First-Party vs Third-Party Cookies: Key Differences

First-party and third-party cookies are both small data files stored on your browser, but they serve very different purposes and impact your privacy in distinct ways:

• First-party cookies: Created by the website you visit. They improve user experience by remembering preferences, login details, and shopping cart items. Only the site that sets these cookies can access them, making them more privacy-friendly.
• Third-party cookies: Set by external domains (like advertisers or analytics services). These track your activity across multiple websites for targeted ads and data collection, raising privacy concerns.

With browsers like Chrome phasing out third-party cookies and privacy laws tightening, businesses are shifting to first-party data strategies. This change prioritizes user trust, transparency, and compliance while maintaining personalized experiences.

Quick Comparison

For businesses, understanding these differences is critical for navigating privacy regulations and building strategies that respect user preferences.

First-Party vs. Third-Party Cookies: What's the Difference?

What Are First-Party Cookies?

First-party cookies are small data files created and managed by the website you visit. These cookies are automatically stored in your browser during your initial visit and contain unique information about your browsing session. This allows the website to recognize you when you return. Essentially, first-party cookies are generated by the site itself, or by scripts specifically tied to that site.

What sets first-party cookies apart is their exclusivity: only the website that created them can access and read the data they hold. For example, if Amazon places a first-party cookie on your device, only Amazon’s website can use that cookie’s data.

How First-Party Cookies Are Used

First-party cookies play a crucial role in making websites function efficiently. They remember your login credentials, so you don’t have to re-enter them every time you visit. They also track items in your shopping cart as you browse.

Another common use is for language settings. For instance, if you select Spanish as your preferred language on a website, a first-party cookie will store this preference for future visits. The same applies to other personalization settings.

These cookies also keep your session active, saving you from the hassle of logging in repeatedly whenever you navigate to a different page on the site. Without them, every click would likely require re-authentication.

Additionally, first-party cookies enable websites to deliver personalized experiences. For example, an online store might suggest products based on your browsing history, while a news website could prioritize stories from categories you frequently explore.

These functions not only improve usability but also enhance privacy and control.

Benefits of First-Party Cookies

One of the biggest advantages of first-party cookies is their privacy-friendly design. Since only the website that created them can access the data, they are generally less intrusive than other types of cookies. This restriction ensures your data stays within the site you're actively using.

"First-party cookies are mainly about streamlining the users' experience on a website." – Masha Komnenic CIPP/E, CIPM, CIPT, FIP

Another key benefit is universal browser support. Unlike third-party cookies - which are increasingly restricted - first-party cookies work across all browsers. They also align more closely with privacy regulations because they’re tied directly to the website you’re visiting.

For businesses, first-party cookies provide access to highly reliable analytics. The data comes directly from user interactions on their own site, making it more accurate than data obtained from third-party sources. This allows companies to track user behavior, measure engagement, and make informed decisions to optimize their websites.

Moreover, businesses have full control over their first-party cookie data - from collection to usage. As privacy regulations tighten and third-party data becomes less dependable, this control is becoming even more valuable.

What Are Third-Party Cookies?

Third-party cookies are small data files set by a website other than the one you’re currently visiting. Unlike first-party cookies, which are created directly by the site you’re browsing, third-party cookies are typically placed by external services like advertising networks, analytics tools, or social media platforms. These cookies are designed to track your activity across multiple websites.

For instance, imagine you visit a site that has embedded content, such as a YouTube video. When that video loads, YouTube’s server might place a cookie on your browser. This cookie can track your preferences and later suggest similar videos when you visit YouTube again.

How Third-Party Cookies Are Used

The main purpose of third-party cookies is cross-site tracking. They collect data about your online behavior to build detailed user profiles.

Here’s an example: Let’s say you’re browsing ShopA.com for a winter jacket. While you’re on the site, a script tied to an ad network drops a third-party cookie on your browser. Later, when you visit another website that displays ads from the same network, the cookie helps deliver ads tailored to your interest in winter jackets.

These cookies also play a significant role in data collection and analytics. Companies like Google use them to gather insights from user activity across millions of websites. This helps drive advertising revenue, which accounts for nearly 90% of Google’s income. Third-party cookies can collect a range of information, such as your browsing and search history, IP address, language preferences, on-site interactions, and even past purchases. However, this extensive tracking has sparked growing concerns about privacy.

Problems with Third-Party Cookies

Third-party cookies raise privacy issues because they allow external entities to access data without much user control. Unlike first-party cookies, which are confined to the site that created them, third-party cookies can be read by other programs, making them a potential risk.

In response, many browsers now block third-party cookies by default. Firefox and Safari have implemented strict cookie restrictions, while Google has introduced more customizable options for managing cookie settings. These changes highlight the increasing importance of privacy-focused, first-party data strategies.

