Third-Party Cookies: What Businesses Need to Know
The Evolution and Future of Third-Party Cookies. How online privacy is reshaping digital advertising, user tracking, and business responsibilities.
Hello,
Third-party cookies have been a fundamental part of the digital advertising landscape for over two decades. These small data files, placed by external websites on a user’s browser, have enabled businesses to track user behaviour across multiple websites, allowing for targeted advertising, retargeting, and analytics.
However, growing concerns over data privacy, coupled with legislative changes such as the General Data Protection Regulation (GDPR) in Europe and Quebec’s Law 25, have prompted a major shift in how companies handle user data.
The conversation around third-party cookies is now at a turning point, with Google and other major players planning to phase them out completely by 2025. Let’s find out what is to come in this report.
MusicScore: The writer listened to some New Wave Music while writing this paper. Here is the classic from Simple Minds to join your lecture: Don’t You (Forget About Me).
How Third-Party Cookies Work and Why They’re Being Phased Out
First-Party vs. Third-Party Cookies
First-party cookies are created and stored directly by the website a user visits. They help improve the browsing experience by remembering login credentials, language preferences, and shopping cart contents.
Third-party cookies, on the other hand, are placed by external domains, often advertising networks, to track user behaviour across different sites.
While first-party cookies are generally accepted as useful and harmless, third-party cookies have raised concerns due to their role in cross-site tracking, user profiling, and data monetization.
Why Are Third-Party Cookies Being Phased Out?
Privacy Regulations – Laws such as GDPR and Law 25 in Quebec require explicit user consent for tracking, making third-party cookies harder to implement legally.
Consumer Awareness – Increased awareness about data privacy has led users to demand more transparency regarding how their data is used.
Tech Industry Shifts – Google has announced plans to eliminate third-party cookies from Chrome by 2025, following Apple’s restrictions on tracking in Safari.
For advertisers and businesses relying on cookie-based tracking, these changes present both challenges and opportunities.
How Quebec Consumers Feel About Data Privacy
Recent surveys highlight that Quebecers are becoming increasingly concerned about how their personal data is used online. According to Sondage Léger 2024, a majority of consumers are
Actively adjusting their privacy settings on web browsers.
Avoiding websites that don’t clearly disclose their data usage policies.
Preferring businesses that provide transparency about their data collection practices.
These shifting behaviours indicate that businesses will need to adopt clear, privacy-friendly communication strategies to retain customer trust.
What Quebec Businesses Need to Know About Law 25
Overview of Law 25
Law 25, also known as Quebec’s data privacy reform, imposes new obligations on companies handling personal data. These include:
Mandatory explicit consent from users before collecting personal data.
Requirements for transparent cookie banners that allow users to opt-in rather than opt-out.
Heavy fines for businesses that fail to comply.
How Can Businesses Adapt?
Update Your Website’s Privacy Policy – Explain clearly how cookies are used and how user data is processed.
Implement Cookie Banners Correctly – Make sure users opt-in rather than having pre-checked consent boxes.
Use First-Party Data – Shift towards collecting data directly through customer interactions, email signups, and surveys.
Monitor Compliance Updates – Stay updated on how enforcement of Law 25 is evolving and adapt accordingly.
For a more detailed guide on compliance, refer to our article on digital advertising best practices.
What Comes After Third-Party Cookies? Alternative Solutions
With the decline of third-party cookies, the industry is exploring new ways to track and understand user behaviour. Some alternatives include:
Google’s Privacy Sandbox: Google’s Privacy Sandbox aims to replace cookies with Federated Learning of Cohorts (FLoC), a technique that groups users into interest-based cohorts instead of tracking individuals.
Contextual Advertising: Instead of tracking individual users, contextual ads rely on page content to determine relevant advertisements.
First-Party Data & Customer Relationship Management (CRM): Companies are encouraged to build direct relationships with their customers through first-party data collection.
The Future of Digital Advertising Without Third-Party Cookies
As the marketing world adapts to a cookieless future, businesses will need to explore alternative strategies to maintain audience engagement. Some trends to watch include:
More reliance on AI-powered insights to predict consumer behaviours without invasive tracking.
Growth of walled gardens, where platforms like Google, Meta, and Amazon hold exclusive first-party data.
Rise of blockchain technology for transparent, decentralized data tracking.
Quebec businesses should closely follow announcements from La Presse, TVA, and the Quebec government regarding local advertising shifts.
