Distinguishing between first-party and third-party cookies
You may be asking, “What now?”
The loss of third-party cookies has its pros and cons. For internet users, the end of third-party cookies means added safety against government surveillance and hackers. But marketers and companies might not be as excited about the change. According to Adweek, the end of third-party cookies has caused a “fundamental change” in online advertising. Although third-party cookies have been used for sinister agendas, they offer marketers a range of valuable information about online users which have been used to increase revenue. To make up for the loss, Google has introduced a replacement while other marketers have found their own replacement solutions.
Google created the Federated Learning of Cohorts (FLoC) to replace third-party cookies to target ads effectively. When users use a Google device or product, their internet activity will still be recorded and stored to assist marketers, but it will be done in a less precise way. The data recorded and stored will not represent individuals, but will rather represent groups and categories. Marketers will then use this data to target the groups and categories, instead of specific individuals. But if FLoC is not attractive to you, there are a range of other tools to use. Instead of third-party cookies, marketers could use location data, mobile ad identifiers, Google Analytics data, and first-party authentication. First-party authentication requires an online user to give the website or company permission to use first-party identifiers while they use their website. This would then allow the website to offer a better online experience while targeting and measuring response.
The death of the cookie does not mean the end of online marketing
Marketers need to be flexible and adaptable, so this change in marketing should not be too intimidating. To ensure you’re prepared for this change, we suggest you improve on first-party data. To do so, businesses should invest in best in class martech. Companies could also go back to using contextual targeting. This tool will assist companies in being able to understand their audience and will offer insight into which keywords will keep their ads on their audience’s screens.