Cookies, small text files stored on a user’s local computer, are pivotal in carrying information across the internet. This is because the HTTP protocol (the way we communicate with the web) does not retain information between sessions. To store and retrieve any information—even something as simple as what was entered before and after clicking the ‘search’ button—we and the web need cookies. This mechanism makes our browsing experience seamlessly smooth.
The origin of the name “cookie” has several interpretations. One interesting analogy is that cookies leave crumbs, much like how users leave traces on the internet.
And, you might be familiar with ongoing concerns such as “Cookies are invading privacy,” “Google was going to eliminate cookies,” “You should ban cookies,” or “Your data is being collected and sold using cookies.”
From a researcher’s perspective, it is well-known that Google sells ads, and the ads-business is significantly powered by cookies. But how does this business really work? Here’s an in-depth look at how cookies facilitate data usage on the internet, how ads are related, and more. To start, here’s our roadmap:
- Breaking Down the Industry: Understanding (pretty much the IO structure) of Ad Exchanges, Advertisers, Publishers, and Users.
- Rules of Cookies: Mainly, how Google plays a dual role as both a player and a rule-maker.
- Data Collection: Who collects what type of data using cookies?
- Ad Targeting: How is data used to target ads?
- Legal Landscape: What kinds of data collection are legal or illegal under GDPR and CCPA?
- Miscellaneous Insights: Additional intriguing aspects of cookies.
Data is central to the online advertising business, powering one of the largest industries on the planet. Cookie policies, regulations, and advertisers’ strategies are dynamically interacting—it’s a time of change, or perhaps, of upheaval?
Stay tuned! I’m excited for this upcoming series.