Online Privacy & Cookies

Why Third-party Cookies are Being Phased Out

Third-party cookies are small text files that are stored in a user’s web browser by websites other than the one they are currently visiting. These cookies are commonly used to track a user’s browsing history and behavior across multiple websites for various purposes, such as targeted advertising.

However, as privacy concerns have become more prevalent in recent years, many users have become increasingly uncomfortable with the amount of data that is being collected and shared about their online activities. Third-party cookies have come under particular scrutiny, as they can be used to build a detailed profile of a user’s interests and habits without their knowledge or consent.

In response to these concerns, many web browsers, including Google Chrome, Mozilla Firefox, and Apple Safari, have begun phasing out support for third-party cookies. Instead, they are exploring alternative methods for advertisers to reach their target audiences, such as using first-party data and contextual advertising.

The phasing out of third-party cookies is having a significant impact on ad platforms like Facebook and Google Ads, which rely heavily on tracking user behavior across the web to serve targeted ads.

For example, Facebook and Google use third-party cookies to track users across the web and gather data on their interests and behavior, which is then used to serve them with relevant ads. With the loss of third-party cookies, these platforms will have limited access to this data, making it more difficult for them to deliver targeted ads to users.

In response, Facebook and Google are exploring alternative solutions that rely more heavily on first-party data, such as data gathered from their own platforms or directly from users through opt-in data collection methods.

While these changes are likely to cause some disruption in the short term, they also represent an opportunity for ad platforms to build more trusted and transparent relationships with users, and to develop new and more effective targeting strategies that prioritize user privacy and consent.

By reducing the ability of third parties to track users across the web, these changes are aimed at giving users greater control over their personal data and privacy. While advertisers and publishers may face some challenges in adjusting to these changes, the ultimate goal is to create a more transparent and trustworthy online ecosystem for everyone.

Posted on: 08/04/2023
Posted by: Craig Hauptman – President & Founder

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