The decline of 3rd party cookies: The most important questions answered

The third-party cookie, a small text file that websites use to track user activity across the internet, has been a cornerstone of online advertising for decades. However, with increasing concerns about privacy and data protection, major web browsers and technology companies are phasing out support for third-party cookies. In this blog article we answer all important questions about their decline.

The end of 3rd party cookies: What to expect?
The end of 3rd party cookies: What to expect?

This seismic shift is reshaping the digital advertising landscape, forcing advertisers and publishers to adapt to a cookie-less future and focusing on first-party data, contextual targeting and user-privacy instead.

In 2020 Google had announced the deprecation of the third-party cookie; Four years later the announcement and after multiple delays to the original deadline, the decision has been reversed - third-party cookies are here to stay. But, despite this, it is crucial for advertisers to not rely on third-party cookies alone: Users have become increasingly privacy conscious, declining consent, using ad blockers and VPNs, meaning a lot of data is lost, in some cases up to 70%!

Read Google’s official announcement about keeping third-party-cookies. 

What are 3rd party cookies?

These are cookies that are placed on your browser not under your domain, but under a third party domain. 

For example: 

  • Your site is myeshop.com
  • There is a cookie on your page written to the myeshop.com domain = this is a 1st party cookie.
  • On the page there is also a cookie written to the google.com domain = this is a 3rd party cookie.

Third-party cookies are only loaded if there is a request to the domain. Therefore, if there are no requests to the google.com domain, no cookies can be stored from it.

What are third-party-cookies good for?

They are primarily to link browsing data to the user’s identity. This data then forms a picture of who the user is, what they are interested in, what ads/​formats they respond better or worse to, or how likely they are to buy a certain type of product. This information is important for accurate audience targeting and for the overall effectiveness of the ad.

How can platforms associate users without 3rd party cookies? 

Let’s use an example: 

  • I’m on the Google network. 
  • I click on ads from zalando.com and decathlon.com.
  • Each ad is associated with a Click ID (URL parameter).
  • If there is a pixel on the Google Ads platform, we can send back the information that the user has been to that page, made a conversion and Google Ads can associate it with their ad. 
  • Based on what I clicked on in the ad and whether I made a purchase, Google Ads knows that I visited these three sites and can estimate the likelihood of my purchase if similar ads are shown. 
  • However, if I do not click on the ads, Google Ads cannot associate my visits to these sites without third-party cookies.
  • Similarly, it will be much more difficult to associate an ad impression with a subsequent site visit or conversion - especially in the case of social media, where typically the primary purpose is not to click. 
    • This poses a problem especially for marketing platforms, who will find it challenging to determine what effect the display of a content ad had on follow-up behavior.

Additional information:

  • The above applies to most marketing platforms. 
  • The Click ID association can be problematic, for example with Apple devices, which enforce that click IDs cannot be associated with actions on the site. In other words, Apple shortens the storage time of 1st party cookies, thereby spoiling the perception of whether a user has now made a conversion after coming through an ad in the past, for example. 
    • It should be noted here that this has a significant impact on remarketing - after 7 days, the user is classified as a new one again.
  • Click IDs do not include UTM parameters
  • It has to be said, however, that we can prevent 1st party cookies from shortening their lifetime - but this requires an advanced server-side measurement implementation.

Why are all marketing platforms insisting on sending 1st-party data (e-mail, phone number)?

The reason is that e-mail is a far more accurate identifier than cookies - plus it’s consistent across websites. If you only send emails and no one else, the effectiveness of this will be very low. 

It is therefore essential that as many websites as possible send e-mail addresses after a conversion has been made - this will give marketing platforms a good way of knowing what you are doing online, what your interests are and what ads to show you.

This personal data must also be identified on the marketing platform side. In other words - Google can only show relevant advertising to people whose e-mail it already knows and identifies, for example if you use Google search. This means that in order for Google to use the information pieced together from multiple sites, it needs you to be logged into Google (which is also true for YouTube, etc., not just Google search.) 

