data collection and more transparent consent mechanisms.
Lack of resources to invest in alternative solutions
One of the main challenges advertisers will face with future cookie deprecation is a lack of resources to invest in alternative solutions. Many businesses don’t have the financial resources or technical expertise to explore and implement new targeting and measurement methods.
Additionally, some companies have been reluctant to adopt new solutions because they want to thoroughly test and evaluate their efficacy. The fear of investing resources in unproven technologies or strategies has led to a cautious approach among marketers and advertisers. However, this reluctance to adapt could hinder their ability to remain competitive.
Many companies may also face logistical challenges due to the complexity of transitioning from reliance on third-party cookies to alternative data sources and targeting methods. Integrating new technologies, adjusting workflows, and retraining staff requires time and effort, adding to the complexity of the transition.
Adapting to a cookieless world
Even though third-party cookies are going away, you still have other types of data in your arsenal to help you continue reaching your audience.
Use first-party data
First-party data, collected from customers or website visitors directly, offers valuable insights into consumer behavior and preferences. By investing in proven data collection methods and analytics tools, you can understand your audience more accurately and tailor your messaging and targeting accordingly.
Explore Experian’s signal-agnostic products
Experian is leading the charge in preparing marketers for a cookieless world with our audiences and foundation built from over 200 offline data sources. Our signal-agnostic Graph supports universal IDs and enables brands to expand their existing IDs to all other digital and addressable IDs within our Graph.
Advertisers can enhance their strategies by working with Experian to enrich first-party data with our demographic and behavioral attributes to gain a better understanding of audiences without cookies. Additionally, our data collaboration solutions enable marketers to collaborate with partner data, deriving greater value and enabling deeper insights for effective marketing campaigns. Experian is future-proofing identity strategies to ensure continued marketing performance and success.
Discover alternative targeting technologies
As third-party cookies become obsolete, marketers are starting to investigate alternative targeting technologies for optimizing campaigns. These may include contextual targeting, which focuses on the content and context of a user’s web browsing activity, as well as emerging solutions like cohort-based targeting, which groups users based on shared interests and behaviors. Think of third-party cookie deprecation as the opportunity to innovate and rethink strategies that have relied too heavily on one type of technology.
Best practices for marketers in the post-cookie era
Embracing best practices for a privacy-centric advertising environment can help you maintain your effectiveness and thrive in a cookieless world. Let’s talk strategies to help you succeed in the post-cookie era.
Focus on customer consent and transparency
Having consumers opt-in to sharing their data is an excellent way to build your data pool ethically. One way to do this is by encouraging users to create accounts or log in to access exclusive content or features while providing valuable information in exchange for their data. Another way is by conducting surveys or quizzes to gather insights directly from users about their preferences, interests, and behaviors. You could also use interactive content like polls and contests to engage users and collect data. These approaches can enrich your data pool while demonstrating your commitment to respecting user privacy and preferences.
Prioritize obtaining explicit consent from users before using or gathering their data for your advertising. Implement transparent data practices by clearly communicating to consumers how you’ll use their data and providing easily accessible options to manage their privacy preferences. By building trust through transparency and respecting user choices, you can forge stronger relationships with your audience.
Enhance the customer experience with quality data
In the future absence of third-party cookies, first-party data will be paramount in helping you understand and engage with your audience effectively. Invest in strategies that will help you collect high-quality data directly from customers, such as through interactive content, preference centers, and loyalty programs. By obtaining and using accurate, relevant data, you can provide personalized experiences that resonate with audiences and drive meaningful engagement.
Collaborate with evolving technology platforms
As Google’s cookie deprecation reshapes advertising, it will be important to collaborate closely with technology providers and key industry players who are adapting to these changes. Make sure your chosen platforms are keeping up with the industry and offering solutions that align with the shift to cookieless environments. Partnering with platforms that are proactively addressing these challenges will make it easier to navigate the changing marketing environment and drive better results for consumers and campaigns.
Prepare for the future of advertising with Experian
Despite the fact that third-party cookies are going away, there’s no need to panic. This change offers new opportunities for innovation and strategic refocus. With the emergence of alternative targeting methods, such as first-party data, you can still reach your target audiences effectively while respecting user privacy. By staying proactive and utilizing your available resources, you can navigate the cookieless future with confidence and continue to drive meaningful connections with your audiences.
With a robust suite of data-driven solutions and a breadth of addressable IDs, Experian can help you continue to reach and engage with your target audiences. Our Consumer Sync identity solution is signal-agnostic and empowers consistent consumer interactions, while our Consumer View data solution offers privacy-compliant data to help you connect meaningfully with consumers and reach audiences effectively. Connect with Experian today to discover how we can help you prepare for and thrive in a cookieless future.
