When you visit a website for the first time, you usually see a message like this:
“This website uses cookies on your computer to collect information about…”,
followed by a paragraph of jargony explanatory text and a link to a privacy policy. At the end, you’ll have the option of accepting or rejecting cookies.
To the average user, cookies are an inconsequential annoyance – some dumb little thing they have to click whenever visiting a new website.
But for marketers and advertisers, cookies are a very important source of information. Now, the potential death of third party cookies has caused some ripples in the industry.
So why are third party cookies on the chopping block? And what can you do as a marketer to prepare for this massive sea change?
In case you’re uninitiated, let’s go over the fundamentals. What exactly is a cookie?
Yes, we’ve all heard the jokes about the popular dessert, so don’t bother. In the context of digital interactions, a cookie is a type of data file that stores a tiny amount of information about a user. Collectively, cookies can tell you much about how a user interacts with a website – and sometimes, information about the users themselves.
Third party cookies are only one of three main types of cookie.
We have:
As PPC advertising experts, we usually consider cookies in the context of collecting user information we can then use for marketing purposes – but there are many other applications for cookies. For example, cookies are responsible for allowing you to use financial apps like PayPal on external sites. Cookies can also be used by cybercriminals and opportunists looking to exploit you or steal your identity – though these tend to be rare.
We’ve established that third party cookies are important for gathering information on users, which can then be used to optimize powerful marketing and advertising campaigns. We’ve also alluded to the deprecation, or death, of third party cookies.
Why are we predicting this?
We can already see some signs of a collective shift in how we view online privacy and tracking user activity. Web browsers like Mozilla’s Firefox and Apple’s Safari already block third-party cookies by default; if users like the idea of sharing their data with advertisers, they can enable them (though this isn’t a frequent choice).
Google Chrome, as of the time of this article’s writing, still enables third-party cookies by default, but this is set to change later in 2023. And with this change will come another important feature, or rather, a missing feature: users will not be able to turn on third-party cookies. Once third-party cookies disappear from Google Chrome, they’re never coming back – and it’s likely that all the other little web browsers will follow suit. Instead, Google is introducing Google's Privacy Sandbox initiative, a new framework designed to balance personalized advertising with stronger first-party data protections.
That’s on top of increasing online privacy concerns putting pressure on cookie-related strategies. Consumers are increasingly concerned about processing personal data, regulatory organizations and governments around the world are introducing new data regulations, and brands all over the world are exercising more prudence and caution when collecting or using user data. The Privacy Sandbox is expected to play a major role in shaping the future of digital marketing, offering alternative ways to deliver relevant ads while limiting invasive tracking.
What does this mean for marketers?
Before we can fully answer that question, we need to talk about cookie matching. According to Google, “Cookie Matching is a feature that enables you to match your cookie—for example, an ID for a user that browsed your website—with a corresponding bidder-specific Google User ID, and construct user lists that can help you make more effective bidding choices.”
By some estimates, third party cookies match rates account for roughly 40 to 60 percent of the total user profile – meaning about half your user data depends on third party cookies. If users are actively blocking third party cookies, or if you don’t have any third party cookie data to draw from, you’re going to end up with half the user data you’d have otherwise.
This can have cascading consequences, ultimately costing you more money and reducing the potential effectiveness of your marketing and advertising campaign. If you can’t target users accurately, your click and conversion rates will go down. You’ll have a harder time finding the right people to target. And according to some experts, this could end up driving up the average cost of advertising.
On top of that, your data analytics will no longer be reliable. You’ll find it much harder to accurately measure the results of your campaign – and you might end up forming misleading conclusions that make you optimize your campaign in the wrong direction.
Keep in mind that this shift is already unfolding. As of late 2022, 26 percent of people around the world have third party cookies disabled in their browser of choice.
So, what can you do to prepare for this major shift in user data and advertising?
If there’s one important take away from all of this, it’s that the worlds of PPC advertising, consumer data collection, and even online privacy are going to change forever by the end of the year – and the transition has already begun. As is the case with all major marketing and advertising transitions, the companies that are capable of adapting and evolving are the ones that are going to thrive.
You only have two options, since you’re not going to convince Google Chrome to give third party cookies another shot. You can either adapt or you can suffer the consequences of remaining stagnant. It’s hard to say exactly what the short-term or long-term effects of missing third party cookies will be, but we can be confident that we’re in store for the biggest PPC ad disruption we’ve seen in years.
