The Loss of Third-Party Cookies and Its Potential Impact on Ad-Fraud

On July 22nd, Google announced a changing approach to third-party cookies (3PC) in Chrome, prompting all users to make their own choice on the matter. Whether this choice will be opt-in or opt-out is still unknown, but we expect between 70-80% of 3PC to no longer be available, based on adoption rate of similar functionality in iOS.  

Third-party cookies have played a key role in tracking user behavior across websites, helping detect fraudulent activity. Without them, advertisers could face challenges in distinguishing real from fake traffic, which may lead to higher costs and reduced trust in digital advertising. And this major change to the biggest browser in the world might not just have a direct impact on your ad effectiveness – it could potentially tip the scale in a hidden battle that is currently raging on the internet.  

 

Drowning in AI 

Maybe you have encountered some strange images on social media generated by artificial intelligence (AI), like that of “Shrimp Jesus” on Facebook, and while most of us would dismiss them as silly AI shenanigans, some of these hyper-realistic images have received more than 20,000 likes and comments.  

So, what exactly is going on here? A few AI clickbait-posts might not be concerning, but the overwhelming amount of them definitely is.  Third-party cookies have played a key role in tracking user behavior across websites, helping detect fraudulent activity. Without them, advertisers could face challenges in distinguishing real from fake traffic, which may lead to higher costs and reduced trust in digital advertising. 

But first let’s rewind the time a bit, because back in 2018 a ridiculous conspiracy theory dubbed the “Dead Internet Theory” surfaced. It claimed 90% of the internet was already made up of “fake users created by the man”. While the theory was easily dismissed, it has now seen a revival due to the emergence of AI.  The explosive increase and sophistication of bot accounts have convinced many that an immense bot traffic might actually become a reality soon.  

Reports indicate that fake traffic has reached a new height this year by taking up one third of all internet traffic – with a staggering 58% increase from the previous year’s findings. And these numbers were only detectable bots. Detecting and preventing these intelligent bots have also become increasingly difficult due to their ability to mimic human behavior that continuously grows more advanced and evasive.  

In this ongoing war against bots, losing any source that helps the bot-detecting algorithm, could be a catastrophe. If you don’t prepare for the phase-out of third-party cookies, you risk being overwhelmed by fake traffic and ad fraud, damaging your ad effectiveness. 

 

Fighting Back with First-Party Data 

Let’s not give up hope though, because as we move away from 3PC, the best solutions rely on a familiar strategy: increasing first-party data. 

• Verify, verify, verify: Encourage user sign-ups and logins with CAPTCHA protection (those human-vs-bot puzzles). This gives users a unique identifier and helps sweep out bots. Making users pay for verification is not recommended, as it simply makes the fake accounts appear genuine, which makes it worth the cost to the bots. 

• Share data securely: Sharing encrypted first-party data, like email addresses, with platforms allows them to match data to real users without compromising privacy. 

• Connect the dots: Track offline events like physical store purchases and link your online users to real life.  

• Filter data with server-side tracking: Collect and process data directly on your own server, giving you complete control over what information is tracked and shared with other platforms. This allows you to filter out irrelevant information. 

 

Therefore, the time is right for you to take a closer look at your current tracking system and discover how you can optimize. This optimization can be done smoothly by working with your tracking & analytics gurus, so you can implement advanced first party tracking to gather valuable data from real users and stay ahead of the bot army.  

We might not be able to win the war on bots, but by joining forces with your local Tracking & Analytics warriors, we can at least win the first battle together.  

 

If you want to know more about your tracking options, then feel free to reach out to Mikkel Aaxman, Tracking & Analytics Strategy Specialist, at [email protected]