As Google Chrome prepares to phase out third-party cookies, businesses must adapt to one of the most significant changes in digital marketing.
Third-party cookies have long been a cornerstone of online advertising, enabling companies to track user behavior across different websites, target ads more effectively, and measure the success of their campaigns.
However, with growing concerns over privacy and data security, Google is leading the charge to eliminate these cookies by 2024. This shift will have far-reaching implications for how businesses track, analyze, and utilize customer data.
In this article, we'll explore what third-party cookies are, why their deprecation matters, and what strategies businesses can implement to thrive in a cookieless future.
Understanding Third-Party Cookies
What are third-party cookies?
Third-party cookies are small pieces of data stored on a user's browser by a domain other than the one they are currently visiting. These cookies are primarily used by advertisers and analytics platforms to track user behavior across different websites.
By collecting information on what users browse, click, and purchase, third-party cookies enable businesses to create targeted advertisements, optimize marketing strategies, and gain insights into user preferences.
However, as concerns about privacy and data security rise, the use of these cookies has come under increased scrutiny.
Why Is Google Deprecating Third-Party Cookies?
Deprecation in the tech world refers to the gradual phasing out of a feature or technology. In the case of third-party cookies, Google’s decision to deprecate them by 2024 is driven by growing concerns over user privacy and the need for more transparent data practices.
Similar to Apple’s iOS 14 update, which introduced stricter opt-in requirements for app tracking, Google will require explicit user consent for third-party tracking. With studies showing that up to 85% of users decline such consent, this shift will significantly impact how businesses track and target online audiences.
As a result, companies must explore alternative data strategies to adapt to this new landscape.
Impact of Third-Party Cookie Deprecation on Businesses
Quantity of Data Collected
The deprecation of third-party cookies will significantly reduce the quantity of data available to businesses for ad targeting and analytics.
When users opt out of tracking, browsers will no longer share data with ad platforms and analytics tools, which means critical events—such as 'View Product' or 'Add to Cart'—may go untracked.
This loss of data disrupts the ability to accurately attribute actions to ads and impacts the algorithms that drive targeted marketing.
For example, without this data, ad platforms may struggle to identify users at the bottom of the purchase funnel, leading to less effective targeting and reduced ad performance."
Quality of Data Collected
Beyond quantity, the quality of the data that remains available is also at risk. With fewer users consenting to third-party tracking, the remaining data may be less representative of the broader audience, skewing analytics and decision-making.
Consider Meta's (formerly Facebook) Conversion API (CAPI), which relies on server-side tracking along with browser pixels. While this approach can capture events like 'Add to Cart,' it may fail to identify the user if they are not logged in, limiting the effectiveness of retargeting campaigns.
This gap in data quality can lead to missed opportunities and less precise ad targeting, making it harder for businesses to optimize their marketing efforts.
Strategies to Mitigate the Impact
Leveraging First-Party Data
With the deprecation of third-party cookies, first-party data—information collected directly from your customers—becomes even more critical.
Businesses should focus on enriching this data by encouraging users to engage with their websites in meaningful ways.
For example, offering incentives such as discounts, loyalty programs, or exclusive content can encourage users to create accounts or log in at the start of their journey. This not only captures valuable data early on but also helps in building a more personalized customer experience.
By collecting data through direct interactions, businesses can maintain a rich dataset that supports targeted marketing and customer retention efforts, even in a cookieless world."
Implementing Server-Side Tracking
Server-side tracking offers a powerful solution to the challenges posed by the loss of third-party cookies.
Unlike traditional client-side tracking, which relies on browser cookies, server-side tracking sends data directly from your server to analytics platforms like Google Analytics or Meta (formerly Facebook).
This method ensures that key events—such as page views, product interactions, and conversions—are accurately tracked, even if users opt out of browser-based tracking. By combining server-side tracking with enriched first-party data, businesses can create a robust analytics setup that mitigates the impact of cookie deprecation.
This approach preserves the quantity of tracking data. Coupled with first party data, SST can help in maintaining effective ad targeting and performance measurement.
Step-by-step Implementation of Server-Side Tracking
Using GTM Server-Side Container
Google Tag Manager (GTM) offers a versatile solution for implementing server-side tracking across various platforms, including Google Ads and Meta (formerly Facebook).
By setting up a GTM server-side container, businesses can route data directly from their servers to analytics and ad platforms, bypassing the limitations of client-side tracking. This setup allows you to capture critical events like page views, add-to-cart actions, and conversions, ensuring accurate data collection even as third-party cookies are phased out.
Tools like Stape.io make it easy to set up and manage a GTM server-side container, offering a user-friendly interface to streamline the implementation process.
Direct Server-Side Integrations
For businesses using Shopify, direct server-side integrations offer an alternative approach to server-side tracking.
Apps like Elevar provide built-in integrations with major ad platforms and analytics tools, allowing you to track events directly from your server. These integrations ensure that your marketing and analytics activities continue to run smoothly, without relying on third-party cookies.
By combining these server-side solutions with enriched first-party data, businesses can maintain robust tracking capabilities, optimize ad performance, and gain deeper insights into customer behavior.
Conclusion:
As the digital landscape shifts with the deprecation of third-party cookies, businesses must be proactive in adapting their strategies to ensure continued success. The phasing out of these cookies presents challenges in tracking, analytics, and ad targeting, but by leveraging first-party data and implementing server-side tracking, businesses can maintain a robust and effective marketing strategy. Tools like GTM server-side containers and direct server-side integrations through platforms like Elevar provide the necessary infrastructure to navigate this transition smoothly.
At Seventh Triangle, we specialize in helping businesses adapt to these changes. Our expertise in implementing server-side tracking and enriching first-party data ensures that your marketing efforts remain effective, even in a cookieless world. Contact us today to learn how we can support your business through this critical shift and help you stay ahead of the competition.