Cookies in Marketing: What They Do

What is a cookie?

A cookie in affiliate tracking is a small text file stored on a user’s device that contains data about the user’s interactions with an affiliate link. These cookies are essential for tracking user activities, attributing sales or leads to the correct affiliate, and enabling accurate calculation of affiliate commissions. In the context of affiliate marketing, when a user clicks on an affiliate link, a cookie is placed on their device to track their activities and determine conversions.

Cookies are pivotal in ensuring that affiliates are rewarded for their marketing efforts and play a crucial role in the affiliate marketing ecosystem by facilitating accurate attribution, performance measurement, and user experience personalization.

Every affiliate cookie has a lifetime, which defines a length of the relation between an affiliate and guest. During this time, affiliates receive a commission for the sale or other action. It is important to set the right cookie time in your affiliate program. Read our article and learn more about it.

Types of Cookies in Affiliate Tracking

First-Party Cookies

First-party cookies are set directly by the website the user is visiting. They are primarily used to maintain session data, personalize the user experience, and store user preferences. In affiliate marketing, first-party cookies can be leveraged to track user interactions without relying on third-party data, thereby ensuring compliance with privacy regulations like the General Data Protection Regulation (GDPR). As the industry shifts towards a privacy-focused approach, first-party cookies have become increasingly important.

Third-Party Cookies

Third-party cookies are created by domains other than the one the user is currently visiting. They have been widely used in affiliate marketing to track user behavior across different websites, enabling the creation of detailed user profiles for targeted advertising. However, due to privacy concerns and regulatory changes, such as those brought about by GDPR and the ePrivacy Directive, major browsers like Chrome, Safari, and Firefox are phasing out support for third-party cookies.

The deprecation of third-party cookies poses a significant challenge for affiliate marketers, as these cookies have been integral to tracking user actions and attributing them to the correct affiliate. Consequently, the industry is exploring alternative methods for tracking user interactions in a privacy-compliant manner.

How Cookies Work in Affiliate Marketing

1. Click Tracking : When a user clicks on an affiliate link, a cookie is placed on their browser. This cookie records essential data such as the affiliate ID, the date of the click, and sometimes additional parameters like the campaign source. This information is crucial for attributing conversions to the correct affiliate.
2. Conversion Tracking : If a user completes a purchase or performs a specific action on the advertiser’s site, the cookie helps attribute this conversion to the affiliate who referred the user. This ensures the affiliate receives the appropriate commission for their marketing efforts.
3. Cookie Duration/Window : The cookie duration, or window, defines how long the cookie remains active. This period can vary depending on the affiliate program but typically ranges from 30 days to 90 days. A longer cookie window benefits affiliates by increasing the chances of earning a commission if the user returns to make a purchase after some time.

The Role of Cookies in Affiliate Marketing

Cookies are integral to affiliate marketing as they facilitate:

• Accurate Attribution : By tracking user activity, cookies ensure that affiliates are credited for the sales or leads they generate.
• Performance Measurement : Cookies help affiliates and advertisers measure the effectiveness of their marketing campaigns by tracking clicks, conversions, and sales.
• User Experience Personalization : Cookies allow for a more personalized user experience by remembering user preferences and enhancing site functionality.

The Shift Towards a Cookieless Future

Challenges with Third-Party Cookies

The use of third-party cookies has been increasingly restricted due to privacy concerns and regulatory changes. Major browsers have implemented measures to block third-party cookies, driving the industry to seek alternative tracking methods. This shift is largely driven by the need to enhance user privacy and comply with regulations like GDPR.

Alternative Tracking Methods

1. Server-to-Server Tracking : This method involves tracking user interactions directly between servers, bypassing the need for cookies. Server-side tracking enhances data accuracy, privacy compliance, and allows for the setting of long-lived first-party cookies. This approach is gaining traction as a viable alternative to third-party cookies.
2. First-Party Data : Leveraging first-party cookies and data collected directly from users helps maintain tracking capabilities without relying on third-party cookies. This approach aligns better with privacy regulations and emphasizes user consent and transparency.
3. Cookieless Tracking Solutions : Emerging technologies focus on tracking user activity without cookies, using methods like device fingerprinting and probabilistic matching. These solutions aim to provide effective tracking while adhering to privacy standards.

Implications for Affiliate Marketing

The deprecation of third-party cookies poses challenges but also presents opportunities for innovation in affiliate marketing:

• Enhanced Privacy Compliance : By adopting first-party and server-to-server tracking, affiliate marketers can better comply with privacy regulations.
• Focus on Quality Data : The shift encourages marketers to rely on high-quality, first-party data, improving the accuracy of targeting and personalization.
• Adaptation and Resilience : Affiliate programs that proactively adapt to these changes will likely emerge stronger, with robust tracking systems that respect user privacy.