Google dropped a bomb when they announced they were deprecating third-party cookies. Since then the question of the cookieless future has been on everyone’s mind.
Sorry, not that kind of cookie (although you are making me want to throw some in the oven after I finish writing this post).
So if we’re not talking about those warm, gooey, chocolate-filled bites of heaven, let’s define what we mean by cookies.
Cookies are basically just small text files with a simple task–to identify your device as it browses across the web. Cookies make it possible for you to log-in to sites, and do things like save items in a shopping cart for checkout–essential functions for websites to work. Unfortunately, those same cookies can be used to track users and their browsing–which is why all the privacy concerns erupted.
Cookies were invented all the way back in 1994, by a developer working on the Netscape browser. These text files were initially used to remember your preferences on websites and perform essential e-commerce actions like save your shopping cart.1
Years later, people began to realize the power of cookies. According to Cookie Central:
“Unfortunately, the original intent of the cookie has been subverted by some unscrupulous entities who have found a way to use this process to actually track your movements across the Web. They do this by surreptitiously planting their cookies and then retrieving them in such a way that allows them to build detailed profiles of your interests, spending habits, and lifestyle.”
So even though all that cookies can do is see if you’ve visited a site before or not, used in the wrong way, people began to feel uncomfortable about that info getting out, even though it’s not personally-identifiable. And so cookies became the scapegoat for modern-day privacy issues, and have garnered lots of attention in the past few years as privacy has become a topic of concern.
Cookies live within browsers, so if you have Firefox, Chrome, and Safari, your “cookie” will be different for each. Safari has blocked third-party cookies for years, as Apple likes to display their commitment to privacy. But as an advertising company at heart, Google, which owns Chrome, loves cookies as they provide data for better targeted ads that led to higher revenue.
Fast-forward a little bit, and Google keeps getting hit with lawsuits, losing money, and is constantly cast as the villain in the war for privacy. When it gets to the point where you need to decide between selling off your advertising division (Double Click) or giving up cookies, it becomes a simple way for them to change their image, stop some lawsuits, and still retain their advertising business (for now).
So while Google’s decision was a self-centered one, it actually will benefit the entire internet. Jeff Green, CEO of The Trade Desk, talks frequently about the quid pro quo of the internet–users get free content in exchange for viewing advertisements. As the world has become more data-driven, businesses want ads that convert, and I would argue that consumers would rather see targeted ads that they’re interested in opposed to irrelevant, uninteresting ads. Advertising is a huge industry, and targeting, in some way or another, is here to stay.
Cookies were an archaic technology that started being used for something they were never intended. So the fact that they’re going away is actually wonderful! This allows experts to make new solutions with modern technology, and make privacy built-in. And that’s just what’s been going on. Companies like The Trade Desk and Live Ramp have collaborated with other players in the advertising space and developed solutions like UID2 as the replacement for cookies. These solutions are still being refined, but are interoperable with other identifiers, and are being used already.
To keep up with all the latest, Read more on these solutions below.
Phew! Now you can rest assured knowing that when that “Deprecate Cookies Button” is pushed at Google HQ that you have viable alternatives that you can use.
A email-based, encrypted identifier, where consumers control privacy preferences, is the basis of the next-gen solution in the identity realm. That, coupled with cookieless solutions that rely on machine learning, or environments that have historically never used cookies, will keep the future of advertising secure into the distant future.
(It’s helpful to note that Connected TV (CTV), one of the fastest-growing areas of advertising, is one of those environments that doesn’t even use cookies. So you can rest assured that even without cookies, different channels have different ways to ensure you can target your intended audience.)
With privacy being as hot a topic as it is, I wouldn’t be surprised to see changes to any of these identifiers, especially as more places seek to pass laws like GDPR and CCPA. Privacy is great for individuals, but it always comes at a cost of customization. Consumers should always be enabled to make conscious decisions about what they’re okay sharing, and what they want to keep private. The future of identity, targeted ads, and privacy depend on them getting the next solution right.
