Google plans to completely eliminate third-party cookies from Chrome. Let’s dive into what that means for your business.
What’s Happening?
Google has revealed plans to start phasing out third-party cookies on Chrome for 1% of users in the first quarter of 2024, aiming to fully eliminate them by the latter half of the same year. The web browser has over 3 billion users, so removing cookies will have a substantial effect on the data economy. While Google is making headlines, it's not alone in this movement. Both Safari and Firefox have taken measures against cookies, blocking them by default in an effort to improve online privacy standards. This shift away from third-party cookies poses challenges for businesses, who have relied on cookies since the early days of the internet.
Despite these changes, businesses still require data to understand their customers. There's a pressing need for alternative methods that allow data collection while respecting consumers’ right to privacy.
What Are Cookies?
When you think of cookies, data collection might not be the first thing that comes to mind. Google defines cookies as “small pieces of text sent to a browser by a website you visit." They help websites remember details about you, enhancing the user experience by tailoring content to individual preferences. There are two main types of cookies: first-party and third-party.
First-Party Cookies: These are set by the website you're visiting. They only track information on that specific website, such as how you use the site, your login details, or remembering items in your online shopping cart. Their primary purpose is to offer personalized services to users.
Third-Party Cookie: These are set by a domain other than the one you are visiting. Third-party cookies track your activity across multiple websites. They are mainly used for tracking and advertising purposes. Due to privacy concerns, they are increasingly being phased out.
Both first-party and third-party cookies serve different purposes in the online ecosystem. Businesses use them for multiple purposes, such as advertising, gathering analytics, and retargeting. However, third-party cookies collect a significant amount of personal data. When these data points are combined and used to create extensive profiles on users, it violates user privacy. This results in privacy concerns as users don't consent to this process, and is why there needs to be privacy-conscious alternatives to third-party cookies.
Alternatives
Businesses rely on data to better understand their customers. However, this should not compromise individual privacy. Striking a balance between gathering data and respecting consumer privacy is essential. Here are some tools businesses can use to prepare for the upcoming cookieless future:
Google’s Privacy Sandbox: In response to phasing out cookies, Google has been testing new ways to collect data without compromising the privacy of users. The Privacy Sandbox seeks to phase out cookies and cross-site tracking while establishing new standards for online privacy. However, there are some criticisms with the upcoming privacy sandbox. It doesn’t necessarily protect privacy but rather collects data in different ways. Instead, it groups users into cohorts based on their interests and recent browsing history. This method focuses on tracking user behavior and targeting users on a group level, rather than the individual, providing some anonymity but still allowing tailored advertising.
Leveraging Zero-Party Data: Zero-party data is information that consumers intentionally and voluntarily share with a brand. Unlike third-party data, zero-party data gives users control over what data they want to share and what brands to share it with. For example, if you ask your customer to complete a survey on their interests, the data gathered is zero-party data. This form of data is more relevant and tends to be more useful for marketing and improving customer experiences.
New Privacy-Focused Technology: We need new solutions that provide businesses with reliable, ethically sourced data. Cyder provides businesses with real-time first-party data, all while respecting the consumers right to privacy. Our users have ownership over their data, and are rewarded for choosing to share it with brands they trust. In addition, Cyder goes beyond advertising by helping companies build better and stronger analytics models. These models can be used for retargeting or creating look-alike models.
Considerations
Privacy is increasingly important in our online world. As third-party cookies are being phased out and new privacy standards get introduced businesses must adjust their data collection strategies.
Solutions like Cyder provide businesses with access to real-time first-party data, offering six times the insights. At the same time users have ownership over their data and are incentivized to share their data in exchange for rewards. Visit our business page to learn more about how Cyder can provide you with innovative data solutions.