“Tracking cookies”, commonly referred to as just “cookies”, have long been a staple of digital advertising data collection, enabling advertisers to understand user preferences and deliver relevant content. But changes to privacy laws and operating systems in the last few years are affecting the use of tracking cookies, forcing advertisers to rethink their approach. Why are these changes important for advertisers to keep an eye on?
Tracking cookies are small files that websites place on a user’s browser to track their actions while browsing. They collect information on the pages visited, time spent on each page, and actions taken, such as clicking a button or making a purchase. Advertisers use this data to deliver personalized ads to users, based on their interests and behavior. Tracking cookies also help websites optimize performance by remembering user settings, improving user experience on repeat visits.
Cookie Types: First Party, Third Party, Session, and Persistent
There are several types of cookies, each serving slightly different purposes:
First Party vs Third Party Cookies
First-party cookies are created and stored by the website a user is actively visiting. These tracking cookies focus on improving the user experience by remembering login details, language preferences, or items in a shopping cart, ensuring smoother interactions on the website. Third-party cookies are generated by domains other than the one the user is visiting. These are the cookies we refer to in this article, and the ones used by advertisers to track user behavior across multiple websites.
Session Cookies vs. Persistent Cookies
Session cookies are temporary files that only last for the duration of a user’s visit to a website. They are short-term, erasing themselves once the user closes their browser. These cookies help websites remember actions like adding items to a shopping cart or navigating between pages without reloading information. Persistent cookies store data long-term, helping websites remember user preferences over time. Unlike session cookies, these tracking cookies remain on the users device after the session ends. They enable websites to retain user information, such as login details or language preferences, across multiple visits.
Impact of Privacy Regulations on Tracking Cookies
With the increasing concern over privacy and data security, many internet users are becoming more hesitant to share their personal information. As a result, new laws such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) have been implemented, giving users more control over their data and limiting what companies can do with it.
In addition, Apple’s iOS 14.5 introduced changes to how tracking cookies are handled. Since this update, users are asked to explicitly opt-in to sharing their data with third-party apps and websites, rather than the default opt-out model. This change made it more difficult for advertisers to track user behavior and deliver targeted ads.
Seeking Alternatives Post 2024
So, what does this mean for advertisers and chief marketing officers? It means that they need to start exploring alternative methods for tracking user behavior and delivering personalized ads. One such alternative is contextual advertising, which targets ads based on the content of the website or app being viewed, rather than user behavior.
Another option is to focus on first-party data, which is data collected directly from users through interactions with a company’s website or app. This can include data such as user preferences, purchase history, and other behavior on the company’s own platforms.
Ultimately, the changes to tracking cookies are forcing advertisers to think more creatively about how they approach online advertising. It’s no longer enough to rely solely on tracking user behavior through cookies. Instead, advertisers need to find new ways to engage with their audience and deliver personalized ads in a way that respects users’ privacy and security.
In conclusion, the importance of tracking cookies in advertising cannot be overstated. However, with changing privacy laws and new operating system updates, advertisers need to adapt to new methods of tracking user behavior and delivering targeted ads. While this may present challenges in the short term, it also presents an opportunity for advertisers to explore new approaches and engage with their audience in innovative ways.