What is a third-party cookie and how does it work?

Ketch is simple, automated and cost effective

If you’re a regular Internet user, you have undoubtedly encountered pop-up notifications informing you that the site uses a third-party cookie. But have you ever taken a moment to discover what is a third-party cookie and what it’s used for?

Table of Contents

Understanding web cookies
How do cookies work?
Privacy concerns with third-party cookies
Future of third-party cookies
Compliance with regulations
Cookie consent management
Optimal compliance at minimal effort

Understanding web cookies

Website cookies are the data from a specific website stored in your computer while browsing the Internet. Conversely, third-party cookies are set by sites besides the one you browse. These cookies are usually placed on your device by a site from a domain different from the one you’re visiting.

You can set cookie preferences to prevent a website from collecting the data you type. It’s best to remember that allowing third-party cookies poses privacy risks since performance cookies can track your online activity across multiple sites. Thus, it’s no surprise that there are growing concerns regarding third-party cookies. This is attested to by Google’s decision to phase out third-party cookies in the near future.

Before we go any further, let's address what cookies are in detail.

What are website cookies?

Web cookies are like small digital breadcrumbs that websites leave on users' devices when they visit them. These tiny files are stored on the user’s web browser and help the website remember information about their visit, like their preferred language and other settings. This enhances the website’s performance and speed on the user’s next visit, thus increasing overall user experience and engagement.

What are third party cookies?

Third-party cookies are set by a domain different from the one you are visiting. They are primarily used for tracking and advertising. These cookies enable advertisers to display relevant ads based on your browsing history across multiple sites.

‍

Understanding web cookies and third-party cookies means that there are other types of cookies, each serving unique functions. Let's discuss those briefly.

The various types of cookies

While the definition of web cookies contains a glimpse of what cookies are used for, you may still wonder, ‘What are cookies used for on websites?’ To answer this question, let’s explore the different types of web cookies and their functions:

Feature	First-Party Cookies	Second-Party Cookies	Third-Party Cookies
Created By	Website being visited	Partners or affiliates of the visited website	External domains (e.g., ad networks)
Data Tracking Scope	Limited to the specific website	Partnership scope, can extend to related entities	Tracks user activity across multiple websites
Privacy Implications	Generally considered safer and less intrusive	Varies based on partnership agreements	Often viewed as invasive due to cross-site tracking capabilities
Usage Examples	Remembering login details, user preferences, shopping carts	Collaborative marketing efforts, shared user insights	Targeted advertising, cross-site user behavior analysis

‍

Session cookies

‍These cookies only exist when the user uses the website (or, more strictly, until they close the browser after using the website). They typically store information as a session identification that does not personally identify the user. These cookies are crucial for websites to function correctly, enabling actions like navigating back and forth between pages.‍

Persistent cookies

‍They remain on a user’s device even after they close the browser. They help websites remember users’ information and settings for future visits, leading to faster and more convenient access. They’re often used for remembering login details or user preferences, such as language or theme selection.‍

First-party cookies

‍These are cookies set by the website a web user is visiting. Persistent cookies can remember a user’s specific preferences for a website, helping to create a more personalized experience during subsequent visits. They can also track visitor behavior over time and across different websites.

Read more: What is a first-party cookie?

Third-party cookies

As mentioned above, these are cookies set by a different domain (website) to the one you’re visiting. They are mainly used for online advertising and tracking because they enable advertisers to display relevant ads based on the user’s browsing history.

In other words, cookies are essential for many more uses other than enhancing website performance. They also play a pivotal role in data tracking and ad targeting. Many websites use them to collect data about user behavior, such as their most visited pages, how long users stay on a page, or the links they click. This information helps website owners optimize their content, design, and navigation based on real user activity.

How do cookies work?

When you first visit a website, you are often greeted with a pop-up or cookie banner asking for your consent to accept cookies. In essence, accepting cookies means you give the website permission to store small data packets on your device. This data tracks your online behavior and preferences, making your browsing experience more personalized and efficient.

When a user agrees to accept cookies, the website can remember specific details about the visit. For instance, if, as an online shopper, you add items to your cart but leaves the website before checkout, the cookies will remember these selections so you don’t have to start over when you return. Suppose you had set your language preference on a multilingual website. In that case, cookies ensure they see the site in your preferred language during subsequent visits without selecting it every time.

Browser cookies are also important for user authentication. When a user logs into a website, cookies help the site remember that they’re logged in. Users must re-enter their username and password without cookies when navigating to a different page.

However, it’s not all about convenience and functionality. Accepting cookies also has implications for user privacy. When you allow cookies, you allow the website (and potentially third-party entities) to collect data about your browsing habits. But despite these privacy concerns, it’s important to note that not all cookies are used for tracking or advertising. Many are essential for basic website functionality and enhancing the user experience. And while some people might find targeted advertising intrusive, others may appreciate seeing ads that align with their interests.