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Tapad launches global privacy-safe solution to provide continuity in the absence of third-party cookies Switchboard, a module within The Tapad Graph, will connect emerging cookieless identifiers to traditional IDs, creating a more holistic view of the consumer and driving value exchange within the advertising ecosystem Tapad, part of Experian, a global leader in cross-device digital identity resolution, and a part of Experian, announced today the launch of Switchboard, a first-of-its-kind solution to help navigate the evolving cookieless landscape. Switchboard, a module within The Tapad Graph, will operate as a global, privacy-safe solution to provide continuity in the absence of third-party cookies by connecting new cookieless identifiers to traditional digital IDs for a comprehensive view of consumers and their digital touchpoints. Switchboard will enable interoperability across the growing number of these digital identifiers and the value exchange between publishers, content creators and consumers. Leading digital identity solutions partnering with Tapad, part of Experian at the launch of Switchboard include Unified ID 2.0, ID5, Lotame Panorama ID, BritePool, Retargetly IDx and Audigent Halo ID. Tapad, part of Experian plans to expand support to additional identity solutions on an ongoing basis. In addition to these identity solutions, early partners across the ecosystem include The Trade Desk, Amobee, Martin, ShareThis, Eyeota and Catalina. “This diverse group of launch partners and testing customers will prove that Switchboard is an important tenet for the future of identity resolution. We’re excited to be proactive in our approach to give marketers time to adapt new solutions and test their function in tandem with the third-party cookie, while continuing to give our customers flexibility and control,” said Mark Connon, General Manager of Tapad, part of Experian. “Facilitating access and usage of 1st party identifiers is crucial to help marketers prepare for the cookieless future. Thanks to Switchboard, ID5's cookieless IDs will be available to a wider audience of brands and agencies and enable them to run effective, data-driven campaigns beyond the third-party cookie,” said Mathieu Roche Co-founder & CEO of ID5. Switchboard provides value across the marketing and advertising ecosystem as the need for the ability to support multiple cookieless ID’s across ad tech increases throughout 2021. With a decade of expertise creating digital identity resolution products, Tapad, part of Experian is poised to solve this challenge through innovation and quality, privacy-safe data-driven solutions. “Interoperability is paramount for brand marketers, agencies, publishers and platforms if we want to support an open and free Internet and break free of the stranglehold of walled gardens,” said Pierre Diennet, Global Partnerships at Lotame. ”Lotame Panorama ID’s participation in Switchboard reflects our steadfast commitment to collaborating across and within the industry and providing value to all of its players.” “As advertisers continue to contemplate the future of identity, Amobee is proud to partner with Tapad, part of Experian on this next-generation solution to provide a comprehensive view of consumers,” says Bryan Everett, Senior Vice President of Global Business Development at Amobee. “With the imminent loss of cookies, advertisers must think creatively in order to respectfully engage consumers in a privacy-compliant way and Switchboard can play an important role in addressing their respective identity needs.” Tapad, part of Experian is welcoming identity solutions and Tapad Graph customer participation in Switchboard throughout 2021. Stayed tuned for more updates and information on Switchboard in the coming months. Get started with The Tapad Graph For personalized consultation on the value and benefits of The Tapad Graph for your business, email Sales@tapad.com today!
Adapt with Tapad, a part of Experian Leading browsers have made public announcements and technical deployments to reduce the digital advertising accessibility of third-party cookies for data collection, storage, and sharing due to growing privacy concerns. As a result, there has been growing momentum to find an alternative via cookieless IDs, with the intent to create a replacement that helps ensure continuity across the ecosystem. At Tapad we’ve chosen to approach the market with a solution that provides agnostic interoperability for these cookieless identifiers, so that marketers can continue to work with the identity providers of their choice while maintaining the most holistic view of consumers across digital touchpoints. Introducing switchboard Switchboard is a module within The Tapad Graph that leverages our core capabilities across machine learning and identity management to provide a connection between traditional digital identifiers and the new wave of cookieless IDs that will be utilized in the future. Customers of Tapad can take advantage of its broad ecosystem of identifiers to drive targeting and frequency capping strategies and enable detailed measurement and attribution post-deprecation of the third-party cookie. Our goal is to accelerate the adoption, scale, and utility of cookieless IDs with the release of the Switchboard module within The Tapad Graph, while maintaining an agnostic approach to the market. Switchboard for identity solutions In the evolving landscape agencies and marketers will need to invest, test, and analyze the best combination of cookieless ID partners to meet their objectives. The Switchboard module will increase the utility and value of the cookieless ID space in conjunction with other addressable IDs, by providing a layer of connectivity that will be natively missing with the deprecation of third-party cookies. Identity solutions at launch: Switchboard for graph customers For existing Tapad customers who leverage the Switchboard module in The Tapad Graph, it will provide a seamless way to facilitate interoperability while resolving identity back to a Household or Individual. By providing this translation layer, Tapad will take on the responsibility of encryption and decryption protocols where applicable, which will deliver added functionality to our customers. Tapad + Experian partners at launch: Use cases Resolve existing first-party data with new cookieless solutions through The Tapad Graph to minimize data loss Frequency cap at the Individual and Household level via Cookieless and traditional ID Reach consumers at scale across all touchpoints and IDs Build a more inclusive and holistic view of the consumer journey Run accurate and scalable measurement before and after the formal deprecation of third-party cookies in Chrome Map online data into offline activities Hear why industry leaders