What will the death of third-party cookies mean for paid social media?

What are Google’s cookies?

Cookies (the not-so-tasty kind) are little pieces of data that follow you around the internet. They collect information and allow brands to target their advertising at consumers who are more likely to buy from them. In recent years, they have come under more and more scrutiny for their ability to identify individuals on the internet.

What is the difference between a first-party and third-party cookie?

First-party cookies collect information on a website that goes directly back to the company that created the software or cookie, for example Meta’s first-party Pixel cookie (read on for more on Meta). But information collected by third-party cookies is often shared with additional websites and companies that the consumer may not have interacted with directly. This is where the problem lies. In response to consumer demand for more data privacy, Google phased out use of third-party cookies in 2023.

How paid social media uses third-party data

Rising demand for privacy has meant that consumers are now cautious over which brands they give their data to. Social media is in an interesting position, as every user of any social media platform must sign up for the service and give their details, so it can be argued that consumers give explicit consent for their data to be used when setting up an account. While individuals do not need to divulge a lot of data to set up an account, social media platforms are a treasure trove of data – data that your brand can use.

Using saved audiences on social platforms

Even without third-party cookies, there are still potential audiences saved in the social media platform itself. Platforms have a good level of data on their audience’s interests, such as their ages and whether they like beauty products. This means you can use their data to target your prospective customers. Social media companies do this by using their own data-gathering tools. Meta’s and TikTok’s Pixels are examples. The Pixel is a must for brands that want to track social conversions, and then subsequently track customers through their website. Facebook has a first-party version of its Pixel to combat Safari and Firefox banning the third-party cookie (TikTok released its version in 2022). It automatically passes data back to Facebook and TikTok, as long as the sites have established a first-party relationship, unless the company advertising has opted out (check your settings under “Pixel and Cookie Settings” in Facebook and under “Settings” in TikTok).

Some platforms, such as X and TikTok, also have event tags, which will help you track website activity from their platforms. Targeting in social media mostly acts like Google’s replacement for the third-party cookie, Topics. Topics groups individuals together based on what they have been searching for in the last few weeks. However, individuals in the group cannot be singled out in Topics, whereas on social media platforms they can.

Using first-party data in paid social media

Even if third-party cookies are useful, first-party cookies are much more accurate. Data gathered from your own website means that you own data about new and potential customers. Ecommerce brands, by their very nature, are usually the best at gathering first-party data, as they can track customers who use their website. Brands with a real-life presence have to take in-person shopping into account, as not all their customers’ behaviours will be reflected online.

This first-party data can be uploaded onto social media channels for retargeting ads, by using paid campaign settings such as “lookalike audiences”. And if your brand decides it only wants to use first-party data moving forward, then retargeting ads are a great option. Customers who are retargeted are 43% more likely to convert meaning that using retargeting adverts should be at least a consideration for your brand.

Conclusion

As Google has recognised that “users are demanding greater privacy, including transparency, choice and control over how their data is used” brands will follow. And they already are, with 57% of marketers adopting consent-driven personalisation. Keep up to date with best practices, and work with an agency such as us (or your in-house team) to ensure you are all over the cookies issue.