Google's Third-Party Cookie Changes: How They Affect Meta & Google Advertisers
Google, who owns Chrome, the most popular browser on the Internet, is making significant changes that will reshape how we approach online advertising.
Starting in the second half of 2024, Google Chrome will phase out all third-party cookies. This big change is part of Google's ongoing effort to create a more secure and private internet experience for users.
The initial phase of this change is already happening, affecting about 1% of Chrome users, which is around 30 million users, according to Insider Intelligence.
The Cookie Landscape: First-Party vs. Third-Party
Before we delve into the impact of Google's cookie changes, let's first clarify what cookies are. What is the difference between first-party and third-party cookies?
Cookies are small bits of data or text that websites save in your web browser. They have many purposes, like improving your user experience and tracking your online behavior. There are two main types of cookies: first-party and third-party.
First-Party Cookies: These cookies are created and stored by the website you're currently visiting. They are primarily used to remember your preferences, keep you logged in, and personalize your experience on that particular site.
Third-party cookies are set by domains other than the one you're currently visiting. They are used for cross-site tracking, which allows advertisers and analytics platforms to follow your online journey across different websites and devices.
Google's Tracking Protection and the Road to Cookie Elimination
Google wants to get rid of third-party cookies by the end of 2024. On January 4, 2024, they started their Tracking Protection initiative by releasing it to 1% of Chrome users on desktop and Android devices.
This 1% is about 30 million users, which is a big part of Chrome's user base.
Tracking Protection automatically limits websites' ability to use third-party cookies. But there are some exceptions. If Chrome finds a website that needs third-party cookies for important functions, users might get a prompt to enable them temporarily.
Google's public timeline says they will test this for 1% of users until the middle of the year. They plan to get rid of all third-party cookies by the end of 2024.
Google's Replacement Strategy
Google won't remove third-party cookies without offering an alternative solution. The Privacy Sandbox for the Web will gradually cut third-party cookies while still protecting user privacy. This will be done through 'differential privacy', which reveals behavior patterns without revealing individual private data.
Another method is k-anonymity, which makes it hard to distinguish one person from a group within a dataset. Additionally, computation will happen on the user's device instead of external servers.
Essentially, Chrome will still track your online behavior, but the information shared with Google and others will be anonymous and grouped into categories instead of being specific. These anonymous groups can still be used for targeted advertising, although the details of this targeting are not fully clear.
Learning from Apple: Safari's Role in Third-Party Cookie Blocking
If Google's decision to cut third-party cookies sounds familiar to Apple users, it's because Apple has been taking similar steps since at least 2017.
Apple's Intelligent Tracking Prevention (ITP) blocks third-party cookies by default on Safari browsers, which constitute about 14% of all browsers.
The inclusion of Chrome in this effort could mark the final step towards completely eradicating third-party cookies.
What Google Advertisers can do
Explore Enhanced Conversions: Google offers Enhanced Conversions as a tool to recover conversions that may have gone unmeasured due to cookie changes. Implement Enhanced Conversions to ensure you capture as much conversion data as possible.
Embrace Server-Side Tagging: With the impending removal of third-party cookies, server-side tagging becomes crucial. It allows you to send data directly from your server to Google, reducing reliance on browser-side tracking. Implement this technology to maintain data continuity.
Experiment with Consent Mode V2: Google's Consent Mode Version 2 (V2) is set to be mandatory as of March. This tool helps you collect user consent for running ads while adhering to privacy norms. Experiment with V2 to understand how it can work for your campaigns.
What Meta Advertisers Should Expect
Let's talk about how these changes will affect Meta advertisers (Facebook and Instagram).
To be honest, we don't have a clear answer right now. We're not sure exactly how much impact there will be, but we'll learn more as we analyze the data from the initial 1% testing phase.
If third-party cookies are important for attribution, this could be a big challenge for advertisers. What's clear is that anything relying on third-party cookies is at risk.
The Meta pixel uses both third-party and first-party cookies by default (with the option to disable the latter), but we're not sure which one is more valuable. First-party data is expected to become more important in this changing landscape.
Proactive steps for Meta Advertisers
Meta advertisers should take steps now in response to the changing situation.
Enable First-Party Cookies with the Meta Pixel: In your Events Manager, navigate to Data Sources and the Settings tab, where you can find the section for Cookie Usage. Turning on first-party cookies can provide additional data that enhances ad relevance.
Connect the Conversions API: This API establishes a direct link between your conversion data and Meta, aiding in ad set optimization and reporting. Passing first-party data to Meta is becoming critical, particularly as third-party data faces obstacles.
While the exact impact of these steps on overcoming third-party cookie limitations isn't entirely clear yet, implementing them positions advertisers well for whatever changes may come.
What else should advertisers be doing:
Monitor Campaign Performance: Keep a close eye on your campaigns' performance as the cookie changes roll out. Be prepared to adjust your strategies based on real-time data and feedback from Google's evolving tools.
Test and Adapt: The digital advertising landscape is ever-changing. Continuously test and adapt your strategies to find what works best in the cookieless era. Be open to trying new methods and technologies as they emerge.
Audit Your Data Practices: Take a close look at your current data collection and usage practices. Understand how much of your data relies on third-party cookies and whether there are opportunities to transition to alternative methods, such as first-party data.
Leverage First-Party Data: As third-party cookies diminish in importance, prioritize the use of first-party data. Ensure that your website is configured to collect and utilize first-party data effectively. This data will become increasingly valuable for personalization and targeting.
While the elimination of third-party cookies poses challenges for Meta advertisers, a proactive approach to adapting to the changing landscape can mitigate potential disruptions. It's a dynamic situation that will continue to evolve, and staying informed and agile is key to navigating these changes successfully.
Additional Resources
To stay updated on cookie changes and their impact, check out the following resources:
Meta's guidance on cookie usage (find link)
Google's Privacy Sandbox (find link)
Remember, the digital advertising world is ever-evolving, and those who prepare for change are more likely to thrive in this new era.
