Get ready for the demise of the cookie monster

Nearly all browsers automatically block most cookies. The holdout has always been the hugely dominant Google Chrome browser, and now they have signed the cookies’ death warrant. Picture: Getty Images

The death of the infamous cookie is coming – are you ready?

In 1994, Lou Montuili a barely-known web browser programmer at Netscape Communications invented a humble piece of technology known as the cookie. Little did Montuili know that his somewhat innocuous invention, designed to simply allow people to store their items in a virtual shopping cart, would explode to reach nearly every computer in the world and give birth to a massive global movement dedicated to the protection of online privacy.

Back then, the World Wide Web was a little clunky. Each site operated autonomously, and this didn’t work particularly well for e-commerce sites. It became clear early on that we needed to give the internet a memory. And so, thanks to Montuili, cookies were invented. They allowed websites to keep track of who visited them and what they were looking at.

Needless to say, this pushed some pretty uncomfortable buttons for those who understood how the internet worked at the time, and what it meant for the future of anonymous web surfing.

Unsurprisingly, it didn’t take long for the advertising industry to clock its potential and it quickly transformed digital advertising around the globe.

Brands could now track website visitors, collect data on their activity, enhance user experiences and target ads more precisely to their intended audience.

Fast forward 30 years and the debate around online privacy is roaring to a crescendo. Consumers are rightly demanding protection of their privacy, transparency, and the option to choose what their data is used for.

This powerful movement has forced the hand of many governments and companies around the world, leading to seismic changes in privacy regulation and technology.

And more change is afoot on both the regulatory and technology fronts.

The critical question every brand should be asking themselves is: are they ready for what is coming?

Nearly 75 per cent of the world’s population is now covered by privacy laws that affect digital advertising. The European Union led the charge and other jurisdictions are following.

In Australia, the Albanese government is proposing vast changes to our privacy laws designed to clean up what has probably been a bit too loose for too long.

The key for this government will be resisting the urge to overreach, while at the same time getting the balance right between protection of individual privacy and enabling a thriving economy – especially when so many businesses are feeling the pinch of a tough economic climate.

The government announced what they were going to do in September last year. Of course, there will be tinkering at the edges as it meanders through parliament. But, if you are a business in Australia, you should be reviewing your privacy practices to ensure they will be in line with what is surely just around the corner.

At the same time, big changes in technology and the behaviour of companies have made privacy protections paramount. There is now little or no tolerance for lax privacy controls or data breaches – even if caused by outside malicious actors.

Strong privacy policies and protections are now critical, and the best companies have realised that they can be used as a competitive advantage.

The slow beat of technology changes has been heralding the death march of the cookie for over a decade. Safari and Firefox browsers started blocking the majority of cookies in 2013. Since then, nearly all browsers automatically block most cookies. The holdout has always been the hugely dominant Google Chrome browser, and now they have signed the cookies’ death warrant.

What this means is that by the end of the year, most cookies will be no more, and advertisers will cease to have the same access to data that has been critical to their operations for decades.

For brands and the advertising industry, this is hugely consequential. It completely changes the game and businesses will need to adapt quickly.

But it is not the end of the world.

In fact, it is the start of a new world where advertising and marketing is undertaken in a privacy-centric way, which is a good thing.

Technology will continue to develop at an exponential rate, leading to the hyper-personalisation of content and advertising. This is exciting for consumers as they will have a far better experience with more content aligned to their preferences and interests. At the same time, we will see far more protection of individual privacy through the de-identification and anonymisation of personal data.

The key for business and the advertising industry is how to do that in a way that places privacy at the core of operations, consumer experience and strategy.

Business leaders who face this change should do three things.

First, acknowledge that privacy and technology changes are already here, and more are coming, which will have a significant impact on all areas of your business and how you grow through marketing.

Second, you need to act now, review your privacy practices, and adopt privacy-led solutions that deliver great customer experiences and effective marketing campaigns. The most astute businesses are already implementing these changes.

Finally, brands that prioritise transparency, consent and privacy protection will build trust with their customers, enhance their brand reputation, and importantly help them grow in this new world where individual privacy is king, and the cookie is no more.

Josh Faulks is chief executive of Australian Association of National Advertisers (AANA).