Remember when Google was all set to give third-party cookies the boot? In classic Google fashion, they’ve done a bit of a U-turn. Initially, Google revealed plans for deprecating third-party cookies in Chrome, which would have significantly impacted how we track and target users online. But now, they’ve changed course.
So, what’s the deal for us marketers here in NZ?
Cookies and the Digital Marketing Landscape in Aotearoa
Cookies have been the bread and butter of digital marketing, helping us track user behaviour and serve up targeted ads. In the real world, it’s like standing in your shop and wondering which passerby peeked in. But with cookies, we know if someone has visited our website before and can gather valuable customer insights.
The Cookie Conundrum: Third-Party vs First-Party
Two main types of cookies exist:
- First-party cookies: These are set up on your own website and help personalise the experience for your visitors.
- Third-party cookies: These are set up by someone else (like advertisers or social media) and track users across multiple sites.
Internet Surveillance Through Third-Party Cookies
Google's Cookie Change of Heart: A Marketing Reprieve?
Google was gearing up to phase out third-party cookies due to privacy concerns, but in July 2024, they changed their tune. Now, they’re introducing a new system in Chrome that lets users choose whether to allow third-party cookies.
This is a bit of a mixed bag for Kiwi marketers. On one hand, it means we can still use these powerful tools for targeting and tracking. On the other hand, it puts the power in the hands of the users, which could lead to a significant drop in available data if many Chrome users decide to block third-party cookies.
Privacy Sandbox as a Replacement for 3P Cookie Data
Google isn’t just leaving us high and dry, though. They’re working on something called the Privacy Sandbox, an alternative to third-party cookies. The idea is to provide similar functionality for advertisers while better protecting user privacy.
According to Google’s testing, removing third-party cookies without any alternative would result in a 34% dip in programmatic revenue for advertisers using Ad Manager and a 21% dip for those using AdSense. However, these drops were reduced to 20% and 18% with Privacy Sandbox APIs enabled.
While these numbers still represent a revenue decrease, Google argues that in a world where third-party cookie signal loss is happening anyway (due to blocking in other major browsers like Safari and Firefox), having a Privacy Sandbox is better than having nothing at all.
The Marketer's Challenge: Adapting to a Cookie-less Future
While this is good news for marketers in the short term, we can’t rest on our laurels. Users can opt out, and there’s a growing trend of ad blockers. It’s time to start thinking outside the cookie jar!
Alternative Strategies for Savvy Kiwi Marketers
Privacy First: The New Marketing Mantra
As we navigate this changing landscape, adopting privacy-first strategies is crucial. This means being transparent about data collection, obtaining explicit consent, and respecting user choice. It’s not just about complying with regulations like GDPR and CCPA but about building user trust. After all, just because we can track something doesn’t mean we should. Striking a balance between our need for data and each user’s privacy is vital, especially given the growing concerns around surveillance and data misuse.
The Ethics of Online Advertising
While targeted ads can be incredibly effective, we need to be mindful of its potential for misuse. These tools have sometimes been used to target vulnerable groups or for discriminatory advertising. As marketers, we have a responsibility to use these tools ethically and responsibly.
Google’s advertising-driven business model has been a direct consequence of the ability to track user behaviour across the web. However, as Google decides to maintain support for third-party cookies in the Chrome browser, it’s essential to consider the implications for consumer privacy and the broader digital ecosystem.
Preparing for a Post-Cookie World
Even though Google has decided to keep third-party cookies around for now, the writing is on the wall. Other major browsers like Safari and Firefox have already implemented blocking third-party cookies, and the trend towards greater privacy protection is clear.
So, how can we prepare?
- Invest in first-party data: This is data you collect directly from your customers. It’s more reliable and less likely to be affected by privacy regulations.
- Explore Google’s Privacy Sandbox solution and other privacy-preserving alternatives: Keep an eye on developments in this space and be ready to adapt your strategies.
- Focus on building direct relationships with customers: In a world with less online tracking, the value of having a direct connection with your audience increases.
- Improve your contextual targeting: This method doesn’t rely on personal data, making it a more privacy-friendly option.
- Stay informed: The digital advertising landscape is constantly evolving. Stay up to date with the latest developments and best practices.
It’s Time to Evolve Before the Cookie Crumbles
The marketing landscape is evolving, and so should we. While Google’s decision to delay the plan to block third-party cookies may feel like a reprieve, it’s a chance to prepare for a privacy-first future. Adapting now ensures your strategies stay both effective and ethical.
The phasing out of third-party cookies isn’t the end of targeted advertising—it’s an opportunity to innovate with solutions that respect user privacy, like Privacy Sandbox APIs and other forward-thinking approaches.
Ready to navigate the future of digital marketing? At Search Republic, we’re here to help you craft privacy-conscious campaigns that deliver real results. Contact us today and explore our blog for more tips.
