How to prepare for Chrome’s removal of third-party cookies

Google has officially started to phase out third-party cookies.

A new feature called Tracking Protection, which restricts third-party cookies by default, began rolling out to 1% of Chrome users globally on January 4, 2024 and based on their timeline, should roll out to all Chrome users by the end of 2024.

The removal of third-party cookies from Chrome could impact digital advertising and tracking methods, which many ecommerce websites heavily rely on for targeting, retargeting, and personalization. So, let’s look at what this might mean for you!

First-Party vs. Third-Party Cookies

First, it’s important to understand that Google is only removing third-party cookies…not first-party. So what’s the difference? Both types of cookies are small pieces of data stored on a user’s web browser, but they differ in their origin and purpose:

1. First-Party Cookies:
   • Origin: First-party cookies are created by the website the user is currently visiting. When a user visits a website, the website sends a request to the user’s browser to store a cookie containing information about the user’s interaction with that specific website.
   • Purpose: First-party cookies are primarily used to enhance user experience by remembering user preferences, login information, shopping cart items, and other site-specific settings. They are typically considered more trustworthy because they are directly associated with the website the user is interacting with.
2. Third-Party Cookies:
   • Origin: Third-party cookies are created by domains other than the one the user is currently visiting. These cookies are often set by advertisers or analytics providers embedded on the website through elements like ads, social media buttons, or embedded content from external sources.
   • Purpose: Third-party cookies are primarily used for tracking user behavior across different websites. They enable advertisers to collect data on users’ browsing habits, interests, and interactions across multiple sites to deliver targeted ads, measure ad performance, and personalize content. However, they have raised privacy concerns due to their ability to track users across the web without their explicit consent.

What Can I Do to Prepare for the Phase Out?

There are several strategies and adaptations you can consider to mitigate the impact:

• Check/Update your Tracking Codes:Ensure your advertising conversions and tracking codes are configured properly. All of the major advertisers now have a first-party cookie solution that can be used to still maintain ad targeting. But you should confirm that this is enabled and configured properly so that your ad campaigns are as effective as possible.
• Emphasize First-Party Data Collection: Focus on gathering first-party data directly from your site visitors. This includes email sign-ups, account registrations, and loyalty programs. First-party data is more reliable and can provide valuable insights into customer behavior and preferences.
• Invest in Customer Relationship Management (CRM) Systems: Implement or optimize CRM systems to manage and analyze customer data effectively. This enables personalized marketing campaigns based on user behavior, preferences, and purchase history.
• Leverage Contextual Targeting: Instead of relying solely on behavioral targeting, explore contextual targeting options. This involves placing ads based on the content of the webpage rather than the user’s browsing history. It’s less invasive and can still be effective in reaching relevant audiences.
• Explore Alternative Advertising Channels: Diversify advertising efforts across various channels, such as social media, influencer marketing, affiliate marketing, and native advertising. These channels may offer alternative targeting options and can help reach specific audience segments.
  Implement Privacy-Focused Technologies: Consider implementing privacy-focused technologies such as differential privacy, federated learning, or on-device processing to analyze user data while preserving user privacy.
• Focus on Content Marketing and SEO: Strengthen content marketing and search engine optimization (SEO) efforts to attract organic traffic. High-quality content and optimized websites can improve visibility in search engine results pages (SERPs) and drive relevant traffic to the ecommerce site.
• Prepare for New Technologies: Keep an eye on emerging technologies and solutions that aim to address the challenges posed by the removal of third-party cookies. This includes alternatives like Google’s Privacy Sandbox, which proposes new methods for ad targeting and measurement while prioritizing user privacy.
• Stay Informed and Adapt: Continuously monitor industry trends, updates, and best practices related to digital advertising and user privacy. Adapt strategies and tactics accordingly to stay ahead of the curve and maintain a competitive edge.