Data privacy has become a convoluted challenge for digital marketers. Digital platforms have streamlined the process of gathering data and insights at an unprecedented level. However, consumers (and governments, for that matter) are more concerned about the use of their data than ever before.
Unfortunately, businesses don’t always know how their own websites collect and use customer data – especially if they outsourced the work. This may still be true for in-house marketing teams if they use a platform like WordPress or an analytics tool like Google Analytics 4.
Both platforms use tracking technologies to collect customer data in different ways, and they are just two of many. Here, we’ll discuss the various laws and challenges that digital marketers must consider when it comes to data privacy.
Different Data Privacy Regulations Marketers Should Know
The regulations below have been passed by a variety of governing bodies across the globe. They generally apply to any website that conducts business in those countries, even if the company is located in another nation.
It’s important to note that many digital marketing platforms, including search engines, social media websites, and ad platforms require adherence to the mandates below. That’s why it may still be important to comply with the provisions of a foreign country.
CCPA
The California Consumer Protection Act of 2020 introduced sweeping regulations about how data can be collected and used online. Businesses and marketers who don’t comply with the stringent regulations could face fines and penalties.
However, there’s more to it than complying with the law. CCPA’s provisions are actually based on the best-practices needed to build trust with your target audience. That’s one of the reasons why compliance is so crucial for better search engine rankings (more on that later). The CCPA regulates how organizations implement various online line advertising tactics, from PPC ads to social media and email marketing. This means broad privacy implications for digital marketers.
GDPR
The European Union passed the massive General Data Protection Regulation (GDPR) in 2018 after a high-profile scandal between Facebook and Cambridge Analytica.
Businesses that fail to comply with the massive list of GDPR requirements, which grants consumers more visibility and control over how their personal data is being collected and shared, can face a substantial fine of either 4% of their global net profits or a €20 million fine, whichever hurts the site more. Foreign websites that fail to comply with the GDPR regulations or pay the fine for their violations could be banned from EU countries.
California Invasion of Privacy Act
Have you ever been informed at the start of a phone call that it might be recorded? This notice is likely required due to the California Invasion of Privacy Act (CIPA). Enacted in 1967, CIPA makes it illegal to record or eavesdrop on communications without the consent of all parties involved.
For businesses, this not only means obtaining explicit consent before recording phone calls but recently we’ve seen the law applied to ‘eavesdropping’ on online chats and website activity through the use of online tracking tools. Failure to comply can result in hefty fines and legal action, with statutory damages of up to $5,000 per violation or three times the amount of actual damages, whichever is greater.
Digital marketers and small businesses must be particularly vigilant. Clear policies and website oversight are essential to ensure compliance. Additionally, technology solutions that provide notifications for potential breaches can help maintain adherence to CIPA.
VPPA
The Video Protection Privacy Act was originally passed in 1988 to prevent retailers from releasing their customers’ video sales and rental records.
Its provisions were expanded in the 2000s after data from online videos and images were used to track consumers, whether through ads or their own media. The law has been cited in hundreds of class-action lawsuits in recent years, with allegations that when a visitor watches a video on a company’s website, video viewing data is shared with third parties like Facebook via their pixel and tracker. This law was cited in litigation against Facebook, Overstock, Blockbuster, and several other prominent businesses with a significant online presence.
PIPEDA
Canada’s Personal Information Protection and Electronic Documents Act was passed to protect digital data for websites operating within its networks. Its provisions are similar to GDPR but put more emphasis on electronic documents.
Canada’s Personal Information Protection and Electronic Documents Act was passed to protect digital data for websites operating within its jurisdiction. Its provisions are similar to GDPR but put more emphasis on electronic documents.
The Consequences of Getting Data Privacy Wrong
Ignoring complicated technical issues and ignoring data privacy may be tempting. However, the consequences can be significant. They include:
- Possible legal trouble: governing bodies impose hefty fines for violations. Your site may even be banned from certain regions for lack of compliance.
- Possible loss of SEO rankings: Google requires websites to have a privacy policy for its Adsense platform. Some tests have hinted that it may impact search engine rankings, but this has not been confirmed yet.
- Suspended ads: Many blogging and informational websites use Google Adsense to generate revenue. Google has set strict guidelines for the collection of data and transparency (including a privacy policy) detailing how the site uses data.
- An alienated customer base: consumers are more conscious about their data and the way that it’s used than ever. They are also weary of sites that collect and use data without consent or a mechanism to opt out.
A study conducted earlier this year found that 68% of consumers are worried about the way their personal data is used online. A user-centric approach is the best way to build effective digital marketing strategies that last, so understanding how your site collects and uses the data of visitors is vital. This means being transparent with website visitors and giving them the option to opt out of data collection.
Here, we’ll discuss the important implications that data privacy holds for digital marketers.
Web Privacy Issues for SEO Professionals
Search engine optimization has become a highly lucrative marketing channel.
However, many of the tools and techniques that SEO professionals rely on make heavy use of visitor data. That includes tracking how visitors found their website, what they’re doing on it, and whether or not they took a specific action. This data is tied to conversions, which can sometimes be used to personally identify a website visitor. They’ll often use tools like website cookies and Google Analytics 4 to find and study this data through whatever means are available.
Privacy Policies
Google itself has already stated that adding privacy policy pages not only impacts SEO, but is required for many websites that use some of their data tracking tools. Websites that don’t have privacy policies could see a decline in rankings and potentially face legal issues, including hefty fines. They may also be ineligible for affiliate marketing campaigns.