The Impact on Digital Marketing Strategies
For Advertisers
The disappearance of third-party cookies means advertisers will need to shift their strategies towards methods that rely on first-party data and alternative tracking technologies.
Retargeting with First-Party Data: Since advertisers will no longer be able to rely on third-party tracking, they must focus on email marketing, customer loyalty programs, and user registration systems to gather data directly from consumers. Encouraging visitors to sign up for newsletters or creating exclusive membership benefits can help retain engagement.
Contextual Advertising: Instead of following users across different sites, advertisers can leverage contextual targeting, which places ads based on the content of the page rather than the user’s past behaviour. This method respects privacy regulations while still offering relevant promotions.
AI-Driven Insights: Machine learning algorithms can help predict consumer behaviour and personalize ads without storing user-specific data. By analyzing patterns, preferences, and purchasing habits, AI can improve targeting efficiency while staying compliant with privacy laws.
Strengthening Partnerships: Advertisers may need to form direct partnerships with publishers to gain access to first-party data. This means working closely with trusted media outlets and platforms to ensure brand visibility without relying on third-party cookies.
For Website Owners
Website owners must also adapt their strategies to continue engaging visitors and optimizing their online presence in a cookieless digital landscape.
SEO & Content Marketing as a Primary Strategy: With tracking limitations, websites need to increase organic traffic through well-optimized, high-quality content. Investing in long-form articles, blogs, videos, and infographics can improve search rankings and drive consistent traffic.
Improving User Experience (UX): With less access to behavioural data, businesses must enhance on-site engagement to keep visitors interested. This includes faster page speeds, intuitive navigation, and interactive elements that encourage visitors to stay longer.
Developing Private Data Strategies: Businesses should encourage direct user interactions to collect first-party data ethically. This can include quizzes, surveys, free resource downloads, and gated content that requires an email signup.
Investing in Data Protection Measures: Trust will be a key differentiator in the new digital environment. Websites should highlight transparent data policies, SSL encryption, and clear opt-in options to assure users that their information is secure.
By implementing these strategies, advertisers and website owners can continue reaching their target audience effectively while respecting new privacy regulations and shifting industry standards.
Three Concrete Examples of Businesses Adapting to a Cookieless Future
1. A Restaurant with an Online Reservation System
A local restaurant that relies on third-party cookies for retargeting ads needs to shift towards first-party data collection. Instead of tracking users across different websites, the restaurant implements the following strategies:
Encourages users to create an account on their reservation system, allowing them to save preferences and receive personalized offers.
Leverages email marketing by sending exclusive deals, menu updates, and event invitations to registered customers.
Uses geotargeting based on opt-in location data rather than behavioural tracking, helping to advertise promotions to local customers effectively.
2. A Small Service-Based Company Using Mailchimp and a Modest Advertising Budget
A small business, such as a local consulting firm or fitness studio, previously relied on third-party cookies for retargeting and tracking ad performance. With limited resources, they transition by:
Building an engaged mailing list through Mailchimp, offering value-driven content and promotions in exchange for signups.
Focusing on social media and Google Ads with interest-based targeting rather than behavioural tracking.
Integrating CRM tools to segment customers based on first-party data rather than third-party analytics, allowing for personalized but privacy-friendly communication.
3. A Large Corporation like Bell or Quebecor
Major corporations that previously depended on third-party ad networks are making significant shifts by:
Developing their data ecosystems to collect and analyze first-party data across their platforms.
Investing in AI-driven ad targeting that predicts consumer behaviour based on real-time interactions instead of tracking users across the web.
Implementing consent-based ad models, where users opt into personalized experiences rather than being passively tracked.
Forming direct partnerships with media outlets and digital publishers to ensure access to premium ad spaces without relying on third-party networks.
These real-world adaptations illustrate how businesses of all sizes are finding privacy-compliant ways to continue engaging with their audiences effectively.
The Challenge of Tracking Visitor Statistics Without Third-Party Cookies
The transition away from third-party cookies raises an important question for businesses: how can they continue to analyze visitor behaviour when users opt out of tracking? While traditional analytics relied heavily on third-party cookies for deep insights into user interactions, businesses must now adapt to privacy-first methods that still provide meaningful data.
Privacy-Friendly Analytics Solutions
A variety of analytics tools now offer alternatives that align with privacy regulations while still enabling businesses to track essential website performance metrics. These platforms don’t rely on invasive tracking mechanisms but instead focus on aggregated and anonymized data. Some leading options include:
Google Analytics 4: Unlike its predecessor, GA4 places greater emphasis on event-based tracking, enabling businesses to analyze user interactions without relying on cookies.
