Explaining third-party cookies vs. tracking pixels

In this video, TechTarget editor Tommy Everson talks about the differences between third-party cookies and tracking pixels along with the privacy concerns they raise.

For better or for worse, your online activity is being monitored somehow.

Digital marketing is all about collecting consumer data. Not only does it help drive sales -- it makes it easier for consumers to find products they're interested in. This data can be collected through two different tools: third-party cookies and tracking pixels.

While they're used for similar purposes, there are differences in how these methods function, which we'll discuss here.

Cookies are small blocks of data that allow websites to track users' visits and activity. There are different types, but digital marketers usually rely on third-party cookies, or cookies generated by a separate domain from the one a user is visiting -- usually an ad-based vendor. They're embedded in ads, web banners and videos.

If a user consents to the use of third-party cookies, the cookies are placed on their device by the third party and monitor their activity across websites. Depending on your browser mode and settings, the lifespan of a cookie can be anywhere from less than a day to over a month.

So, how does this work in practice? Let's say a user is browsing different websites for a pair of boots, but doesn't end up buying anything. As days go by, the user notices ads for boots on different websites or social media platforms they visit. This is a direct result of the user's web browser storing a third-party cookie that uses their information to present them with targeted ads.

Tracking pixels, on the other hand, are tiny, transparent pixels embedded into the HTML code of an email, website or advertisement. They're often referred to as marketing pixels, as they can monitor traffic, user behavior and conversions.

For example, a company might send a promotional email that contains a tracking pixel. When the email is clicked, the browser will automatically run the pixel's code and send a signal to the company's servers. This signal can then reveal details like a user's location and IP address, which is then used by the company to deliver targeted ads and monitor the effectiveness of a marketing campaign. Unlike cookies, tracking pixels can follow users across devices and users can't disable or opt out of them.

The main similarities between these tools lie not only in their information gathering and marketing purposes, but in their associated privacy concerns as well. The data collected with cookies and tracking pixels can end up in the wrong hands, leading people to question the ethics and legality of invasive marketing practices. In fact, this is part of the reason why companies like Google have shared plans to phase out third-party cookies in the coming years.

Does your organization use cookies or tracking pixels? Do you find them helpful or somewhat creepy? Share your thoughts [at Eye on Tech], and remember to subscribe for more videos on all things business tech.

Tommy Everson is an assistant editor for video content at TechTarget. He assists in content creation for TechTarget's YouTube channel and TikTok page.