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How cookies work and why site owners use them

Learn more about how cookies and cookieless tracking drive better ad campaigns, improve user experience, and help brands make smarter content decisions.

Hannah Reed
·Updated

We love cookies, right? Well the baked edible goods. Perhaps not the digital ones so much. Cookie consent banners and overwhelmingly suspicious lists of cookies quietly collecting info on your every scroll or click? Cookies are typically framed as a privacy risk. There's a different way to look at them: as a mutual exchange between site owners and visitors.

What cookies track

Despite the 'pop-up' fatigue, browser cookies serve a practical purpose:

cookies help website owners understand how people navigate their site and what content matters most.

The metrics they can tell paint a story on:

  • where users came from
  • how users found the site or app
  • how long they stayed on screen

whilst keeping identities anonymised by aggregating the data and placing threshold limits (e.g. 100 users must have visited before the site owner can see any performance data).

Using data to improve your experience

Cookie banners often say 'we use cookies to improve your experience'. How does this translate into something tangible?

It comes down to action. A good marketer uses these data insights to identify content that needs work. For example, a once-popular FAQ page with declining visits and session time could indicate outdated info in the copy. With that insight, the site owner can make an informed decision whether to:

  • retire irrelevant content
  • update outdated info
  • merge it with more useful content elsewhere
  • improve pagespeed, mobile responsiveness or layout

The result? A smoother experience overall, enabling user to spend less time hunting for what they need and more time benefiting from great content.

Content that doesn't serve anyone costs money to host and frustrates users who land on it.

Quality content needs quality data insights

Site owners and advertisers work within limited budgets. Cookie-powered data insights, web analytics and ad performance data enable organisations to make better decisions about where to focus time and resources.

Data-backed decision making requires a feedback loop between consumers and online businesses.

users engage -> data is collected -> content is improved -> users engage more

That loop incentivises improvements and increases the quality of offerings to appeal to user behaviour that correlates with increased engagement.

The focus shifts from chasing clicks to building relevance, trust, and long-term performance.

The major search engines, ad and social media platforms are also raising the bar for content quality. They have guidelines and regulations that continue to become more stringent in protecting user safety and fighting spam, fraud and bots.

What about a "Cookieless" future?

Growing privacy regulations like GDPR, browser changes to phase out third-party cookies and smartphones' built-in features giving users control over each app's tracking mean cookies have evolved. "Cookieless" tracking methods include use of server-side tracking, first-party data (user-provided data) and contextual targeting.

The cookieless world has not ended user insights. It shifted the data world to more ethical and privacy-conscious ways of understanding user behaviour. Transparency in data usage helps build trust and is more important than ever, considering how fast technology moves widening the knowledge gap.

Much of the concern around cookies comes from unfamiliarity with how they work.

Reframing the cookie conversation

While cookie banners add friction, what's happening behind the scenes tends to work in your favour. Used responsibly, these insights help organisations deliver more useful and relevant experiences.

It's about turning passive data into active incremental improvements.

First-party cookies help site owners understand their own visitors' behaviour, like which pages are visited and for how long. Third-party cookies track users across different sites, typically for advertising purposes. Both types, when used transparently, support a trade that benefits site owners and visitors alike.

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