In a world where data is currency, cookies have long played an essential role in keeping the digital ecosystem thriving. Cookies—small pieces of code that collect user information—have enabled companies to personalize online experiences and deliver targeted advertisements.
However, with privacy concerns at the forefront of today’s digital landscape, the reliability on cookies, especially third-party ones, is rapidly declining. As a result, both marketers and consumers are bracing for significant changes in how data is collected and used.
Brittany Mosley, the Chief Transformation Officer at Rosy Finch Marketing Company, has offered insightful perspectives on this topic. She provides a breakdown of cookies, their benefits, their growing unpopularity, and the major shifts marketers will face as third-party cookies begin to be phased out.
Let’s explore Mosley’s insights and the implications of this shift for the future of digital marketing.
What Are Cookies?
At their core, cookies are tools for data collection. When a user visits a website, these tiny pieces of code passively gather information that can be used to track user behavior, remember login information, and improve the overall user experience. According to Mosley, there are two main types of cookies:
- First-Party Cookies: These are dropped by the company’s own website and are primarily used for personalization, such as remembering passwords or preferences. They enhance the user experience by allowing websites to tailor content based on previous visits.
- Third-Party Cookies: These are dropped by other entities, often advertisers, on the websites you visit. For example, platforms like Google or Meta may place cookies on various sites to track users across multiple platforms and build a comprehensive profile of their online behavior. These cookies enable advertisers to deliver more personalized ads, and in exchange, website publishers often receive a portion of ad revenue.
Cookies have revolutionized the way companies understand and reach their audiences. For marketers, the data collected through cookies has enabled precision targeting in advertising, allowing them to display ads that resonate with specific users’ interests.
The Importance of Cookies for Marketers
Cookies have become invaluable tools in the world of digital marketing. Before their widespread adoption, online advertising was far less efficient. Marketers had to rely on broad assumptions about their target audience, often displaying the same ads to everyone visiting a website, regardless of their interests.
Mosley gives an example of how third-party cookies have transformed advertising. Without cookies, a user visiting a news site like The New York Times might see an ad for a crime series, even if they have no interest in such content.
However, with cookies in place, a user who dislikes crime shows might instead see an ad for something more relevant, like a Broadway show or baseball event, based on their browsing history, social interactions, and relevance of content on the page they are currently viewing.
This ability to deliver personalized ads has been a game-changer for advertisers, enabling them to reduce wasted impressions and improve the overall effectiveness of their campaigns. Targeted advertising allows brands to reach the right audiences with the right message, ultimately driving higher engagement and better results.
The Growing Unpopularity of Cookies
Despite their effectiveness, cookies have faced growing backlash due to privacy concerns. Mosley points out that every day users have become increasingly uncomfortable with the amount of tracking happening behind the scenes.
In the past, users had little visibility into who was tracking them or why. Scandals like the Facebook-Cambridge Analytica incident, where user data was harvested to influence political outcomes, only heightened public awareness and distrust of data collection practices.
Data protection regulations such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) have since been introduced to address these concerns. These laws give users more control over their data and require companies to be more transparent about how they collect and use it.
“You have to make sure that your policies on data collection are rock-solid, particularly as regulations like the California Consumer Privacy Act (CCPA), the General Data Protection Regulation (GDPR), and even Fair Lending tighten up,” Mosley says.
Another major downside to cookies is their inaccuracy. As Mosley explains, cookies can sometimes categorize users based on limited interactions.
For instance, visiting a sports website a few times could mistakenly label someone as a die-hard baseball fan, even if they have little interest in the sport. This can lead to irrelevant ads, which frustrate users and diminish the value of the ad experience.
The End of Third-Party Cookies: What It Means for Marketers
Google’s initial plan to phase out third-party cookies by the end of 2025 sent shockwaves through the marketing industry. Marketers have grown heavily dependent on third-party cookies for audience-based advertising, and their removal presents a significant challenge. While Google has since walked back their commitment to this deadline, the industry still continues to try to solve for the cookie.
Third-party cookies allow advertisers to track users across different sites, ensuring they reach the right audiences and measure the effectiveness of their campaigns.
Without cookies, it becomes much harder for marketers to centralize targeting data, gauge ad performance and fine-tune their strategies. Mosley estimates that the disruption caused by this change could affect billions of dollars within the advertising ecosystem.
“We just can’t rely on third-party, cookie-based data to be as accurate anymore,” she says. “You, as the owner, should be the central point for that data set. Always cross-check it with your own data before launching campaigns.”
While some companies have begun exploring alternatives to third-party cookies, no solution has proven as scalable or effective. For instance, Google’s alternative technology has faced criticism for being slow and inaccurate, leading to delays in the transition.
Turning to First-Party Data
In the absence of third-party cookies, marketers are increasingly turning to first-party data—information collected directly from users through explicit visitor consent. This could involve asking users to sign up for newsletters, fill out forms, or engage with content in exchange for access.
However, this shift is not without its challenges. Many consumers are becoming more cautious about sharing their personal information, especially as they become more aware of data privacy issues. Additionally, not all companies have the infrastructure to handle first-party data responsibly.
Mosley emphasizes the importance of complying with regulations like GDPR and CCPA, which impose strict guidelines on how user data is collected, stored, and used.
“If you have a pixel on your site, and a customer opts out, it’s your job to ensure they aren’t tracked. The regulations aren’t going away with cookies—they’re just shifting,” she says.
The Future of Digital Marketing in a Data-Transparent World
The impending demise of third-party cookies signals a new era for digital marketing—one that will require marketers to adapt to more transparent and consent-driven data collection practices. While the shift presents challenges, it also offers opportunities for innovation.
For instance, contextual advertising is expected to make a resurgence. Rather than relying on granular audience data, marketers can focus on placing ads in environments that align with the content of the website. An auto manufacturer might advertise on automotive forums or news sites, where users are already interested in cars, rather than relying on cookies to deliver personalized ads.
Additionally, companies that can successfully build robust data management systems and develop customer data platforms (CDPs) will be better positioned to thrive in the data-transparent landscape. By centralizing their own data, brands can reduce their reliance on third-party technology and improve their targeting capabilities.
Conclusion
Brittany Mosley’s insights offer a comprehensive look at the role cookies have played in digital marketing and the challenges posed by their impending phase-out. While cookies have been essential in driving personalization and ad targeting, their widespread use has also raised significant privacy concerns.
As the marketing industry prepares for an inevitable future without third-party cookies, both marketers and consumers will need to adapt to new ways of data collection and usage. “You need to start centralizing your data in a warehouse or platform where you have full access and control,” Mosley suggests.
Marketers will need to find innovative strategies to gather and manage data, while consumers may gain greater control over their digital privacy.
While the future remains uncertain, one thing is clear: the digital marketing landscape is undergoing a fundamental transformation, and those who can adapt will continue to succeed.
