A year when the cookies will finally crumble



# A year when the cookies will finally crumble: How the web is changing in 2024

The year 2024 is a pivotal one for the web, as it marks the end of an era for third-party cookies, the small files that collect and store data about users' online behavior. Third-party cookies have been the backbone of online advertising, analytics, and personalization for decades, but they have also raised serious concerns about user privacy, security, and consent.

Google, the dominant player in the web ecosystem, has announced that it will phase out third-party cookies from its Chrome browser by the second half of 2024, following the footsteps of other browsers, such as Safari and Firefox, that have already blocked or limited them by default. Google's decision will affect billions of users and millions of websites, as well as the entire online advertising industry, which relies heavily on third-party cookies for targeting, tracking, and measuring ads.

But what are the implications of this change for users, publishers, advertisers, and the web as a whole? How will the web function without third-party cookies, and what are the alternatives and challenges? In this post, we will explore these questions and more, as we look at how the web is changing in 2024.

## What are third-party cookies and why are they going away?

Cookies are small pieces of data that websites store on users' browsers when they visit them. They can be used for various purposes, such as remembering users' preferences, logging them in, or showing them relevant content and ads. However, not all cookies are created by the website that users visit. Some cookies are set by third-party domains, such as advertisers, analytics providers, or social media platforms. These cookies can track users' activity across different websites, creating a profile of their interests, behavior, and preferences. This is how users may see ads for products or services that they searched for or viewed on other sites.

Third-party cookies have been widely used and abused by the online advertising industry, as they enable precise and personalized targeting of ads to users, as well as measurement and attribution of ad performance and conversions. However, third-party cookies also pose significant risks and challenges for user privacy and security, as they expose users' data and identity to potential misuse, theft, or manipulation by malicious actors. Moreover, third-party cookies often operate without users' knowledge or consent, violating their rights and preferences.

As a result, third-party cookies have faced increasing scrutiny and regulation from governments, regulators, and consumers, who demand more transparency, control, and protection over their online data and privacy. The European Union's General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) are two examples of laws that require websites to obtain users' consent before collecting and processing their personal data, including third-party cookies. Many users have also opted to block or delete third-party cookies from their browsers, using tools such as ad blockers, privacy extensions, or browser settings.

In response to these pressures and trends, Google has announced that it will phase out third-party cookies from its Chrome browser by the second half of 2024, as part of its Privacy Sandbox initiative, which aims to create a more privacy-preserving and sustainable web ecosystem. Google claims that third-party cookies are an outdated and intrusive way of tracking users, and that they need to be replaced with more privacy-friendly and innovative alternatives.

## What are the alternatives and challenges for the web without third-party cookies?

The demise of third-party cookies will have profound implications for the web, especially for the online advertising industry, which will have to adapt to a new reality and find new ways to reach and engage users with relevant and effective ads. However, the transition will not be easy or smooth, and there are many alternatives and challenges that need to be considered and addressed.

Some of the alternatives and challenges for the web without third-party cookies are:

- **First-party data**: First-party data is the data that websites collect directly from their own users, such as their email, name, location, or purchase history. First-party data is more reliable, accurate, and consent-based than third-party data, and it can be used to create more personalized and loyal relationships with users. However, first-party data is also limited, fragmented, and siloed, as it only reflects the users' behavior and preferences on a single website or platform. Moreover, first-party data requires more resources and expertise to collect, store, and analyze, and it may not be sufficient or relevant for all types of advertising campaigns or objectives.

- **Contextual advertising**: Contextual advertising is a form of advertising that matches ads to the content and context of the website or page that users are viewing, rather than to their personal data or profile. Contextual advertising can be more respectful and relevant to users' interests and needs, as well as more compliant with privacy regulations and preferences. However, contextual advertising can also be less precise and effective than behavioral advertising, as it does not account for users' past or future behavior, intent, or preferences. Moreover, contextual advertising can be more susceptible to fraud, misplacement, or brand safety issues, as it depends on the quality and accuracy of the content and keywords that are used to match ads.

- **Identity solutions**: Identity solutions are technologies and platforms that aim to create and maintain a persistent and unique identifier for users across different websites and devices, without relying on third-party cookies. Identity solutions can be based on various sources and methods, such as email, phone number, login, device fingerprint, or consented IDs. Identity solutions can enable more consistent and accurate targeting, tracking, and measurement of ads across the web, as well as more transparency and control for users over their data and privacy. However, identity solutions can also face technical, legal, and ethical challenges, such as interoperability, scalability, security, compliance, and user adoption.

- **Privacy Sandbox**: Privacy Sandbox is Google's proposed set of new technologies and standards that aim to replace third-party cookies with more privacy-preserving alternatives. Privacy Sandbox consists of several initiatives, such as:

    - **Federated Learning of Cohorts (FLoC)**: This is a method of grouping users into cohorts based on their browsing history, without revealing their individual identities or activities. Websites and advertisers can then target ads to these cohorts, rather than to individual users.
    - **Trust Tokens**: These are tokens that websites can issue to users to prove that they are human and not bots, without revealing their personal information. This can help prevent fraud and abuse on the web.
    - **First-Party Sets**: This is a way for websites that belong to the same organization or brand to declare their relationship, so that they can share cookies and data with each other, without being considered as third-party domains.

Privacy Sandbox is still in development and testing, and it has received mixed reactions and feedback from the industry and the regulators. Some have welcomed Privacy Sandbox as a positive and innovative step towards a more privacy-friendly and sustainable web, while others have criticized Privacy Sandbox as a self-serving and monopolistic move by Google, that could harm the competition and diversity of the web.

## Conclusion

The year 2024 is a year when the cookies will finally crumble, and the web will undergo a major transformation. Third-party cookies, which have been the main mechanism for online advertising, analytics, and personalization for decades, will be phased out from Chrome, the most popular browser in the world, following the lead of other browsers. This will affect billions of users and millions of websites, as well as the entire online advertising industry, which will have to find new ways to reach and engage users with relevant and effective ads, without compromising their privacy and security.

However, the web without third-party cookies will also present new opportunities and challenges for the web, as it will require more innovation, collaboration, and regulation to create a more privacy-preserving and sustainable web ecosystem. There are many alternatives and solutions that are being proposed and explored, such as first-party data, contextual advertising, identity solutions, and Privacy Sandbox, but none of them are perfect or definitive, and they all have their pros and cons.

As a result, the web in 2024 will be a dynamic and uncertain environment, where users, publishers, advertisers, and the web as a whole will have to adapt and evolve to the new reality and find the best balance between privacy and precision in advertising.