C is for Cookie (And who doesn't love a cookie?)

 

Though I’ve no choice but to consider myself an analytics novice, I’ve at least been exposed to a plethora of analytics terms even if I was unsure of their exact meanings. “Cookie” is one of those terms. I can see why marketers and data junkies love these things more than a Girl Scout Thin Mint.

The seemingly innocent cookie, in web terminology, is the way the web remembers us as unique visitors. It’s a text file, a unique code, that can source information on your hard drive and remember you. Cookies are the building block of an online profile. Advertisers can use them to create a memory of your interests, purchases, page views and online activity and then they can customize your Web experience, presenting more things that are likely to capture your interest.

Here’s a video that helped me understand exactly how they work.

There are two types of cookies:

Transient: This cookie groups clicks within one session on a website.

Persistent: This cookie is set during the first visit to the website, and stays for a specific period (continuing after the session ends).

It is not a perfect system. It “sort of” tracks unique people to a website. According to Kaushik (2010) there is no way to track unique people, but you can track unique browsers used to visit our websites though this assumes that the same person is using the same browser.

As it happens, not everyone loves these cookies. But, there are other ways to collect information from users besides cookies. Some sites require a log in, and collect basic (voluntary) information on the user, which is another method of data tracking that does not use cookies. Banks and other companies that have to be careful with customer information may not allow their users be tracked via cookies. Some users who don’t wish to be tracked and measured may choose to opt out or disable cookies in their browser. From a consumer point of view, cookies present some privacy issues. Persistent cookies don’t contain “personally identifiable information (PII)” though they do remain on your browser until you delete it or reinstall your browse (Kaushik, 2010).

Some people, like marketers, really love cookies! Cookies aid in behavioral targeting, which helps advertisers get content to the people who are most likely to be interested in it, increasing the likelihood of conversion and desired outcome; such as a purchase. The costs of such targeted ads are higher, but reaching the most relevant, engaged audience can pay off. Behavioral targeting, courtesy of the ubiquitous cookie, can also offer a better user experience because there are less interruptions from advertisers offering things that are of no interest to us (Weber, 2011).

Tracking technologies continue to evolve as more sophisticated methods and uses come into play. A dilemma exists as more of our online use takes place using smartphones, because these channels don’t offer the same tracking capabilities. Additionally, consumers are becoming skeptical of those entities that wish to track online behavior and share it with other parties.  The FTC is considering a number of options for consumers including a way to opt out of online tracking and make determinations on how their personal and location data is used. Also, there are browser add-ons that consumers can install to shield your personal browsing habits from tracking technologies or that will alert you when a tracking cookie is detected (Paul, 2012).

Cookies. You think you can’t live with them, but you can’t quite live without them either. To break it down in simple terms, we users of this amazing and free worldwide web have to decide the if the price of admission to such infinite information access is worth it.

References:

Kaushik, A. (2010). Web analytics 2.0: The art of online accountability & science of customer centricity. Indianapolis, IN: Wiley, Inc.

Paul, I. (2012, April 8). Do not track tools: Hands on showdown. PC World. Retrieved on November 3, 2012 from http://www.pcworld.com/article/253378/do_not_track_tools_hands_on_showdown.html

Weber, R. (2011, July 28). What’s new in behavioral targeting for mobile advertising. Retrieved on November 4, 2012 from http://www.clickz.com/clickz/column/2097411/whats-behavioral-targeting-mobile-advertising