What are first-party cookies and how can you use them effectively?

With online users growing savvier and demanding better privacy protections, first-party cookies have become the preferred method of web browser data collection. However, they have historically been underutilized when compared to third-party cookies.

Take a look below as we examine what first-party cookies are and the best way to use them as online advertising evolves.

What are first-party cookies?

It’s easier to define first-party cookies when contrasting them with their more well-known counterpart, third-party cookies. 

First-party cookies are a data collection tool deployed by web browsers to gather information on users’ browsing, buying, and overall online habits. They’re a snippet of code that gets attached to a user’s browser when they visit a specific website. The first-party cookie belongs to that specific domain, and it’s meant to make a user’s experience on the site better. These cookies record things like language preferences, usernames, and passwords, and, in general, make it easier for the user to navigate that particular site.

Third-party cookies, on the other hand, go across different domains and are used to track user behavior. Typically, these cookies are loaded to a user’s browser by a third-party server (like an ad server) and are used to track clicks, site visits, and buying/browsing habits of the user. Unlike the first-party variety, third-party cookies don’t offer any benefits to the user regarding site function. They are solely used by advertisers and marketers to better target their online ads, including things like ad retargeting.

Benefits of first-party cookies

While solely using first-party cookies for online data collection is new for most advertisers, the benefits are worth investigating. Let’s examine the most outstanding benefits of first-party cookies.

More privacy

The primary benefit of first-party cookies is that none of the data they collect is shared. This is the main reason why third-party cookies are on their way out. Third-party cookies share the gathered data across websites, and in recent years, this has raised privacy concerns for online users. While forfeiting the rights to their personal data used to simply be the cost of using the internet, today’s online denizens are smarter and far warier of the long-term ramifications of shared data. 

Overall improved site performance

First-party cookies allow for a much smoother website experience for visitors as well. Whereas rejecting third-party cookies won’t really affect how a certain website performs, rejecting first-party cookies can. It can be a cause for less personalization and require more from the user, like filling in online forms (instead of using auto-fill). First-party cookies are also not automatically blocked by third-party software or browsers, so their adoption rate among internet users is wide.

How to use first-party cookies

When correctly used, first-party cookies can allow you to leverage customer data and make it easier for you to provide more personalized and targeted messaging to your customers. 

Omnichannel marketing

Omnichannel marketing is making a big splash mostly because so many retailers and businesses now have multiple channels available to reach the same customer. By using first-party cookies on your website, you can link customer profiles—often matching the email addresses people use to register with a site—and provide more personalized experiences.

Customer segmentation

Collected data from first-party cookies will make your messaging more powerful by allowing for more targeted segmentation. Building audiences based on specific criteria can allow for targeted messages to be sent to the most relevant customers. It will also make it easier to perform trials, like A/B tests. You can easily split a segmented audience (using your organization’s CRM tool) and send two different messages. You’ll be able to see very quickly which message resonated with the group based on click-through and open rates.

Analysis of the entire customer journey

As customers engage with your brand across different channels, their profiles will grow. With more data comes the ability to provide better messaging, better offers, and better personalization to these customers. It will also make it easier to analyze things like customer lifetime value.

First-party cookies are the future of online data collection

Major web browsers, including Mozilla and Safari, no longer support third-party cookies, and Chrome will stop supporting them by the end of 2022. Measures like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) now dole out stiff consequences for companies that violate online privacy and use third-party cookies.

As a result, new methods must be examined. While first-party cookies are not new, they have definitely been underutilized as a marketing tool in the past. By spending a bit more time exploring the gathered data of your site visitors, it will be easier to leverage first-party cookies and make an impact on your bottom line.

To find out more about first-party cookies, customer segmentation, and how you can make both work for your business, visit Lytics and sign up for a free trial today.