Sometime in 2022, internet cookies as we know them will die. Google ensured the end of the globe’s most hated virtual baked goods when they announced in 2019 that they would be phasing out support for third-party cookies within two years (give or take.)
The company’s decision echoes similar moves made by Apple and Mozilla several years ago with their Safari and Firefox browsers. However, it’s Google’s market share that makes its decision more meaningful.
Chrome currently controls 69% of the browser market. The next four largest browsers, Firefox and Safari with a reach of only 24% of users combined. This renders Google’s announcement the final blow for third-party cookies.
Oh no,” you might say sarcastically. “I’ll miss cookies as much as I would termites, mosquitos, and papercuts were they all eliminated tomorrow.”
While it’s true that internet privacy will get a big boost once third-party cookies are pushing up the daisies, marketers will find themselves in a potentially difficult position.
Cookies are a critical component of programmatic advertising, forming the backbone of the technology’s data-tracking capabilities. Without them, the future of many digital marketing strategies is in question.
So how will marketing change? The short answer is, “We don’t really know.” The longer answer is, “We can make some educated guesses, and we have another 527 words to fill, so you’ll find them below.”
The Optimist’s View
Third-party cookies can be placed within websites by outsiders. This allows advertisers to track users as they browse around the internet, building robust profiles for highly-targeted campaigns. Without them, tracking breaks down. But it’s important to remember that cookies aren’t going away entirely.
First-party cookies, those that website owners place on their own sites to track users, visit frequency, and other site-specific metrics aren’t on the chopping block. It’s possible that new technologies will be developed to leverage these cookies in ways that approach what third-party cookies do today, while still maintaining user privacy.
One possible answer comes from Google itself. The tech giant recently announced a promising technology they’ve dubbed their “Privacy Sandbox.” In simple terms, the solution aggregates collected user data within the browser, keeping it located safely on the user’s device. Outside marketers can access it, but with significant anonymization imposed.
In this way, programmatic advertising won’t disappear. It will simply change tactics. We’re likely to see contextual advertising rise in prominence. Unlike ads that are targeted using third-party tracking data, contextual ads use first-party cookies. Ads are supplied based on contextual references from the site being visited.
The assumption is that if you’re visiting a gardening website, you’d be interested in ads for gardening-related equipment. This sort of contextual advertising doesn’t know anything about you beyond their immediate actions, so your privacy is protected.
The Pessimist’s View
Depending on whether you see your ad revenue as half empty or half full there’s a darker side to the death of third-party cookies.
Google’s bid to fight internet privacy violations may not be as noble as it seems. Their Privacy Sandbox removes universally-honored third-party cookies and concentrates data gathering in their Chrome browser, the same browser which currently dominates the market.
This move could push other internet marketing platforms out of business or make them subordinate to, and dependent on Google’s data. This could damage competition in the programmatic market.
There’s also no guarantee that the technologies that replace cookies will do a better job at protecting user privacy. Advertisers are already using fingerprinting technologies that allow them to track users without their knowledge. This circumvents both cookies and the controls put in place to make them less unsavory for users.
Canvas fingerprinting will allow marketers to continue working in much in the same way they have, but the technology carries with it the possibility of an even stronger rejection from users. Once the practice becomes common knowledge it’s likely that browsers will be forced to block it as well, leaving marketers flailing again.
The better option is to find new ways of marketing that honor the needs of marketers and user privacy equally, ideally one that doesn’t concentrate power in the hands of a single organization.
Will that happen? Your guess is as good as ours. Unless you’re really bad at guessing, in which case our guess is probably better.
If you’re interested in implementing a marketing campaign that will make you more popular than chocolate chip cookies with six-year old’s (or my family for that matter), schedule a strategy session with us today. We know a thing or two about a thing or two and can shed light on the best marketing strategies to pursue in the coming years.
