March 12, 2025 | Robin Ponnet, Lead Web & Digital Analyst at The Reference
Cookies have been a cornerstone of the online experience, quietly shaping the way users interact with digital solutions. On one hand, cookie banners serve as an extension of a user’s right to be ignored, offering the ability to opt-out, remain anonymous, and minimize tracking. On the other hand, they enable the personalized experiences we’ve all come to expect.
Do we want tailored recommendations? Yes! How do we want them? Compliant and personalizable.
The foundation was laid with the 'ePrivacy Directive (EPD)' but privacy was mainly put on the agenda of marketing departments in 2016 when Europe introduced GDPR, marking a pivotal moment in digital privacy. This comprehensive regulation and high fines forced organizations worldwide to reconsider how they handle customer data.
What started as a European initiative quickly became a global standard, with other regions following suit.
Weirdly enough, the word "cookies" does not appear in the original text of the General Data Protection Regulation (GDPR). Instead, the GDPR refers more generally to concepts like "personal data," "processing," and "information society services." The closest the GDPR comes to addressing cookies specifically is in Recital 30, where it mentions "online identifiers" and specifically refers to:
"Natural persons may be associated with online identifiers provided by their devices, applications, tools and protocols, such as internet protocol addresses, cookie identifiers or other identifiers..."
The more detailed regulations regarding cookies are found in the ePrivacy Directive (sometimes called the "Cookie Law"), which works alongside the GDPR. This directive was established before the GDPR and contains more specific provisions about cookies, including the requirement for websites to obtain user consent before storing cookies on their devices.
The next shock came in 2020 when Google announced plans to phase out third-party cookies in Chrome. This announcement sent waves through the digital marketing world, especially since other browsers like Safari and Firefox had already started restricting tracking capabilities. With over 40% of internet users also employing ad-blocking technology, the writing was on the wall: the era of unrestricted tracking was coming to an end.
Today, every respectable builder of websites should put compliance first and sales second, because before one can even think about shopping, one must click through a maze of privacy settings.
Cookie consent banners now require prominent "deny all" options, and users are increasingly choosing to opt out of tracking. This shift has tangible consequences: audience pools for retargeting shrink, digital advertising costs rise, and affiliate partners see their compensation models affected.
However, the numbers reveal important nuances. Overall, around two-thirds of visitors still consent to cookies, but acceptance rates vary dramatically depending on the channel: brand-loyal or organic customers might consent 95% of the time, while push-based channels such as banner ads can see rejection rates soar to 80%. While smaller pols can lead to less rach and high costs, the upside is a more engaged, higher-quality audience for marketers - and audience that is more likely to convert, even in a stricter compliance environment.
The major tech companies are leading a privacy revolution. Google is developing new ways to enable relevant advertising without tracking individuals across websites. Apple has introduced features that give users more control over their data, from app tracking permissions to email privacy protection. Microsoft has implemented similar privacy features in its Edge browser.
However, it's crucial to understand what isn't changing. First-party cookies - those created by your own website - remain functional and essential. Your ability to understand how users interact with your own website isn't going away. Website analytics pixels continue to work, and you can still track conversions and user behavior on your domain.
Let's address the three biggest concerns we hear from business leaders about this privacy-first future.
This is perhaps the biggest misconception we encounter. The reality is that most of your essential tracking capabilities aren't going anywhere. Your website analytics will continue working just fine - you'll still see how users interact with your site, what content they engage with, and how they move through their purchasing journey. The key is understanding the difference between tracking on your own website (which remains largely unchanged) and tracking across multiple websites (which is what's being restricted).
Think of it like the difference between knowing what a customer does in your physical store versus trying to follow them to every store they visit in a shopping mall. You're not losing the ability to understand your customers; you're just being asked to focus on their interactions with your business directly.
While digital advertising is certainly changing, it's far from dead. Yes, there are new challenges: retargeting audiences are becoming smaller as more people choose to opt out of tracking, and the cost of acquiring new customers may increase in the short term. However, many businesses are finding creative solutions.
Many organizations are searching for a single technology or platform to solve all their tracking and measurement needs in this new era. This is a mistake. The future will require a mix of approaches working together: first-party data collection, privacy-preserving analytics, and new forms of measurement that respect user privacy while providing meaningful insights.
A more effective approach is to develop what we call a "privacy-first toolkit" - a combination of strategies and technologies that work together. This might include:
Think of it like updating your marketing toolkit for a new era rather than trying to find a one-size-fits-all replacement.
The organizations succeeding in this transition aren't those waiting for a perfect solution - they're the ones actively experimenting with new approaches while maximizing the value of their existing first-party data.
You can’t control what you’re not measuring!
Remember you actually need an active ‘GO’ from your user. How to begin?
The future of digital marketing will embrace cookies, but compliance and privacy will be necessary. Organizations that enroll privacy-first practices while maintaining effective measurement capabilities will find themselves at a significant advantage. The key is starting this transformation now, building stronger customer relationships based on trust and transparency.
Remember, this isn't just about compliance – it's an opportunity to reimagine how we connect with customers in a more respectful and sustainable way. Those who adapt quickly will not only survive but thrive in this privacy-first future.
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