- On July 29, 2020 /
- By Taya Nasreldin /
- In blog
Third-Party Cookies and ePrivacy Regulations are soon going to be changing,
granting individuals more privacy, and likely banning “third parties” from having access to cookies collected by the “first party,” or the website that someone allowed to collect cookies in the first place. Let’s dive deeper into how this can affect you and why you should pay attention to changing privacy regulations.
What are cookies?
First-party cookies are stored by the domain of the website a customer is visiting directly.
The existence of second-party cookies is a subject of contention, second-party cookies are transferred from one company (the one that created first-party cookies) to another company via some sort of data partnership.
Finally, third-party cookies are created by domains other than the one you are visiting directly, hence the name third-party. They are used for cross-site tracking, retargeting and ad-serving.
This inherently means that the majority of online display and re-targeting ads that appear while a customer is surfing the internet rely fully on 3rd party consumer data. Therefore, when privacy regulations become tighter, access to 3rd party data will become much more restricted, meaning that ads will become a lot less relevant, likely resulting in even fewer conversions and CTRs.
What is ePrivacy Regulation (ePR)?
First proposed in early 2017, the Regulation on Privacy and Electronic Communications — better known as the “ePrivacy Regulation” (ePR) — is seen as the successor and replacement to the ePrivacy Directive (“Cookie Directive”) first enacted in 2002. There are two primary goals of the new regulation; to expand consumer privacy protections so they reflect emerging technologies, and to standardize electronic privacy laws across all EU member states first put in motion with the “Cookie Directive.”
Changes on the Horizon:
- Streamlined consent process
- Revised consent process for IoT devices
- Exemptions for security purposes
- Privacy regulations on IoT and OTT services
- Clarification on how service providers may “interfere” with users’ devices
- Differentiating the utility of cookies
Who will be affected by the ePR?
- Communication service providers
- Entities transmitting and processing data on EU citizens
- Businesses storing data on EU citizens
- Marketers targeting the EU
- App developers and communications companies
What does this mean for marketers and Paperplanes?
Marketers who use third-party cookies will be hit the hardest by these new changes. Particularly online display ad marketers and digital re-targeting. There are predictions made by the media key voices about growth in the number of more contextual advertising campaigns. This is because marketers will no longer be able to target individual users by using third-party cookies.
Publishers will then be forced to pay more attention to first-party data and how it can be used to reach relevant audiences, as targeted advertising to existing customers is more relevant. It allows them to see ads that are a 100% match with what they have been browsing, making them more likely to convert.
Because the days of easily-accessible consumer data are coming to an end, there has never been a better time to turn your attention to programmatic direct mail marketing.
Paperplanes can partner with you to utilise your 1st party data to re-target a customer base without cookies. That data can be used in the same way to curate creatives and programmatically trigger the mailers. As a result, the direct mail channel will become a valuable asset post-ePR.
When will it be enforced?
Earliest possible date of enforcement at least 2022.
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