are adapting with Tapad + Experian As advertisers continue to contemplate the future of identity, Amobee is proud to partner with Tapad, a part of Experian, on this next-generation solution to provide a comprehensive view of consumers. With the imminent loss of cookies, advertisers must think creatively in order to respectfully engage consumers in a privacy-compliant way and Switchboard can play an important role in addressing their respective identity needs. — Bryan Everett | Senior Vice President of Global Business Development | Amobee Connecting offline and online shopper activity in a privacy-compliant way is fundamental to marketing effectiveness and determining return on ad-spend. That’s why we’re excited to be a launch partner for Tapad + Experian's Switchboard offering; it provides a unified solution for supporting the variety of proprietary and anonymous user ID standards required by advertising demand-side platforms today. — Brian Dunphy | SVP Digital Business and Strategic Partnerships | Catalina As the industry evolves, Tapad + Experian's Switchboard presents a privacy-safe solution that allows for the continued activation of data and an alternative to advertising within walled garden environments. We look forward to collaborating with Tapad and the industry as we collectively transition to support cookieless identity. — Don Lee |SVP of Global Platform Partnerships | Eyeota We are excited to participate in this proactive solution to the sunset of third-party cookies. Switchboard’s agnostic interoperability, with BritePool and other ID providers, will create high-value for marketers as they transition to the era of cookieless web advertising. — David J. Moore | CEO | BritePool Interoperability is paramount for brand marketers, agencies, publishers and platforms if we want to support an open and free Internet and break free of the stranglehold of walled gardens. Lotame Panorama ID’s participation in Switchboard reflects our steadfast commitment to collaborating across and within the industry and providing value to all of its players. — Pierre Diennet | Global Partnerships | Lotame At this pivotal moment in the industry, we are excited to be partnering with Tapad, a part of Experian on their cookieless initiative and making Retargetly IDx available into the Switchboard solution, providing global brands, platforms and publishers with a compliant, cookieless ID solution for the Latin American market; enabling them to target, reach and measure users at scale through the region. — Daniel Czaplinski | CEO and Co-Founder | Retargetly With Audigent’s Halo ID, we’re architecting a cookieless future where clients and partners have confidence in the actionability and interoperability of exclusive 1st party audiences, originated from some of the world’s leading publishers and creators. We see collaboration as being critical to a collective understanding of identity and Tapad, a part of Experian as a trusted partner with solutions such as Switchboard to support continuity for marketers’ addressability. — Drew Stein | CEO and Founder | Audigent Facilitating access and usage of 1st party identifiers is crucial to help marketers prepare for the cookieless future. Thanks to Switchboard, ID5’s cookie-less IDs will be available to a wider audience of brands and agencies and enable them to run effective, data-driven campaigns beyond the third-party cookie. — Mathieu Roche | CEO and Co-Founder | ID5 Addressing the current identity challenge requires transparency and collaboration. We are pleased to align ShareThis data with Tapad + Experian’s growing ecosystem. ShareThis data helps marketers evolve beyond the cookie to complete the picture. Tapad + Experian’s Switchboard offering will support ShareThis’s deep connections to clients and technology platforms, preserving and growing the accessibility of our data. — Michael Gorman | SVP Product and Business Development | ShareThis Get started with The Tapad Graph For personalized consultation on the value and benefits of The Tapad Graph for your business, email Sales@tapad.com today!
With the emergence of email addresses as a currency for brands to communicate with their consumers offline; attaching email data to in-store purchases lays the groundwork for future advertising strategies. However, this advantage in having an additional digital touchpoint also creates a new challenge for marketers. How do they connect what they know about their customers via offline data and PII, or personally identifiable information, with what they want to know about their online behaviors and interactions? Taken a step further, how can they create actionable strategies that connect these two streams of consumer insights in order to drive them to make more future purchases; and even become loyalists? At a time when the shift from traditional to online shopping feels more like a landslide; connecting online and offline data has never been more valuable or more urgent. The solution for these marketers lies in the framework of identity resolution; and a key capability called hashed email onboarding. Hashed email onboarding is a privacy-safe way to connect consumer email addresses to their related digital devices and other digital identifiers. The methodology prevents the consumers actual email address from being readable; while still providing marketers a connection between those emails and other touchpoints for an individual. Instead of understanding the customer journey in two distinct parts; how they interact with a brand or company offline and separately how they interact with a brand online; hashed email onboarding allows for the two parts to be woven together in a holistic view of that consumer. The power of connecting these data sets can be seen when combining offline and online attribution and measurement to improve frequency capping and look-alike modeling. It’s important to note that not all identity resolution vendors that onboard hashed emails function in the same way or provide the same level of data. Some connect only to desktop or only to mobile devices; while others don’t actually make direct linkages at all- they simply provide the hashed emails as a targetable digital audience for upload. While hashed email onboarding and the connection between offline and online data is a powerful strategy; it needs to be as structured as possible across the most data available to reveal truly efficient targeting and measurement strategies. Tapad, a part of Experian has built a hashed email product feature that works with the existing flexibility of The Tapad Graph to deliver the most holistic consumer view in the structure that works best for your business objectives. Get started with The Tapad Graph For personalized consultation on the value and benefits of The Tapad Graph for your business, email Sales@tapad.com today!