A major change is coming in the world of online marketing that will affect the way e-shops communicate with their customers. The end of third-party cookies, which has been announced by the major browsers, represents a significant shift in online advertising and data collection. The move means that e-tailers will have to find new methods to effectively track user behaviour and personalise advertising without relying on third-party cookies.

The end of 3rd party cookies in 2024 will bring about a significant change in online advertising and user tracking. These cookies are small data files that websites store on a user's computer or mobile device that contain information about their browsing experience, helping to remember preferences, login status and other important data. There are two main types of cookies: first-party cookies, which are set and stored on the domain the user is currently visiting, and third-party cookies, which are set by another company and stored on a different domain than the one the user is visiting. These third-party cookies are used to track users between websites and display relevant advertisements.

What does the end of third-party cookies mean?

Third-party cookies are small data files that websites use to track users across domains. These cookies allow advertisers to target ads to specific users based on their online behaviour and preferences. The end of these cookies means that e-tailers and advertisers will have to find alternative ways to collect and analyse user data, which may affect the accuracy of ad targeting and measurement of ad effectiveness. In place of third-party cookies come alternatives such as Google's Privacy Sandbox, an initiative that seeks to create and implement new web standards around data collection and privacy. Private browsers like Privacy Sandbox store individual user data inside the Chrome browser, a significant change from how third-party cookies currently work. This initiative will gradually replace third-party cookies with a set of specialized application programming interfaces (APIs) that include tools like Federated Credential Management (FedCM), Private State Tokens, and more.

The importance of a loyalty system

In this new era, deploying a loyalty system for e-commerce stores is more important than ever. Loyalty systems allow e-shops to collect customer data directly, without the need for third-party cookies. These systems offer customers a range of benefits such as discounts, points for purchases, or exclusive offers, which encourages long-term engagement and loyalty.

Deploying an effective loyalty system means more than just rewarding customers for their purchases. It means creating sustainable relationships and providing value that goes beyond the purchase itself. With access to accurate data on customer preferences and purchasing behavior, e-tailers can personalize their communications and offers, leading to higher customer satisfaction and increased repeat purchases.

For marketers, this means the need to adapt to the new reality of no third-party cookies by rethinking their advertising budgets and focusing on channels that actually generate sales. The focus will be on leveraging first-party data and building direct relationships with customers to create personalized experiences. Overall, the demise of third-party cookies in 2024 presents both challenges and opportunities for marketers, who will need to find new and effective ways to achieve their marketing goals, respecting user privacy while maintaining the ability to target ads and analyze user behavior online.

Conclusion

The end of third-party cookies presents a challenge but also an opportunity for e-shops to rethink their digital marketing strategies. By implementing a loyalty system, e-shops can create a valuable source of data about their customers, enabling a deeper understanding of their needs and preferences. This paves the way for more effective customer engagement, better personalisation and ultimately a stronger brand in a competitive online environment. In the post-third-party cookie era, the key to success is a greater focus on building lasting customer relationships.

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