Understanding user behavior is crucial for businesses to make informed decisions in the ever-evolving digital marketing landscape. Google Analytics has been the primary tool for tracking website traffic and user interactions for years. However, with the phasing out of third-party cookies, there’s a significant impact on how data is collected and analyzed, particularly with the introduction of Google Analytics 4 (GA4). In this post, we’ll dive into how third-party cookies affect GA4 results and why there may be disparities in recorded traffic between last year and this year.
Shift Away from Third-Party Cookies
Third-party cookies, small pieces of code placed on websites by domains other than the one being visited, have long been utilized for tracking user behavior across the web. However, concerns over user privacy and increasing browser restrictions have led to declining use and website visitor tracking abilities. Major browsers like Safari and Firefox have already implemented restrictions on third-party cookies, and Google Chrome, the most widely used browser, has announced its intention to phase them out completely.
First-Party Data
First-party data refers to information collected directly from individuals by the website or application they are interacting with. This data is obtained with the users’ consent and typically includes interactions such as website visits, clicks, purchases, form submissions, and other engagements with the platform. Since it’s collected directly from the source, first-party data is considered the most reliable and accurate data type. It provides valuable insights into user behavior, preferences, and interests, which businesses can use to personalize experiences, target marketing campaigns, and make data-driven decisions. First-party data is often used to create audience segments and improve overall user engagement without relying on third-party cookies or external data sources.
Data Implications
G4 is the latest iteration of Google’s analytics platform and was designed with these changes in mind. Unlike its predecessor, Universal Analytics, GA4 is built to rely less on third-party cookies and more on first-party data and machine learning algorithms for insights. While this shift benefits user privacy, it affects how data is collected and interpreted.
Reduced Cross-Site Tracking
With third-party cookies becoming obsolete, GA4 has limited capabilities in tracking users across different websites. This means that the ability to attribute conversions and track the complete user journey across the web is diminished. As a result, businesses may see decreased recorded traffic from referral sources and external campaigns compared to previous years.
Emphasis on First-Party Data
GA4 encourages collecting and utilizing first-party data, including information gathered directly from users on your website or app. This includes user data from interactions such as page views, events, and conversions. While first-party data is more reliable and privacy-friendly, it may not provide the same level of granularity as third-party data, leading to differences in reported metrics.
Enhanced User Privacy
The shift from third-party cookies aligns with growing user privacy and data protection concerns. GA4 aims to provide insights while respecting user privacy preferences by relying more on first-party data and machine-learning algorithms. However, this shift also means that certain tracking capabilities may be limited, impacting the accuracy of reported metrics.
Traffic Appearing to Drop
Given these changes, it’s natural to observe disparities in recorded traffic between last year and this year in GA4 reports. Businesses may notice fluctuations in metrics such as sessions, users, and conversion rates, especially from referral sources and external campaigns. Understanding these differences in the context of evolving privacy regulations and technological advancements is essential. With privacy being a choice, we are seeing anywhere from a 20% to 70% drop in traffic data compared to last year.
As the digital landscape continues to evolve, adapting to data collection and analysis changes is paramount for businesses relying on Google Analytics. The shift away from third-party cookies favoring first-party data and machine-learning algorithms has significant implications for GA4 results. While this transition promotes user privacy and data protection, businesses must reassess their analytics strategies and adapt to new methodologies. By understanding the impact of third-party cookies on GA4 results, businesses can navigate these changes effectively and make informed decisions based on reliable data insights. Contact Axys Digital Marketing to see how we can help your business realize a large ROI on your digital marketing investment.
