what you need to know about first party and third party cookies

First-Party Data and Third-Party Cookies: Here’s What You Should Know

The demise of third-party cookies on Chrome has long been the subject of much discussion in the marketing and advertising industry since Google announced it January of 2020. While it was slated to become a thing of the past this year, it seems like the search engine giant is giving more leeway for advertisers to adjust by delaying it to 2023. The announcement followed Apple’s decision to block access to third-party cookies.

With major browsers ditching third-party cookies, what does it mean in terms of privacy?

For consumers and privacy watchdogs, it’s a welcome development. For small publishers and advertisers, not so much. Since they’ve relied heavily on third-party data for so long, it might be challenging and not to mention costly for them to adjust their strategies to target their audience more accurately.

However, most fail to see that the end of third-party cookies doesn’t equate to the end of user tracking. Tracking and targeted advertising are still possible with first-party cookies. How?

First, let’s look into third-party and first-party cookies and their differences.

What are Third-Party Cookies?

Third-party cookies refer to the files that contain data, like username, passwords, and IP addresses that identify your device when you access a computer network. Domains create these cookies to identify you and help improve your browsing experience. Often, they collect this information to help them target their online advertising strategies. These cookies become accessible on any website that uses the third-party server’s code.

For example, when you visit Amazon. As you browse through several products and click on the items, the system recognizes this and stores that data. When you go out of the Amazon shop, you’ll see other ads that show similar items previously clicked because your browsing history showed your preference for that particular product. This is why you’ll notice similar ads even if you visit other websites. The tracking data is still present on the computer even after closing your browser.

What are First-Party Cookies?

First-party cookies, on the other hand, are stored by the websites you visit. The cookies let web admins collect data and use the information to improve the user experience. Using the Amazon example, first-party cookies save your username and password so the next time you visit the shop, they won’t have to ask you to sign in again. If you choose to block first-party cookies, the website will ask you to sign in every time you visit.

In a sense, first-party cookies are good because they benefit you, the user.

The Future of Advertising with First-Party Data

With the looming depreciation of cookies and privacy regulations, advertisers and publishers have their backs against the wall. While many took a wait-and-see approach, some have taken the initiative of using first-party data to power their advertising strategies. Take the case of Guardian. With more than 8.8 million daily readers, the publication revealed that first-party data had given their company an average brand lift of 65%.

From a brand perspective, most have been using first-party data. They have just relied heavily on third-party data. Using first-party data sure needs a ton of heavy lifting, but the efforts are worth it when you see the results it can deliver. Advertisers and publishers should start understanding customer profiles, developing, and mapping them out. This way, it’s easier to match them with aggregate data that serves their interest. After all, first-party data is the most accurate way to target audience online.

Moving your campaign measurement from click-through rates to interest-based engagement is the best way to leverage first-party data, and this is where working with ad tech agencies with known expertise in measurement comes in.

Maximize your reach with first-party data. Learn how we can help. Contact us now!



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Pranav Kataria

Associate Director, Programmatic Strategy

As the Associate Director of Programmatic Strategy, Pranav brings over 8 years of experience in the adtech industry working with Publishers, DSPs, Agencies, and Advertisers from global regions to improve their monetization, performance, and strategies. With great understanding of the mobile market, his expertise lies in analytics, account management, strategy, and ad sales. With this refined skill set, he brings customer-centric mindfulness that enables growth and innovation.

Before joining AlgoriX, his keen business perspective and skills have earned him opportunities to work across different organizations and verticals in the advertising ecosystem; be it improving the processes, sales enablement, and managing client relationships.

Ray Xia

VP, AlgoriX Partner Studio

Ray Xia was a mainstay at Tencent Games, having worked at the company for 13 years. There, he took on various roles including backend developer, application development manager, and game producer. During this time, he actively participated in the development and operation of popular titles such as QQ Pet, QQ Pet Fight, and games involving the Naruto franchise. To date, these games have over 10 million daily active users. Through this rich well of experience he has accumulated covering all aspects of game development and operation, he aims to spearhead more creative endeavors via AlgoriX Studios.

Naomi Li

VP, Research and Development

Naomi Li has a decade’s worth of experience in research and development for the adtech industry. She started her career at Baidu where she was mainly responsible for the Automation Testing of the Baidu Fengchao Ad Search Engine. There, she focused on the fields of overlapping experiment infrastructure, rich media ads rendering, and ad antispam technology. Moreover, as part of Baidu’s International Group, she led the research and development of various monetization and advertising mechanisms for Baidu’s overseas app store, SDK, and AdNetwork. At present, she is responsible for the overall direction of AlgoriX’s R&D efforts, which include product planning, technical architecture design, and talent training.

Frederic Liow

SVP, Revenue Growth & Strategy

A veteran in the digital advertising industry, he began his career during the early days of the dotcom era. To date, his passion for the digital industry is still as strong as ever (and getting even stronger). Spanning twenty years of his digital career, he has worked for leading companies like Nielsen, MRM McCann, Omnicom Media Group, Millward Brown and Smaato. Currently, Frederic is the revenue officer for AlgoriX spearheading global revenue growth, business expansion and strategic partnerships. He has set up and built AlgoriX’s global mobile ad exchange, hiring talents, establishing best practices, and injecting global industry standards into the company. Prior to his current role, he was the Head of Demand for Smaato, overseeing the demand business and operations in APAC. Frederic is currently based in our Singapore HQ.

Xinxiao Guo

Chief Operation Officer

Equipped with a decade’s worth of experience in global product operation as well as a deep understanding of emerging markets, Xinxiao brings her expertise in mobile traffic monetization and programmatic advertising to the table. Before her role at AlgoriX, she was a core member of iQIYI’s research and development unit. After that, she moved to Baidu as Head of Programmatic Advertising.

At present, she is AlgoriX’s co-founder and Chief Operation Officer. Together with the team, she aims to help game developers effectively reach global audiences and implement better monetization strategies.

Ruiz Xie

Chief Executive Officer

With nearly 20 years of business experience, Ruiz Xie founded AlgoriX with the vision of creating a global advertising platform and entertainment ecosystem. Through AlgoriX’s services, he aims to create a more inclusive tech ecosystem by providing customized solutions that meet the needs of businesses at every stage. At the same time, through AlgoriX Studios and its third-party partner studios, the company is currently bringing to life a greater goal of providing a comprehensive entertainment platform for people worldwide, which covers games, IP, comics, movies, and more. At present, he leads nearly a hundred employees with concrete plans to expand the company by establishing more offices worldwide.

Before founding AlgoriX, Ruiz Xie joined CoreMail in 2002. There, he created the first Ajax version of the mailbox in China for NetEase, which was the largest Internet company in China at the time. After that, he joined Tencent in 2005 and contributed to the creation of Tencent Games while also building a large scale distributed storage system. In 2013, he moved to Baidu where he took part in developing Baidu International’s overall architecture and search advertising system. During his tenure, he was also the Chairman of the Baidu Global Technical Committee and Baidu’s chief architect.