How do third party cookies work?

Have you ever wondered why similar ads seem to pop up whenever you browse the Internet? Well, third-party cookies are the culprit. For instance, if you’re checking out the iPhone 15 and intend to place an order as you browse different e-commerce sites, they will store a cookie on your web browser.

In turn, the cookies track your online activity, collecting data about your preferences. Later, when following the latest news on your favorite social media platform, you may see ads for the iPhone 15 you were checking out. That’s because the social media website uses a similar ad platform as the e-commerce website. Thus, it recognizes you based on the unique IDs third parties store.

What do third party cookies do?

Third-party cookies primarily track your online activity to increase the chances of conversion. They’re mainly used to track your browsing history and online activities and display personalized ads for services or products you might be interested in.

Generally, third-party cookies embed JavaScript from one site to another. That way, they can report users’ browsing habits across multiple websites. The cookies aggregate data collected during browsing sessions to create a web identity for each user. When you visit an e-commerce website to shop for the latest iPhone models, the cookies injected by the website will enable it to remember the models you checked or added to your cart.

Conversely, third-party cookies will map and share your data with other sites. When third-party cookies are in place, you’ll see the items you previously checked out when you revisit the website.

Should I disable third-party cookies?

Disabling third-party cookies can enhance privacy by preventing advertisers from tracking your activity across multiple sites. However, it may limit personalized ads and affect website functionality.

Is it safe to accept third-party cookies?

Accepting third-party cookies can compromise your privacy by allowing advertisers to track your activity across multiple sites. It can enhance your browsing experience with personalized content and ads, but consider your privacy preferences before accepting.

So, if you’ve been scratching your head, wondering why you see familiar ads even when visiting a website, that’s how third-party cookies work. They are the most effective tool for marketers to send targeted ads to Internet users.

A relatable example: online shopping

Imagine that you are browsing a cookies enabled online clothing store. You look at several items and add a few to your cart but ultimately don’t make a purchase. The website uses cookies to track your browsing behavior, including which items you viewed, how long you spent on the site, and whether you added or removed anything from your cart.

These cookies create a unique identifier for your browser, which the site can recognize and interact with each time you visit. Every action you take on the site gets associated with this identifier. This process enables the website to compile a detailed record of a your browsing behavior on their site over time. This data gives website owners valuable insights into user behavior, helping the website optimize its content, layout, and product offerings based on real user activity.

So how do cookies collect data? Beyond individual websites, third-party cookies can track your activity across multiple sites. For instance, an advertising agency could use cookies to observe your browsing behavior on all the sites it works with. This data allows the agency to build a comprehensive profile of your interests, which it can use to serve targeted ads that align with your preferences.

While this can lead to more relevant advertising, it raises privacy concerns. Many people feel uncomfortable with their online activities being tracked and analyzed to such a degree.

Privacy concerns with third-party cookies

Cookies are not inherently harmful, which is attested to by the fact that 95 % of websites leverage third-party cookies for harmless reasons, including making returning visitors’ user experience seamless. Nonetheless, the problem lies with ad networks, which collect and store significant user data, including personally identifiable information.

Since advertisers place cookies on various websites, they can easily access sensitive personal data, including contact info, medical history, and more. Worse still, such information is usually linked directly to users’ real identities.

What is the problem with third-party cookies?

The problem with third-party cookie tracking is its all-encompassing and ubiquitous nature. In addition, it’s a key cog in the digital advertising wheel. However, its privacy implications are significant. That’s particularly true when you consider that personally identifiable data often gets collected without the users’ knowledge and permission.

Future of third-party cookies

As a result, it’s no surprise that tech players are starting to phase out third-party cookies. A case in point is Google, which announced that it would begin phasing out third-party cookies in 2024 and 2025. Other companies will follow suit by asking advertisers to change tactics and deploy less intrusive targeted advertising methods.

Why is Google getting rid of third-party cookies?

Google is phasing out third-party cookies to enhance user privacy and address growing concerns over online tracking. This move aims to create a more secure web environment and encourage the development of privacy-focused advertising technologies.

Compliance with regulations

As a regular internet user in the modern interconnected world, you’re undoubtedly concerned with how websites collect and store your data. You’re not alone because we’ve all been in a similar situation. Sadly, most websites don’t explicitly inform us about the information they collect and how they disclose it to third parties. Not to mention that there’s always a nagging concern that the disclosed data won’t be used ethically by whoever accesses it.

