Data is at the heart of all business operations. We rely on numerous data points to gain an understanding of our audiences’ actions, which allow us to make informed decisions with future marketing efforts.
The methods in which this data is collected has been under constant review for many years, with new laws and rulings often causing overnight shifts in how businesses can collect and use user data. A large driving force behind these on-going changes stems from consumers calling for an increased level of privacy protection - there is a larger desire than ever for consumers to be able to navigate the online space without having their actions and information collected. Further changes are on the horizon which will present new barriers and challenges – read on to learn more about recent and upcoming changes and what this could mean for your business.
Source: Marketing Charts
What Are the Recent Changes to the Way Privacy is Managed?
In recent years, regulatory bodies have heightened their guidelines for user privacy, as users become more aware of how their data is collected and used. These notable bodies include The General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). The GDPR guidelines require explicit opt-in consent for non-essential cookies, meaning that cookie banners must not only be present on your website, but they should be correctly implemented to withhold specific cookies until user consent is given. The CCPA creates similar protections for California residents, which businesses must adhere to when serving these users, even if your business is based outside of California or the United States.
Some changes to guidelines are in the woodworks with the proposed UK Data Protection and Digital Information Bill No. 2. If enacted, this bill will make changes to the UK GDPR, the Data Protection Act 2018 and the Privacy and Electronic Communications Regulations. Whilst the impact this bill would have on digital marketing efforts doesn’t appear to change too much, one notable change is the increase in maximum fines for non-compliant direct marketing which would go up to a staggering £17.5m or 4% of global annual turnover (whichever is higher), emphasising the importance of knowing what you can and cannot do with your data.
The Death of Third-Party Cookies
Source: Marketing Charts
These changes have also caused some industry titans to change their approach to privacy. For example, Google announced their plans to phase out third-party cookies in Chrome by 2024. Third-party cookies have been the predominant method for tracking users and creating targeted ads, meaning this change will require innovative new approaches for many businesses. Whilst other major browsers, such as Safari and Firefox, already have restrictions in place to enhance privacy, Chrome is the most used browser in the world, meaning the impacts of this change will be noticed on a much larger scale.
As mentioned above, third-party data has played a large role in marketing activities for many years – this includes data collected from users by entities they don't directly interact with i.e., via cookies, pixels, etc. There has been a growing shift from relying on third-party data to focusing on first-party data collection, largely driven by privacy regulations like GDPR. First-party data includes data provided directly by users to a company, such as onsite newsletter signups, surveys, purchases, etc.
With the introduction of Google Analytics 4 (GA4), third-party cookies are no longer relied upon as Google leverages first-party data from users signed into their Google accounts to derive user information, such as demographics. As part of this privacy-focused shift, GA4 now features limited data retention and may also apply thresholds to reports to prevent the identification of individuals.
For consumers, privacy is a larger concern than ever before. Users are becoming increasingly conscious of their digital footprint and are now more sceptical to allow cookies when visiting websites – consider the browsing experience from your users’ perspective, what do you have to gain from clicking “Allow All” vs. “Decline All” on a cookie banner?
More third-party tools are now accessible to users, such as browser extensions automating the rejection of cookies and even entire browsers marketed towards tracking protection. Large companies such as Apple are turning privacy into key selling points for their products. The combination of these technologies alongside a rise in privacy-focused mindsets are set to cause disruption to how data is collected and used – so what does this mean for your business?
How Privacy Changes Will Affect Your Business?
With privacy now at the forefront of all online activity, there are some key considerations that businesses must factor into their operations, including:
Cookie Consent
You should ensure you are providing visitors to your site with the choice to accept/reject non-essential cookies, via a consent banner. It is important to ensure that this banner is more than just decorative, and actually withholds the firing of any cookies which have not been agreed to.
Source: Statisa
Accept that some visitors will decline your cookies, which means you won’t be able to track any of their activities on your site. We’ve seen drops in tracking by up to 50% on some of our clients’ sites following the correct implementation of cookie banners – this number will highly depend on your industry and how privacy conscious your audience is. Such a high number will affect your decision making but remember: would you rather respect your visitors and lose some data, or have all the data but run the risk of paying a hefty fine AND lose your audience’s trust?
If you’re unsure whether a drop in tracked metrics is due to cookie implementation, review your actual revenue or leads trend – if it remains stable or increases, it means that the drop you’re seeing in GA4 is not real and likely due to cookies.
Understand Your Data
When working with user data, you should understand how it was collected and what consent was given. For example, you should not be sending an email outreach to users who have explicitly opted out of such activities.
You should remain aware that data within platforms such as GA4 may not always paint an entirely accurate picture due to the aforementioned thresholding and other privacy factors, therefore a focus on trends (as opposed to core numbers) can be beneficial.
CRMs and First-Party Data
Customer relationship management (CRM) tools, such as HubSpot, facilitate the collection of first-party data to help combat the over-reliance on third-party data. The ability to collect information via gated content, sign-ups, contact forms, etc and utilise this data to build personalised experiences and outreach is incredibly valuable in a world where third-party data is becoming redundant. If you’re not using one already, get a CRM tool today to effectively collect first-party data, as this will prevent headaches later down the line.
Whilst these mentioned points are all important factors in creating a privacy-focused business, we must emphasise that this isn’t legal advice. Should you need to, seek professional legal advice from an appropriate entity to address any privacy/data concerns and ensure your business is fully compliant.
Need a Helping Hand?
You cannot ignore today’s consumers’ growing concerns around privacy and data collection. As third-party data collection becomes obsolete, businesses should act now to ensure they have all necessary systems in place to collect and utilise first-party data in a compliant, but effective, way.
You will likely lose some of this data which means going back to basics for your marketing strategy is critical. Understanding your audience’s needs and pain points, and addressing them in a helpful way will be the best way to keep getting conversions, even if you might not be able to track their full journey. Check our blog on attribution to see how you can improve your decision-making process.
Keeping on top of fast-moving industry changes can feel like a challenge, but Innovation Visual can work with you to implement the systems you need to stay ahead of the game. From implementing and getting the most out of HubSpot, to ensuring your site is cookie compliant, and implementing a winning marketing strategy, get in touch with us today to discuss how we can help.
