Tracking cookies used to be the go-to digital marketing solution for many businesses. They proved helpful for many marketing activities, including traffic analytics, direct advertising campaigns, funnel analytics, segmentation and much more.
However, as we will discuss in this article, regulatory changes in the privacy field and rising user awareness have shifted the perspective on tracking cookies. As a result, cookie-based marketing is raising ethical and compliance dilemmas and is no longer as effective as it used to be. Due to that shift, businesses seek alternatives to traditional tracking methods.
Tracking cookies are small text files with pieces of data stored on users’ browsers when they visit a website. There are two main categories of cookies:
While many users click the “accept all” button on cookie banners without reviewing the details, this form of consent still allows extensive tracking and has significant privacy implications.
Cookies track user data, which allows website owners to analyze behavior and optimize the user journey.
For example, if a person visits a sneaker store, cookies will track how users behave while interacting with the website and gather information such as:
However, cookies will also collect technical information about the device and browser used, traffic source, user location, and IP address. That information is beneficial for digital marketing activities.
The sneaker store from our example can use the stored information and retarget users with ads on third-party websites. That might re-engage users by reminding them of previously viewed products, leading to a potential purchase.
The data collected by third-party cookies isn’t available only to the sneaker store in this case—anyone in the same ad network can utilize it to target users with ads.
Data brokerage is a large industry, and millions of internet users’ personal data are sold to businesses and ad networks daily. Personal data is so valuable that it is often called “the new oil.”
While it may be helpful for businesses to gain access to personal data about users who have not previously interacted with their brand, the amount of information collected and exchanged causes privacy concerns.
Personal data protection is a part of the right to privacy, one of the core human rights in the Universal Declaration of Human Rights. However, the digital era required a more modern and direct approach to consider the latest technical developments and address the rising privacy concerns.
The real change came with the introduction of The General Data Protection Regulation (GDPR). After it came into full force in 2018, explicit consent is required for all personal data processing activities. It changed how cookies work, too, and cookie consent banners became mandatory.
However, explicit consent isn’t the only way GDPR affects third-party cookies. It also introduced several other data processing principles, including:
The GDPR also defined personal data as any information that can lead to the identification of an individual, whether on its own or in combination with other data. IP addresses are personal data, but profiling users and assigning unique identifiers, even without the classic personally identifiable information, is also considered personal data processing. That created more compliance issues for cookie-based tracking.
As you can see, offering data to third-party ad networks and brokers is hardly in line with the GDPR standards. As a result, we have seen substantive non-compliance fines exceeding billions of euros.
Other major legislators followed the GDPR’s approach, one of the most prominent being the California Consumer Privacy Act (CCPA). While the US doesn’t have a federal law, many states follow California’s example.
Large markets like Brazil also introduced privacy laws, showcasing a significant worldwide shift towards a more privacy-focused and consumer-first digital ecosystem.
Although legislative changes create compliance headaches, they are only a part of the concerns businesses relying on cookie-based advertising face:
Tracking cookies allowed accurate, granular segmentation and targeting, which was very useful for advertising purposes. Advertisers could identify funnel issues and A/B test changes, seeing how users behaved every step of the way.
However, many users feel uncomfortable when targeted ads “follow” them around the internet, which is why they are doing their best to protect their privacy. Privacy-aware users will not only click the “reject all cookies” button but will use tools such as VPNs, ad blockers, DoNotTrack settings, incognito modes, and private browsers to protect their data and block tracking cookies.
As a result, it is becoming increasingly complex for cookie-based analytics to show reliable data.
More legislators are expected to introduce stricter privacy regulations while users increasingly take conscious steps to protect their personal information. That will make compliance even harder while reducing the effectiveness of cookie-based tracking, making it not worth the risk.
To avoid non-compliance fines, cookie consent banners must allow users to refuse cookies just as easily as they accept them. That can be especially problematic for mobile phones due to the screen size.
However, cookie notifications and prompts take the attention away from your website content, creating friction and interrupting the user experience.
As a result, businesses are faced with a challenging dilemma—if they don’t show the full consent banners, they may risk hefty GDPR fines; if they do show them, they take the user’s attention away from their content.
Cookie consent banners are a cause of concern for privacy-aware users. Even if you present them with easy and compliant opt-outs, the fact that their data will be available to third-party brokers may lead to ethical and trust concerns.
Considering that more and more users are privacy-conscious, this erosion of trust may weaken brand reputation in the long run. Users will look for alternative products and services that do not infringe on their privacy, which might lead them to your competition.
