Data Regulations Impact on Marketing Strategies in 2024
With modern analytical tools and cookies, it’s possible to track and analyze more data than ever before. With modern AI-driven marketing tools, we have software capable of processing far more data than ever before, which means that we need more data.
In addition, customers want more and more personalization by the minute due to rising industry standards. Sure, some of them are paranoid about the amount of data you gather but fail to make the right suggestion as soon as they visit your page the second time, and you won’t leave them again.
How do you keep up with all this when data regulation becomes heavier and heavier with each passing year? Let’s try to answer at least a part of this question!
1. Implementing the consent mode
You can’t gather customer data without adequate access to the right user data. Well, Google Chrome, one of the largest browsers out there, aims to ramp up its third-party cookie restrictions in 2024, which could put you in a bit of an awkward spot.
First, you need to consider implementing the consent mode, which will give users more control over how their data is used. This enables websites to comply with different kinds of privacy regulations. CCPA website compliance and one for the GDPR are some of the most relevant here, and with the right consent management platform, handling the consent mode shouldn’t be too difficult.
Even if you’re not from California or the EU, you’re still subject to CCPA and GDPR as long as your customers are from these two regions.
The consent mode will keep the user data private and even treat it with more care until the consent is given. For instance, via various techniques and methods, the data will be pseudonymized until the right consent is given.
Without this, you’ll experience significant data collection limitations from users who haven’t explicitly consented to track or data usage. As a result, your data will be incomplete, and your databases will have significant gaps. As a result, any insights gained through their analysis will be unreliable.
The last thing you need is a compliance risk, especially if it involves sanctions, legal problems, and potential fines.
Finally, it’s all about personalization (when it comes to marketing in 2024), and without sufficient data, you won’t be able to provide your customers with the experience they believe they deserve.
2. Google Ads Enhanced Conversion
Measuring conversions was always a challenge, especially when you aimed at doing so in a private and secure way. Today, with Google Ads Enhanced conversions, data like emails and phone numbers are protected using a one-way algorithm. This way, the data remains safe without the encryption affecting conversion measurement.
Not only that, but the algorithm also allows for seamless matching across devices, which makes it easier to track a customer's journey. This is a complex process that always requires a more holistic view of the situation.
Most importantly, the conversion data becomes much richer. This means that Google’s machine-learning algorithm can optimize bids more effectively. As a result, campaign cost efficiency increases, which allows even smaller businesses to maximize their marketing budget effectiveness.
The thing is that without Enhanced Conversions, your campaign has to rely exclusively on conversion tacking tags, which are nowhere near as accurate or reliable. This is especially obvious when ti comes to cross-device conversions and with cookie-based tracking.
Overall, this is a huge boon for marketers and cybersecurity specialists.
3. AI and data privacy
One of the biggest changes that AI is bringing to the table is the fact that analytical software's capabilities are now far superior to before. In the past, data was virtually unusable, and analytical platforms couldn’t factor it into the equation. This is one of the biggest marketing trends in 2024.
With modern AI tools and present-day computing, the algorithm is capable of making even the most obscure (even outright ridiculous) connections. This means that there is no longer any useless data.
There’s also the question of the ethics behind the use of AI for customer profiling. You see, the algorithm uses this data to process information and create insights based on the data available. The problem is that there’s no control over the conclusions that this process generates, which means that there are serious concerns about the platform’s potential for bias and discrimination.
There’s also the issue of accountability and responsibility. You see, when it comes to human-driven marketing, it’s more than clear who the responsible party is. This person is in charge of making a decision, and if things go south, they’re held accountable. With AI-driven decision-making, such a thing is incredibly difficult to determine. This is what makes regulators especially suspicious of the AI’s use of user data.
Moreover, there’s the issue of AI avatar generation. This is problematic for a number of reasons. First of all, many stock images and testimonials are used in marketing with the explicit consent of the party in question. Now, with AI avatars becoming increasingly difficult to distinguish from real photographs, even the integrity of the former may be brought into question.
This is why it’s so important that you’re transparent about your use of AI in marketing.
4. Consumer awareness, regulations, and fines are all going up
In the past, handling this was relatively simple. Customers had no idea what they were looking at, and even those who understood what cookies were didn’t pay much attention to it. Regulations were few, and they didn’t cover too much of the field. The maneuvering space within the “grey area” was a lot bigger. This is no longer the case.
Even the fines are going up, which is a natural consequence of the increased instances and the dire ramifications. The thing is that it's not just about fining the culprits. It’s about high fines serving as a deterrent since both the regulators and people running search engines know that their efforts to thwart 100% of attempts are futile.
Even the biggest platforms aren’t safe from this. From Amazon to TikTok, user data is becoming a bigger and bigger political issue. This makes it so important to understand the regulations and do things by the book.
While it may seem like this is a non-related matter, the truth is that this data is always gathered with better personalization in mind. The problem is that customer requirements are constantly increasing, and standards are just growing. This means that enterprises actually need more data than ever before to meet this new (impossible) standard.
Transferring international data is getting more and more difficult; however, unlike in the past, where a jurisdiction that was hard to determine meant that no one would get blamed or have to pay for a mistake, these issues are resolved rather quickly. At the same time, just getting cut off from a major market would be a punishment enough (worse than any fine).
5. Building consumer trust
Remember that a marketing campaign is always about trust. This is the rapport that you’re trying to build from the get-go. If they’re already suspicious of your intentions with their data, you’re off on the wrong foot.
Your customers know that you’re gathering data. What they don’t know is how much, what kind of data, and what are you using this data for. You must have seen the pop-up saying: “This site is using cookies in order to improve your user experience…” but you don’t really see this as often as you would expect.
This is one of the simplest ways for a modern business to be more transparent about its privacy policies. By making them simple for users to understand, you’ll increase the chance of being taken seriously.
In the past, consent was sometimes treated as implied. In other words, if someone did not explicitly say that they forbid you from gathering data, it was implied that they consented. Not any longer. Today, they have to consent explicitly.
By asking for consent, you’ll also make a huge stride in the right direction. Sure, this is mandated by law, but by doing it the right way, you’ll show that you’re acting in good faith. Most importantly, you need to give your customers a chance to either opt-in or opt-out of this data collection.
You also have to give them an option to request data deletion and delete the said data when they request it.
Most importantly, you want to adhere to the rule of need-to-know, also known as data minimization. Only keep the minimum amount of data that you need to function properly.
There’s no marketing without data, and in 2024, you need to be careful about data regulations
Truth be told, there were always some data rules and regulations out there, but today, things are different. Customers are more knowledgeable, penalties are more severe, and with so many tools to automate consent, there are literally zero excuses for failing to meet these requirements. Fortunately, with so many tools and guides out there, you have all the resources you need to do this one by the book.
By Srdjan Gombar
Veteran content writer, published author, and amateur boxer. Srdjan has a Bachelor of Arts in English Language & Literature and is passionate about technology, pop culture, and self-improvement. In his free time, he reads, watches movies, and plays Super Mario Bros. with his son.