What Are Third-Party Cookies and How Are They Used?

Google’s announcement to remove support for third-party cookies in 2022 has been delayed for a year.

Pew Research Center states that 81% of people believe data collection risks outweigh its benefits. This is in large part to third-party cookies, hence Google’s desire to find a better alternative.

But why are third party cookies bad? And what’s the difference between first party cookies and third-party cookies?

Read on to discover how cookies work and why the marketing industry relies on them. Learn about the regulations and how to advertise online without falling foul of the law.

What Are Third-Party Cookies?

A cookie is a file that a website saves to your computer for tracking purposes.

Their original purpose was to prevent users from having to log in to a page on every visit. Because the web doesn’t remember who sent a request, cookies act as the glue to bind sessions together.

That’s great news for your favorite website but what about advertisers? Can they also set cookies?

The short answer is yes. Any external site linked to the page can set its own cookies. These are third-party cookies. And they’re a thorn in the side of privacy advocates everywhere.

First Party Cookies and Third-Party Cookies

There are two types of cookies:

First party cookies – set by the main website
Third party cookies – set by a third-party like Google Ads or Amazon

Third-party cookies track users across the web. Large data dumps record everything. Advertisers then create profiles from this information to target ads to specific groups.

Why Are Third Party Cookies Bad?

More and more users don’t want their movements tracked online.

In Europe, web developers must include a way to opt out of third-party cookies. The EU Cookie Law informs visitors that the site uses cookies and how to block personal information from being shared.

Unfortunately, these regulations have led to a user experience (UX) disaster. Visitors need to opt-in for every site which is a logistical nightmare.

Google Chrome 3rd Party Cookies 2023 Update

Google announced in March that it will switch off third-party cookies in its Chrome browser in the near future.

It wants to use an anonymous aggregation system instead called Federated Learning of Cohorts or FLoC. This won’t track an individual but includes them in a targeted group that advertisers can market to.

Regulators want some firm assurances before agreeing to the FLoC system hence the delay to 2023. Yet the industry is changing, especially for businesses that rely on cookies to display ads.

How to Block Third Party Cookies

Chrome users can go to Settings > Privacy and Security > Block all Cookies. Edge users should click on More > Settings > Advanced Settings > Cookies.

However, some sites will not work correctly if you disable cookies completely.

Future Proof Digital Marketing Strategies

Third-Party cookies will fall by the wayside of the digital highway within two years.

Google is adamant that its browser will only support FLoC from 2023. Some marketers fear this will lead to less targeted advertising which in turn will impact sales.

That’s why it’s essential to partner with a marketing team that works with the future in mind.

DG Studio is a digital media and internet marketing firm that specializes in website development. We always keep track of future developments and strategize accordingly.

Contact us today to discover how DG Studio can guide you on the path to digital marketing. No matter how the cookie landscape changes, together we can reach your target audience.