In a pivotal step toward strengthening online privacy, Google is currently phasing out third-party cooking tracking. Google first declared its intention to phase out third-party cookie tracking from its Chrome Browser in 2019. This strategic decision aligns with Google’s commitment to elevate user privacy and enhance the overall web browsing experience. What exactly does this transition entail for you, the user? And how will advertisers navigate this shift? But first, what are cookies?
What are Third-Party Cookies?
First-party cookies
First-party cookies are stored directly by the website you visit. These cookies allow website owners to collect analytics data, and language settings, and perform functions that provide a positive user experience. An example is when you sign into an e-commerce website like Amazon. The browser will send a request in a process that provides the highest level of trust that the user is directly interacting with Amazon. The browser saves the data file to the computer. If first-party cookies were blocked, users would have to sign in every time they visited, and they would not be able to purchase multiple items while shopping online because the cart would reset after every added item.
Third-party cookies
Third-party cookies are created by domains that are not the website that you are visiting. The primary use of third-party cookies is for advertising purposes. Let us explore how they work using the same example as above, Amazon. A user browses a few items and spends time on the product pages. When the user decides to purchase only one item, they may later receive emails or ads for the items they did not purchase. The data is stored on your computer and is accessible even after closing your browser.
Why is Google phasing out Third-Party cookies?
The main reason is privacy concerns. While third-party cookies are harmlessly used by advertisers there are malicious cybersecurity concerns. These cookies hold private information on websites that may involve money transactions or medical information. This leaves your information vulnerable to a breach of this private information. In recent years, concerns about user privacy have been on the rise. Third-party cookies have become a controversial mechanism that is now being phased out in favor of new privacy-centric systems. First-party cookies are safe, it is only third-party cookies being phased out. Browsers like Firefox and Microsoft Edge have already fully phased out third-party cookie tracking.
What does the phase out Third-Party cookies mean for you?
Phasing out third-party cookies means greater user privacy for you and me. It will restrict the amount of information that websites can track and share with others. This will impact digital advertisers who rely on third-party cookies to target ads. However, fresh solutions for targeted advertising are in the works, like Federated Learning of Cohorts (FLoC) and zero-party data tracking. Phasing these cookies out will give the user more control over their online data and reduce the risk of unauthorized tracking.
FLoC is an open-source technology that looks for clusters of similar information. This will create cohorts of people based on their web browsing history and activity. For example, a cohort can include a group of people who visited sites about Disneyland and other theme parks. Your browser will now use this technology to determine which cohort best corresponds to your browsing history. Your personal browsing history will no longer leave your browser or device and will not be shared with anyone, including advertisers. You can continue seeing relevant ads and content without needing to be tracked across the web.
Zero-party is data that a customer “intentionally and proactively shares with a brand.” Contrast this with third-party data, which is data collected from external sources, often without the customer’s knowledge or explicit consent. Zero-party data is more trustworthy than third-party data. The reason being is because you, the customer, are willingly sharing this data and giving permission to the brand. This creates a more engaging, personalized experience, increasing engagement rates and user experience.
Final Thoughts
Google’s phased removal of third-party cookies marks a crucial shift in prioritizing user privacy and security. As the online landscape transforms, users stand to benefit from enhanced control over personal data and a reduced risk of unauthorized tracking. Advertisers will adapt to alternatives like Federated Learning of Cohorts (FLoC) and zero-party data tracking, to navigate a changing digital advertising paradigm. FLoC’s cluster-based approach promises personalized ad experiences while preserving individual privacy, and zero-party data establishes a foundation of trust through intentional user-brand interactions. This departure from third-party cookies not only reflects escalating privacy concerns but also fosters a more responsible and secure digital environment. This strategic move paves the path for an innovative and harmonious balance between user empowerment and targeted advertising in the evolving realm of online privacy.
