Data Privacy Changes & the Impact on 3rd Party Data
What’s new with data privacy?
Globally, we are experiencing a frenzy of data privacy changes. Big tech is playing a major role in the dynamic pace at which this data is changing and ultimately influencing the way advertisers and businesses connect with end users GDPR has also affected data collection & privacy. Additionally, iOS and Android have changed their privacy strategies. But more significantly, as all of these new data privacy changes are being introduced and with the end of 3rd party cookies now imminent, how are businesses able to target effectively? While this overabundance of data is shrinking, how are you gearing up to deal with the new frontier?
GDPR, very well-known by most businesses nowadays, was started as comprehensive privacy legislation aimed to define data privacy as a basic human right in Europe. After its enactment back in 2016, the world of privacy was shaken. Much to the chagrin of advertisers and marketers everywhere, consumers scored a solid win at protecting our digital privacy.
As we’ve moved past the initial GDPR rollout and a resounding victory for data privacy, Apple has joined the privacy celebration. The introduction of App Tracking Transparency (ATT) is definitely disruptive. Some parties argue they are being self-serving, while others applaud them as a privacy facilitator. The main point here is that most consumers are unaware of how much third-party data is available, how it works, or how it is used to target us. We want transparency. Regardless of your opinion, these times, they are a changing.
Android, not wanting to be left out of the privacy party, announced they would be banning cross-app tracking too. This announcement comes just a few months after Google Chrome announced that it would stop collecting third-party cookies in 2023. Irrespective of whether you’re an Apple or Android user, you’re either part of the change now or soon will be.
What does this data privacy change mean for me?
With all of these changes to privacy and 3rd party data, where does this leave consumers? Advertisers? Marketers? The real answer is with first-party data. First-party data is the data gathered by a company on consumers’ activities on the company’s website. So, whereas third-party data is based on consumers’ activities that are shared, purchased, or linked by third parties, first-party data will be completely controlled by the site we visit. This first-party data is a company’s most valuable asset. Why? Because it is offered voluntarily by the patron, it represents a known audience, and the company owns the data. No misrepresentations or errors (unless you, the company, make them internally). It’s by far the most reliable and effective form of data collection. And if you’re a consumer, well, buckle up, buttercup; this is the way of the future. But it’s not all bad. Companies from insurance to construction are shifting their strategic approach to customer experience. The goal is to create such a good experience that you’ll stay their customer for a long time.
So where does ForMotiv fit in?
For starters, our 1st party behavioral dataset is quickly becoming the go-to solution for carriers looking to add highly predictive datasets to their stack. We specialize in reading a user’s digital body language to predict intent. Is someone a serious buyer? Are they changing their answers? Window shopping? And, how are you removing friction to make users more likely to purchase? How about adding friction to someone who appears fraudulent? What do you do when you identify bots? Shaping the customer experience through behavioral data is what we do best. We enable insurance and fintech to strategically maneuver the behavioral battleground that is the new world of privacy. Welcome to the (first) party (data) frontier.