What are cookies and why are they important for advertising?

As an essential part of web browsing, HTTP cookies help web developers provide more personal and convenient website visits. Cookies allow websites to remember you, your website, your login information, your shopping carts and more.

So the advertising industry saw the huge potential of using cookies to personalize ads.

What are cookies?

Cookies, often referred to as HTML cookies, HTTP cookies, Internet cookies, or browser cookies, are small text files used to identify individual users who browse the Internet. They are native to the websites you visit and are stored on the user’s computer through a web browser. Essentially, cookies allow each website to recognize the user as the same person who has previously visited the site.

Why cookies?

In practice, when you visit a website, it throws a cookie on your computer. This cookie keeps you logged in and tracks your activity (such as setting up filters while browsing the store or storing products in your cart). The next time you visit, the site knows you’re the same person again.

What are the different types of cookies?

Aside from the most popular distinction between third-party and first-party cookies (discussed below), HTTP cookies can be split over the duration of the activity.

  • Session Cookie – The Session cookie is not stored on the hard drive and is deleted as soon as the user has finished browsing the site.
  • Persistent cookies. The most popular are tracking cookies. Their features include remembering changes made to your site, including language, theme, favorites, preferred shipping addresses, payment methods, and more.

Third-party vs. First-party cookies

The biggest difference in browser cookies is who the cookie belongs to. There are no other technical differences, ie both cookies have the same properties, but their origin and use are different.

The first party cookie is placed in our browser by the website we visit directly. It is created by the host domain and its main purpose is to handle a single browsing session. It remembers what users do, which parts of the site they visit, and the changes they make to the site (such as adding items to a shopping cart). In addition to providing a good web browsing experience, internal cookies collect analytical information that can only be accessed by the website owner.

Third Party versus First Party?

Third-party cookies, as the name suggests, come from a different domain than the one we’re visiting, so it’s not the site you visit directly that is visited, but e.g. belong to an ad technology platform. Their main purpose is to track user activity on the Internet. They are most often used for online advertising activities.

How are First party cookies used in ads?

First party cookies are not normally used in advertisements. They are the property of the owner of the website and can only be used by that owner. However, there are some exceptions. First-party data can be stored in data management systems. From here it can be shared with third parties.

How are third-party cookies used in ads?

Third-party cookies are an integral part of websites. The browser stores these on the user’s computer, which essentially allows third parties to collect an extensive profile of each individual user on their web server. And if a particular advertising company knows the location, reading habits, interests, and recent purchases of a single individual, you can target and refocus your ads across different sites and companies to show ads for products that really interest that individual.

Cookies everywhere

And how does a third-party cookie get to your site? It’s a simple process. Many sites make money by “leasing space” to advertisers. Therefore, they simply allow others to place cookies in the form of advertisements on their website.

Are cookies good or bad?

The answer to this question is not clear. The purpose of cookies is to remember what the user is doing and where to make it easier to browse the web. Thanks to cookies, we stay logged in, have a list of our favorites and receive advertisements for the products we have viewed. Cookies can serve ads to users of products they wanted to buy anyway, but with a special discount.

Good Cookie – Bad Cookie

What cookies can do:

  • Collect user information
  • Monitor user behavior
  • They remember the products and ads they clicked on
  • Recognize location and device

What cookies do not know:

  • They cannot obtain personal information from the computer
  • They do not contain viruses
  • They do not have access to passwords
  • They cannot make adjustments to the settings

Why do third-party browser cookies disappear?

Third-Party Cookies Goodbye!

The web community has always been skeptical about web servers that collect information about users ’browsing habits. Cookies not only store the information we need to run websites, but also store information about our interests and interactions. This can include sensitive data and personally identifiable information.

Cookies created without the user’s consent can track individuals on the Internet. Despite GDPR laws and policies, pop-ups requesting consent are still designed to persuade users to accept cookies in their browser.

This has started a new, privacy-oriented trend. The browser cookies launched by Apple in 2015 have been given less and less power for user control. Despite the fact that the advertising technology industry relies on persistent cookies, the largest web browsers on the market have begun to take these security issues seriously. After Apple allowed ads to be blocked in Safari, other browsers followed an increasingly strict cookie policy.

What is the future of advertising?

In the future, there will be no place for third-party cookies in advertising. After third-party cookie-based ad formats peaked in 2010, there was a growing trend toward more privacy-conscious solutions.

Browsers also respond to Third Party Cookie concerns

By now, all major browsers restrict or completely stop third-party tracking. Thus, the old targeting and re-targeting methods no longer work. However, there is more room for alternative advertising solutions, whether it’s internal data, contextual targeting, or an undiscovered technology.

Google, Facebook and other technology giants most affected by the changes continue to look for alternative methods.

Conclusion

As for the ad technology industry, it is working hard to replace browser cookies with other effective advertising methods. Over the past few years, it has been clear that third-party browser cookies are no longer acceptable.

Innovative and cookie-free ad formats are starting to appear. Not only can they get customers to the site you want without cookies or other third-party tags or trackers, but they are more effective than traditional ad formats while maintaining brand security and user privacy.

The URL was copied

Would you like to know more? Are you interested in increasing the revenue from your site? Contact us - we can help you!

Account Team

If you're already a member, and you have a question, contact our Customer Success Team. We will help you!

Customer Success Team

3x Marketing Diamond Award Winner

Cookies help us provide better services for you. By using our website you approve the use of cookies. You can find more information about the cookies we use in our data policy guide.

I agree