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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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CASL will come into force in phases starting July 1, 2014 The information below should not be considered legal advice. Please consult with appropriate legal counsel before relying upon the compliance information provided below. As of December 2013 both regulators responsible for implementing Canada’s Anti-Spam Law have finalized their regulations. Industry Canada’s guidelines confirm all but one of the expected exemptions, provide needed clarifications to key requirements and delay implementation of the more controversial aspects of the law. Over the past two years we have been updating you on CASL’s developments and efforts by industry groups to address unclear or onerous aspects of its proposed regulations. With Industry Canada confirming all but one expected exemptions and providing detailed guidance in its Regulatory Impact Analysis Statement, marketers should now have an easier time preparing. Here is a summary of key points for Industry Canada’s final regulations: i. CASL will be implemented in three phases: a. The majority of CASL comes into force July 1, 2014; b. The rules that apply to computer programs will come into force January 15, 2015; and c. The private right of action takes effect on July 1, 2017. ii. Industry Canada has provided interpretive guidance on several issues under CASL, including: a. The definition of a "CEM"; b. The application of CASL to express consent obtained before CASL comes into force; c. The application of CASL to IP addresses and cookies; and d. The interaction between the unsubscribe requirement and implied consent. iii. New exceptions have been added for: a. Closed platforms, which would appear to apply to platforms such as BlackBerry Messenger and social medial networks; b. Limited-access accounts, where organizations communicate directly with recipients (e.g., online banking); c. Messages targeted at foreign persons; and d. Fundraising by charities and political parties. A surprising exclusion of the ‘Reasonable Knowledge’ exemption In its draft regulations, Industry Canada sought to exempt foreign senders in instances where the sender could not reasonably know that the message would be received in Canada, particularly when the recipient does not typically access email within Canada or through Canadian systems.[1] However, in its final rulemaking the Department chose to nix this exemption as “unnecessary,” choosing instead to exempt messages routed through Canada into a foreign state. [2] This omission may create challenges for marketers in situations where it’s not possible or practical to collect country of origin information.[3] We expect further clarification on this concern from Canadian regulators in the coming months. For detailed information please visit the Canadian Government’s informational website. For summary information please see the following links: http://news.gc.ca/web/article-eng.do?nid=798829 http://blog.deliverability.com/2013/12/canadas-anti-spam-law-casl-is-now-a-done-deal.html http://www.cauce.org/2013/12/canadas-anti-spam-law-coming-into-force-june-2014.html If you would like to discuss CASL’s email-related issues, please email us at digitalprivacy@experian.com or reach out to us through your account teams. [1] Archived http://www.gazette.gc.ca/rp-pr/p1/2013/2013-01-05/html/reg1-eng.html [2] See Limited Exclusions section of Industry Canada’s Regulatory Risk Impact Assessment, http://fightspam.gc.ca/eic/site/030.nsf/eng/00271.html [3] If a consumer uses a global inbox provider like Google a sender will be challenged to determine where the email is accessed. And since reverse IP geo-location records may be outdated or inaccurate, new technologies and customer self-identification processes may be needed.
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As more consumers take pictures, make phone calls, read books and listen to music on smartphones and tablets, these devices replace the functions of the traditional gifts of years past. Read on to learn about this holiday’s hottest products and check out our recent Hot Holiday Products webcast to gain insight into how to capture more consumer visits during this busy season. Hot this week: Experian Marketing Services' analysis of online search trends this holiday season indicates that tech gifts are increasing in popularity this season. Smartphones and tablets rise to the top of the hot product list, as their functionality replaces that of traditional holiday gifts like cameras, books, clocks and stereos. New gaming consoles releasing this season, the Xbox One and PlayStation 4, are among the hottest products for 2013, with PlayStation currently in the lead. Tablets are also popular and the iPad is in the lead. Searches for iPad outperform those for Galaxy by a margin of more than 4:1. Hot holiday products With a scant 26 shopping days this holiday season, retailers need to identify hot products even faster than usual in order to run appropriate promotions and keep shoppers happy. Every year, Experian Marketing Services identifies the “hot products” that consumers want based on online searches driving traffic to the Hitwise® Retail 500, a grouping of the top online retail sites. This year, like last, the immediately recognizable footwear brand Ugg claims the top position on our list, as of November 9th. A new pair of cozy boots may sound nice as temperatures dip, but gadgets and electronics are what consumers are really hot for. Driving demand are two new major gaming consoles that hit the market this season. After several years without a major update, Microsoft will release the Xbox One and Sony will release the PlayStation 4. High consumer anticipation for both consoles won the PS4 and Xbox One a spot at number two and number three, respectively, on our hot products list. As of November 9th, variations on searches for PS4 were about 50 percent higher than search variations for Xbox One; however, the new PlayStation hits stores a week before the new Xbox, so this may change once both consoles have shipped. With smartphones and digital tablets performing the functions of traditional gifts of years past, such as cameras, stereos, books, watches, etc., it’s no surprise that the iPhone 5S, iPhone 5C and the new iPad Air are solid contenders on the hot product list. Likewise, the old-fashioned pedometer has been getting increasingly high-tech to the point where Fitbit, the wearable fitness tracker that links to your smartphone via Bluetooth, is the number four item on our list and searches this year are nearly three times what they were at this point in 2012. But not all of this season’s gadgets are high tech. In fact one of the hottest gadgets burning up the Web this season is about as old school as you can get: the loom, the Rainbow Loom, to be exact. We’ll cover this hot product in more detail in a bit, but it’s the number seven product on our list and one that every marketer targeting kids needs to have on their radar. Electronic spotlight With the tablet market heating up, iPads still enjoy a comfortable lead in terms of overall search. In fact, as of November 9th, search variations for iPad were more than four times higher than the nearest tablet competitor, the Samsung Galaxy. The Galaxy, however, overtook the Kindle Fire back in April of this year to become the second most searched for tablet. Tech Junkies, the segment comprised of online adults who visit technology review websites and technology content sites, are naturally more inclined to search for electronics and gadgets of all sorts, but they are even more disproportionately apt to be searching for Google and Microsoft products. For example, while Tech Junkies are 69 percent more likely than the average online adult to be searching for “iPad Air,” they are 2.7 times more likely to be searching for “Nexus 7” and 1.3 times more likely to be searching for “Galaxy Note 3,” two Android-powered tablets. Microsoft’s new tablet, the Surface 2, is also searched for by Tech Junkies at rates double that of the average online adult. Toys! Toys! Toys! When it comes to toys, it’s all about rubber band bracelets. In fact, four of the top 10 hot toy searches are tied to this trend. 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