E-commerce and the impact of the removal of cookies

 

Since people have been expressing concerns over data privacy, leading web browsers have decided to remove cookies from their sites and this will bring several challenges for e-commerce merchants. Indeed, retailers have been using the information collected to design relevant ads.

What is the importance of cookies for sellers? It helps them build digital identities and these have become extremely significant in the competitive world of e-commerce. It seems that without these, answering simple questions is very hard. As such, it is difficult for advertisers to measure ad impressions, frequency, and classify new and returning website visitors.

What can firms do to address this problem? Industry giants such as Google have been working on solutions to help e-commerce companies. One such example is FloC. How does this work. It will group users into cohorts having a common identifier. However, currently, none of the proposed solutions seem to have gained momentum. Moreover, there is the issue of cross-platform identification to be tackled.

With the problems related to digital identity, there comes ad targeting challenges. Advertisers are going to lose that level of granularity that they have become accustomed to thanks to cookies. The next article posted on this blog will look at this issue.


Cookies help build digital identities © Royalty-free image

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