As much as I may wish to write about tasty little snacks, also known as cookies, the reality is that the topic of digital cookies is far more important right now.

A cornerstone of digital marketing for as long as I’ve been doing it, cookies are being reconsidered as privacy conversations become more prevalent in our online space.

In short, cookies are text files placed on your browser after visiting websites. The cookie files then allow your browser and the internet at large to communicate about your online habits in many ways, making the online experience more enjoyable.

For instance, cookies remember your preferences, logins, and shopping carts. Cookies also can help your experience by allowing for faster load times on websites, essentially saving portions of the site on your browser so it won’t have to reload every time. And cookies are also the tools that help advertisers understand your interests and browsing habits. These types of cookies are responsible for showing you ads about products you may actually want as opposed to items you’re less inclined to be interested in.

But therein lies the problem: In seeking to help your experience, cookies also provide a treasure trove of data that needs to be managed safely and securely. While the leading players—Apple and Google—work on ways to manage this problem better, small businesses should be prepared for a variety of possible outcomes.

The most disruptive outcome is the possibility of internet regulators entirely doing away with these data tracking files. In 2020, this seemed a reality, with Google announcing its plans to phase out cookies. This was only recently updated when, in July of 2024, Google changed plans and decided to delay a phase-out of cookies, opting to focus more on its Privacy Sandbox. Regardless of this change of tune, it would be in any business's best interest to start taking steps now, in case the pendulum swings back.

If we do lose access to cookie data, consider some of the ways it’s used prominently for your business.

Retargeting ads: You’ve been eyeing a pair of shoes. Perhaps you’ve even added them to an online shopping cart. But today isn’t the day for the purchase; you leave the site and go back to other online browsing sites only to find ads for that exact pair of shoes following you around the web. This exists because a cookie was placed on your browser during the shopping experience, and now the company can identify you offsite and continue to show you those sweet kicks via their targeted ads.

Interest-based targeting: In this case, you’ve been looking at those shoes, but now you’re seeing ads from another vendor. A similar product that you’ve never even heard of before. Here, the use of cookies is tied to shopping habits and interests, and it’s allowing for this other company to share ads with you, assuming you might be interested.

These are two specific examples, but there will be other ramifications for businesses. Most important, however, is to take charge of what you can do.

Own your data. First-party data is information that you have collected directly from your customers. Think email lists, survey forms, and loyalty program details. This can even include website data on your site—assuming you’re transparent with the collection and your users are opting in.

The more data on your own customers you can access, the better off you’ll be. This will be especially important as access to third-party information—data collected by other organizations—becomes limited.

What can you actually do to start getting ahead of all this?

*Implement or update your website’s cookie policy. Here you can outline clearly how cookies are used on your website. This can include a consent management tool to allow them control. For now, offering control and transparency is the key to keeping trust.

*Ensure you have Google Analytics 4 installed on your website. GA4 offers event-based tracking and is designed to work without third-party cookies.

*Create your first-party data collection plan. Collect email addresses, phone numbers, and other relevant data on your website. You may even consider incentives like discounts or exclusive content in exchange for their information.

There are other considerations to prepare for the potential loss of digital cookies. One key opportunity is to focus efforts and strengthen your search engine optimization and organic marketing efforts. Building up your marketing efforts outside of the need for cookies avoids the issue altogether while offering other great benefits.

Search engine optimization focuses efforts on your web presence to help showcase your business at the top of search engines. This is an excellent way to ensure you are showing up for consumers who are interested in what you have to offer. If your website is the answer to your online search query, you’ve already placed yourself in the running for a sale.

Other organic marketing efforts might include optimizing your social media platforms, podcasting, or other content creation outlets. These efforts allow you to showcase your business and skills in places where consumers may seek information. More and more, social media tools are becoming used as search engines, so the more relevant content you create can help you climb the rankings.

At the end of the day, most of these decisions about the future of cookies, privacy, and security will be made by just a couple of behemoth companies. If they’re too slow to adopt, then government regulators will be part of it, too. Regardless, our best bet as small businesses is to work inside the system as we can and to do our best to stay ahead.

Tony Baird is co-founder and chief strategist at Spokane-based marketing agency The Woodshop.