Why Are Third-Party Cookies Going Away & What Comes Next?

Why are third-party cookies going away? What will be the impact? What will replace them?

Many Americans are turning their backs on third-party cookies, which track your information and browsing history across multiple websites. With third-party cookies going away, internet users will enjoy a privacy boon but many businesses and the advertising industry may not be so fortunate.

Read on to learn why third-party cookies are going away and what experts say will be the impact of their departure.

The Death of Third-Party Cookies

Three decades ago, the birth of cookies launched a $600 billion digital advertising industry, but today, people are saying “no” to cookies and tech giants Apple, Google, and Mozilla have pledged to stop supporting them.

What are cookies, why are third-party cookies going away, and what will replace them? This article will examine each of these questions. 

What Are Cookies?

Cookies are small pieces of data that websites send and store in your browser to monitor your browsing activity.

First-party cookies come from websites you’ve gone out of your way to visit. Most people don’t mind first-party cookies, which pre-populate information like your name and email address in online forms so you don’t have to type them a million times. 

Third-party cookies, on the other hand, are more broadly seen as problematic. They come from websites you haven’t chosen to visit and function more in a stalking capacity: They track your information and long-term browsing history across multiple websites, then plant ads everywhere you go to get you to buy products or use services you may or may not want. 

When you visit a website to check out a pair of sneakers you’ve had your eye on, then suddenly they appear in ads on every site you visit, that’s the handiwork of third-party cookies. 

Why This Is the End of the Road

Cookies are nearing their final days in large part because of privacy concerns. Globally, many have concerns about Big Tech mishandling their personal data. The result: 

• Millions of people have turned to ad blockers to prevent cookies from tracking them, and to web browsers like DuckDuckGo (which doesn’t track user behavior) and Brave (which blocks tracking technologies and third-party cookies) to protect their privacy.

• Privacy regulations are limiting companies’ ability to collect and use personal data, including the General Data Protection Regulation and California Consumer Privacy Act.

These factors have led America’s largest tech companies to pledge to pull the plug on third-party cookies.

What Will Be the Impact?

Experts say that third-party cookies going away will be a boon for people’s privacy. But they offer a less rosy forecast for advertisers and businesses, saying that ending cookies will: 

• Weaken advertising and the digital advertising industry. Without third-party cookies, advertisers will have greater difficulty tracking and targeting ads to users across the web. This will make advertising less effective and diminish the power of the industry overall.

• Make it harder for small businesses to advertise and drive sales. Most businesses use ad campaigns in two ways: To target existing customers and potential customers. Now that third-party cookies are going away, they’ll have no way to differentiate between the two or market tailored information to each.

• Escalate the demise of publishers and quality online content. For many publishers of newspapers and blogs, cookies are a life raft in stormy financial seas. With third-party cookies going away, it will decrease advertisers’ ability to track and target potential customers, making advertising on publishers’ sites less worthwhile.

Tracking and Advertising in a Post-Cookie World

Some experts say that, with third-party cookies going away, it will make advertising less effective in the short run, but that new strategies can help businesses collect user data that’s more specific and accurate than what cookies provide—and laden with none of the privacy issues. With “zero-party data,” users voluntarily share information with companies—like their preferences and interests—both directly and through surveys, polls and quizzes, offering businesses an opportunity to engage customers differently.

Exactly what will replace cookies isn’t clear, but experts say you can be sure that advertisers will find creative ways to recoup their pending losses.

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