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First and Third-Party Cookies WILL CLAYTON VP, DIGITAL PRODUCTS – WILAND DIRECT • What Are They? • How Do They Behave? • How Are They Changing? What That Means

First and Third-Party Cookies

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An examination of what truly constitutes a "first-party" or "third-party" cookie, how browsers handle them now and might in the future, and what this all means to consumers and marketers.

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Page 1: First and Third-Party Cookies

First and Third-Party Cookies

WILL CLAYTONVP, DIGITAL PRODUCTS – WILAND DIRECT

• What Are They?• How Do They Behave?• How Are They Changing?• What That Means

Page 2: First and Third-Party Cookies

First and Third-Party Cookies

WILL CLAYTONVP, DIGITAL PRODUCTS – WILAND DIRECT

• What Are They?• How Do They Behave?• How Are They Changing?• What That Means

Presented In

It’s Like You Were

There!

Page 3: First and Third-Party Cookies

17 Years in Online Technology:eCommerce, Ad Serving, Rich Media, Marketing Optimization, Behavioral, Multi-Channel Integration , Email, Addressable Advertising, Privacy…

Click icon to add pictureCOMPETEN

T!

Member… Still Working on

Certification… It’s Really Hard

Hey! That’s Me!I’ve been doing this for a while;I am Passionate About Digital Marketing andConsumer Privacy

Go Pack!

Page 4: First and Third-Party Cookies

Thanks Google Image Search!

Click icon to add picture

IMAGINE A KISS… of enduring beauty and purity;That’s a FIRST-PARTY RELATIONSHIP; personal and

meaningfulbetween consumer and brand

Page 5: First and Third-Party Cookies

What is a (Web) Cookie?● The Internet was “Stateless”

● ‘Cookie’ Allows a Server (Site) to RememberSomething About a Visitor

- String of Alphanumeric Characters (up to 4096)

- Browser Should Store Up to 20 Cookies per Domainand at Least 300 Total

- Only Returned to the Site/Domain that Issued It

…If Kisses Were

Cookies… What is Love?

Sites Would FORGET US After Every Request

Cookies

Gave Us an

ENDURING

RELATIONSHIP

Designed to be PERSONAL, Only the Domain That Issued It Can Read a Web

Cookie

Login Name, Preferences,

Pages or Products Visited,

Etc.

Securely Storedon Your Own Browser

Page 6: First and Third-Party Cookies

A First-Party CookieI Love You Best Buy!

You Know My Consumer Electronics Hopes and Dreams – They’re Safely Stored in the FIRST-PARTY Cookie Between

You and Me

Page 7: First and Third-Party Cookies

[REALLY BAD Australian ‘Crocodile Hunter’ Accent…]

Let’s See if We Can Observe an ACTUAL COOKIE

in It’s Native Environment…

Page 8: First and Third-Party Cookies

Set-Cookie=bby_cbc_lb=p-browse-w2b;Expires=Wed, 12-Jun-2013 16:31:00 GMT;domain=www.bestbuy.com;akaau=1371055860~id=9c397a3b39587beaa29837d8d224c974;path=/

[BAD Accent Continues; Gets Worse]

There it is – an ACTUAL COOKIE; It’s GORGEOUS

Look at that CONTENT; That EXPIRATION date;

What a Beauty! And with that DOMAIN,only Best Buy and I can see it!

Page 9: First and Third-Party Cookies

Set-Cookie=bby_cbc_lb=p-browse-w2b;Expires=Wed, 12-Jun-2013 16:31:00 GMT;domain=www.bestbuy.com;akaau=1371055860~id=9c397a3b39587beaa29837d8d224c974;path=/

Set-Cookie=id=2246896aa1010000||t=1371054062|et=730|cs=002213fd48227;expires=Fri, 12-Jun-2015 16:21:02 GMT;domain=.doubleclick.net;expires=Mon, 21 Jul 2008 23:59:00 GMTpath=/;

[One More with the Accent… Almost Done]

CRIKEY!! What’s That Fella’ Doing Here?!?

How does a visit to BESTBUY.COM leave me with a cookie from

DOUBLECLICK.NET?[Aaaaand… SCENE!]

Page 10: First and Third-Party Cookies

Third-Party CookiesBest Buy Placed an

Invisible THIRD-PARTY ASSET on Its Pages,

Allowing DoubleClick to ISSUE its Own Cookie

In Fact: Best Buy is so committed to theirrelationship with me that they’ve enlisted as many as20 PARTNERS to help me find what I’m looking for!

[These are reputable partners and I am totally OK with this]

Page 11: First and Third-Party Cookies

How Do Cookies Behave?● Behavior Determined Entirely By Browser

● Server ‘Issues’ it and the BrowserChooses to Accept It or NotBased on Default and User Settings

● Different Browsers Behave Differently By Default

Your BROWSER determines

whether you ACCEPT a cookie

or not

Is YOUR MOM really going to changethe browser DEFAULT settings? Are

You?

BROWSERS

Page 12: First and Third-Party Cookies

Browser Cookie Behavior● Mozilla Firefox:

Historical Default = Accept 3P CookiesProposed Default = Reject 3P Cookies

● Google Chrome: Accept Third-Party Cookies

● Apple Safari: Reject Third-Party CookiesFirst Major Browser to Reject 3P Cookies by Default

● Microsoft Internet Explorer: Accept Third-Party CookiesTrying some new Things: “Lists” that block cookies and content; Proposed default inclusion of user “Do-Not-Track” Preference Flag

With about aQuarter of Visitors

on Firefox1, Would theProposed Change Make

aDifference in the Ads

They Receive?