While erosion is a strategic risk of its own, it happens gradually. However, cookie-based marketing carries a more significant strategic risk from all the aforementioned factors combined.
In cases of non-compliance, high fines are usually not the central issue—the following reputational damage can severely harm a business. Losing customer trust is hardly reversible, particularly in highly competitive markets.
However, non-compliance isn’t the only risk. If you process personal data on your servers, you are also at risk of hacks and data leaks. Even if you prove that you did all you could to prevent the data leak, the affected users will hardly continue to use your services and products after the incident.
The reputational risks, compliance issues, and privacy concerns are gradually reshaping the world of user tracking.
Even tech giants are implementing measures to address tracking—Google has announced the end of support for third-party cookies in Google Chrome, while Apple’s Safari blocks third-party cookies by default.
However, businesses still need accurate data, which creates space for analytics software that respects user privacy.
So-called privacy-friendly analytics tools have emerged as a response to increasing concerns around user tracking and data protection. These solutions aim to reduce the amount of personal data collected — and unlike traditional analytics tools, they often don’t use tracking cookies or persistent identifiers.
Instead, they rely on alternative tracking methods like IP hashing, anonymized session identifiers, or limited browser data to deliver website insights. While this approach reduces some privacy risks, many of these methods still count as personal data processing under laws like the GDPR — particularly when technical re-identification is possible.
Some privacy-friendly tools also use trackers like fingerprinting techniques, which involve combining device- or browser-specific attributes to distinguish users. Even without names or email addresses, this type of tracking is still subject to consent requirements in most jurisdictions.
In short: privacy-friendly analytics offer a more privacy-conscious alternative to traditional tools that use tracking cookies and cross-site trackers, but they don’t eliminate all compliance or UX challenges — especially when personal data is still processed in the background.
Privacy-first analytics go a step further than privacy-friendly software by eliminating personal data processing altogether. They are built without cookies, identifiers, IP hashing, or fingerprinting. This means that no consent banners are required, and there are no compliance risks or ethical concerns typically associated with traditional tracking.
Unlike cookie-based tools, which can be blocked or distorted by ad blockers, VPNs, or private web browsers, privacy-first solutions remain unaffected by these technologies. They deliver accurate, reliable website metrics without relying on invasive technologies.
By avoiding tools that use cookies and personal identifiers entirely, privacy-first analytics provide a cleaner, compliant, and user-friendly alternative for businesses that want to respect privacy without sacrificing insights.
mandera for instance is a private-by-design website analytics solution showing reliable website insights without processing any personal data. Here’s how:
Instead of processing personal data, mandera combines several non-invasive tracking parameters to distinguish individual visits:
However, mandera doesn’t process IP addresses—they are automatically removed from every request.
As a result, we can accurately track user visits without being able to identify individual users, making mandera 100 % GDPR and CCPA compliant.
Ad blockers, VPNs, private browsers, and incognito windows won’t interfere with mandera’s results, allowing us to show you accurate metrics.
You will have simple-to-understand yet actionable website use insights, allowing you to see which pages are the most popular, as well as traffic sources.
Furthermore, our advanced predictions and custom user flows will help you to map how users enter and move through your website, allowing you to make optimizations.
Because mandera doesn’t process personal data, you don’t have to show consent banners.
As a result, the entire user experience will remain uninterrupted, and visitors can focus on your content, leading to improved user satisfaction and potentially more conversions.
The rising number of privacy-aware users will appreciate your efforts to protect their personal data.
Your decision to use privacy-first software such as mandera won’t go unnoticed and will strengthen your brand reputation. It will prove that your company lives up to its ethical standards and puts them into practice.
That demonstrates a commitment beyond mere compliance and shows you are unwilling to compromise with personal data. As a result, embracing privacy-first tools can strategically differentiate your brand from your competition, giving you an advantage.
While the use of cookies allowed businesses to optimize their marketing efforts, the privacy concerns they raised resulted in a chain reaction of significant shifts in legislation and user behavior.
As a result, cookie-based tracking is becoming less popular. Businesses seeking reliable analytics solutions that won’t create user friction or compliance issues are now exploring alternatives.
As a privacy-first solution, mandera displays accurate website traffic metrics without processing personal data. You will get actionable user insights and predictions without interrupting the UX with cookie banners or worrying about potential compliance issues.
Explore mandera today, 100 % free, and embrace the cookie-free website analytics for the privacy-first era.