Whatever your goals and motivations are, it’s on you to take a close, analytical look at your PPC advertising strategy, increase your focus on first party tracking, and allow your advertising approach to evolve.
All this is much easier when you have the help of a competent, experienced PPC advertising agency (like ours!). If you’re ready for a free proposal, or if you’d like some more information before getting started – contact us today!
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When this apartment complex client partnered with PPC.co, their goal was clear: generate more qualified leads through Google Ads. In just 60 days—from January to March 2025—we transformed their paid acquisition performance. Total conversions more than tripled, jumping from 10 to 32, while the overall conversion rate soared by over 300%. At the same time, we drove down the cost per conversion by 44%, delivering significantly more leads at a much lower cost.
By strategically combining Performance Max and high-intent Search campaigns, we not only increased lead volume but improved overall efficiency and ROI. This rapid and measurable improvement underscores the value of data-driven optimization and expert campaign management.
This case study is a testament to what can happen when a well-structured campaign meets expert strategy and continuous optimization. Whether you're launching a new property or looking to boost occupancy in a competitive market, PPC.co delivers real results—fast.
Ready to grow your leads and lower your cost per conversion?
Contact us today to schedule a free audit and discover how we can help you achieve similar results.
Click on the following link if you would like to see more PPC case studies!
If you’re running an e-commerce or retail business, you already know that visibility is everything. The best product in the world won’t sell if no one sees it. That’s where paid ads for ecommerce comes in.
Done right, they drive traffic, conversions, and repeat customers.
Done wrong, they drain your budget and leave you wondering what went wrong.
Whether you’re spending $500 a month or $50,000, your goal is the same: profitability. Not just clicks, and certainly not just impressions. You want to turn ad dollars into real, predictable revenue.
So how do top-performing e-commerce and retail brands make their paid ads work?
What are they doing that you’re not?
This guide breaks it down step-by-step, so you can start running profitable ads with confidence.
Before you launch a single campaign, you need clarity on your audience and goals. Are you trying to boost first-time sales? Increase average order value? Each objective requires a different strategy and metrics for success.
Don’t fall into the trap of launching ads just to “see what happens.” Paid media works best when it’s part of a bigger strategy. So before you log in to Google Ads or Meta Ads Manager, get specific about what success looks like.
If you want to run profitable paid ads, knowing your numbers is the foundation of your entire strategy. Without a clear understanding of your margins, break-even points, and how much you can afford to spend to acquire a customer, you’re essentially gambling with your ad budget.
And in e-commerce, that can get expensive fast.
Let’s start with the most critical numbers you need to know:
Your break-even ROAS tells you the minimum return you need on your ad spend to not lose money. It’s calculated by dividing 1 by your gross profit margin.
So if your margin is 50 percent, your break-even ROAS is 2.0. That means for every $1 you spend on ads, you need to make $2 in sales just to break even.
For example, let’s say you’re running Facebook Ads and spending $1,000 on a campaign. If your break-even ROAS is 2.0, you need to generate at least $2,000 in revenue to avoid losing money. Anything above that is profit. Anything below that eats into your cash.
Once you know your numbers, you can reverse-engineer your ad strategy instead of throwing money into the void and hoping for results. For instance, if your AOV is low (say $25), you might struggle to profit from ads unless you have a very low COGS or high conversion rates. In that case, you might want to:
On the other hand, if your AOV is $150 and your margins are strong, you have more room to compete in ad auctions, bid more aggressively, and test multiple audiences and creatives without instantly wiping out your profit.
A lot of beginner advertisers focus entirely on immediate return from ads. That’s understandable – but short-sighted. If you’re breaking even or slightly losing on the first sale, that might still be a smart move if you’re building long-term customer relationships.
That’s where Customer Lifetime Value (LTV) comes in. If you know that your average customer places three orders a year, each worth $60, then their LTV is $180. If you spend $40 to acquire that customer with your first ad, but earn $140 more over the next 12 months, that ad was extremely profitable in the long run.
Top e-commerce brands build their paid strategies around LTV-to-CAC ratio – how much they earn over time compared to what they paid to acquire the customer.
A healthy ratio is usually 3:1 or higher. So if you’re spending $50 to acquire a customer, you want to earn at least $150 from that customer over time.
