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Monday June 22nd, 2020

Google Cookieless World and its Impact on the Brand

By : Bizinsight

In early 2020, Google announced that in the next two years they would stop supporting third party cookies. This step raises questions about the future of the digital advertising industry. One of the biggest reasons is because of Google Chrome’s monopoly in the browser market.

What are Cookies and Third-Party Cookies?

The cookie in the browser has existed more than 25 years ago. It is a small text file that is stored on the user’s hardware. Its function is to identify the user after visiting a site.

To identify a user, several data components make up a browser cookie. First, the name of the server that placed it. Second, non-nominative identifiers in the form of unique ID numbers. Third, the cookie expiration date. To date, two types of browser cookies are well known is First Party Cookies and Third Party Cookies.

First Party Cookies are Cookies created by domain hosts – websites that users visit. This type of cookie is generally considered good because it can help provide a better user experience and keep sessions open.

Basically, with the presence of First Party Cookies, it means that the browser can remember key information. For example when you add items to a shopping cart, username and password, and language preferences.

While Third Party Cookies are Cookies made by domains other than those visited by the user at that time. These cookies are generally used for online advertising and tracking purposes. They also allow website owners to provide certain services, such as live chat.

For example, when you visit situsberita.com, it will create first-party cookies and save them to your computer. Because, like most other publishers, they use online advertising as a way to monetize their content.

These advertisements will also create cookies (for example in the domain ads.somedsp.com) and store them on your computer. Because these cookies are not made by situsberita.com, they are classified as third-party cookies.

Why did Google make this decision?

These third-party cookies are widely used for digital advertising. The goal is that advertisers can identify users to send relevant advertisements across websites on the internet to retarget. However, this triggers privacy issues because the widespread use of cookies means that data is fragmented across websites, devices, applications, etc.

Google’s decision to stop supporting third-party cookies in the next two years is certainly not without consideration. According to Chrome’s Director of Engineering Justin Schuh, this is due to increasing concerns about data privacy.

Justin said in a blog post that users demand greater privacy. This includes transparency, choice, and control over how their data is used. So, the web ecosystem needs to evolve to meet this increasing demand.

Even so, the initiative taken by Google is not new. Apple has made a similar move in 2017. So has the new Mozilla and Chromium-based Edge browser launched by Microsoft. In the future, browser competition will be very different.

Impact on Brands

When Google made this announcement, the initial indication received by the digital advertising industry was certainly not very good. Shares of several rival software companies fell when this announcement was made.

However, once again, Google’s initiative does not intend to kill the advertising technology industry. In addition to negative responses, not a few also gave positive responses to this initiative.

The use of first-party cookies will eventually become more important than before. Although companies like Amazon, Google, and Facebook will continue to grow because they continue to have access to first-party data, publishers and advertisers also have the same opportunity to direct the audience to their site.

Besides, opportunities to collaborate among first-party data holders can be further explored. As with Telkomsel DigiAds, which has optimized data management technology since 2014 to be able to generate insights on consumer behavior collectively.

Brand owners can optimize marketing methods combined with managing this data through a variety of Telkomsel DigiAds services that can connect brands to more than 160 million Telkomsel customers throughout Indonesia as needed. That way, the brand can increase its ability to provide the right offer to consumers.

Telkomsel DigiAds is part of the large Telkomsel family. With extensive advertising media, verified inventory, and advanced advertising technology, we want to be the best “digital marketing solutions provider” in Indonesia. If you have questions, contact us via email at digitalads@telkomsel.co.id and we will be happy to help. You can also follow us on social media like Instagram and LinkedIn to find out more about insight and also our latest activities.

[Image source: StockSnap from Pixabay]