Cookieless Tracking: How To Succeed with different data

First-Party Cookies

First-party data and cookies are bits of code that have a home. They remain on the website that created them. Companies collect first-party data for functional tasks, such as tracking user preferences, activity history, and login information.

First-party cookies are used to create a personalised experience on a specific website. These cookies do not follow a user across the internet.

Third-Party Cookies

Third-party cookies track users across the internet from one website to another. Consumer privacy concerns, “over targeting,” and changes in privacy laws are coming together to drive the shift away from third-party cookies.

Without a doubt, third-party cookies develop a more complete picture of the user. Advertisers create them because they allow specific targeting of potential customers based on data from other websites. This reduces the amount of market research needed, because website owners can simply tell each other about specific customers.

For Google

Google Chrome used third-party cookies extensively, so this is a big change for Google. To continue to offer targeted advertising, Google responded with a few initiatives:

• The privacy sandbox, which attempts to bring developers and others together to create the next way of connecting users, data, and advertisers in a less invasive way.

• Google tried a program called FLoC, but has discarded this for their Topics API. This will create a set of topics in the user’s browser based on their browsing history. These topics are then shared with sites you visit. This keeps the user anonymous while still giving advertisers information about which topics will be of interest to site visitors.

• Google has also recommended strengthening relationships with customers to build more first-party data for better targeting.

For the advertising industry

Advertising agencies and individuals have some time to prepare for a cookieless internet. However, the most common analytics tool, Google Analytics, may not provide the same type of user data they have seen before. While the lack of specific data may require adjustments, advertisers will leverage cohort data and the best alternatives to produce results.

For user privacy

Users keen to protect their personal data will not be saddened by the departure of the third-party cookie. However, defining what one is and does requires a bit of careful thought.
For example, which of these is an acceptable use of third-party data?

• Live chat popups

• Social sharing buttons

• Ad retargeting services

In the end, users may not want to throw the personalised website experience baby out with the panicky total privacy bath.

The result will probably be a model where marketers give users more control over their data, while still using at least some personal data for advertising.

Use Google Analytics 4 (GA4) to collect data

It is possible to use GA4 to perform some cookieless tracking. The amount of data collected about specific users will be much lower, but marketers will still be able to see a few key metrics.

Server-side Tagging (GTM)

Marketers can block GA4 from storing the clientID in a cookie. This can be done using an automatic script and tag manager. The result should be a new, random clientID on each page upload. Since the clientID will be randomised on each page, this method will render the individual user anonymous.

However, it also reduces data to specific events, and disconnects them from one another. For example, the user comes to the home page via an ad. The data about the user’s visit, especially their referring page, will still be visible. What will be invisible is the next activity, such as viewed pages.

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Cookieless advertising on Facebook

Facebook (aka Meta) will be moving users to its Conversions API. This has been developed to allow users to share data from their server. This bypasses the browser, so there should not be any data loss from no longer using cookies.

Here’s how it works:

• Conversions API data is fed directly into Facebook and handled similarly to pixel events, allowing advertisers to monitor conversions and make adjustments in Ads Manager.

• Instead of sharing data via a browser, marketers will use the Conversions API to exchange data directly from their server.

• The Conversions API is also built to respect Facebook users’ privacy preferences

Cookieless marketing in Google Ads

Google Ads allows targeting via the Search and Display networks (including YouTube). The future will look different for these marketing channels.

• The Search Network will not be as affected because it is very keyword-driven. Cookies are not the primary way advertisers target a user in the search results.

• The Display Network is different. Advertisers use cookie data to target consumers on thousands of connected websites and video channels. These ads will change and will need to rely on more contextual targeting, first-party data, and machine learning to predict the best targeting options.

Cookieless ads for ecommerce

Cookieless marketing will be possible and may even be better. Consumers value their privacy, so adjusting to their expectations can create the trust that builds loyalty.

There are at least three things companies can do to prepare their ecommerce business for effective advertising after the cookies are all gone:

• Build better first-party datasets and use them effectively.

• Rebuild contextual campaigns, including organic search and website networks.

• Explore data clean rooms, such as Google and Facebook.

Ecommerce companies will still have effective advertising options, but the challenge will likely fall to digital marketing companies to show a clear connection between money spent and conversions earned.