"Users are demanding greater privacy–including transparency, choice and control over how their data is used–and it's clear the web ecosystem needs to evolve to meet these increasing demands." – Google

Privacy regulations, such as the California Consumer Privacy Act (CCPA), add another layer of complexity. A 2024 global survey revealed that fewer than 46% of businesses feel well-prepared to operate without third-party cookies. Meanwhile, 32% of in-house marketers and 31% of agency marketers still heavily depend on them. Additionally, 69% of advertisers believe the loss of third-party cookies will have a bigger impact on business than privacy laws like GDPR or CCPA. Despite these challenges, companies that have shifted to cookie-free strategies have reported positive results. Large enterprises saw a 10% improvement in performance, while small businesses experienced gains of up to 100%.

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Key Differences Between First-Party and Third-Party Cookies

Grasping the differences between first-party and third-party cookies is essential for businesses navigating today’s privacy-conscious digital environment. While both serve distinct roles, they function in fundamentally different ways and have varying impacts on user privacy and business operations.

The core difference lies in how they’re created. First-party cookies are generated directly by the website you’re visiting. They originate from the site’s publisher and can be implemented through JavaScript or the site’s server. On the other hand, third-party cookies are created by external domains - entities other than the website you’re currently browsing. These cookies are commonly loaded by ad servers or other external platforms.

Another key distinction is in how these cookies are accessed and controlled. First-party cookies are tied exclusively to the website that created them. Only that site can read them, and only while you’re actively visiting. Third-party cookies, however, can be accessed across multiple websites, as long as those sites load code from the same third-party server. This enables tracking across a wide range of sites.

Browser support also highlights their differences. First-party cookies are universally supported by all browsers, which typically offer users tools to manage or reject them. In contrast, third-party cookies are increasingly restricted or outright blocked by many browsers as part of their enhanced privacy measures.

The privacy implications are perhaps the most stark. First-party cookies are generally considered less intrusive because they’re confined to the domain that created them, often used to improve user experience by remembering preferences or collecting analytics. Third-party cookies, however, raise privacy concerns due to their ability to track users across multiple sites.

Side-by-Side Comparison

Here’s a quick breakdown of the main differences between first-party and third-party cookies:

The regulatory environment has also played a significant role in shaping the usage and perception of these cookies. For instance, in July 2023, the European Union’s top court issued a ruling against Meta, mandating that businesses obtain explicit user consent before delivering targeted ads. This decision has major implications for third-party cookies, as websites must now disclose their use and offer users the ability to disable them.

For businesses aiming to adapt to these changes and stay ahead, understanding these differences isn’t just helpful - it’s critical. It allows companies to make informed decisions about how they handle cookies, balance user privacy, and comply with evolving regulations.

Business Implications and Best Practices

The phase-out of third-party cookies is pushing marketers to rethink their strategies - and fast. As mentioned earlier, this shift demands a stronger focus on first-party data strategies. With around 75% of marketers globally still relying on third-party cookies, the urgency to pivot is real. This change opens the door to more dependable and privacy-conscious methods of data collection, which can deepen customer connections.

Adapting to Browser and Privacy Shifts

Browsers like Safari and Firefox have blocked third-party cookies for years, and now Chrome is following suit. In response, many companies are turning to first-party and zero-party data collection methods. According to a 2023 eMarketer survey, 43% of US marketers and agencies now lean on first-party data when collaborating with media sellers. Instead of relying on external tracking, businesses are focusing on building direct relationships with their customers.

One standout strategy is contextual advertising, which uses AI and machine learning to analyze the content of a webpage and serve ads that match its context - no cross-site tracking needed. Meanwhile, email marketing is enjoying a comeback as a first-party data tool, with businesses tailoring campaigns based on user preferences and behaviors gathered directly from interactions. These technological shifts align closely with growing regulatory demands.

Navigating Privacy Regulations

Beyond browser changes, businesses must also meet rising privacy standards. In the US, regulations like the California Consumer Privacy Act (CCPA) are setting the tone, with other states following suit. To comply, companies need to prioritize three main principles: transparency, consent, and user control.

A Capterra survey revealed that 84% of consumers are more willing to share personal data if they understand what's being collected and why. This makes obtaining clear and informed consent a core requirement. Many businesses are now using consent management systems to give users control over their data. These systems ensure customers can access, update, or delete their information easily, which has led to a rise in the adoption of customer data platforms (CDPs) to centralize and streamline data management.

The stakes couldn't be higher. A Cisco study found that 94% of organizations recognize that customers will avoid them if their data isn't properly protected. This isn't just about avoiding penalties; it's about earning and maintaining trust in a world where privacy concerns directly influence buying decisions.

Leveraging First-Party Data with Reform

Shifting to first-party data collection requires the right tools and strategies, and Reform’s form builder is helping businesses make this transition. Its focus on collecting consented, high-quality data directly from users provides a smooth path away from outdated cookie-based tracking.

