What is cookieless Tracking?

The last two decades could be considered the golden age of cookies in internet history. Never before has it been so easy to collect detailed data on internet users’ behavior and track them across the web. This may no longer be the case in the future.

Depending on the perspective, this trend can be welcomed or regretted. What is certain, however, is that cookies are increasingly restricted by stricter data protection regulations and user preferences. Everywhere you hear that the future will be “cookieless,” meaning without cookies. Even if it might be a buzzword, most companies engaged in online marketing must prepare to switch to cookieless tracking.

Based on Google’s announcement in July 2024, support for third-party cookies in the Chrome browser will remain, but under new conditions based on user choices. Despite this continuation, third-party cookies are losing importance as data protection regulations and user preferences restrict their use. Companies must urgently invest in alternative tracking methods such as first-party data and server-side tracking to remain compliant and effective in the long term.

Web Cookies Explained

To understand why web tracking methods are currently changing, it’s essential first to understand the basics of cookies and their uses.

Cookies are small data packets stored by websites in the user’s browser. Their main function is to make the browser identifiable, much like a virtual passport or an aircraft transponder.

A good example of the benefits of cookies is shopping carts in online stores. Without cookies, the cart would be emptied each time a new page is loaded, as the online store would not recognize the user’s browser and, therefore, could not assign the correct cart.

This remains the case even if the user completely closes the website or only revisits it days later—provided the shop’s cookie is still stored in the browser. This is especially relevant for another essential function of cookies: saving the login status, so users do not have to log in each time they return to a site.

Third-Party Cookies: What They Bring and How They Work

This basic principle has evolved over the years. Soon, the advertising industry and major tech platforms began using cookies to serve targeted advertising. If a browser can be recognized, then browsing behavior can also be tracked. This behavior, in turn, reveals consumer habits, allowing for targeted advertising (targeting).

The kicker: because cookies remain stored in the browser for long periods, the user’s browsing behavior can be tracked over extended periods across websites and platforms. So it happens that the pair of shoes you once looked at in an online store appears weeks later as an ad on other websites (known as remarketing or retargeting).

The cookies that make all this possible usually do not come from the operators of the websites on which they are set. These operators simply enter into agreements with advertising service providers such as Google and myriad other players in the digital advertising ecosystem who provide their cookies and tracking codes. These are third parties, also known as third-party cookies. Their cookies are therefore known as third-party cookies .

What Is Cookieless Tracking?

Cookieless tracking means using alternative technologies and methods to track user behavior without third-party cookies. These alternatives often rely on first-party data and server-side tracking, where control over the data remains with the website operator and is not passed on to third parties.

Data quality and data control are key benefits that come from switching to cookieless tracking and first-party data. By directly controlling data collection, companies can significantly improve the quality and relevance of the information collected. Server-side tracking also offers greater security and transparency, as the data is processed directly by the company itself. This minimizes the risk of data loss and data protection violations. A detailed analysis of how improved data quality can enhance decision-making and the efficiency of marketing campaigns can be found in the JENTIS article on data quality.

First-Party Data with Cookieless Tracking

On the one hand, using first-party data requires that it be collected and processed by the companies themselves. On the other hand, it must be ensured that everything complies with data protection regulations such as the GDPR. In recent years, many new methods have been developed to identify and track users without third-party cookies.

The so-called server-side tracking has established itself as a promising cookieless tracking solution for these challenges. Unlike conventional tracking, the data is no longer processed on the client, i.e., in the browser, but on the server, which ensures more control and data protection. Usually, only a first-party cookie is set in the browser. The collected first-party data can then be passed on to third-party tools from the server.

With cookieless server-side tracking, website operators can benefit from higher data quality because they control data collection themselves. First-party cookies are less frequently blocked, and raw data, which third parties rarely provide, is also accessible.

Whether data protection requirements are met depends on the specific implementation. When selecting server-side tracking providers, companies should ensure that they operate in compliance with data protection regulations within the EU and use a European cloud infrastructure.

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