The Phase-Out of Third-Party Cookies

Why do you want to abolish third-party cookies?

Third-party cookies are small data packets that websites store on users' devices to collect information. They allow advertisers to track users across different platforms and display targeted advertising. However, this has attracted considerable criticism in recent years:

• Privacy concerns: users often feel monitored and uncomfortable when they see personalized advertising based on their browsing behavior. This has led to a growing mistrust of companies.
• Regulatory requirements: Laws such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States have significantly strengthened consumer rights. These regulations aim to enforce stricter control over the handling of personal data and to protect users' privacy. Third-party cookies increasingly conflict with these standards, as they are often used without sufficient transparency and user consent.
• Brand trust: Companies want to strengthen the trust of their customers and are increasingly relying on privacy-friendly technologies to protect their reputation.

Why is the abolition being delayed?

Although the major players, in particular Google with its Chrome browser, have announced that they will abolish third-party cookies, there are delays. This is due to several factors:

• Technological challenges: Replacing third-party cookies requires new technologies such as the so-called Privacy Sandbox, which is intended to enable anonymized data processing. However, these technologies are still under development.
• Economic impact: Many companies - especially in digital marketing - are heavily dependent on third-party cookies. A sudden abolition could cause considerable economic damage.
• Industry disagreement: Advertisers, platforms and privacy organizations have differing views on the best alternatives and their impact. These discussions are slowing down progress.

Advantages of abolishing cookies for influencer marketing

The abolition of third-party cookies could have a positive impact on influencer marketing:

• • Focus on quality content: Without the ability to track users granularly, the authenticity and quality of influencer content becomes more important. Brands could focus more on working with influencers who really fit the target group.
  • Direct relationships with the target group: Influencers usually have loyal followers with whom they interact directly. Without third-party cookies, the value of these direct relationships becomes even greater.
  • Strengthening data protection: Brands that rely on data protection-friendly practices could score points with consumers. Influencers could position themselves as trusted intermediaries.
  • New technologies and approaches: Eliminating cookies encourages innovation, such as AI-powered analytics and privacy-friendly tracking alternatives, which could be more efficient and sustainable in the long run.

Disadvantages of the abolition of cookies for

influencer marketing

Of course, the abolition of third-party cookies also brings challenges:

• • More difficult to measure success: Tracking methods or the allocation of sales to specific campaigns are limited. This makes it difficult for brands to correctly calculate ROI (return on investment) and evaluate the effectiveness of their investments.

• • Higher costs: The development of privacy-friendly technologies and the increased analysis of first-party data could entail additional costs for companies.
  • Less targeted advertising: Third-party cookies make it possible to address specific target groups efficiently. Without this data, the wastage of influencer campaigns could increase
  • Dependence on platforms: Platforms such as Instagram, YouTube and TikTok could gain even more power through the use of their first-party data, which could put smaller brands and influencers at a disadvantage.