How Cookie Consent V2 Is Affecting Paid Campaigns

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Cookie Consent V2 Could Be Affecting Your Paid Campaigns

If you’ve noticed a sudden drop in conversions or inconsistencies in your ad data, you’re not alone.

Cookie Consent V2 (part of the IAB’s Transparency and Consent Framework update) is causing a seismic shift in how user data is collected across websites—and it’s hitting paid ad campaigns hard.

But what exactly is Cookie Consent V2?

And more importantly, how can marketers stay ahead of the curve?

Let’s break it down.

What Is Cookie Consent V2?

Cookie Consent V2 is a new standard designed to comply with stricter privacy regulations like GDPR and the ePrivacy Directive.

It gives users more control over who can access their data and how it’s used. The update mandates a clearer opt-in process, transparency around vendors, and more granular user consent.

Sounds good for users, right?

It is. But for marketers and advertisers? It introduces some serious challenges.

How Is Cookie Consent V2 Affecting Paid Campaigns?

1. Loss of Tracking Data

The biggest impact is the loss of first-party and third-party tracking data.

If users don’t explicitly accept tracking cookies, platforms like Google Ads, Meta Ads, and LinkedIn can’t track user actions accurately.

This means:

Incomplete attribution
Disrupted remarketing campaigns
Reduced audience size for lookalike targeting
Fewer recorded conversions

Example:

A user clicks on your Google Ad, visits your landing page, but declines cookies. They later convert—but that conversion never gets tracked. Your campaign looks like it didn’t perform, even though it did.

2. Inaccurate Reporting and ROI Tracking

Without reliable cookie data, performance metrics like cost per acquisition (CPA) or return on ad spend (ROAS) become less trustworthy.

You may start seeing campaigns that seem to underperform when in reality, they’re just not being properly tracked.

3. Campaign Optimisation Becomes Difficult

Most ad platforms rely on conversion data to optimise campaigns. Without consented tracking, machine learning algorithms get starved of data—leading to slower learning and weaker optimisation.

What Can Marketers Do to Fix or Mitigate the Issue?

The good news: there are practical ways to minimise the impact of Cookie Consent V2 on your paid media campaigns.

Let’s explore the fixes.

1. Implement Server-Side Tracking

One of the most effective ways to get around client-side cookie loss is to use server-side tracking.

With server-side tracking:

Data is collected on your server (not the user’s browser)
It’s less prone to ad blockers or cookie restrictions
You have more control over what gets sent to platforms like Google Ads or Meta

Popular tools:

Bonus: You’re also better prepared for a cookie-less future.

2. Upgrade to Consent Mode V2 (for Google Ads)

If you’re running Google Ads, you must implement Consent Mode V2.

As of March 2024, Google requires all advertisers in the EEA and UK to use Consent Mode V2 to continue using personalised ads and remarketing.

What it does:

Works with your cookie banner to respect user consent
Sends anonymised pings even when users decline cookies
Allows Google’s modelling tools to recover some of the lost conversions

Tip: Make sure your cookie banner integrates with Google’s Consent Mode—popular CMPs like Cookiebot and OneTrust support this.

3. Use Enhanced Conversions

Enhanced conversions help recover lost conversion data by sending hashed first-party data (like email or phone numbers) to Google when users convert.

Even if cookies weren’t accepted, Google can match this data to logged-in users and attribute conversions more accurately.

Why it helps:

It boosts attribution accuracy without breaching privacy laws.

4. Switch to First-Party Data Strategies

Start building your own first-party data assets:

Offer gated content to capture emails
Run lead gen campaigns with value-adds (free trials, demos, downloads)
Encourage newsletter sign-ups

This data can fuel your paid campaigns through Customer Match (Google) or Custom Audiences (Meta), reducing your dependence on third-party cookies.

5. Re-Evaluate Attribution Models

Consider switching from last-click attribution to data-driven or first-click attribution models.

Why? Because last-click relies heavily on accurate cookie tracking, which may now be incomplete.

Alternative tools to consider:

Triple Whale
Northbeam
Segmetrics

These tools use a blend of first-party data and modelling to give a more accurate view of your ROI.

6. Improve Your Cookie Consent UX

The way your consent banner is presented has a big impact on opt-in rates.

Test different variables:

Button text (“Accept All” vs. “Continue with Cookies”)
Colour contrast and visibility
When it appears (immediate vs. scroll delay)
Clear explanation of benefits (“This helps us improve your experience”)

Sometimes, a small tweak can lead to big improvements in tracking.

7. Focus More on Contextual Targeting

If behavioural targeting becomes unreliable, go back to basics.

Contextual targeting places ads based on page content, not user data. For example, placing your ad on a blog post titled “Best HR Software for Small Businesses” if you sell HR tech.

It’s privacy-compliant, cookie-free, and often overlooked in the performance marketing mix.