October 30, 2024

Beyond cookies: Navigating the future of device identification

Cookieless Future Trash Can

Since 1994, most websites have relied on third-party cookies to track user behavior and create personalized experiences. However, while these cookies can provide important data points for e-commerce and marketing purposes, they’re also easily blocked or deleted, which limits how useful they can be. They also raise privacy concerns because they are often used to track users across multiple domains, leading to governments globally enacting regulations surrounding the protection of user data. 

In recognition of these concerns, Google announced in 2020 that it would deprecate third-party cookies. But then, it announced in July 2024 that third-party cookies would actually remain in Chrome (at least for now); however, it will allow users the option to browse without third-party cookies.

In this article, you'll learn the impact of Google’s third-party cookie decision, how to mitigate third-party cookie risks, and how and why businesses should still prepare for a cookieless future — despite Google's latest news.

The search giant initially planned to deprecate third-party cookies in 2022, but in the wake of protests from business owners who wanted more time to find alternatives, Google pushed it to 2024. There have also been concerns that removing third-party cookies gives Google more power over competitors since the company has enormous amounts of first-party data and advertising dominance, and it’s pushing its solution, Privacy Sandbox, as an alternative to third-party cookies. Additionally, publishers may have trouble monetizing their websites because they’ll have limited ad targeting capabilities and face challenges measuring the effectiveness of their ads. 

Ultimately, the tech giant decided to retain third-party cookies, citing the need for an ad-supported web and poor alternative solutions for companies to measure campaigns and personalize user experiences. At the same time, users will have the option to choose to browse without said cookies. 

Since Chrome has over 60% of the global browser market share as of 2024, Google's decision to continue to support third-party cookies impacts every company with a web presence. 

But not every browser supports third-party cookies

The default setting for third-party cookies sets Chrome apart from other privacy-forward browsers like Brave, Firefox, and Safari. Chrome allows third-party cookies by default; in contrast, the others block third-party cookies out of the box. 

This mixed environment forces companies to adapt their strategies to the different browsers, such as using alternatives that identify returning users, so they can personalize experiences without compromising user privacy. So while Chrome is allowing sites to identify users by using traditional cookie-based methods (for now), companies should still adopt new approaches for other browsers, if they haven’t already. 

Is keeping cookies a good thing?

First-party cookies have their benefits. For instance, they can help companies improve the user experience by keeping users logged in and remembering user preferences, such as language and page layout. Web servers use authentication cookies to determine whether a user is currently logged into a website or an application and which account they’re tied to. Without cookies or when cookies are deleted, returning users would need to enter their credentials each time they wanted to access their account. Companies can also personalize experiences by using information from first-party cookies to recognize returning users (again, assuming the cookies aren’t deleted or blocked). 

Third-party cookies, however, are set by domains other than the one the user is currently visiting, allowing external sites access to a user’s browser habits. This antiquated technology fails to address modern privacy concerns and can be used to track users' online activities, the websites they visit, and how long they spend on each site. Websites that use third-party cookies run the risk of being non-compliant with global privacy regulations like GDPR and CCPA. 

Because they can be used across multiple websites, another downside of third-party cookies is that they present significant security and privacy risks by potentially exposing user data to cross-site attacks. If compromised, these cookies can be hijacked or exploited to track user behavior across different domains.

Understanding the impact of third-party cookies

Third-party cookies impact nearly every industry, and even though Google has decided to keep third-party cookies in Chrome for now, that may not always be the case. Companies need to future-proof themselves by moving away from third-party cookies today to avoid scrambling for alternatives when/if Google changes its mind again. Another benefit of making the move now is having the ability to adopt the same marketing and business strategies across all browsers rather than having different approaches. 

Let's explore how cookies are used in digital marketing, data security, and software development — and how these teams can prepare for a world without third-party cookies.

Digital marketing

Ad distributors rely on third-party cookies for cross-site tracking and building detailed user profiles. This data allows them to create highly personalized ads and targeted user experiences.

Yet, this comes at a significant cost to user privacy and trust. A 2023 study by the Internet Advertising Bureau (IAB) found that 76% of consumers feel that targeted advertising based on browsing history is an invasion of privacy.

Savvy marketers should identify alternative solutions that respect people's privacy, work across all browsers, and comply with increasingly stringent privacy regulations. 

Data security

Organizations need to adhere to data privacy regulations and set policies regarding the use of third-party cookies. While not inherently a security risk, third-party cookies can expose sensitive data to unauthorized parties through cross-site tracking and malicious data collection. Therefore, companies should assess and mitigate potential vulnerabilities. 