However, the privacy policy needs to accurately describe exactly how your website uses data.There could be legal ramifications if it doesn’t, including fines.
Transparency and Consent
Give your website’s visitors a chance to consent to have their data used when visiting your website. You should also give them the option to opt out completely. This increases transparency, which may increase trust among both users and search engines.
Fortunately, recent data shows that consumers actually want a more personalized online experience – and 91% of them are willing to share their data to get it.
Adhere to Best Practices
Remember to continue providing quality, highly relevant content that instills trust in both users and search engines. This means putting a special focus on Google’s guidelines for E-E-A-T: experience, expertise, authoritativeness, and trustworthiness. Google claims that E-E-A-T isn’t currently used as a direct ranking factory, but the development of reasoning engines (an AI technology) will likely change that in the near future.
Adherence to the E-E-A-T principles is the best way to develop trustworthy content that will help customers trust you with their personal data. The more you can showcase your expertise as an industry leader with thorough, accurate information, the more website visitors will trust you. This trust is even easier to build when content that adheres to E-E-A-T is coupled with user-centric data protection practices.
Data Privacy and Online Ads
Google and several social media platforms have become more strict with their ad policies to comply with a legal landscape that is changing rapidly.
This is especially true among social media platforms after Facebook sold the data for 87 million users to Cambridge Analytica in 2016. That controversial move helped ramp up support for Europe’s General Data Protection Regulation (GDPR), a set of rules governing how visitor data can be collected and used. GDPR has served as a framework for other data privacy regulations across the globe.
Google announced earlier this year that it will not just penalize, but actually suspend accounts with consent banners in the EU that do not comply with GDPR’s provisions. This may include businesses located in other countries with ads that appear in the EU. It can be difficult – and, in some cases, impossible – to reverse a suspension by Google. This could mean a significant loss in revenue from ads.
That’s why it’s important to understand existing data privacy laws and how they impact policies drafted by the digital marketing platforms that you use.
Social Media Marketing
As we said, support for Europe’s GDPR largely stemmed from social media’s abuse of user data. Unfortunately, it didn’t stop there.
The Meta Pixel (previously known as the Facebook Pixel) has been used for years to track a host of user data on individual websites. That included thousands of websites in the healthcare industry, where it was used to transmit the personal data of patients without their consent in violation of HIPAA laws. Most healthcare providers were unaware of how that data was actually being used and transferred. However, it is a direct violation of a provision that requires healthcare providers to obtain written permission from patients before sending their data to any other party.
The original intent of the Meta Pixel was to run remarketing ads on Facebook and Instagram. However, its abuse has drawn the attention of privacy experts and government officials.
A growing number of digital marketers recommend ditching the pixel and instead improving your existing social media ads with better copy and more engaging visuals. This recommendation is supported by increased scrutiny of the pixel from regulators.
How Marketers Will Need to Adjust Their Strategy Due To These Privacy Regulations
Unfortunately, it’s no longer enough for digital marketers to understand the technical and marketing concepts needed to launch successful campaigns. They must understand the various data privacy regulations implemented by the countries they wish to conduct business in.
First, it’s important to conduct a data privacy audit of your current website. Fortunately, we make this easy with our free Web Privacy Risk Score. It’ll reveal vital privacy issues, the various laws they violate, and how to fix them.
Of course, websites and laws are always changing, so it’s vital to stay updated on the latest data privacy laws and concerns. Proper training is vital, and it may require the guidance of legal experts. Keep an eye on how laws are changing and carefully consider future website updates. Also, stay abreast of the latest news and trends in data privacy. Public sentiment often leads to new government regulations. If you see new trends around privacy concerns, start preparing ahead of time. As an added bonus, your website or app will gain a competitive edge as a trusted source.
Common Privacy Pitfalls Marketers Will Need to Avoid
Many businesses and the digital marketers they work with are often unaware of the privacy laws and policies that they are subject to.. Awareness is the first pitfall to avoid.
A logical step is to audit your website’s current privacy score with our tool. This will outline and organize the exact issues that are keeping your website noncompliant.
And, remember to keep the user at the forefront of your digital marketing strategies. That includes an option to reject having their data used if they prefer.
What Future Privacy Regulations Might Mean for Marketers
Digital marketing is always changing, and relevant data privacy laws and policies are changing with it.
One of the most important shifts that’s likely to have an impact soon is artificial intelligence. AI is changing rapidly and offers new, unprecedented methods for tracking and predicting user behavior. While this may sound lucrative to digital marketers, it is likely to cause a regulatory nightmare. Governing bodies will likely issue broad regulations as they anticipate the future (yet unpredictable) implications of AI and its impact on privacy.
We will also likely see increased enforcement of violations. Right now, governments have a difficult time auditing the massive number of websites currently online. That means they will likely fund the development of tools to find and penalize offending sites in the coming years, including allowing consumers to report those sites. Staying “under the radar” will become much more difficult.
Stay Informed of the Latest Web Privacy Issues
Digital marketers must keep their knowledge current if they want to maintain their audience’s trust, continue to build that audience, and avoid legal setbacks.
Fortunately, we made it easy! Follow our blog and subscribe to our newsletter for the latest news and changes in the world of data privacy.
Scan Your Site for Web Privacy Issues
It’’s vital for digital marketing success to understand how your own website uses the data of its visitors and, more importantly, whether it’s complying with relevant laws.
You can use our free scan to determine your website’s Web Privacy Risk score. If your site has issues, whether large or small, we offer tools and services to help you get back on track and find more customers online!