Plausible Analytics: A privacy-focused analytics platform that doesn’t use cookies and aggregates data while ensuring compliance with GDPR and other privacy laws.
Matomo Analytics: An open-source alternative that allows businesses to store and control their analytics data without relying on third-party servers.
Fathom Analytics: A lightweight, cookie-free analytics platform that provides insights while respecting user privacy.
Alternative Metrics for Understanding User Engagement
Even without cookies, businesses can analyze visitor engagement by focusing on alternative performance indicators. Some of the most effective methods include:
Server-side Tracking: Instead of relying on client-side cookies, some businesses are shifting to server-side tracking, where user interactions are logged securely on their servers without exposing identities.
Session-Based Analytics: Rather than tracking users across multiple visits, businesses can analyze session-based metrics, such as page views, time on site, and interaction rates within a single browsing session.
Heatmaps and Scroll Tracking: Tools like Hotjar and Microsoft Clarity provide anonymized heatmaps, showing where users click, scroll, and spend time on a website.
Conversion Rate Analysis: By tracking the percentage of users who complete a desired action—such as signing up for a newsletter or making a purchase—businesses can measure effectiveness without needing personal identifiers.
The Role of First-Party Data in Analytics
One of the most important adjustments businesses must make in a cookieless world is leveraging first-party data more effectively. This involves collecting data directly from users through transparent means, such as:
Opt-in Forms: Encouraging visitors to provide their email addresses in exchange for valuable content, such as e-books, exclusive offers, or webinars.
Customer Accounts and Loyalty Programs: Websites that require users to log in can track behaviour in a way that is both privacy-compliant and informative.
Surveys and Feedback Forms: Directly asking users about their preferences and experiences can provide qualitative insights that are often more valuable than traditional tracking data.
The Future of Web Analytics and Business Adaptation
As privacy regulations continue to evolve, businesses will need to adopt a more ethical approach to analytics. The focus will shift from tracking users to analyzing broader trends and behaviours in an aggregated manner. Additionally, companies must prioritize transparency, ensuring users understand how their data is collected and used.
Organizations that successfully navigate this transition will not only comply with privacy regulations but also build greater trust with their audience. The companies that proactively adopt privacy-first analytics will be well positioned for the future of digital marketing and customer engagement.
Conclusion
With the demise of third-party cookies, businesses must rethink their digital marketing strategies and prioritize privacy-friendly approaches. The shift to first-party data, contextual advertising, and new technologies like Google’s Privacy Sandbox will redefine how businesses connect with their audiences.
And as we navigate these changes, let’s take a break, grab a cookie, and embrace a more privacy-focused future online!
Thank you for reading. See you on the Blog!
Jeff
Sources:
Statistique Québec. Rapport économique du Québec, troisième trimestre 2024. https://statistique.quebec.ca
Léger. Sondage 2024 sur les préoccupations des consommateurs. https://leger360.com
Gouvernement du Québec. Loi 25 – Protection des renseignements personnels. https://www.legisquebec.gouv.qc.ca/fr/document/lc/P-39.1
Google. Privacy Sandbox Initiative. https://www.privacysandbox.com/
Option consommateurs. Baromètre de confiance 2024. https://option-consommateurs.org
GDPR EU. General Data Protection Regulation Overview. https://gdpr.eu/
Cr images: production Services W+M.
A Fun Twist: Our April 1st Cookie Recipe
Since this article will be published on April 1st, we have a surprise for you! To celebrate “cookies” differently, we’ve included a special gluten-free cookie recipe for our readers. Of course, the morning promo of this article release on April’s fool was linked to a cookie recipe instead of this report ;)
Gluten-Free Chocolate Chip Cookies
Ingredients:
2 cups almond flour
1/2 cup coconut sugar
1/2 teaspoon baking soda
1/4 teaspoon sea salt
1/4 cup melted coconut oil
1 teaspoon vanilla extract
1 egg (or flax egg for a vegan option)
1/2 cup dark chocolate chips
Instructions:
Preheat oven to 350 °F (175 °C). Line a baking sheet with parchment paper.
In a bowl, mix almond flour, coconut sugar, baking soda, and salt.
Add melted coconut oil, vanilla extract, and egg. Stir until well combined.
Fold in chocolate chips.
Scoop dough onto baking sheet, forming small cookies.
Bake for 10-12 minutes until edges are golden brown.
Let cool before serving. Enjoy!
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