Monday, 23 March 2020 13:25

How Chrome’s Cookie Phase-Out Impacts Denver PPC Advertising

In January earlier this year, Google announced their plans to remove third-party cookies from their Chrome internet browser. This change comes in the wake of resounding consumer privacy concerns across the globe. Google’s announcement has marked a significant change in the digital advertising world. There are some challenges that marketers will face in Denver and across the nation in the next 2 years. We wanted to briefly touch on how this change will impact Denver PPC advertising and how you can start to adapt today.

What Are Cookies And Why Do They Matter?

Cookies are small text files that are used to track users across the internet. Your cookies are basically pieces of stored data that follow you from website to website. That stored data has incredible relevance in the digital advertising world, as advertisers leverage that data to target their ads to the right consumers. We should note that there are a few different types of cookies. You really just need to know the difference between two kinds of cookies:

  • First-party cookies - These cookies are stored by the domain that you are currently visiting.

  • Third-party cookies - These cookies are set and tracked by websites other than the one you are currently browsing.

To put cookies in a better context, let’s briefly assume that you are interested in buying a new mattress for your bedroom. You conduct some initial research on a few websites and you end up deciding to wait a week or two on the decision. A few days might go by and suddenly you’re seeing ads for mattresses all over your social media accounts and on other websites that you visit. You’re seeing those ads because your internet browser has stored a third-party cookie and uses that information to send you targeted ads.

We hope that it’s clear why third-party cookies are so incredibly valuable to advertisers. Your cookies help advertisers craft and place highly targeted ads towards your individual interests. Those third-party cookies have been integral to Denver PPC advertising for quite a while. The time to adjust this marketing has unfortunately arrived.

Why Are Third-Party Cookies Being Phased Out?

Google’s decision to phase-out third-party cookies comes at a time when consumer privacy concerns are at an all-time high. A vast majority of consumers have become very uncomfortable with the idea of being tracked across the internet by companies and other unknown entities. Users are demanding greater privacy, transparency, and control over how their data is tracked and used. Companies and states alike are doing their best to respond to these growing consumer privacy concerns. The third-party cookie phase-out on Chrome is just Google’s latest response to the issue of privacy in an increasingly digital world.

Other popular internet browsers, like Safari and Firefox, have already made the switch to block third-party cookies by default. While those cookie removals were important, they are not as significant as Chrome’s phase-out. Why? It’s mainly due to the fact that Chrome is the most popular internet browser in the world.

Chrome currently holds 67% of the market share for internet browsers globally. The next most popular browser, Firefox, sits at just 8%. That is a stark contrast in total global users! With so many people on Chrome, it’s clear that this switch will have some impacts on Denver PPC advertising and PPC ads worldwide.

Just to be clear, this phase-out has not happened just yet. Third-party cookies can still be tracked in the Chrome browser, for the time being. Google will instead be phasing out third-party cookies on Chrome over the next two years. The switch will also have no effect on first-party cookies. That means advertisers can still retrieve data on their site visitors. You just can’t use that data outside of your own site.

What Does This Mean For Denver PPC Advertising?

As we just stated, this third-party cookie phase-out will occur over the next two years. So, you don’t need to stop your current PPC campaigns. In fact, you can continue planning new PPC advertising efforts all the way until 2022! You have plenty of time to carry out all of your upcoming PPC campaigns in the near future. You should still consider adjusting your strategy in the next two years though.

Every advertiser, large and small, has the same question on their mind: “What will replace third-party data?” Google has an answer to this question: The Privacy Sandbox.

Google’s Privacy Sandbox essentially sets standards for ad targeting, measurement, and fraud prevention. The system replaces cookies with five application programming interfaces (APIs). Advertisers will use those APIs to receive aggregated data about their advertising issues.

We still know very little about the Privacy Sandbox, as the initiative is still in its infancy stages. The platform seems to be an ideal replacement for third-party cookies. We have yet to see whether the vision will translate soundly into reality.

Other companies have started to develop services and tools to fill that same third-party data void. Those tools are being designed to simultaneously give users more control over their privacy and supply advertisers with the third-party data that they need for advertising purposes.

At the end of the day, this switch gives more industry control to Google. By eliminating third-party cookies, Google has an increased ability to track consumers and gather their data while preventing many advertising competitors from doing the same. It is still not entirely clear how this shift will impact PPC ad campaigns in the years to come.

If you take away one thing from this story, it should be this: You need to diversify your digital strategy! Spread your advertising budget out across different search engines and digital advertising platforms. Don’t just focus your energy on Google Adwords! We’d recommend that you use your ad budget wisely on social media advertising tactics as well. Companies like Facebook will still retain plenty of first-party data on their users, so why not leverage that data to your advantage?

We’d also recommend that you branch out from paid search engine ads and focus more on search engine optimization strategies. If you execute your tactics correctly and effectively, organic search can be just as profitable as other digital marketing channels. You just have to approach SEO from a strategic standpoint and be willing to put in the work.

As the phase-out date creeps closer, we’ll keep our eyes fixed on the issue of third-party data. Our digital marketers will keep you informed on how to adjust your strategy over the next 2 years. Stay tuned for more updates!

Get The Most Out Of Your Denver PPC Advertising

Are your PPC campaigns struggling to get the results that you want? Then it might be time to let the professionals coordinate your strategies. At FiG Advertising + Marketing, we live, breathe, and eat all things digital. We will leverage our years of PPC experience to ensure that you get the biggest bang for your buck.

Contact the digital pros at FiG today to get the best ROI from your Denver PPC advertising campaigns.