To create layers of security, it’s important to implement secure session management practices, primarily relying on first-party cookies and other robust authentication mechanisms. Device intelligence can also be used in conjunction with these methods. 

Web development

Google's decision creates a complex environment for web developers. They must now build websites that can function effectively with and without third-party cookies, depending on the user's browser.

Web developers are turning to flexible, adaptable architectures using a progressive enhancement approach that can leverage third-party cookies when available but also can fall back on alternative methods of user identification and personalization. They're also encouraged to prioritize user privacy regardless of the underlying technology and use privacy-by-design principles in web development.

Alternatives to third-party cookies

Here are several approaches to mitigate the risks associated with third-party cookies while maintaining site functionality and the ability to recognize returning users.

Get to know your audience with cohorts

Cohort-based analysis offers a more privacy-friendly alternative to individual user tracking. Instead of targeting specific users, this approach groups users with similar online behaviors, interests, or anything else they may have in common (such as age, location, etc.).

Google's Privacy Sandbox initiative introduced the concept of Federated Learning of Cohorts (FLoC), which has since evolved into Topics API. This system uses artificial intelligence to categorize users into broad interest groups based on browsing history and allows for targeted advertising without exposing individual user data since it can't be separated from a cohort. Each cohort is assigned an ID, which advertisers use to show relevant content based on the cohort's interests.

Implementing cohort-based strategies can help balance personalization with consumer privacy by removing individual-level data.

Protect user privacy with identifiers like Unified ID 2.0 (UID2)

Privacy-preserving identification solutions, like Unified ID 2.0 (UID2), recognize returning users without the privacy risks associated with third-party cookies. Users provide their email address or phone number to a website, and that information is encrypted and converted into a UID2 token. These universal identifiers can apply to multiple platforms and websites. The user only needs to consent that they accept ads once per website or application. As soon as the user verifies this, it's true across all of their devices, and they don't have to repeat the process every time they visit that website.

Identify returning users with browser fingerprinting

Browser fingerprinting collects data about a user’s device and uses it to create a unique identifier for that user. This unique identifier can be used to recognize returning visitors for personalization and optimized user experiences. Data collected can include the user's IP address, browser, CPU and GPU specifications, operating system details, browser extensions, time zones, and fonts.

Browser fingerprinting is typically used in conjunction with other security measures to detect suspicious activity and prevent fraud before it happens.

Why you still need to prepare for a future without third-party cookies

Essentially, the fundamental issues that initially drove the push toward deprecating third-party cookies — privacy concerns and regulatory pressures — remain as relevant as ever. Google’s wavering on third-party cookies highlights a clear need for functional alternatives that comply with privacy regulations and don’t cross that breach of trust with users. Forward-looking companies are phasing out these cookies and finding alternatives that are more effective and privacy-conscious. 

Fingerprint is a device intelligence platform that identifies unique visitors with industry-leading accuracy, even if they’re in incognito mode, clear cookies, or are using a VPN. The platform collects and processes over 100 device, browser, and network signals to generate a unique visitor ID that persists for months or years. With Fingerprint, you can prevent fraud and offer personalized services to trusted users while ensuring security and remaining compliant with privacy regulations. Note that Fingerprint cannot be used to track users across the internet; rather, it provides a way to identify returning users to the sites you own without relying on cookies.

Ready to learn how visitor identification can go beyond cookies? Contact our team if you'd like to learn more about how Fingerprint can help your business in cookieless environments or start a free trial to see it in action for yourself.

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FAQ

What are some specific strategies that developers can adopt to prepare for the deprecation of third-party cookies in the future?

To prepare for a future without third-party cookies, developers can start by re-evaluating their current data collection and tracking methods. They should explore alternatives to third-party cookies, such as UID2, cohort-based analysis, and layering device intelligence into their systems.

How will the shift to a world with no third-part cookies impact smaller businesses compared to larger corporations?

When/if it happens, the transition to a world with no third-party cookies will impact businesses of all sizes. Larger corporations with access to more resources may find it easier to adapt to these changes. For example, they might already have substantial first-party cookie data or the means to quickly develop sophisticated data collection tools. On the other hand, smaller businesses might face challenges if they rely heavily on third-party cookies for targeted advertising. They might need to invest more in building direct customer relationships to gather first-party data.

Are there any potential downsides or challenges for users if the internet moves toward deprecating third-party cookies for good?

Without cookies, websites may have less information to customize content based on user preferences. However, it's important to note that this shift is largely driven by increasing concerns about privacy and data security, which significantly benefit users. Balancing personalization and privacy will be key in this new landscape, and other solutions, such as device intelligence, can help with addressing this challenge.

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