The Impact of Moving Towards a Cookie-less World for Digital Marketers
In digital marketing, cookies have been essential for shaping targeted advertisements and tracking user behaviour. However, the recent rise in privacy concerns and regulatory changes have made cookies a controversial topic. Google announced that it will be stopping the use of third-party cookies by 2024 and Apple has restricted third-party cookies used on the Safari browser. It is just a matter of time until other search engines and webpages follow suit and we approach a cookie-less world.
What Are Cookies?
Cookies are small text files stored on a user's computer or mobile device when they visit a website. These files contain information about the user's activity on the website, such as their preferences, login information, and browsing history.
Initially, cookies were used to help websites remember user preferences and login information so that people wouldn't have to enter this information every time they visited a site. Over time, however, cookies have become an essential tool for digital marketers and advertisers because cookies track user behaviour, tailor website content, and deliver targeted advertising.
There are several different types of cookies, each with several purposes. For example, session cookies are temporary, deleted when users close their browser, while persistent cookies remain on the user's device longer.
What Does Going Cookieless Mean?
Going "cookieless" means not relying on cookies to track user behaviour and collect data. In a cookieless world, websites will have to use alternative methods of collecting and assessing their customers’ data, such as IP tracking or browser fingerprinting.
Fingerprinting involves using browser settings, plugins, and system information to create a unique identifier for each user. The identifier can then track them across different websites and deliver targeted advertising. On the other hand, IP tracking involves tracking the user's IP address, which can identify the user's location and deliver location-based advertising.
Browser fingerprinting involves collecting information about the user's browser, such as its version number, installed plugins, and system fonts, to create a unique identifier for the user. The identifier can then track them across different websites and deliver targeted advertising.
While these alternative methods can collect user data, they have limitations and potential privacy concerns. For example, some users may use tools to block fingerprinting or IP tracking, making it difficult for marketers to collect accurate information.
Moving towards a cookieless world may also require changes in how websites are designed and developed. For example, websites may need to implement new technologies and data collection methods that are more privacy-friendly, such as using first-party data or implementing consent management tools.
How Are Cookies Used In Marketing?
Cookies play a significant role in digital marketing as they provide insights into a user's behaviour on a website and help marketers deliver targeted advertising based on an individual’s preferences.
With the help of cookies, marketers can track user activity on a website, such as the pages they visit, the products they view, and the items they add to their cart so that they can put these types of products in front of their ideal customers. These can create a detailed user profile, which will help deliver tailored content to users. Cookies also track users across different websites, which is valuable for advertisers who want to see what types of people their competitors are attracting.
In addition to helping deliver targeted advertising, cookies also measure the effectiveness of marketing campaigns. For example, by tracking how many users click on an ad and make a purchase on the advertiser's website, marketers can measure the return on investment for their advertising campaigns and then double down on ads where necessary.
However, using cookies in marketing has also been faulted for violating user privacy. Some users are not happy with websites tracking their online activity and collecting information about their behaviour without their consent. As a result, there has been growing interest in moving towards a "cookieless" world.
How Can Cookies Breach Data Privacy?
In January 2023, the European Data Protection Board (EDPB) found that a Hungarian website did not obtain valid user consent for cookies.
The case involved a Hungarian website using a cookie consent management tool that did not allow users to choose which type(s) of cookies they wanted to accept. Instead, it presented users with an "accept" button that allowed all cookies. The EDPB found that this approach did not meet the requirements of valid consent under the General Data Protection Regulation (GDPR).
Under the GDPR, consent for cookies must be specific, informed, and unambiguous. They must provide users with a clear and comprehensive explanation of the cookies and the ability to select which cookies they want to accept or reject.
“The EDPB's decision, in this case, is significant because it reinforces the importance of obtaining valid consent for cookies and the need for cookie consent management tools to comply with GDPR requirements. Non-compliance with GDPR requirements can result in significant fines and reputational damage for businesses.”
Charlotte Gerrish of Gerrish Legal
What Does a Cookie-less World Mean for Marketers?
The move towards a cookie-less world will have significant implications for digital marketers. It will be more challenging to track user behaviour and preferences, which could make it more difficult to target advertisements effectively. Marketers may need to rely more on contextual advertising, which can be less precise than behavioural targeting.
However, the shift towards a cookie-less world could also benefit marketers. By focusing on first-party data where you gain information from customers directly and build more organic relationships with users, marketers can create more engaging experiences. These can lead to higher conversion rates and increased customer loyalty.
How Can Digital Marketers Prepare for a Cookie-less World?
Marketers need to take a proactive approach to prepare for a cookie-less world. Here are three steps that digital marketers can take to prepare:
1. Review data collection and usage practices
Marketers should review their data collection and usage practices to ensure they comply with privacy regulations and that they are transparent with users. They should always obtain consent from users before collecting and using their data, giving them the ability to opt out of tracking.
2. Invest in first-party data collection methods
As we approach a cookie-less world, marketers should focus on building direct relationships with users and collecting first-party data from the customers themselves or second-party data from partnering companies. They could do this through email sign-ups or account registrations where users directly consent to engage with the company and receive marketing material. This way, marketers can create more engaging and personalised experiences.
3. Explore alternative targeting methods
Marketers should explore alternative targeting methods that do not rely on cookies, such as contextual advertising. They should target ads based on the content that is being viewed on their website rather than the user's behaviour, or use identity-based targeting, which utilises unique identifiers such as email addresses or device IDs to target ads.
How Can Gerrish Legal Help?
Gerrish Legal is a dynamic digital law firm. We pride ourselves on giving high-quality and expert legal advice to our valued clients. We specialise in many aspects of digital law such as GDPR, data privacy, digital and technology law, commercial law, and intellectual property.
We give companies the support they need to successfully and confidently run their businesses whilst complying with legal regulations without the burdens of keeping up with ever-changing digital requirements.
We are here to help you, get in contact with us today for more information.