By now, most consumers are at least faintly aware of what Internet cookies are. You may not be able to explain all the technical ins and outs, but at the very least, you probably know that cookies allow different websites to gather information about your online activity and habits. You may also know that your cookies are saved so that they can be leveraged by advertisers, allowing for more customized online ads.
For better or worse, cookies have become closely associated with online privacy battles, with more and more consumer advocates saying that cookies are by their very nature intrusive. Most of the big Internet browsers have bowed to this pressure, with even Google stating that it will be getting rid of third-party cookies altogether come 2022.
This move has been celebrated as a win for Internet privacy, and a significant blow to advertisers. After all, third-party cookies have long allowed advertisers to narrow their target audience, to customize their creative content, and even to provide individualized offers to specific consumers. With third-party cookies soon to be a thing of the past, all of that is in jeopardy.
But it’s not just advertisers who are likely to miss third-party cookies once they are gone. We believe that consumers will also suffer some fallout.
Why Consumers Will Miss Third-Party Cookies
To understand why the loss of cookies may lead to an impoverished online experience, consider a couple of hypotheticals.
Imagine that you are sitting at your laptop, shopping around for a pair of high-end, wireless headphones. You scan the options available on Amazon, and perhaps conduct a quick Google search to see which brands get the best reviews.
As you shop around, you are suddenly met with an enticing online ad, offering you 20 percent off a particular brand of headphones that you’ve had your eye on. For many consumers, this would be reason enough to end the search and make a purchase, saving 20 percent right then and there.
Or, consider another hypothetical. You’re using your phone to conduct research on used vehicles, seeking the perfect SUV or minivan for your family. Then, you suddenly start seeing ads highlighting vehicles that are exactly what you’ve been hoping for, right down to your desired year, make, and model.
These are both stories of how customized ad content can make the online search experience more convenient… and, they are both stories that highlight the power of cookies. Yes, in both cases, your online behaviors are being tracked by advertisers, who then use that information to try to increase their sales. But it’s not just the advertiser who benefits! If you’re the consumer in either one of these scenarios, you benefit from digital ad content that’s much more relevant and valuable, actually assisting you in making your desired purchase.
The bottom line: Third-party cookies ensure that the ads you see on the Internet are related to your interests. Third-party cookies are actually useful, not just to advertisers but to consumers, as well. Privacy is undoubtedly important, but the loss of third-party cookies is surely going to have a negative impact on the online search and shopping experiences.
What’s Next for Advertisers?
With big changes on the horizon, the digital advertising industry is working hard to adapt. In particular, a lot of advertisers are coming around to the idea of first-party data collection. Indeed, there are some ways in which a reliance on first-party data will actually make the online search experience even more individualized. With first-party data, advertisers will be better positioned to target shopping cart abandoners, to track every interaction, and to know the name of each customer they are trying to reach.
With that said, first-party data collection isn’t as easy as reliance on third-party cookies, especially with many consumers opting not to share their information. So, while there is certainly hope for the industry, the fact remains that advertisers and consumers alike may soon find themselves pining for the good ol’ days of third-party cookies.
Moving Forward into a Cookieless World
At enCOMPASS, we’ve been keeping a close eye on this situation, and will continue to keep our clients up to speed on alternatives that replace the technology that is being phased out. We’re also available anytime clients need to discuss what the loss of third-party cookies will mean for their campaigns, or to talk through the particulars of first-party data collection and other proven targeting tactics.
As for consumers, it will be interesting to see how much the loss of cookies disrupts everyday search experiences, and whether or not a suitable alternative can be developed. For now, we would simply caution consumers that the phasing out of third-party cookies means big changes for the online experience as we know it.
To chat with us about any of this, or to ask questions about Google’s plans to phase out cookies, we welcome you to contact enCOMPASS Agency at your convenience.
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