{"id":24791,"date":"2019-11-12T09:54:15","date_gmt":"2019-11-12T17:54:15","guid":{"rendered":"https:\/\/www.kochava.com\/?p=24791"},"modified":"2022-08-18T14:59:23","modified_gmt":"2022-08-18T21:59:23","slug":"data-privacy-the-new-balancing-act-for-brands","status":"publish","type":"post","link":"https:\/\/www.kochava.com\/ko\/blog\/data-privacy-the-new-balancing-act-for-brands\/","title":{"rendered":"Data Privacy: The New Balancing Act for Brands"},"content":{"rendered":"[vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text]\r\n

Can you comply and thrive amidst emerging data regulations?<\/em><\/p>\r\n[\/vc_column_text][vc_column_text]The news lately is full of data breaches, and those from major corporations\u2014and the tech giants\u2014have thrust consumer data privacy into the political arena. The impact of these breaches has brought about much awareness and scrutiny over the commercial use of personal data. With the advertising industry still grappling with the General Data Protection Regulation (GDPR) in the EU, more regulations, such as the <\/span>California Consumer Privacy Act (CCPA), are impending stateside. <\/span>These well-intentioned, but often contradictory policies have created the perfect storm for industries like digital advertising, who rely on data for business.<\/span>[\/vc_column_text][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/6″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][\/vc_column_inner][vc_column_inner column_padding=”padding-5-percent” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”top” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”2\/3″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][image_with_animation image_url=”24808″ image_size=”full” animation_type=”entrance” animation=”Fade In” hover_animation=”none” alignment=”center” border_radius=”none” box_shadow=”none” image_loading=”default” max_width=”100%” max_width_mobile=”default”][\/vc_column_inner][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/6″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][\/vc_column_inner][\/vc_row_inner][vc_column_text css=”.vc_custom_1573599844812{padding-top: 30px !important;}”]\r\n

The current legal landscape in a state of flux<\/span><\/h3>\r\nEurope\u2019s GDPR, implemented in May 2018, began a ripple effect for businesses around the globe. It has led many companies to withhold business in the region. Several landmark penalties have already been handed down. Since its enforcement, the Information Commissioner\u2019s Office (ICO) has fined companies a total of $397M.\u00a0<\/span>\r\n\r\nAdding fuel to the fire of data mishandling have been mishaps at several tech giants including <\/span>Facebook<\/span><\/a>, <\/span>Google<\/span><\/a>, <\/span>Microsoft<\/span><\/a>, and <\/span>Amazon<\/span><\/a>. All have had data breaches or their data has been misused or exposed. Commercial breaches by <\/span>Experian<\/span><\/a> and now <\/span>CapitalOne <\/span><\/a>have also exposed sensitive consumer data\u2014not to mention <\/span>breaches by smaller companies<\/span><\/a>, which are even more vulnerable to hacks.<\/span>\r\n\r\nWhile there is agreement about the need to protect data privacy, the question of <\/span>how<\/span><\/i> is embroiled in deep debate, particularly as the consumer fallout from these breaches has yet to be fully understood. Consumer data is vulnerable; companies who require data to function and provide their services now must earn consumer trust (in addition to complying with regulations) in order to succeed.<\/span>[\/vc_column_text][vc_column_text css=”.vc_custom_1651609057514{padding-top: 30px !important;}”]\r\n

Confusion and contradictions<\/span><\/h3>\r\nIn the United States, there is no overriding federal legislation that protects the data of individuals. All states have some form of <\/span>data breach notification laws<\/span><\/a> but they vary in what is covered or required. <\/span>CCPA <\/span><\/a>has made headlines for its data collection limitations and consumer involvement over how collected data on them is used. It\u2019s been compared to GDPR and goes into effect in 2020. Although CCPA has garnered the most attention around state-specific regulations, <\/span>Nevada<\/span><\/a> has already passed legislation about how companies inform consumers of personal data collected.<\/span>\r\n\r\nAt the federal level, Senator Brian Schatz (D-Hawaii), of the Senate Communications, Technology, Innovation, and the Internet Subcommittee introduced the <\/span>Data Care Act<\/span><\/a> last year which would require advertisers to protect consumer data in the same way the healthcare, legal, and financial industries are required to do.\u00a0<\/span>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/span>\r\n\r\nSeveral significant advertising industry groups concerned about conflicting and contradictory aspects of regulations have joined the <\/span>\u201cPrivacy for America\u201d<\/span><\/a> coalition. The coalition supports broader privacy rules, restrictions on certain data practices, new oversight protection and laws, increased rulemaking authority for the Federal Trade Commission, stronger data security protection, and penalties for violations. It is advocating to <\/span>revise aspects<\/span> of the CCPA referring to a requirement that non-identifiable text IDs be tied to a device, thus revealing personally identifiable information ((PII) data that may identify an individual).<\/span>[\/vc_column_text][vc_column_text css=”.vc_custom_1619968351519{padding-top: 30px !important;}”]\r\n

