In the world of digital marketing, the use of personal data is crucial. Digital Marketing companies use internet visitors personal information to create a personalized experience for users and customers. In response to concerns raised by certain abusive practices a series of regulations have emerged to limit the use of personal data.
The most significant of these regulations is undoubtedly the General Data Protection Regulation (GDPR) of the European Union. However, it is not the only one, as many countries are implementing similar regulations. These laws regulate how entities collect information and grant individuals the right to opt-out of sharing their personal data and not be part of the personalized experiences that Digital Marketing companies offer.
Consent has become the key legal basis for processing personal data, overtaking the legitimate interest companies have in offering personalized advertising. The most familiar example, which most of us have encountered, is the use of cookies. We will discuss Cookies in detail in this post.
Today, almost all websites ask us if we accept the use of cookies, as they need our consent to process our browsing information for various purposes, such as serving ads or evaluating website performance.
What are Cookies and how do they affect our privacy?
Cookies are small text files that websites send to your browser, which are stored on your device when you visit websites. These files are used by websites to remember your information, such as your browsing preferences, login information, the type of device you use, etc.
There are different types of cookies:
- Session cookies: These are temporary and are automatically deleted when you close your browser. They are mainly used to keep your sessions active while you browse.
- Persistent cookies: These remain on your device for an extended period or until you manually delete them. They are used to remember your preferences and actions between sessions.
- First-party cookies: These are created by the website you are visiting.
- Third-party cookies: These are set by a domain different from the website you are visiting, commonly used to track your online behavior across multiple websites for advertising purposes.
- Essential cookies: These are necessary for a website to function correctly. These cookies do NOT collect personal information.
How do cookies affect our privacy?
- Tracking and profiling: Cookies, especially third-party ones, are widely used to collect information about your browsing habits—what pages you visit, how long you spend on them, what ads you see and click on. This information can be used to create a detailed profile of your interests, which can then be used to show you targeted ads.
- Your data is shared with third parties: Third-party cookies are managed by entities that can share the collected information with other companies, potentially resulting in your data being shared across hundreds of companies.
There are several measures available to users to limit the use of cookies, from rejecting their use or accepting only essential ones when prompted, to blocking them through your browser settings or using a browser extension designed for blocking cookies.
For businesses, it’s essential to be transparent in their privacy policies regarding the use of cookies and to request user consent properly. In the next post, we will see how to properly request consent for the use of cookies in compliance with the highest standards in personal data protection.
How should user consent for cookies be managed properly?
As discussed in previous posts, managing user consent for the use of cookies correctly is a fundamental aspect of complying with privacy regulations such as the European Union’s GDPR and similar laws worldwide.
The following is essential to comply with the law:
- Inform: Before cookies are placed on the user’s device, they must be clearly and understandably informed about:
- What cookies are and what they are used for.
- What types of cookies will be used (essential, performance, functional, advertising, etc.).
- Who manages those cookies (the website itself or third parties).
- What the data obtained through cookies will be used for.
- Consent: Consent must be obtained before the installation of any cookie that is not strictly necessary. Methods such as pre-checked boxes or implied consent, like stating that continuing to browse implies acceptance, are not valid. The site must function with only essential cookies, and access to the site should not depend on accepting cookies that affect privacy.
- Ease to accept and reject each cookie: Provide a simple and easy-to-understand mechanism for users to accept the cookies they wish to. The best way is to manage this through a configuration panel accessible in the initial consent window.
- Ease to change or withdraw consent: Users must have the ability to change their preferences or completely withdraw their consent at any time. This can be facilitated by a link or settings permanently accessible on the website.
- Documentation and record of consent: Websites must maintain records of user consent for cookies to demonstrate that it was properly obtained according to the law. The best option is to use certified Consent Management Platforms (CMPs) that allow all the described functionalities and keep a record of consent that can be transmitted to third parties so that all stakeholders can verify that the data processing was consented to by the user.
Leading platforms in the digital marketing space, such as Google Ads, are announcing the gradual elimination of third-party cookies. With their disappearance, marketers must find new ways to reach their target audience effectively without compromising user privacy. This may involve using first-party data, such as customer records and direct collection of on-site behavior. Additionally, offering relevant and valuable content to users, rather than relying exclusively on cookie-based ad personalization, will be key.
Although users are increasingly aware of how their data is used while browsing the internet and are somewhat reluctant to have their data shared indiscriminately, they also show a preference for relevant and useful ads. The future challenge will be to respect user privacy while offering personalized advertising experiences. To achieve this, transparency and ethics on the part of companies will be crucial, which will help earn customer trust and loyalty.
Investing in transparent privacy policies that take user concerns seriously will be key in this new phase of digital marketing.
