The End of Third-Party Cookies: How to Future-Proof Your PPC Strategy

In the ever-changing world of Google Ads and PPC marketing, privacy regulations and data protection policies are reshaping how businesses run advertising campaigns. 

With increasing restrictions on third-party cookies and evolving consumer expectations around data privacy, businesses must adapt to ensure their Google Ads strategies remain effective. 

What is the key to success in this new landscape? First-party data.

First of all, let’s cover the basics…

What are Third-Party Cookies?

A third-party cookie is a tracking file placed on a user's browser by a website other than the one they are currently visiting, typically for advertising and cross-site tracking purposes. These cookies allow advertisers to monitor user behaviour across multiple websites to serve targeted ads and personalised experiences.

How Do Third-Party Cookies Work?

1. A user visits Website A, which has an embedded ad from an ad network (the third party, e.g. Google Ads).
2. The ad network drops a third-party cookie onto the user’s browser.
3. When the user visits Website B (which also has an ad from the ad network), the cookie recognises the user.
4. The Ad Network uses this tracking data to show the user personalised ads based on their previous browsing behaviour.

What is first-party data?

Simply put, first-party data is information a business collects directly from its customers. This data is collected through the business’ own channels, such as its website, app, CRM, or mailing list. This data includes details like customer email addresses, purchase history, website interactions, and survey responses

Why Privacy Regulations Matter for PPC

Privacy regulations such as the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018 have significantly impacted digital advertising. These laws are designed to give consumers more control over their personal data and limit how businesses can track and use that data for advertising.

Google has also taken a privacy-first approach, phasing out third-party cookies in Chrome. Combined with Apple’s iOS updates that restrict tracking, these changes mean businesses can no longer rely on third-party tracking for remarketing, audience targeting, and conversion tracking.

This shift can seem daunting for business owners and marketing professionals, but it also presents an opportunity to rethink data-driven PPC strategies and build stronger relationships with customers using first-party data.

The Decline of Third-Party Cookies and What It Means for Google Ads

Third-party cookies have long been a cornerstone of digital advertising, enabling advertisers to track user behaviour across different websites. However, as privacy regulations tighten and Google phases out these cookies, traditional tactics such as dynamic remarketing and lookalike audience targeting will become less effective and eventually redundant (Google Ads has already depreciated the Similar Audiences feature). 

Instead of relying on third-party tracking, advertisers must pivot towards privacy-compliant PPC strategies focusing on first-party data collection and contextual targeting.

First-Party Data: The Future of PPC Success

First-party data is essential for modern Google Ads strategies because:

• It is more accurate and reliable than third-party data.
• It ensures better compliance with privacy laws like UK GDPR.
• It fosters stronger customer relationships by relying on direct interactions.
• It enables better audience segmentation and higher conversion rates in Google Ads campaigns.

To remain competitive in PPC advertising, businesses should develop a robust first-party data strategy. How can you start?

1. Encourage Direct Data Collection

• Use lead generation forms on your website to collect customer emails.
• Offer incentives such as exclusive discounts or valuable content in exchange for sign-ups.
• Build loyalty programmes that reward repeat customers while gathering data on purchasing behaviours.

2. Implement Google’s Enhanced Conversions

Google has introduced Enhanced Conversions, a privacy-friendly tool that helps advertisers track conversions using first-party data. It allows businesses to share hashed (anonymised) customer data with Google to improve tracking accuracy while remaining compliant with privacy regulations. We now implement Enhanced Conversions as standard for all The Digital Stride’s clients. 

3. Leverage Customer Match for Targeted PPC Advertising

Google’s Customer Match allows businesses to upload their own customer data (email addresses, phone numbers, etc.) into Google Ads. Google then matches this data with users on its platform to deliver more personalised PPC ads.

This feature enables businesses to:

• Retarget existing customers with personalised offers (for example, an add-on or complimentary product to their recent purchase).
• Encourage customers to make repeat purchases for products that have a shorter lifecycle.
• Target customers who have shown intent (e.g. signed up to your mailing list or used your quote calculator), but haven’t yet purchased.
• Exclude past purchasers from seeing ads to optimise ad spend for new customer acquisition. 

Practical Steps to Future-Proof Your PPC Strategy

Adapting to these changes requires a proactive approach. Here’s what business owners and marketers should do to maintain high-performing PPC campaigns in a privacy-first world:

1. Audit Your Data Collection Methods
   
   • Ensure compliance with UK GDPR and Data Protection Act 2018.
   • Use clear cookie consent mechanisms when collecting customer data. We recommend using a CPM (consent management platform) such as CookieBot — we can help you implement this!
2. Invest in a CRM System
   
   • Organise and segment first-party data efficiently.
   • Use automation to nurture customer relationships and personalise marketing campaigns.
3. Leverage AI and Machine Learning for Google Ads Optimisation
   
   • Google’s AI-powered bidding strategies (e.g. Performance Max campaigns) optimise ad delivery based on first-party data.
   • Smart Bidding helps advertisers maximise conversions while adapting to privacy-first changes.
4. Diversify Your Digital Marketing Strategies
   
   • Explore contextual targeting, which delivers ads based on website content rather than user behaviour.
   • Develop an omnichannel strategy that includes email marketing, social media advertising, and SEO to supplement PPC efforts.

Final Takeaway: Privacy as a Competitive Advantage in PPC Advertising

Rather than seeing privacy regulations as a limitation, businesses should embrace them as an opportunity to build stronger customer trust and improve the quality of their PPC campaigns. 

First-party data isn’t just a workaround for the loss of third-party cookies—it’s a future-proof approach that can drive better Google Ads performance.

By implementing first-party data-led strategies and leveraging Google’s privacy-friendly PPC tools, business owners and marketers can stay ahead of the curve and continue running high-ROI Google Ads campaigns in a privacy-first world.

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