One effective approach is progressive profiling, where businesses gather data gradually instead of overwhelming users with long forms. Reform’s multi-step forms make this process simple. Jessica Cavallo, Senior Product Manager at Arc XP, highlights the importance of balance:

"When publishers, broadcasters, and other organizations begin collecting data, it's crucial to strike a balance in the amount of information requested from users...Asking for too much can overwhelm users and deter them from further engagement. Conversely, asking for too little may not provide enough incentive for users to continue interacting."

Reform also ensures data quality with features like email validation and spam prevention, which verify user information at the point of entry. This results in cleaner databases and more accurate analytics. Additionally, its conditional routing capabilities enable personalized user experiences, helping businesses collect zero-party data that’s often more precise than inferred data.

With real-time analytics, companies can immediately evaluate form performance and user behavior, refining their strategies as they move away from third-party cookies. Reform’s seamless integration with CRM and marketing automation tools ensures that first-party data flows smoothly into existing systems while staying compliant with privacy rules.

A Forrester study reports that 90% of marketers are adjusting their strategies to focus on zero-party data. Reform supports this shift by offering tools to create engaging, branded forms that encourage users to share their data voluntarily. Whether it’s exclusive content, personalized recommendations, or special offers, businesses can provide clear value in exchange for personal information, building trust and enhancing marketing efforts.

Conclusion

The key difference between first-party and third-party cookies boils down to control, privacy, and trust. First-party cookies are created by the website you’re visiting, allowing that site to personalize your experience. On the other hand, third-party cookies are placed by external servers - often tied to advertisers - and track your activity across multiple sites for targeted ads.

This makes first-party cookies essential for improving user experience, as Certified Data Protection Officer Masha Komnenic points out. Meanwhile, the growing shift away from third-party cookies is reshaping how businesses approach privacy. Browsers like Safari and Firefox now block third-party cookies by default, signaling a shift in privacy expectations and its impact on business strategies.

Privacy-focused approaches are no longer just about compliance - they’re about trust. With 78% of customers more likely to share their data with a company they trust and 66% expressing concern about how brands use their information, transparency has become a competitive edge. Companies that offer clear consent options and empower users to control their data are setting themselves up for long-term success. Reform’s platform aligns with this mindset, making it easier for businesses to collect first-party data responsibly.

Reform’s form builder supports this shift by enabling businesses to prioritize privacy while collecting high-quality, consented data. Tools like email validation, spam prevention, and multi-step forms ensure that data collection is both respectful and effective. It’s worth noting that 73% of respondents believe first-party data strategies help mitigate the challenges posed by rising privacy awareness. This underscores the importance of transparent practices in earning customer trust and meeting regulatory requirements.

As the cookie landscape continues to change, businesses must embrace privacy regulations as opportunities rather than hurdles. Companies that focus on first-party data collection, prioritize user privacy, and maintain transparency will not only adapt but thrive in this new era of trust-driven customer relationships.

FAQs

What does the phase-out of third-party cookies mean for online advertising?

The upcoming phase-out of third-party cookies by 2025 is set to transform online advertising. Without these cookies, advertisers will face challenges in tracking users across different websites, making it tougher to deliver the highly targeted and personalized ads we've grown accustomed to.

To navigate this shift, businesses will need to prioritize first-party data - information collected directly from their own users. Additionally, exploring options like contextual advertising or other privacy-conscious tracking methods will be essential. These approaches can help maintain ad effectiveness while aligning with growing privacy expectations.

What are the best practices for businesses switching to first-party data collection?

To make a smooth shift to first-party data collection, businesses need to prioritize openness and earning customer trust. Be upfront about how you plan to use their data, and make sure you're fully aligned with privacy laws.

Look for valuable data sources, such as how customers interact with your website or app. Regularly check the quality of the data you're gathering to ensure it's useful. Tools like surveys, special promotions, or multi-step forms can help you collect more detailed insights while keeping users engaged.

Use the data to segment your audience, tailoring experiences to their preferences and refining your marketing strategies. You can also tap into predictive analytics to better understand what customers might need next, helping you make smarter decisions. By following these steps, businesses can build a strong system for first-party data collection and nurture deeper customer connections.

How do privacy laws affect the use of first-party and third-party cookies?

Privacy laws such as the GDPR and CCPA play a major role in shaping how businesses handle cookies. These regulations enforce stricter rules on third-party cookies, which are often used to monitor user activity across multiple websites. To comply, businesses must usually secure clear and explicit consent from users before collecting or sharing their data.

In contrast, first-party cookies face fewer restrictions since they are created and utilized by the website a user is actively visiting. That said, companies are still required to maintain transparency and clearly communicate how any data gathered through these cookies will be used.

Related posts

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• How First-Party Data Tools Replace Third-Party Cookies
• Cookieless Analytics: Future of Privacy-First Tracking
• Policy Changes Impacting Third-Party Cookies