Cookiepocalypse, Within the next two years, Google will stop supporting third-party cookies, a move that could have big ramifications for how certain businesses advertise — and might be a boon for retail media operations at major corporations like Target and Walmart.
Third-party cookies are small pieces of code that keep track of what a user or their device does on numerous websites and help retailers choose when to show ads to different groups of people.
Ad retargeting and behavioral advertising are two of the most prevalent applications. As a result, as Google prepares to phase out support for third-party cookies, businesses’ ability to target and advertise to people across the web may be limited.
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Retailers may also rely on third-party cookie
Retailers may also rely on third-party cookie providers to provide specific experiences on their website that they don’t want to design themselves. The example given by Jason Goldberg, Publicis’ chief commerce officer, Cookiepocalypse, was of a retailer integrating a third-party chat service into its website. When a consumer contacts the chat service for help, the chat service may employ a third-party cookie to figure out what products they were looking at on the retailer’s website.
“If you check behind the scenes of practically any e-commerce site, you’ll find on average that [the] e-commerce site is dependent on 38 distinct web addresses to produce that e-commerce page,” Goldberg added. “Some of those 38 are owned by the retailer, but many of them are vendors with whom the retailer has partnered to provide various services, and any one of those external partners may be relying on third-party cookies to partially provide that function today.”
Third-party cookies have been on the decline, Cookiepocalypse
Cookiepocalypse. Third-party cookies have been on the decline for some time, since other browsers have taken steps to limit the use of cookies in recent years. In September, Mozilla, for example, began banning third-party cookies by default for all users.
Third-party cookies have mostly gone out of favor as privacy advocates have become more vocal about limiting the amount of data that browsers and advertisers may collect on users as they navigate between different websites.
Vendors and advertising networks that presently rely on third-party cookies will have to come up with alternative solutions for retailers in the run-up to Google removing support for third-party cookies by 2022.
For example, ad tech giant Criteo introduced a retail media solution in 2018 that was “designed to be essentially immune against third-party cookie restriction” by working more closely with merchants to collect first-party data for targeting. Cookiepocalypse, Any data provided by a customer to a shop or brand, such as an email address or information obtained from their previous purchase history, is referred to as first-party data.
Target, Macy’s, and Best Buy, Cookiepocalypse
It’s a platform that lets merchants manage campaigns across all of their channels as well as sell ad spaces on their own sites. Target, Macy’s, and Best Buy are among Criteo’s retail clients.
The elimination of third-party cookies, Cookiepocalypse according to Joe Yakuel, CEO of performance marketing firm Agency Within, will help Facebook, Google, and Amazon the most – all of the large advertising platforms that have first-party data.
“This will restrict brands from having as diverse a marketing mix as they would like,” Yakuel said.
Retailers like Target, Walmart, and Kroger, which are developing their own advertising networks, may benefit from Google’s decision to eliminate third-party cookies. Target cited its first-party data as a major advantage in a pitch deck it sent out to clients last year.
While cookie-based data might tell advertisers that a user is “likely married” and “between the ages of 18-35,” Target’s advertising network can help advertisers target users based on their exact age, Cookiepocalypse as well as what Target store(s) they might shop at, among other information, according to one slide.
In an email, Monish Datta, vp of growth at Glamsquad and a former product marketing manager at Facebook, said, “Retailers that have a firm hold on their first-party data will continue to have little impact overall.”
Third-party cookies, Cookiepocalypse
Some shops may have to rely on various signals instead of third-party cookies to determine whether to display a user an ad for their product if third-party cookies are not available.
The demise of third-party cookies, according to Tanzil Bukhari, Cookiepocalypse managing director of ad verification business DoubleVerify, Cookiepocalypse will usher in the rise of contextual ad targeting. Contextual targeting is when you target a user depending on the page they’re on right now.
He added, “Instead of displaying you a Nike ad because you were shopping for shoes two hours ago, you’ll receive a Nike ad because you’re reading about the Olympics.”
Instead of using cookies to provide information
Instead of using cookies to provide information about what users are doing on their website to a third-party vendor like a chat service or payment processor, Cookiepocalypse Goldberg suggested that some retailers run the vendor’s code on their own site to allow the service.
However, implementing such a system necessitates a deeper relationship between the seller and the retailer, which some vendors may only be prepared to do with larger stores.Cookiepocalypse.
“Like most things, [finding solutions to third-party cookies] will be easier for the big corporations to address than for a bunch of tiny enterprises,” Goldberg added.
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