Before we dive in, I’m sure many of us are still in the dark about what exactly is going on. To effectively navigate this issue, we need to first familiarize ourselves with the concept of “Cookie.”
What is “Cookie?”
“Cookie” was developed by Lou Montulli, a developer of the now-defunct web browser “Netscape,” in order to save online users time on repetitive login and identity verification.
In other words, cookie allows websites to send a short stream of recognizing info to web browsers, enables websites to remember users’ info (such as username, password, etc.), making it more convenient for them to browse the site in the future and improving the practicality of the website.
In fact, cookie can be classified as first-party cookie and third-party cookie, depending on the usage and ownership of domain. Let’s have a look on the differences between and which to be eliminated by Google.
First-party cookie is created by the websites users are currently browsing, it records every user’s using stage and login info, for example, remember login, keep products within shopping cart without being overwritten, these are all done by Cookie. In other words, first-party cookie improves users’ experience, saving their time repeatedly fill in same information.
We mentioned earlier that data from first-party cookies are limited to use within the website. On the other hand, third-party cookies are created by embedding third-party codes on a website. These cookies do not collect user information on the same domain but rather across different websites to gather information about users’ browsing behavior. For instance, if a user sees an ad for brand B on brand A’s website (such as through banner ads or pop-ups), and clicks on it, it indicates their interest in brand B’s products. By collecting this information, advertisers can more strategically and accurately target users with ads. This is why ads often show products that we have previously viewed or shown interest in. This data is frequently collected and utilized by the advertising and marketing industry.
Third-party cookies, which are set to be discontinued in 2024, are incredibly convenient. So why does Google want to eliminate them? The main reason is the growing concern around privacy in recent years. More and more people feel that third-party cookies infringe on their privacy when browsing the internet (which may be the case for most of us). However, Google also recognizes the critical role that ad revenue plays in supporting online media, and third-party cookies are a significant contributor to this revenue stream. As a result, the decision to eliminate them has been delayed multiple times, and the final date for discontinuation in Chrome has been set for 2024.
The biggest impact of Cookieless…?
This can be a plus for individual users, after the disappearance of cookie. one‘s internet browsing history will not be recorded, which can be seen as an improvement in terms of internet security.
However, for advertising professionals, this will make it more difficult to grasp customer profiles, which can lead to a high probability of soaring CPM and a decline in advertising effectiveness. Therefore, after the era of Cookieless, in order to avoid deteriorating advertising performance, each company needs to find a suitable method to stay ahead of their competitors!
How to be prepared for the first year of Cookieless era…?
There are various methods to deal with this, and here are a few examples:
・Leading browser Google Chrome‘s response:
The leading search engine “Google” released new ad tracking technology “Floc” right after the announcement of canceling third-party cookie. Although different from previous methods, it essentially still tracks users’ online behavior. Therefore, in January 2022, Google announced the abandonment of this project. However, they immediately announced the launch of the “Topics API” project, which determines users’ top five interests based on their Chrome browsing history. Advertisers can then use this information to deliver appropriate ads to potential consumers based on their interests from the past three weeks. For example, if a user frequently visits cosmetic and skincare websites, the browser will increase the proportion of cosmetic and skincare categories and display corresponding ads.
“Topics API” is claimed to collect even less data than cookies, and it’s also harder to obtain users’ personal information, making it more transparent. This enables users to have a higher degree of control over their personal data. However, the project is currently only providing a test version for developers on Chrome, available for advertisers and website developers to try out. Since the service is still in the testing phase, the final version will depend on user experience and feedback.
・Focusing on first-hand data, actively managing owned media and content marketing:
Being unable to obtain information from third parties makes owned brand channels and internal information more important. First-party data refers to data generated through direct interactions between customers and brands, such as membership registration information, personal data from participating in lucky draws, and browsing behavior on websites. From a marketing perspective, first-party data is extremely valuable as it comes from actual consumer interactions and can reflect their preferences.
Apart from first-party data, brand management itself is also crucial. After losing cookies, it becomes difficult to accurately target customers with ads. Therefore, it is necessary to establish differentiation between brands and leave a deeper impression on the audience. This makes content marketing and social media management more important. Another key point is to keep up with current events while making each piece of content memorable for customers. A strong content marketing campaign greatly increases the chances of standing out when customers are choosing among similar products.
・Introducing “ChiChat”: a new retargeting technique from Japan with a valuable traffic pool created by Japanese AI technology and Taiwanese PM team
Compared to Taiwan, where digital marketing has rapidly developed during the pandemic, digital marketing in Japan is more mature and has been better prepared. According to data, 96% of internet users who enter a website through an ad leave without taking any further action. Although remarketing to these audiences through cookie tracking has been possible in the past, we are about to lose this channel, meaning that we will lose a significant portion of potential customers. In response, the Japanese company, Hitobito Inc. (Hitobito), introduced this retargeting technology to Taiwan in 2020, hoping to provide vendors with better marketing methods.
The service provided by Hitobito can easily overcome marketing challenges in the Cookieless era with just 3 simple steps.
Automatic interception of website abandonment, customization of lead conversion processes, and continuous follow-up to increase customer lifetime value.
Hitobito’s AI system can automatically detect users who are about to abandon the website through embedded code. It not only intercepts them but also guides them to communicate with the AI chatbot “ChiChat.”
When interacting with customers, “ChiChat” engages them with fun questions to capture their attention. It then asks customized questions to understand their interests, pain points, and preferences for products. Based on this information, “ChiChat” provides tailored copywriting and images to guide customers towards conversion.
“ChiChat” has the ability to automatically learn and generate copywriting and images (patented in Taiwan and Japan). It can recommend the right products and copywriting to customers at the appropriate time, based on different customer profiles, and continually optimize the conversion rate through data analysis.
(For more details, please check on our official site or fill in the enquiry form for to receive consultation service from a specialist.)
To make implementation easier for vendors, the ‘ChiChat’ project adopts a performance-based pricing model. Our dedicated project manager provides support, including initial copywriting and photo design, data analysis, and promotion collaboration – all of which are free of charge. Vendors are only charged when achieving successful conversions, and the fee is determined after careful discussions between both parties to ensure a reasonable price.
Hitobito Inc. upholds the belief of growing together with its clients. While providing premium service, Hitobito also wants to leave an exceptional experience for vendors and clients, hoping to overcome Cookieless challenges with clients through a booming AI technology.
Author：Hitobito Inc., Sales Manager Tim Lin