Once you understand your numbers, you can plan your ad spend with precision. You’ll know exactly:
Let’s say you want to make $5,000 in profit this month, and your product has a 50 percent gross margin. That means you need $10,000 in sales. If your target ROAS is 2.5, you can spend up to $4,000 in ad spend to hit that goal. With those numbers in hand, you now have a roadmap for campaign budgeting, not just a shot in the dark.
Every ad platform has strengths. But if you try to use them all at once, you’ll burn through your budget without learning much. Instead, pick one or two that align best with your business model and customer behavior.
If you’re selling visually appealing products like apparel, skincare, or home goods, platforms like Instagram and TikTok can deliver strong returns – especially with the right creative. If you’re focused on high-intent buyers, Google Search and Shopping Ads are goldmines. And if you’re targeting professionals or B2B retail buyers, LinkedIn may offer surprising results.
Test channels strategically. Start with the one that matches where your customers spend their time and scale from there. The best platform for you is the one where your ideal customers are already shopping, scrolling, or searching.
One of the biggest mistakes retailers make is casting too wide a net. You don’t want everyone to see your ad – you want the right people to see it.
On Google, this means targeting high-intent keywords that signal buying behavior. Focus on terms like “buy,” “best,” “free shipping,” or product-specific searches. On Facebook, Instagram, or TikTok, you’ll want to dial in your custom audiences using demographic data, lookalikes, interests, and behavior.
Don’t forget retargeting. Most people won’t buy the first time they visit your site, but retargeting brings them back when they’re ready. Set up ads that follow people who viewed a product, added to cart, or engaged with your brand but didn’t check out.
The more relevant your targeting, the more efficient your spend and the higher your return.
Creative is the make-or-break factor in most e-commerce ad campaigns. You can have perfect targeting and the right product, but if your ad doesn’t grab attention in the first two seconds, it won’t convert.
Your creative needs to do three things quickly:
Use high-quality product photos or videos. Show your product in action. Highlight a clear benefit or solve a specific problem. Incorporate customer reviews or user-generated content to build trust.
For paid social, test multiple creatives at once – video vs. image, UGC vs. branded, short-form vs. long-form – and let performance data guide your iterations. On search platforms like Google, focus on copy that’s compelling and packed with relevant keywords. Test different headlines and descriptions to see what gets the best click-through rate.
Sending paid traffic to your homepage is a rookie mistake. You want every click to land on a page that’s designed to convert. That means fast load times, mobile optimization, and a clear call-to-action.
If you’re promoting a specific product, send users to that product page and not your full catalog. If you’re offering a bundle or a seasonal deal, create a dedicated landing page with copy, visuals, and layout tailored to that offer.
Remove distractions. Reduce friction. Make it stupid-easy for people to buy. The less effort it takes, the more sales you’ll see. And don’t forget to A/B test. Sometimes a simple tweak to your headline or CTA can double your conversion rate overnight.
Once your ads are live, your job isn’t done. In fact, this is where it really begins. You need to monitor performance regularly, looking at more than just the surface-level metrics.
Click-through rate (CTR) tells you how well your ad is capturing attention. Conversion rate shows how well your landing page is sealing the deal. ROAS tells you how profitable your campaign is. And CPA helps you compare efficiency across different products or audiences.
Watch for early indicators of success – or failure.
Treat your campaigns like living systems. Tweak, test, and improve them continuously.
Once you find a winning combination – an ad, offer, and audience that works – it’s time to scale. Increase your budget gradually while keeping an eye on performance. Scaling too fast can tank your results, so go step by step.
Duplicate high-performing campaigns to test new audiences or creatives. Experiment with upsells, bundles, or time-limited offers to increase AOV. Layer in email or SMS marketing to retarget paid traffic and drive repeat sales.
And just as importantly, don’t be afraid to kill underperforming ads. If something isn’t working after a reasonable test period, cut it. Your budget should be flowing to what works – not what you hope will work.
One of the biggest mistakes in paid advertising is chasing one-off sales without thinking about the bigger picture. Winning e-commerce brands think in terms of customer lifetime value.
If your first sale breaks even, that’s fine. (As long as you have a plan to turn that customer into a repeat buyer. ) You can use post-purchase emails, loyalty programs, and retargeting ads to bring people back.
At the end of the day, when you view paid ads as the beginning of a customer relationship – not the end – you unlock real long-term profitability. And at PPC.co, that’s where we want to help you! We offer industry-leading PPC management services for ecommerce and retail brands who want to stop wasting ad spend and start generating real ROI.
Contact us today to learn more!
