As data privacy changes become more stringent, the need for marketers to use and enhance their first party data is more important than ever before.
The complex terms of service no one reads has had customers unknowingly abdicating their information. That enabled corporations to mine their digital life for monetization, supplying 3rd party data to marketers for money and optimal consumer targeting. As the balance of power moved from the consumers to the digital titans (like Facebook and Instagram) the inevitable backlash of government legislation has ensued. California fired the first shot by passing the California Consumer Privacy Act (CCPA) which went into effect in 2020. CCPA makes companies be more transparent with consumers about the data they are collecting and has changed digital business overnight.
CCPA was only the beginning. In the past 12 months, companies have been tasked with revamping their data collection practices. In 2019, the Instagram API limited 3rd parties’ ability to access users’ geolocation data. No longer could businesses look for influencers or content by geo-location like they had before (but you can and should still be using a UGC platform that leverages multi keyword search and hashtag search for discovery, like EnTribe). Soon, browsers like Chrome will no longer allow 3rd party cookies, iOS 14.5 is limiting user data shared with ad platforms, and Google & Apple are taking steps to limit 3rd party cookies entirely. As these types of changes continue, the risks to digital marketing are immense and the challenge to enhance and understand first party data as 3rd party data ceases to exist will be more important than ever before.
What are the risks to your digital marketing efforts?
“The end of third-party cookies can be great news for brands and their customers if it leads to a new focus on connection and trust.” - Alex Kelleher, Managing Director, Deloitte
Great Changes, Great Opportunity
But like all things new, great changes can also bring great opportunity. One of these opportunities lies within your brand's first party data and the relationship you can build with it.
While brands will no longer be able to enhance their client understanding with 3rd party data, they will still have the ability to enhance their consumer knowledge and reach through 1:1 relationships.
So how should I change my thinking?
The Question Remains...
With all of these privacy changes what are you going to do about it? Are you going to continue to attempt to keep optimizing your old process as long as you can or are you going to challenge yourself to think about a tough situation differently and make lemonade out the lemons?
CCPA went into effect