For over a decade, third-party cookies have powered much of digital advertising by enabling user tracking across websites, supporting precise targeting, and driving campaign performance. However, this era is rapidly coming to an end. Due to browser restrictions, privacy regulations, and a shift in user expectations, third-party cookies are losing their relevance.
The German Association of the Digital Economy (BVDW) recently released a white paper that explores the impact of this transition. Developed by the Working Group Data Tech & Economy, the report outlines how the decline of third-party cookies affects every stage of the media planning process and highlights the solutions advertisers must now consider.
Why third-party cookies are disappearing
Several developments have accelerated the decline of third-party cookies. Browsers such as Safari and Firefox already block them by default, and Google Chrome is actively phasing them out. Regulatory frameworks like the GDPR and ePrivacy Directive have further limited their use, and consumers are increasingly aware of how their data is collected and used.
As a result, marketers can no longer depend on third-party cookies to track users, deliver personalized ads, or measure performance across digital channels. The shift requires not just a technical update, but a fundamental change in how the digital advertising ecosystem operates.
How third-party cookies have been used
According to the BVDW white paper, third-party cookies have played an important role in each phase of the digital media funnel. Their removal will impact awareness, engagement, conversion, and measurement strategies.
I. Awareness phase
In the early stages of a customer journey, advertisers have used third-party cookies to build awareness through audience segmentation and interest-based targeting. Cookies allowed marketers to identify user behaviors across websites, enabling them to serve relevant ads and manage ad frequency effectively.
Without third-party cookies, advertisers must turn to contextual targeting and browser-based technologies. Contextual targeting displays ads based on the content of the page being viewed, while tools like Google’s Topics API allow interest-based targeting without tracking individual users. These solutions protect user privacy while offering scalable alternatives for reaching new audiences.
II. Consideration and conversion phase
In the consideration stage, third-party cookies have supported retargeting by following users who visited a site but did not convert. Marketers could re-engage those users with tailored messaging across multiple platforms.
Now that cookies are declining, advertisers are encouraged to focus on first-party data strategies. This means collecting data directly from users through site interactions, CRM systems, or logged-in experiences. Advertisers can also use identity solutions such as NetID, EUID, and RampID to recognize and target users across digital touchpoints.
Another alternative gaining traction is the use of data clean rooms. These are secure environments where brands and publishers can combine and analyze data without exposing raw user information. Data clean rooms enable privacy-compliant audience matching and campaign optimization.
III. Measurement phase
Third-party cookies have enabled detailed measurement of reach, frequency, and conversions across channels. Their disappearance significantly impacts how advertisers track campaign performance and attribute conversions.
To adapt, marketers are turning to privacy-compliant analytics tools that rely on aggregated data and modeled conversions. Panel-based measurement is also making a comeback, especially in cross-media contexts. First-party analytics tools, when paired with user consent mechanisms, provide brands with greater control over their own data and insights.
Solutions emerging after the decline of third-party cookies
While the loss of third-party cookies presents challenges, it also accelerates innovation. The BVDW report identifies several viable technologies that can replace cookie-based tracking and targeting.
First-party data
First-party data is now the foundation of effective digital marketing. Brands that build direct relationships with users can collect valuable data through subscriptions, purchases, and engagement. This data allows for tailored marketing strategies that are both relevant and privacy compliant.
Thomas Peruzzi of Virtual Minds notes that first-party data, alternative identifiers, and technologies like data clean rooms are the key drivers of change in the advertising ecosystem.
Alternative identifiers
Alternative IDs offer another route for identity-based targeting. These identifiers use hashed emails or device signals and are not dependent on browser cookies. Examples include Utiq, EUID, and ID5. These solutions offer scalability, although adoption depends on transparency, user consent, and interoperability.
Some IDs use deterministic methods, based on logins, while others rely on probabilistic signals. Though not perfect, they provide marketers with tools to maintain personalized experiences without compromising privacy.
Privacy-preserving APIs
Browser developers have responded to the need for privacy-first solutions. APIs such as Google’s Topics API and Protected Audience API allow advertisers to serve interest-based ads without tracking individual users. These tools offer a middle ground by supporting personalization without creating persistent user profiles.
While these APIs may not match the granularity of third-party cookies, they represent a step forward in balancing ad effectiveness and user privacy.
Contextual targeting
Contextual advertising is re-emerging as a powerful strategy. It matches ads to the content being viewed by the user, rather than relying on behavioral data. Advances in artificial intelligence and natural language processing are making contextual targeting more effective than ever.
Publishers are also beginning to offer curated audience segments based on their own data. These segments allow advertisers to target specific user types without needing to track individuals across the web.
Data clean rooms
Data clean rooms are secure data collaboration environments. They allow brands and publishers to compare datasets and generate insights without sharing personal information. Clean rooms support functions such as frequency management, campaign attribution, and customer segmentation.
They are particularly effective in environments where both parties have strong first-party data. This makes them ideal for large publishers and advertisers seeking precise targeting without violating privacy norms.
Strategic recommendations for marketers
The decline of third-party cookies marks a major transition for digital advertising. Brands that wait too long to adapt risk falling behind. The BVDW strongly advises marketers to evaluate their current tools, test new technologies, and develop first-party data strategies.
Sebastian Grantz of Google highlighted that combining first-party data with artificial intelligence and privacy-preserving tools will be essential for future-proof advertising strategies. Brands that invest in these areas now will be better positioned to compete as the digital landscape continues to evolve.
Conclusion: Adapting to a new digital marketing era
The end of third-party cookies is not the end of targeted advertising. It is the beginning of a new chapter where privacy, consent, and transparency take center stage. Advertisers who embrace this change will be able to build trust with their audiences while still delivering relevant and engaging content.
The BVDW white paper provides a comprehensive guide to navigating this shift. From contextual targeting to clean rooms and API-based solutions, there are multiple paths forward. Each requires marketers to rethink old habits and adopt a more data-responsible approach.
Now is the time to act. The technology exists, the roadmap is clear, and the competitive advantage will belong to those who are prepared.
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