Flawed intentions<\/span><\/h3>\r\nA common misconception of the advertising community is that individuals are invasively tracked\u2014almost spied on. Yet, the advertising industry largely relies on anonymous, unique device identifiers in serving and tracking ads. In mobile advertising these are called mobile ad identifiers (MAIDs). MAIDs don\u2019t reveal PII and they can be refreshed or blocked by users, making them a safer form of identification.<\/span>\r\n\r\nWhile the intentions behind regulations to protect consumer data are valid, the logistics are flawed. One unintended consequence of some emerging regulations may be the collection of more sensitive consumer data than is currently tracked. For example, as noted by the Privacy for America coalition, in order to comply with a requirement to provide collected personal data to consumers who request it, adtech\/martech companies would have to tie normally anonymous identifiers with personal information. To provide adequate services by individual preference, for a GPS service app, for example, apps may resort to requiring personal information if they cannot use anonymous device identifiers. This would put consumer data at a significantly higher risk for unintended exposure.<\/span>\r\n\r\nAnother unintended consequence of limiting anonymous identifiers is it opens the door for <\/span>attribution fraud<\/span><\/a>. The use of probabilistic attribution (see iOS 14+ restrictions<\/a>) makes devices and ad campaigns susceptible to fraud. It enables fraudulent entities to receive payment for their schemes which steals from advertising budgets and misinforms business decisions. If a fraudulent entity hijacks a phone, it can affect that consumer\u2019s <\/span>battery and cellular data.<\/span><\/a>[\/vc_column_text][vc_column_text css=”.vc_custom_1573599987325{padding-top: 30px !important;}”]\r\n

Comply and thrive<\/span><\/h3>\r\nWhile the ways of collecting consumer data are changing, businesses can be proactive about compliance. Advertisers can begin implementing transparency by being clear about the information being collected, how it will be used and protected, even while best practices are yet to be determined.\u00a0<\/span>\r\n\r\nBecause advertising has taken a beating in the public eye, it\u2019s important to prove trustworthiness. Advertisers have access to an incredible amount of consumer data. <\/span>Providing <\/span>transparency <\/span><\/a>by using discretion with sensitive information, <\/span>having safeguards, being upfront and clear about the data being collected, and obtaining adequate consent are all prudent steps advertisers can take.<\/span>\r\n\r\nIf your company hasn\u2019t needed to implement GDPR regulations, using them as a guideline is a good foundation in preparing for US state\/federal regulations. Much of the focus is in obtaining proper user consent and being clear about permissions. Marketers will also need to consider how to comply with opt-in (where users agree to have their data sold, as with GDPR) versus opt-out (where users must tell businesses not to sell their personal data, as with CCPA) regulations. It may be wise to avoid blanket consent requests, such as a laundry list of user permissions to install an app, because it leaves the data vulnerable to misuse.\u00a0<\/span>[\/vc_column_text][vc_column_text css=”.vc_custom_1573599952493{padding-top: 30px !important;}”]\r\n

Become more strategic<\/span><\/h3>\r\nThere will be growing pains as more regulations are confirmed, but look for the silver lining, too\u2014reevaluating what and how you collect data <\/span>may make you more strategic and efficient. <\/span><\/a>Advertisers should consider what data they collect and why. By eliminating what you don\u2019t need, you\u2019ll reduce risks for privacy violations <\/span>and<\/span><\/i> data bloat. If you\u2019re an advertiser who uses data to enhance the user experience, be conscientious of the data needed to make that happen. Considering the data you collect internally may also eliminate the need for third-party vendors or at least allow you to become more selective about whom you work with.<\/span>\r\n\r\nWith GDPR, most of the advertising industry is already navigating the uncharted waters of data regulations while governing entities work to protect misuse of personal data. Considering data consolidation and working with fewer vendors may aid in preparing for stricter limitations on data collection. Upcoming and emerging policies will no doubt impact businesses, but being mindful of what data is needed for marketing will make everyone more efficient.\u00a0<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][divider line_type=”Full Width Line” line_thickness=”1″ divider_color=”default”][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text]\r\n

\"\"<\/p>\r\n

\r\nGrant Simmons – Head of Client Analytics\r\n<\/strong>Kochava<\/p>\r\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][\/vc_column][\/vc_row]","protected":false},"excerpt":{"rendered":"

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