Adjusting to Changes in Data Privacy in the Digital Marketplace
Adjusting to Changes in Data Privacy in the Digital Marketplace

Adjusting to Changes in Data Privacy in the Digital Marketplace

Digital Marketing

Jennifer Flanagan

Jul 24 2023

The start of 2023 brought with it a number of changes in digital marketing and data privacy, one of those changes being the introduction of state-specific privacy regulations that will soon take effect. In five states — Utah, California, Virginia, Colorado, and Connecticut — consumers will get more protection against the collection and sale of their data.

Regardless of your location, marketing teams must understand these new laws so they can develop campaigns that are compliant with state and federal regulations. Keep reading to learn more about data privacy’s place in digital marketing, why it matters, and the tools you need to create compliant strategies.

Data Privacy and Digital Marketing

Data privacy pertains to how companies can collect and share online consumer data with third parties. Data privacy laws also cover how that data must be stored. 

In the previously mentioned five states with new online privacy protections, companies will now need to offer an “opt-out” on the sale and collection of user data as users visit individual websites. (The opt-out requirements also apply to targeted advertising.) More states are in the process of establishing their own privacy laws as well.

While U.S. data privacy laws already use this opt-out model, there are new requirements to inform consumers that their data is being collected at the time of collection. That change is something you’ll need to consider as a part of your data collection strategy.

How Is Consumer Data Privacy Changing?

Consumers are becoming more aware of the risks of giving away their data, and that has been a common thread through all the changes in the industry. In fact, 75% of online users know that their information is being collected to create a custom experience. And yet, around 60% don’t let sites track their information. To address privacy concerns, Google has decided to phase out third-party cookies and implement Google Privacy Sandbox with the goal of protecting consumers’ privacy all around the world.

Data privacy isn’t just a concern for corporations to handle; several states are adopting their own laws to better protect consumers. The California Privacy Rights Act (CPRA) was election certified in December 2020, and it will be fully operative this year to include new consumer rights. The European Union’s General Data Protection Regulation (GDPR) has been implemented. Individually, other states have data protection acts such as:

The Utah Consumer Privacy Act
The Colorado Privacy Act
The Virginia Consumer Data Protection Act
The Connecticut Data Privacy Act

As these acts are implemented, digital marketers must be prepared to pivot and update their privacy standards to meet shifting regulations. 

Remember that every state has its own rules for compliance. For more comprehensive information on state privacy laws, we recommend checking out this 2023 State Privacy Law Tracker provided by Husch Blackwell

Why Is Data Privacy Important for Marketers? 

Data privacy is important for marketers for several reasons. From a practical standpoint, abiding by data privacy regulations helps companies avoid legal penalties and lawsuits for data breaches. Practicing good marketing ethics like this helps to establish your company’s reputation as an upstanding organization.

From the user’s point of view, effective marketing is built on trust between consumers and companies. When consumers trust that their data will be handled respectfully and responsibly, they are more likely to share accurate information. According to HubSpot, around 45% of consumers distrust companies and how they handle their behavior or cookie data (2022 data). Distrustful customers may leave incomplete or inaccurate information behind, which hinders digital marketing efforts.

Changes to data privacy can make these same consumers feel more secure in sharing their information, so marketers can do more to improve the customer experience while also following privacy laws.

Adapting to Data Privacy Changes in 2023

There’s no denying that new laws and regulations place restraints on how you collect, use, and store online consumer data. Still, you can evolve to work within these new parameters by studying the updated data privacy laws and taking the time to make sure your strategies are in compliance.

The Interactive Advertising Bureau (IAB)’s Tech Lab assisted in the development of content signals to help stay in compliance with the CPRA. The IAB’s Global Privacy Platform (GPP) is designed to transmit consent, consumer choice, and privacy signals from apps or websites to providers.

How does that help you? You’ll be better able to adapt to regulatory requirements across multiple markets. The GPP works across three consent strings that may affect your business in and outside of the United States — the IAB Canada TCF, IAB Europe TCF, and US Privacy.  

You can also start working with a consent management platform, like Osano, as you adopt a mindset of transparency with consumers. A CMS helps you collect data while staying on the right side of consumer protection laws. 

By taking steps to be more transparent and to collect data in legally-sound ways, you’ll be in a better position to adapt to changing requirements as they arise in the future.

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