Privacy Regulations will make first-party data even more pivotal
It’s no lie that companies oftentimes struggle with not only collecting but understanding the data they gather from customers as a result of the “dirty” data issue. This is when companies inefficiently organize, input, and store client info and this ultimately leads to errors in their databases, making all that information kind of useless. Overcoming this challenge is not only time-consuming but also costly, many marketers have started using third-party data instead. The problem with this is, a large portion of that third-party data is being collected from users without their knowledge or consent.
Recently, the use of third-party data has started backfiring, especially amongst social media platforms, that have been forced to re-evaluate and alter how user data is collected. A rise in regulations, like the European General Data Protection Regulation (GDPR) and the California Consumer Privacy Act of 2018, are making it much harder to use tracking cookies for example and other similar tools to target and personalize adverts for people based on their online viewing habits.
According to an analyst of eMarketer, this trend is spurring a “big shift toward more reliance on first-party data and less on third-party data. The rise of privacy regulations will only make it more important for companies to have confidence that the data they’re using for marketing purposes is being used with consent, and working with accurate, reliable first-party data should help genuinely improve experiences for consumers.”
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