Understanding Third-Party Cookies and How to Prepare for Them
We've all heard of third-party cookies, but do you know what they actually do? Here's how they work and what you should know about privacy.
What are cookies?
Cookies are important tools in online marketing and advertising. Websites use them to save information about a user’s browsing activity, tailor services to that individual, and increase the likelihood that they will engage with the website’s content.
Third-party cookies are created by domains outside the website you’re browsing. They’re placed on that site by adding scripts or tags, and are accessible on any website that loads the third-party server’s code. Unlike first-party cookies that save information about the site you’re visiting, third-party cookies follow you around the internet and allow companies to send you targeted ads.
Third-party cookies can collect a variety of data from users, including age, gender, location, websites and subpages visited, and the length of time spent on those pages.
How do third-party cookies work?
A website first sends a request to the third party’s server – often in the form of a pop-up advertisement. After you grant access to it, the company behind the ad can track your internet browsing patterns. This is why the same ads may seem to pop up regardless of the site you visit.
As a result, you create a metaphorical trail of cookie crumbs that follow you on your web journeys. Many consumers don’t realize that a cookie can track multiple tabs in a single browser; as you move from tab to tab, you are unintentionally relaying information about your browsing history to other sites and advertisers. Closing the browser after a session doesn’t always eliminate the cookies stored on your computer, either. Depending on the browser you use, you may have to take this step manually by clearing your history at the end of a browsing session. You can easily adjust your preferred browser’s settings to eliminate cookies; if you don’t, the browser may continue to retain cookie data from every session.
To disable or not to disable? That is the question
Many consumers are uncomfortable with the concept of third-party cookies because they’re concerned about privacy. Some software may allow outside parties to access sensitive data that was collected and stored in the browser – such as names and credit card information. For this reason, many people find it valuable to disable cookies as they surf the web.
Most social media companies, advertisers and other marketing technologies store third-party cookies and consumers can disable them to prevent these sites from tracking their activity. As a result, they won’t see ads tailored to their individual browsing history. If you’re concerned about your activity being tracked and shared, it may be worth the extra step it takes to disable third-party cookies.
On the flip side, disabling cookies may also result in a less optimized and less efficient web experience, which can be a hindrance to organizations and an inconvenience to consumers. For example, you probably won’t receive weather forecasts, retail promotions, or news updates that are relevant to you because the disabled cookies can’t pinpoint your location. That’s why advertisers find third-party cookies especially helpful in getting users to engage with their content. One study found that 90% of consumers are irritated when they receive messaging that’s irrelevant to them. And 67% of Millennial and Gen Z consumers said that they expect online offers to always be personalized.
It’s worth noting that installing an ad blocker on your browser typically prevents advertisers from generating third-party cookies on your device. However, these ad blockers may also disrupt your browsing experience on certain sites.
The future of third-party cookies
In recent years, governments have enacted data-privacy legislation to protect consumers from less-than-transparent cookie practices. In 2018, Vermont became the first state to enact a law that requires data brokers to disclose collected data to consumers as well as allow them to opt out of collection. The same year, California’s Consumer Privacy Act required businesses to disclose data collection to consumers, as well as give consumers the right to request what personal information was collected and how it’s being used.
In July 2021, Google announced that it would phase out third-party cookie usage on Chrome by the end of 2023. In the company’s original phase-out announcement, the tech giant said:
Users are demanding greater privacy--including transparency, choice, and control over how their data is used--and it’s clear the web ecosystem needs to evolve to meet these increasing demands.
However, that does not mean the end of data tracking; Google is already exploring alternative methods to cookies that could be equally efficient in collecting information.
Whatever technologies come next, implementing the highest settings on your preferred browser and investing in a Virtual Private Network (VPN) can give you more privacy and peace of mind online.