The digital advertising industry is undergoing a massive shakeup.

With third-party cookies on their way out and privacy becoming the new gold standard, many small business owners are wondering: Is paid advertising, also called paid media, still worth it in a post-cookie world? The answer is layered, and while there are challenges ahead, there are also new opportunities to rethink how we connect with customers online.

1. What does the death of third-party cookies mean for advertisers?

For years, third-party cookies have powered the internet’s advertising engine. They allowed businesses to track users across websites, build detailed user profiles, and serve highly personalized ads. Everything from retargeting to programmatic advertising depended on cookie-based tracking. But that’s all changing.

Google plans to phase out third-party cookies in Chrome by 2025, following in the footsteps of Safari and Firefox, which already block them by default. Apple’s App Tracking Transparency update also limits data collection on iOS devices. Consumers are more privacy-conscious than ever, with about 70% actively blocking cookies. These shifts mark a turning point for how digital ads are served and how effective they can be.

2. Why were cookies so important for paid media?

Third-party cookies made it easy to track user behavior across multiple sites. That meant advertisers could show you a pair of shoes you looked at days ago, or serve ads based on your browsing history, interests, and location. These tracking tools fueled hyper-targeted campaigns that delivered impressive returns when used correctly.

As of Q3 2023, over 75% of U.S. programmatic ad buys in 10 major industries still relied heavily on cookies. That’s a huge portion of ad budgets built around a soon-to-be-obsolete technology. In 2022 alone, display advertising, much of which used cookies, made up about 30% of all digital ad spending in the U.S. So the phase-out isn’t a small adjustment; it’s a seismic shift.

3. What challenges does a cookie-free world create for advertisers?

The biggest challenge is targeting. Without cookies, it’s harder to know who your audience is, where they’ve been, and what they’re interested in. That means ad personalization becomes more limited, and broad targeting can lead to wasted ad spend.

Attribution is another pain point. Businesses want to know which ads are driving sales or conversions. Without cookie-based tracking, it’s harder to measure campaign performance with precision. This uncertainty can lead to ineffective budget allocation.

Then there’s the financial impact. Publishers that depend on ad revenue could lose up to 60% of their income from Google Chrome traffic if no alternative solution replaces third-party cookies. This could ripple into increased ad prices or reduced inventory for small advertisers.

4. What are the new strategies replacing third-party cookies?

Despite these challenges, paid advertising isn’t dead. It’s evolving. And small businesses can still find success if they adapt.

One key strategy is first-party data collection. That means gathering information directly from your audience through things like newsletter sign-ups, purchase histories, loyalty programs, and on-site behavior. This data is more reliable and privacy-compliant, and it allows you to build long-term relationships with your customers.

Another emerging strategy is contextual advertising. Instead of targeting individuals, this approach focuses on serving ads based on the content of the webpage. If someone’s reading a blog about hiking, they might see ads for camping gear, not because of past behavior, but because it fits the context. It’s a modern twist on old-school advertising and is gaining traction as cookies disappear.

AI and machine learning are also playing a bigger role. These technologies can analyze vast amounts of real-time data to identify patterns and optimize ad delivery, without relying on cookies. Platforms are investing heavily in these solutions to preserve targeting capabilities and help advertisers stay effective.

5. Can small businesses still benefit from paid media?

Yes, but it requires a mindset shift. The days of relying on one-size-fits-all, cookie-driven targeting are over. Small businesses now need to prioritize trust, transparency, and relevance. That starts by investing in better website experiences, using clean first-party data, and experimenting with ad strategies that don’t depend on third-party tracking.

Start small. Test contextual campaigns. Build segmented email lists. Work with platforms that offer strong privacy-first tools. The key is to get creative and strategic, not to walk away from paid advertising altogether.

Frequently Asked Questions

Below are some additional questions to consider:

1. What’s the difference between first-party and third-party data?

First-party data is information you collect directly from your customers, like email addresses, purchase history, or website activity. Third-party data comes from external sources that track user behavior across multiple websites.

2. Can I still use retargeting without third-party cookies?

Retargeting as we know it will be more limited, but some platforms are developing alternatives based on first-party data and contextual insights. You’ll need to rethink your approach, but retargeting isn’t dead.

3. Is email marketing more important now that cookies are going away?

Yes. Email marketing is a powerful way to leverage first-party data, build loyalty, and stay top-of-mind. It’s becoming even more valuable in the post-cookie landscape.

Is paid media still worth it?

So, is paid media still worth it in a post-cookie world? Absolutely, but not in its old form. As third-party cookies fade into the past, businesses that embrace change will be the ones that thrive. Instead of seeing this shift as a setback, view it as an opportunity to build more meaningful connections with your audience.

Paid advertising isn’t going anywhere. It’s just becoming more transparent, more responsible, and, arguably, more aligned with what customers want. For small business owners, now is the time to lean into strategies that prioritize trust and relevance. The game is changing, but it’s far from over.

If you want to get the best out of paid media, work with paid advertising services today.