Thankfully, governments are coming to the rescue of Internet users. Regulations such as the GDPR and CCPA stipulate how third-party cookies collect data. This begs the question, what is cookie consent? Also, are third-party cookies on their deathbed? Here’s how these compliance regulations will affect third-party cookies:

CCPA

The California Consumer Privacy Act (CCPA) stipulates how companies should collect and handle personal information. It also defines how businesses should use third-party cookies. According to the CCPA, cookies are a vital marketing tool for modern business. Even so, the regulation recognizes that some third-party cookies are intrusive and thus threaten users’ Privacy.

Under CCPA rules, every regulated company must assess its cookie implementation to ensure fair and transparent practices are in place. Furthermore, additional steps should be taken to ensure compliance. In this regard, you must take these cookie compliance measures if the CCPA regulation applies to your company:

Your Cookies Policy and Privacy Policy should outline your cookie practices.
Add a “Do Not Sell My Personal Data” page on your website and incorporate links in noticeable areas of your site/app.
Allow users to submit opt-out requests. Furthermore, such requests should be honored.
Incorporate a “Notice at Collection” in your Privacy Policy. If not, host it on a separate but prominent webpage.

GDPR cookie consent

The General Data Protection Regulation (GDPR) governs the collection and handling of personal data by companies operating in the EU. The regulation stipulates that website operators and owners must ensure they collect and process data lawfully. Likewise, websites operating outside the bloc must comply with the rule if they collect data from users within the bloc.

The GDPR only mentions cookies once, but cookie consent is one of the regulation’s cornerstones. That isn’t surprising because cookies are a common way for websites to collect and share personal data. Under the ordinance, businesses must comply with these cookie requirements:

Prior consent should be sought before any cookie activation besides necessary allowed cookies.
The cookie consent must be granular in that website users can choose some and reject what they don’t prefer.
The consent shouldn’t be forced.
Users should have the option of withdrawing their consent.
The consent must be stored securely as legal documentation.
Depending on jurisdiction, the consent should be renewed annually. Some EU countries recommend more frequent third-party consent renewal.

GDPR third-party cookie compliance is achieved on websites primarily via cookie consent banners. These allow users to choose and accept some cookies for activation and reject others when they visit a website.

Cookie consent management

If CCPA, GDPR, or other data privacy regulations apply to your business, you must implement cookie consent management. This is the process of collecting and handling users’ cookie consent. Regarding the GDPR, website users must take positive and affirmative actions like checking tick-boxes to accept cookies. For this reason, informing website users about using third-party cookies doesn’t suffice.

On the other hand, the CCPA stipulates that implied cookie consent is sufficient. In this regard, third-party cookies can be created on users’ devices by default. Even so, they can stop the establishment of cookies by informing a website about their preferences.

‍

How to manage cookie preferences

As a web user, you can choose whether or not to allow third-party cookies to collect your data and track your online activities.

How to enable third party cookies

The process of enabling third-party cookies varies from browser to browser.

Google Chrome

Here is how to manage cookie preferences on your Google Chrome browser when using different operating systems:

Windows Devices

Select the Chrome icon, then select the Settings icon.
Click the Show Advanced Settings at the bottom of the page.
Scroll down to the Privacy icon, click Content Settings, then Cookies.
Ensure the slider on the cookies page is off to block third-party cookies.
Close and reload the browser.

Mac Devices

Open Chrome Preferences on your browser, select Settings, then click Show Advanced Settings.
The Privacy Menu will appear alongside Content Settings. Click on the Content Settings icon.
Ensure the “Block third-party cookies and site data” box isn’t checked.
Close the menu and reload the browser.

Safari

These are the steps to enable cookies when using the Safari browser on a Mac device.

Open the browser and navigate to the drop-down menu on the homepage.
Select Preferences, then click the Privacy icon in the top panel.
Click the Block Cookies icon, then select the Never option.
For enhanced security, change the browser’s Privacy setting back to always when you finish using the website.

Read more: What is a cookie consent opt-in?

What happens if I block all third-party cookies?

Blocking all third-party cookies enhances privacy by preventing cross-site tracking but may reduce the relevance of ads and impact website functionality. Some features like social media integrations or personalized content may not work properly.

Optimal compliance at minimal effort

Every company needs to collect customer data for deeper engagement. Nonetheless, the last thing you want is to face hefty non-compliance penalties for disregarding data privacy regulations like GDPR and CCPA. For this reason, you need a trusted cookie consent management solution that helps you obtain and manage user consent.

Ketch Data Permissioning is one such solution. Request a demo today to automate your data privacy operations.

‍

Josh Grossman

Customer Success Lead

Josh is a data solutions leader with 8+ years' experience in enterprise SaaS, adtech / martech / privacy-tech, and CRM ecosystems. He is passionate about uncovering Ketch's customer needs.

What is a third party cookie and what is it used for?