The Difference Between First Party Cookies and Third Party Cookies & Server Side Tracking as a Solution
Update 08-2024: Google recently shared that they will not completely eliminate third-party cookies after all as previously planned. Read more about it here.
If you want to have a well-functioning website, cookies are very important. Cookies are used to collect data and there are two "main" types: first party cookies and third party cookies.
It is essential to understand the difference between these two types of cookies and the advantages and disadvantages, especially given the constantly changing privacy laws and regulations.
In this article, we explain what these cookies are, their advantages and disadvantages and why server side tracking provides a better solution to contemporary privacy issues and regulations.
What are First Party Cookies?
First party cookies are cookies set and managed by the website you are visiting. They are specific to that domain and are usually used to improve the user experience for the user. Examples include remembering login information, language settings and the items you have placed in a shopping cart.
A key benefit of first-party cookies is that they significantly improve the user experience. By remembering preferences and login information, interaction with the website is smoother. In addition, these cookies offer a high degree of privacy because they only collect data within the website itself. This makes them less controversial when it comes to privacy issues.
If you run a website then first party cookies are very valuable because they help collect accurate analytical data. This data can be used to improve website performance. In addition, the legal ownership of the data collected is clear: the website owner owns the data. This means that the data is not shared with third parties, which facilitates compliance with privacy laws such as GDPR.
However, first-party cookies also have some limitations. One of the main drawbacks is that they can only collect data within the domain of the Web site. This means they are unable to track user behavior across different Web sites, which is known as cross-site tracking. Using only first-party cookies is a significant limitation for advertisers because it prevents them from showing targeted ads based on users' browsing behavior across multiple Web sites.
What are Third Party Cookies?
Third party cookies have some distinct features and characteristics. These cookies are not set by the website you visit (as we described above about first party cookies) but by an external entity such as advertisers and analytics providers. These cookies are mainly used for advertising purposes, such as targeted ads and cross-site tracking.
Benefits of Third Party Cookies
A big advantage of third-party cookies is the ability to show targeted ads. They can track users' browsing behavior across different websites, which means that when you advertise, you can show specific ads that match the user's interests and behavior. This is incredibly valuable because it allows your ads to better connect with the target audience and increases the conversion rate. This can be seen as an effective way of advertising.
In addition, third-party cookies enable cross-site tracking. They offer marketers and advertisers valuable insights because you can track users across multiple Web sites. This gives a better picture of user behavior and helps you create a more targeted marketing strategy.
Disadvantages of Third Party Cookies
Despite their advantages, third-party cookies also have significant drawbacks, especially in the area of privacy. These cookies are often seen as an invasion of privacy because you can track users across multiple Web sites without explicit consent. This can lead to mistrust among users, who are uncomfortable with the idea that their online activities are being monitored by third parties. Users may feel that their privacy is being violated, which can result in a negative perception of the websites and companies that use these cookies. This distrust can damage the relationship between users and companies, which can ultimately negatively impact a company's reputation and success.
Another problem is that many modern browsers and privacy laws such as the GDPR in the Netherlands and Europe restrict or block the use of third-party cookies. These restrictions significantly reduce the effectiveness of third-party cookies.
A better solution: Server Side Tracking
We offer businesses an innovative solution to the limitations of third-party cookies by using server-side tracking. Instead of collecting data through the browser (client-side), tracking and analysis is moved to the server (server-side), bringing several benefits.
Better privacy
One of the main benefits of server side tracking is the improvement of privacy. Because data collection and processing takes place on the server, the risk of privacy violations is significantly reduced. This is because there is less chance of sensitive user information falling into the wrong hands or being misused.
More accurate data
Server side tracking also provides more accurate data. By relying less on cookies, which can be blocked by browsers or influenced by adblockers, the data collected is more reliable. This results in better data, which is a better basis for analysis and decision-making.
Compliance with privacy laws
Another advantage of server side tracking is that it makes it easier to comply with privacy laws and regulations such as the GDPR. Because the data storage and processing takes place on the server, the process can be better controlled and kept within legal regulations. This helps companies comply with strict privacy regulations and avoids potential legal problems and high fines.
Broad applicability
Server side tracking technology is broadly applicable to various platforms such as Google Analytics 4, Meta Ads, Google Ads and more. This means that companies can get a complete picture of their marketing applications regardless of the platform they use.
Getting Started with Server Side Tracking
First party cookies and third party cookies have their own applications and challenges, but with increasing restrictions on third party cookies, a new approach is needed. Starting to apply server side tracking is a good option in this. Would you like to get help with this? Please contact us.
