Election Day 2020 is finally here and with it Proposition 24 – The California Privacy Rights and Enforcement Act (CPRA).
Privacy regulations like CPRA along with upcoming privacy-friendly initiatives from big tech, as well as the potential privacy risks with using third-party data are all bringing about a resurgence of interest in first-party data.
Prop 24: The Proposition will empower California’s residents to determine the future of how their data is handled by companies that do business in the state, placing more severe data privacy protections on top of the most stringent regulation in the land known as the California Consumer Privacy Act (CCPA). CPRA further protects the data of minors under age 16.
Basically, there’ll be no more shady business with consumer’s data without their permission.
Privacy regulations mount: With CCPA and GDPR, Europe’s General Data Protection Regulation, consumers have been given the opportunity to opt-out of the collection of their personal data.
Many more states have proposals on the books, that may or may not be passed before a Federal Regulation is handed down.
Google and Apple driving change: Google plans to make changes to the Chrome browser, deprecating third-party cookies, and limiting the tracking of users across the Web. Third-party cookies are already deprecated in Safari and Firefox, but since Google has the largest browser market share this change will be monumental and impact businesses greatly.
Apple is flexing its major player power as well, making the Identifier for Advertisers (IDFA) opt-in only in iOS 14, with some scary wording about turning it on enabling companies to track you across apps and websites.
The companies argue that these major moves are being made in the name of consumer privacy.
But critics are calling foul play on the field, believing that the two tech titans are gaslighting everybody. Will these privacy changes actually prove self-serving for Apple and Alphabet, further cementing their data dominance?
What’s important about these privacy changes: The veil is finally being lifted off of some of the bad behaviors happening with the management of people’s personal information in digital marketing research and digital advertising.
As consumers gain a better understanding of their privacy rights and become more aware that they can control who has access to their data or how they can use it, companies will have to find new methods for learning more about the audiences they want to reach.
Relying on third-party data sets, es no Bueno: Do you have all of the data you need to fully understand your desired market? Data is the most important ingredient to being able to serve up personalization to your consumers.
Not to be confused with third-party cookies, third-party data is what advertisers turn to in order to reach scale and build audiences. It is also used for market research to gain insights into specific categories or types of consumers to better understand their likes and dislikes. But often, this data has no direct connection to a consumer.
In the new privacy age, it’s becoming increasingly important to make sure that the companies you obtain data from are in compliance with current regulations or you could find yourself liable.
Plus, let’s not forget about the myriad quality issues with third-party data, often coming from unknown sources. You often have no knowledge of:
- How or when it was collected
- How the data is linked to consumers
- Whether it was combined with other data
- Whether it was declared, derived, inferred, modeled, or observed
First-party data to the rescue: That’s why there’s a resurgence in first-party data, especially data that is declared and ethically sourced. Consumers will share their data with companies they trust because they understand there’s a clear value exchange for sharing their data.
First-party data can provide you with richer insights, because you know why, where, and when it was collected. You know who the consumers are, what they do, and why they do it.
To paint a more detailed picture of your consumer and improve your marketing, content, or products it’s important that you have confidence that your data sources are not only compliant but quality as well.
That’s why there’s a spotlight shining back on first-party data once again.
With first-party data, you’ll have more granular info about the customers you’re most interested in. First-party data brings you accuracy about people’s behaviors that third-party data can only make guesses about.
There’s a much greater value in investing in a data pool that provides you with accurate insights to inform your personalization services.
Maybe it’s time you got into it.
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