How to approach this? Let’s look for ways to collect as many e-mail adresses as possible on the page without disrupting the browsing experience and discouraging potential customers from visiting. 

An important factor in whether a customer will buy and whether their experience with the site will be positive is the initial page load - nobody wants 3 pop-ups (and a cookie bar in between) that they have trouble clicking through. 

Summary of 3rd party cookie deprecation effects by media type


Source: https://sellforte.com/en/blog/what-impact-will-the-loss-of-cookies-have-on-my-business/ 

Important questions and answers

What happens to targeting for acquisition campaigns? 

  • Lower quality audiences
  • Worse way to determine whether or not a given user has already been to the site

What happens to remarketing?

We assume that the size of the audience itself won’t be affected - this is because the user in this context may be associated with a first-party cookie. Either way, it may reduce the number of users we can target with the ad. That is - the number of users who have been on the site and, for example, viewed a product category will not change. Either way, the number of users we can show a remarketing ad to will probably decrease, because if that person did not come from the marketing platform’s domains, the platform has no way of connecting them to your site.

What happens to attribution in Google Analytics?

For attribution that doesn’t include Google signals or data-driven attribution - probably nothing.

When using Google Signals and Data-Driven attribution, there may be a decrease in accuracy, but we can’t tell yet whether we’ll even be able to detect it, since it’s already a pure black box.

How will we measure conversions after clicks and impressions?

  • Clicks 

The measurement of conversions after a click will remain the same as we described above. Ad clicks should still be associated with conversions using the Click ID, which is stored as a first-party cookie. 

  • Impressions

As we wrote earlier, without third-party cookies, it will be pretty much impossible to associate ad impressions in the content network. A way to make post-impression conversion measurement as accurate as possible is to send personal data to the platform. However, we may only have personal data available for certain conversions - typically a purchase or form submission. 

In order for a given platform to be able to associate an impression with a conversion, it needs to link the personal data. And personal data is not always available on the platform side. 

For example: if I’m in Safari and a Google banner ad pops up on a page, Google doesn’t have the ability to associate that impression with my subsequent conversion (unless, of course, I’m on Google domains like YouTube where I’m also logged in and subsequently send identical personal data with the conversion).

What will be the basis for the matching in each system? E.g. Sklik via email. Are we basically losing the entire REM audience of the unlogged? What about clients who don’t collect emails in any way?

We can’t yet assess exactly what effect this will have on REM audiences. But in any case, the number of people probablly will decrease, and it will be the worst in cases where we are not able to collect e-mail addresses. 

What percentage of user information do you estimate we will lose? 

That is impossible to estimate. This number depends on a large number of factors, such as the type of browser, the quality of the data collected, the specific platform, and so on. 

Will this affect the performance of campaigns (SEA, PMAX)? Definitely yes, as there will be fewer signals that automated strategies take into account when bidding. Which all signals will be affected? E.g. search history should be OK, that’s basically 1st party data for Google, right?

Here it’s also tricky to estimate what impact this will have on the performance of these campaigns. A small clue could be if we are seeing worse campaign performance for users with Apple devices. Search history is really a 1st party information in a sense.

Estimates of how much data we lose vs. can we tell how many people are currently using ad blocker?

That’s basically impossible to say. It’s hard to know how many people are using an adblocker - it depends on the target audience, country, browser, etc. 

Do I understand it correctly that we have not now collected audiences and measured conversions of users using Safari and Firefox? 

No. The number of conversions measured depends on 1st party cookies - we have been collecting those and will continue to collect them (barring certain limitations). Audiences were certainly collected for both browsers as well, but the ability to target REM was probably limited to some extent. 

Here’s where Apple users can ask themselves - did you/​they see relevant advertising on Apple devices as well? I myself use both a Mac and an iPhone, and I have to say that I still see ads relevant to what I’m interested in. This is especially true for YouTube (where I’m logged in) and for Facebook.

So without third-party cookies, we can expect ad targeting to be more contextual (e.g., based on search).

Ads will be targeted more by the context of what we’re interested in and less by what specific sites we’ve visited.

08. 08. 2024