The depreciation of the third-party cookie is finally here. Since January 2020, when Google announced its plans to phase out third-party cookies, brands have been on high alert. Those who heavily relied on third-party cookies for their advertising needs began to look elsewhere. However, it wasn’t until earlier this year, in 2024, that Google began slowly disabling the cookies. This process is set to wrap up by early 2025.
While depreciation can cause alarm, other methodologies target audiences. Ahead, a debrief on what third-party cookies are and alternative solutions to consider.
What Are Third-Party Cookies?
Third-party cookies are placed on a user’s device and track an individual’s browsing history and activities. With this information, websites can target individuals with personalized ads and recommendations. For instance, if you search for a pair of new shoes, you may see advertisements for the pair of shoes on other websites that you browse.
Third-party cookies have been controversial due to privacy concerns. This is mainly because they allow businesses to track individual’s actions without their consent. Moreover, after collecting this user data, it can be sold to third parties without a user’s consent. Using third-party cookies has been deemed intrusive and has raised user concerns for years.
For these reasons, Google, Firefox, and Safari have phased out third-party cookies. This switch is great for consumers but could be detrimental to advertisers relying solely on third-party cookies for audience targeting.
Alternatives to Third-Party Cookies
Fortunately, the rise of technology and advancement has spurred a variety of more privacy-safe solutions. These include predictive audiences, first-party data, and contextual targeting.
Predictive Audiences
A newer solution in the predictive analytics space, predictive audiences lean on AI, machine learning, and first-party data. With predictive audiences, you can segment those likely to purchase in the next week. These predictions are built based on customer behaviors and actions. For instance, signing up for a newsletter to receive a first-time offer code.
Predictive audiences are more sophisticated than third-party cookies and can, therefore, be a more efficient solution for advertisers. They use customer actions rather than attributes like gender or location. Brands can start engaging with intended audiences more proactively, reaching out to them during those key purchase decision moments.
Creating these audience segments can be more complex, primarily because it requires the use of AI. You’ll want to identify which actions to leverage to build out the segments. For instance, if someone unsubscribes to your newsletter, which bucket do you want to place them in? Alternatively, if they return to your site but do not purchase, how do you want to target them? After the initial setup, predictive audiences do most of the work so you can focus on more strategic parts of your business.
First-Party Data
Arguably the most coveted type of data, first-party data is anything a business collects firsthand, typically using its website, an app, or company newsletters. If a user signs up for an e-newsletter on your site, their email address is an example of first-party data. Other examples include purchase history, website activity, customer service support calls, surveys, and loyalty programs.
This data is typically collected by adding tracking pixels to your website or social media profile. These cookies collect consumer behaviors and actions and record them within your customer relationship management software. Because this is your owned data, targeting individuals with it doesn’t require any third-party cookies.
Having this data makes it easier for you to target and retarget audiences, nurture and grow their connection with the brand, and develop future products and services. Certain first-party data can also assist in future product and service development. If your customer service support line has the same question or complaint about a product, you can address it in future iterations.
Contextual Targeting
Another advertising solution is contextual targeting. This isn’t a new type of targeting, but it can be better utilized as third-party cookies fade away. Contextual targeting looks at a website’s content to determine what to advertise. For example, a Nike golf bag advertisement may appear on a sports news site.
Contextual targeting is more privacy-safe because it doesn’t rely on tracking user data or behavior but instead looks at the content itself. Advertisers can be more selective about which sites they want to place their ads on based on whether the content is relevant. In this example, a Nike golf bag is likely to resonate more with readers on a sports site than it will on a parenting site.
The advancement of AI is likely to propel the use of contextual targeting, making it a more sophisticated option. AI can look at the sentiment behind the content rather than just what the content is about. For advertisers, this is appealing because it allows them to get a holistic view of where their ads are being placed.
Conclusion
Third-party cookie depreciation has caused an outburst for advertisers, and for good reason. While there isn’t an exact replacement for using third-party cookies, there are more advanced, privacy-safe alternatives. Consider this a test-and-learn period, a time to see what works best for your targeting needs and how to meet your users where they are. Instead of relying on just one solution, consider thinking of these alternatives as different tools in your toolbox.
Published by: Nelly Chavez
