What the end of third-party cookies means for Spanish small businesses

Google is going to permanently eliminate so-called third-party cookies starting in September of this year. They have been a ubiquitous tool on the web for decades and are used to track user behaviour across multiple pages, facilitating, for example, the personalisation of advertising. Thus, its progressive disappearance will have repercussions on the ecosystem of SMEs and self-employed businesses. Especially when it comes to your digital marketing strategies and customer data collection.

The so-called “cookie apocalypse”, which has been predicted since 2019, is now scheduled to take place this autumn, at least, from what appears from Google’s latest announcement in this regard, it is going to implement the elimination of third-party cookies in its Chrome browser in the third quarter of 2024. In fact, the process is going to be progressive, and already has begun with initial tests during the first quarter, which will affect a good number of users, and which will increase until reaching 100% in the summer.

New regulatory guide on cookies for businesses that sell online

A phased approach means Google can ensure that new technologies developed as alternatives are ready for large-scale deployment. In this sense, the decision of the Californian giant to gradually eliminate third-party cookies in Chrome responds to a paradigm shift in the way online privacy is approached. Although other browsers, such as Mozilla’s Firefox and Apple’s Safari, have already implemented measures to restrict or block these cookies – but not Microsoft with its Edge – the influence of Chrome in the online environment (it is estimated that it is used by two of every three users) makes this movement have a significant impact on the entire digital industry.

Small businesses will not be able to know what their customers like best

In essence, third-party cookies allow advertisers and companies to collect data about users across various websites, creating detailed profiles that often include personal information considered sensitive. Thus, while these cookies have been a cornerstone of digital marketing and online advertising, they have also generated significant concerns among individuals and authorities regarding the privacy and security of user data.

In more detail, and for any small business with an internet presence (a rural hotel that manages reservations via the web, an automobile workshop with an online spare parts store or a dental clinic that manages prior appointments through the Google calendar), the main effects are:

Loss of user data tracking. Third-party cookies allow you to collect data about the interests, preferences and purchasing habits of your users. With its elimination, the quantity and quality of data available to analyse and optimise the marketing strategies of any business are affected. This encompasses audience segmentation, advertising personalisation, and understanding the customer’s journey while on our site.

Reducing personalisation. Derived from the above, third-party cookies also allow personalised content to be displayed on a web page, such as an advertisement. With its disappearance, this capacity is limited, negatively affecting the effectiveness of marketing campaigns.

Attribution problems. One of the main functions of third-party cookies has been to track a customer’s journey across multiple pages, allowing a conversion (i.e. a sale) to be attributed to a specific marketing channel. That is, accurately measure the return on investment (ROI) of marketing initiatives and determine which strategies are most effective; something crucial when what is not left over is precisely the money to allocate to advertising.

There are alternatives for freelancers to maintain their digital marketing strategies

Given the imminent disappearance of third-party cookies, it is necessary for entrepreneurs and small businesses to look for effective alternatives to maintain their digital marketing strategies in their online activity. Some viable alternatives – some better known and others newer – that can be considered are:

Contextual advertising. This is based on the content of the web page on which an ad appears, rather than depending on the user’s browsing history. That is, ads are displayed based on the context of the information on the page.

Content marketing. Offering relevant and valuable content on the blog to attract and retain a specific audience organically (vs. advertising) will now be a more interesting strategy for online businesses. Above all, if it is accompanied by appropriate mechanisms to analyse interactions on the website.

Email marketing. Email marketing also continues to be a valid alternative for communicating with customers and generating leads. By building a quality email list and sending personalised, relevant content to subscribers, businesses can maintain customer engagement and collect data ethically and transparently.

Google FloC. The acronym FloC (Federated Learning of Cohorts) corresponds to a new advertising technology developed by Google that uses machine learning algorithms, allowing users to be grouped based on similar interests. Unlike third-party cookies, FLoC does not track individual user activity, but instead uses aggregated information to show relevant ads to groups of users with similar interests.

In Spain, all websites must comply with specific legislation for elements such as cookies

In addition to the changes in cookies for Google Chrome, we must not forget that in Spain all websites must comply with specific legislation for these technical elements, in force since 2002. The truth is that what is known as the Cookies Law has experienced significant changes in recent years; In July 2020, the Spanish Data Protection Agency (AEPD) issued an updated guide that established more rigorous requirements. One of the most important changes was the need to obtain clear, affirmative consent from visitors before using cookies on a website. This consent must comply with the standards established by the General Data Protection Regulation (GDPR), ensuring that it is freely granted and based on affirmative action by the user.

The consequences of non-compliance with this regulation can be severe, with fines that can reach up to 30,000 euro, as established in the Organic Law on the Protection of Personal Data and Guarantee of Digital Rights (LOPD-GDD).

If you use cookies, be careful with the new Data Protection Regulation

More recently, the AEPD has updated the requirements for cookie consent banners, in line with the directives issued by the European Data Protection Council. Changes that came into effect on January 11, and that include the obligation to offer users a button to reject all cookies, as well as provide transparent information about their use, including their purpose, storage duration and identity of the third parties involved in its installation.

To comply with the new changes to the Cookies Law, websites and mobile applications have had to make adjustments to their operation. This includes updating the cookie banner to include said button, adjusting the cookie settings to allow users the option to reject those that are not strictly necessary for the operation of the site; as well as the adequate updating of its policy regarding them.

Historically, many websites failed to give the correct information about cookies and their use, and many had a popup which assumed consent, without detailing what the consent was for, and is no longer sufficient without allowing the user to opt out and therefore block said cookies.

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