1http://www.w3schools.com/browsers/browsers_stats.asp

Let’s DELETE that DoubleClick Cookie, Set Firefox to REJECT THIRD-

PARTY COOKIES, Go Back to BestBuy.com and See What Happens!

Page 13: First and Third-Party Cookies

What’s Third-Party Again?

Rejected!

My BrowserContinues to Accept

BestBuy.com Cookies,but the DoubleClick.net Cookie is NO LONGER

ACCEPTED

Page 14: First and Third-Party Cookies

What’s Third-Party Again?

Rejected!

Accepted!

Wait a Minute! The page Included an Asset That Issued a

Cookie in the YAHOO.COM Domain and

My No-Third-Party-Cookies Browser

ACCEPTED IT!What Gives?

Page 15: First and Third-Party Cookies

● Mozilla Firefox: Ever Accepted a Cookie● Google Chrome: Ever Accepted a Cookie● Apple Safari: Ever Even Been to the Site● Microsoft Internet Explorer: Ever Accepted a Cookie

BrowserHANDLING of 1st

&3rd Party Cookies is Less Important

Than TheirDEFINITIONS

* U

nle

ss S

he C

lears

H

er

Cookie

s and/o

r H

isto

ry

This means thatMiss Wendy

Webbrowser’s Deeply Personal

Relationship…

How Browsers Define First-Party

Page 16: First and Third-Party Cookies

Browser 1st Party Definitions● Mozilla Firefox: Ever Accepted a Cookie● Google Chrome: Ever Accepted a Cookie● Apple Safari: Ever Even Been to the Site● Microsoft Internet Explorer: Ever Accepted a Cookie

…May Still Include ANYONE with Whom She’s

Had a PRIOR RELATIONSHIP! MOVE ALONG:

This is Here for COMEDIC

EFFECT and Not to Imply That Cross-Domain Cookies are

Harmful;In Fact, Quite

the Opposite…

Page 17: First and Third-Party Cookies

Browser 1st Party Definitions● Mozilla Firefox: Ever Accepted a Cookie● Google Chrome: Ever Accepted a Cookie● Apple Safari: Ever Even Been to the Site● Microsoft Internet Explorer: Ever Accepted a Cookie

SHE HAS GOOD TASTE:

He’s a Gentleman and

So Are His Friends

Page 18: First and Third-Party Cookies

Where Have You Been?

Google Facebook YouTube Yahoo!

Amazon Bing eBay

Wikipedia Craigslist

Windows Live

LinkedIn Twitter

Blogspot AOL

Go.com MSN

Pinterest Tumblr

Ask Netflix

Source: Alexa.com (Top US Online Properties by Traffic)

My ‘No-Third-

Party’ Browser

Accepted a Yahoo.com

Cookie While I Visited

BestBuy.com Because I

Had Checked My eMail

at Yahoo.com The

Day Before

Several ofThese Domains are

Associated withMARKETING PLATFORMS;

If You Use a Site,Cookies in That

Domain are FIRST-PARTY,

Anywhere They AreIssued to You,

REGARDLESS OF YOURBROWSER SETTINGS

This is not to imply that any of these sites are unethical,

simply to point out that

browsers treat VISITED

DOMAINS as first-party and A

HANDFUL OF DOMAINS are

NEARLY UNIVERSALLY

VISITED

Page 19: First and Third-Party Cookies

Who Wins in All of This?Joe

Consumer?Will Rejecting

Third-Party Cookies Exclude

Him From Retargeting, Behavioral

Targeting or Other Interest-

Driven Marketing?

NOPE.MANY Interest-

Based Networks Would Be Unable to Serve Him; The

Rest Will CONTINUE AS THEY DO NOW

and Make Up the Difference

Page 20: First and Third-Party Cookies

Who Wins in All of This?Digital

Advertisingas a Whole?

Highly Competitive, Highly Innovative, Jointly Dedicated both to Consumer

Privacy and Marketing

Effectiveness

Nope.The Vast Majority

of Ad Tech Providers Rely on Secure,

Compliant, Third-party Cookies to

Powerthe Ad-Supported

Internet

Page 21: First and Third-Party Cookies

Who Wins in All of This?A Tiny

Handful ofHuge

Companies That Happen to Also Function

as Portals?

Yup.Marketing Associated with THESE Firms Will

Be MINIMALLY AFFECTED While

Independent Competitors

Suffer

Page 22: First and Third-Party Cookies

What Can I Do?● Deal With (and Be!) Reputable Online Organizations,

Personally and Professionally● Help Consumers & Others Understand:

- The Difference Between Arbitrarily Blocking “Third--- Party” Cookies and Managing a Marketing Relationship- Clarify definitions before attempting to apply controls

Page 23: First and Third-Party Cookies

QUESTIONS? [email protected]

BUT SERIOUSLY… I Try to Have Fun with my Presentations, but This is an Important Issue;We Have a Responsibility to UNDERSTAND our industry

and Maintainour COMMITMENT to consumer protection and ethical

marketing.

Points:

• “Third-Party” Doesn’t Mean What Most People Assume It Does

• It Excludes Visited Sites,Regardless of What You’re Viewing Now

• This Leaves “Daily Visit” Sites LargelyUnaffected by Proposed Changes to Cookie handling

• The Net Effect of Third-Party Cookie Blocking isDecreased Competition and Harm to Consumers

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