The end of third-party cookies & the digital marketing of the future (2022)
Why are third-party cookies actually disappearing and how will they affect digital marketing?
In this post, we will try to answer these questions & see what the digital marketing of the future has to offer.
What are first, second and third-party cookies?
They simplify and automate parts, such as logging in, so you do not have to do it manually every time. Unlike third-party cookies, first-party cookies are generated by the website you are on.
These cookies help the browser remember important information about you, such as which items you add to your shopping cart, your username, password and language settings.
Other examples that first-party cookies collect are - purchase history, demographic information, location, company, occupation, job titles, years in a specific industry and professional role.
Second-party cookies are somewhat controversial and something that has been much discussed.
In general, second-party cookies, first-party cookies or third-party cookies, are shared between two different companies. An example of this could be an airline that has chosen to sell its first-party cookies to a cooperating hotel chain. This creates the opportunity to streamline targeted advertising and benefits both parties.
So...what's all the fuss over third-party cookies?
Thanks to third-party cookies, digital marketers can:
Track your activity on multiple sites
Conduct remarketing based on what you are looking for & which pages you have visited.
Target ads based on potential consumer insights and interests.
However, the opportunity to target consumers with such precision has aroused emotion and opened up the discussion for review.
Many consumers find these ads intrusive and violate the right to privacy. Governments and authorities have also listened to this and adopted laws to infringe on privacy.
All of this has created both challenges and opportunities for digital advertisers.
Consent requirements - UAE & EU
Europe's Supreme Court already ruled in 2019 that active consent is needed to track cookies.
This came along with the GDPR - General Data Protection Regulation - that was applied across the European Union, which resulted in the requirement for consent for organizations before they can store or access cookies.
Following the Supreme Court's ruling in 2019, Google said it would begin phasing out third-party cookies in the coming years, and Apple said it would restrict the use of its mobile device ID, Identifier for Advertisers (IDFA) in iOS apps.
With these moves, the two giants shook the digital marketing world.
Now, Google's Chrome browser is not the first to phase out third-party cookies, but it is definitely the largest. (Browsers like Safari and Firefox started blocking third-party cookies back in 2013.)
But as Chrome takes these steps, the future of third-party cookies is now under real threat.
UAE Federal Data Protection Law
The United Arab Emirates (UAE) has published its first Federal Data Protection Law No. 45 of 2021 (Law), which came into effect on 2 January 2022.
This alert provides an overview of the Law which will be supplemented by the expected executive regulations (Executive Regulations), as well as key aspects in comparison with other data protection frameworks such as the EU General Data Protection Regulation (GDPR).
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How will this affect digital advertising?
Google has talked about possibly developing a so-called "Privacy Sandbox".
A tool that could enable marketers to continue to target consumers with ads but without having access to the same data, that can upset the integrity of those who get them targeted. Google's approach is to move all user data to Chrome and then store and process it there.
Time will tell whether consumers will get better and if they/we experience less disturbed integrity when third-party cookies disappear.
One thing is for sure, the demand for consumer integrity will not disappear anytime soon. It is now time for companies to promote closer relationships with their customers.
The key to the future will simply be to rely much more upon & work harder to maintain first-party data.
Key takeaways - build loyalty through proactivity
Continue to build strong relationships with your customers from the data you own.
Find out what first-party data you are collecting today and what data you need to strengthen customer relationships.
Make sure that the data you collect benefits your customer, that you have active consent and that you protect their data
Utilize first-party data to create personalized customer experiences. Examples of this could be welcoming a customer to your site, giving them recommended products and services based on their interest shown and sending them a reminder if they did not complete a conversion
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