We have been using the internet for as long as we can remember. So much so that our lives have grown dependent on it. Every time you use the internet for something, you leave a digital trail behind. Each piece of trail left behind is seen as data. Now, imagine the amount of data that is being generated every day, every minute, every second. Website collect these bits of data, called cookies, as a way to understand the profile of the people who have visited their website.

This is where the concerns over user privacy lie. Is the collection and use of these user data via cookies infringing on your personal privacy?

More and more people seem to agree that these cookies are violating their privacy. This issue has gained so much traction that huge technology market players are now taking a stance to promote greater user privacy. In 2021, Apple announced that its latest update will give iPhone users personal control over their online privacy. Recently, Google Chrome has also announced that it will end the use of 3rd party cookies.

While this may seem to be a win for consumers, these new measures impact the digital marketing strategies that have grown reliant on data tracking. So, how will you be affected, and how can your prepare for this change?

What are cookies?

Cookies store the user’s history and activities as they visit surf multiple webpages and applications.  Interactions that the user makes such as clicks, forms and passwords will also be stored for a specific period of time. This is why every time the same user visits the same website, the pages will load faster. This actually enhances the user’s experience of the website as the previous user data has already been recorded..

From a digital marketing perspective, advertisers are able to personalise their marketing strategies. They can also use this information to adjust content according the interests and behaviours of each user. For example, imagine a user who were browsing an e-commerce store and added items to the cart but did not check out. When this user visits the same e-commerce store, the browser will remind them of the items that they have left in their shopping cart.

First-Party VS Third-Party Cookies

To understand how cookies affect your personal privacy online, you will need to understand what first-party and third-party cookies are.

First-party cookies are made by the website or app that the user is visiting. They gather information, such as user’s preferred language and preferred payment method. Other structured data are also collected such as username, password and interested products that were left in the shopping cart.

Third-party cookies are made by a domain different from the one that the user has visited. These are the cookies that are largely utilised for promoting and advertising purposes. This is because they have cross-tracking abilities, which means that users behaviour across multiple websites are tracked using the same cookies. This is powerful as marketers can deliver ads in an optimised manner. This makes it easy for marketers to perform retargeting ads according to past user behaviour.

Cookie Alerts

Lately, there has been more talks about online privacy and demands for companies to be more transparent with the way that they track user data. Thus, there have been visible changes that you might have noticed as you surf the internet. These changes include notices like the “cookie alert warning” such as below:

These warnings are meant to alert the user that their data is collected by the website that they are accessing. It also shares more information about how the data is being used by the company. Users now have the ability to decide if they want to accept the cookie or make changes to their cookie-preferences.

Generally, cookies are harmless. Its main purpose was to improve and enhance the user experiences online. However, the cause for concern lies in how the data is being used. The biggest concern is when the personal data of users are being sold to other businesses, particularly when users are unaware of this transaction. The most significant breach of this trust would be to be Cambridge Analytica scandal. This case just heightens the users’ demand for increased privacy on the internet.

The End of Cookies?

Technology companies have responded to users demands. Recently, Google has also joined in this push to be cookie-less. It has announced plans to end 3rd party cookies on its Chrome browser. This change is planned to be rolled out in stages and will be fully phased out by 2023.

This is a win for users who are concerned about how their online movements were being covertly tracked and transacted without their knowledge or consent. A cookie-less experience means that data security is maintained. This also reduces the risk of personal information being transacted.

For advertisers, this move may have the most impact on them since this was how digital marketing has been carried out. Instead of relying on 3rd party data, advertisers have to be more reliant on first party data which focuses on establishing direct contact with consumers. This close relationship is beneficial as it enhances users trust in the brand. It also provides businesses with the opportunity to create meaningful and engaging experiences with their audiences.

Preparing For Cookie-Less Future

Google has been kind in sharing the news and providing businesses with some time to adapt to a cookie-less future. Advertisers will now have to experiment with other forms of data collection to continue building a deep understanding of their audiences. Some ways to do this now are:

1. Collect Data Directly

The main issue with cookies have to do mostly with the 3rd party cookies. 3rd party cookies does not safeguard user information because the data is not contained within one website. Thus, advertisers are advised to depend on direct means of data collection. This includes first party cookies on owned websites, or even running market research surveys and social media polls. Businesses can also offer more value to consumers by exchanging their information for exclusive e-book or new product releases.

2. Maintain Transparency

There is no room for obscure behaviour and shady marketing tactics, given users’ great concerns over online privacy. Brands and businesses need to be transparent and share the reasons for user data collection and also how the data will be used. With countries implementing various data protection acts, this is not just a legal obligation, but also a way to build confidence and trust of the consumer.

3. Quick Access To Privacy Policy

Another way to gain user’s trust is to have a clear privacy policy that users can refer to. This is actually also part of abiding by the legal data protection acts of various countries. Visitors to your website should be able to have s control over their data. If users are uncomfortable with sharing their personal data, they should be able to opt out or delete information from the records. These actions should be presented to them clearly, while also being easily and quickly handled.

 

Conclusion

Sensitive data may be easily procured and collected by huge corporations. However, tide is slowly changing as users look for secure relationships with brands and businesses. If brands even show signs of duplicity or shady activities, they would have lost the opportunity to engage convert consumers. This is why it is so important to be mindful of the way you are handling your consumers’ information. Take this time to find ways of direct data collection that works for your business while also slowly terminating the use of 3rd party cookies.