For marketers, cookies are more than a tasty snack. They’ve long been a way to gather information on consumers: With the right technology in place, marketers using tracking cookies can monitor how users are interacting with their site and other sites across the web, then deliver targeted ads.
But, in recent years, cookies have undergone intense scrutiny. Privacy restrictions are making it tougher than ever to monitor user behavior, and that’s driving a shift toward a cookieless future. As advertisers adapt to a cookieless world, what does that mean for your marketing campaigns? Let’s take a look.
What Is Cookieless?
Cookieless is a term often used in the context of “a cookieless future.” It refers to a digital environment where tracking users through third-party cookies is no longer an option. Cookies, which are small pieces of code that are stored on a website visitor’s browser, have become the top way advertisers track the users most likely to buy from them, but privacy concerns have reduced the viability of that strategy.
“Cookieless refers to marketing techniques that do not depend on third-party cookies to track user behavior across multiple web pages,” says Amra Beganovich, founder of Colorful Socks. “It represents a move toward guarding user privacy and returning greater control to the consumer. Gone are the days of passively collecting data: Brands must now fight for their insights, getting directly involved with their audience.”
The Impact of Cookieless on Marketing
The move toward a cookieless internet has already had a noticeable impact on advertising campaigns. Brands that have previously relied on cookies for targeting their campaigns face new challenges. They include:
- Audience targeting: Marketers have previously relied on third-party data to build “lookalike audiences.” Without the ability to gather that data, identifying and segmenting relevant users has become more challenging.
- Attribution and measurement: Marketers now need to find ways to track user behavior without relying on cookies. This can make monitoring return on investment (ROI) tough.
- Customer acquisition costs: If marketers can’t target as efficiently as in previous years, they may unknowingly be spending more money to acquire each new customer.
Cookieless Tracking Methods
As the reality of a cookieless future has become more apparent, advertisers have discovered alternative ways to track consumers for better targeting. They include:
First-Party Data Collection
As long as you’re respectful of privacy concerns, you can collect information on your own website visitors. You can incentivize customers to provide contact information and answer questions about their preferences. You can also monitor purchases and use that information for targeting.
Contextual Targeting
Contextual targeting displays ads based on the content on the page that surrounds it. This ensures that the people seeing the ad are interested in similar products or services. No data collection is required for this approach.
Predictive Targeting
The rise of artificial intelligence (AI) has coincided with the fall of third-party cookies, and marketers are leaning into the technology. Predictive targeting uses AI and machine learning to anticipate what a customer is most likely to do in the future. Built on years of data, this technology can accurately predict which users are most likely to convert and deliver ads based on that.
Server-Side Tracking
Some marketers are using server-side tracking to get around the need for third-party cookies. With server-side tracking, user data is sent to your website’s server rather than placing software on the user’s computer. This gives you more control over the data while also better aligning with privacy standards.
Strategies for a Cookieless Future
How can you continue to thrive in a cookieless world? Here are some strategies you can put into place.
Invest in First-Party Data Infrastructure
The best place to gather information on users is on your own website. Offer value to both existing customers and new website visitors in exchange for collecting information. Loyalty programs, exclusive content, and exclusive discounts can all be ways to encourage consumers to provide their information.
Strengthen Creative Assets
Marketers are leaning more heavily into creative these days, investing time and energy into ads that get results. Think beyond static ads and consider investing in video and carousel ads. Look for platforms that allow you to use a variety of effective ad types.
Leverage Predictive and Contextual Targeting
As AI continues to saturate every facet of advertising and marketing, using the technology is becoming essential if you want to remain competitive. The right solutions can analyze intent signals to predict future actions. Add contextual targeting to this strategy, and you can also ensure users see ads relevant to the content they’re currently consuming.
Optimize with AI and Automation
The more you can put on autopilot, the better. That frees you up to focus on other things. AI assistants can handle everything from creating ads to adjusting bidding to boost the likelihood of conversion.
Use Privacy-First Metrics
Marketers still need to measure, and that’s become trickier in a cookieless world. You can overcome this challenge by working with partners who make privacy a top priority in gathering data.
Realize leverages Taboola's extensive first-party data from powering publisher editorial and ad units, providing unmatched insights and targeting capabilities.
Key Takeaways
The term “cookieless” refers to an environment where third-party cookies are no longer an option. To respond to the drive toward a cookieless future, marketers must find ways to target customers while also respecting their privacy. To remain competitive, marketers must shift toward using first-party data, contextual targeting, and predictive technologies to target customers.
Frequently Asked Questions (FAQs)
Why are third-party cookies being phased out?
In recent years, attention has shifted to protecting consumer privacy. Both regulators and consumers have called for protocols that protect data from marketers and advertisers. As a result, some services have begun blocking third-party cookies. While Google has backed off its cookie phaseout plans, the company is shifting toward other cookieless options, including allowing consumers to hide their IP addresses.
“The phaseout is about shifting power back to the user,” says Jensen Savage, chief executive officer at Savage Growth Partners. “It forces marketers to be more intentional and respectful with data, which is better for user privacy, but has also proven to be a huge obstacle for marketers.”
What are the alternatives to third-party cookies?
Advertisers have access to other options for reaching consumers online. They include collecting data on visitors to your own website, displaying ads to match the content of the site the user is visiting, and using patterns to create predictive audiences.
“The best alternative, in my opinion, is contextual advertising,” says Alex Smith, manager and co-owner of Render3DQuick. “The ad fits naturally with what the person is already interested in at that moment, without needing to know anything about who they are or where else they’ve been online.”
How will cookieless tracking affect ad targeting?
Ad targeting isn’t going away any time soon. Advertisers will merely need to shift the way they target users. Instead of tracking people across the web, marketers will now need to understand intent signals and context. Luckily, tools are available that use the latest technology to match creatives to the high-intent users most likely to find them relevant.
“I tell clients to think of it as moving from a laser-focused sniper approach to a broader storytelling approach,” says Rodrigo César, CEO and co-founder at SSinvent. “Without third-party cookies, advertisers will have to lean more heavily on first-party data, look-alike audiences, and contextual signals rather than granular, individual-level targeting.”
What is the role of contextual targeting in a cookieless world?
In a cookieless world, contextual targeting becomes an essential part of an advertiser’s toolkit. Instead of focusing on a potential customer’s identity, you’ll need to look at what that person is doing in the moment. Thanks to AI-powered content analysis, though, this type of targeting has become easier than ever. Tech can be used to align ads to a user’s current consumption patterns, allowing for more precise targeting.
“Contextual targeting is going to play a much bigger role now,” says Chris Coussons, CEO and founder of Visionary Marketing. “It’s something I remember using more in the earlier days of digital marketing, before we had all this granular tracking. Now it’s back in a smarter way. Pairing strong content relevance with well-designed creatives can still drive great results, especially if you understand your audience properly.’’
How can businesses collect and use first-party data effectively?
Businesses have access to a variety of tools for collecting data from their own website visitors and customers. It’s important that the solutions you use to gather that data are privacy-compliant, but from there, you can incentivize people to willingly provide their information.
“The key is value exchange,” Savage says. “People will share their data if you give them a good reason, like helpful content, exclusive perks, or personalized experiences. Once collected, the magic is in using that data to serve, not sell, your audience.”
