Think of three marketing channels.
Got them in mind?
We’re willing to bet you didn’t picture newspapers, radio, or flyers. That’s because the vast majority of marketing these days is digital (social media, websites, email, etc.) And at the heart of every digital marketing channel lies one essential ingredient: data.
You must balance personalization, targeting, and data-backed marketing with data protection. Adopting privacy-first principles can help you stay compliant with regulations, maintain customer relationships, and safeguard the trust that’s essential to your work.
What Is Data Privacy in Marketing?
For marketers, data privacy means ensuring all personal information that’s collected during or used for marketing activities is handled according to the preferences of the person it belongs to.
For example, when a user signs up to your email newsletter, the form they use to submit their information should include a checkbox for them to opt into marketing communications from your organization. Even though you have their information, you can’t send that to another organization to do whatever they like with it; the user has only given permission to you to contact them with marketing communications.
In general, marketing data privacy centers around obtaining proper consent to collect and use data. Equally important is providing notice to customers that communicates why you want to collect their data, what will happen to it, and what rights they have. There are exceptions, but the vast majority of the time, the safest, most compliant, and often easiest way to process consumer data legally is by providing them with the appropriate notice and consent.
Why Is it Important to Respect Data Privacy in Marketing?
Maintaining data privacy isn't just a respectful courtesy; it's the law. As customer data has become increasingly important to digital marketing strategies, a number of global laws have emerged to regulate its use. And not adhering to these can have serious consequences, both legally and reputationally. Fail to follow the rules regarding personal data, and you may find yourself facing monetary fines, injunctions, lawsuits, and other legal consequences. If you’re curious about how often this takes place or what regulators are prioritizing, you can check in our Data Privacy Enforcement Tracker.
Even worse than financial penalties, though, is the damage you could do to customer relationships.
People are more likely to engage with your brand if they feel confident that you’ll protect their information, so respecting data privacy helps you build stronger, lasting connections with customers. It also strengthens the effectiveness of your campaigns–consumers are more likely to offer up their information (leading to more accurate insights and successful results) if they know it will be handled responsibly.
Cisco’s Data Transparency’s Essential Role in Building Customer Trust survey revealed that 81% of respondents believe that the way an organization treats personal data is indicative of how it views and respects its customers. Unsurprisingly, consumers are reluctant to hand their data over to a company they believe doesn’t respect them.
The bottom line? It’s well worth taking a privacy-first approach to your marketing activities.
Data Privacy Regulations: Navigating Global Compliance
The idea of protecting data privacy can seem a little vague at first, but that’s what regulations are there for. Rather than being a threatening, confusing presence looming over your head, they actually provide useful frameworks to help you prioritize privacy operations.
So, what guidelines do you need to follow? There are many data privacy laws all relating to different locations, industries, and activities. Here are some of the main ones that are likely to apply to you:
The General Data Protection Regulation (GDPR)
Let’s start with the big fish. The GDPR is probably the most influential and important data protection and privacy law enacted to date. Since taking effect in 2018, the regulation has governed how companies collect, use, share, and secure data from EU residents, even if the company is based outside the EU.
The main thing that the GDPR demands is that companies must obtain explicit consent from users before collecting their data (e.g., through cookies; technically, consent is just one of six legal bases you can rely on for data collection, but it’s almost going to be the legal basis you use as a marketer). It also grants data subjects (i.e., the person whose data you’ve collected) eight basic privacy rights, which can be exercised via a data subject access request (DSAR).
What are the consequences of not complying with these rules? They can be significant, with fines reaching up to 20 million euros or 4% of your global turnover (whichever is highest).
Obviously, this is worth avoiding. Learn more about the requirements of the GDPR and ensure you’re in line with our GDPR Compliance Checklist.
The California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA)
Rather than having an overarching federal data privacy law, the United States has state-specific protections to regulate the use of personal information in marketing. The first, best-known, and most important of these is the CCPA.
While this law came into effect in 2020, it has since been amended and expanded by the CPRA, enforced since 2023. When a source refers to the CCPA, it almost always refers to the CCPA as amended by the CRPA. Similar to the GDPR in the EU, the CCPA applies not just to businesses located within California, but to anyone doing business within the state.
The CCPA is distinct from other state privacy laws not only by being the first, but also because it’s the only state to create a specific enforcement agency for the law (known as the California Privacy Protection Agency, or CPPA), where other states defer enforcement to their Attorney General (AG). In California, both the CPPA and the AG can enforce data privacy law, but businesses can’t be penalized by both.
So, how does the CCPA differ from the GDPR other than its jurisdiction? The main variation is in its approach to user consent.
Unlike the GDPR, which has a strict opt-in approach to data collection, US state-level privacy laws (including the CPRA/CCPA) use an opt-out model instead. This means they can collect and use user data without them initially agreeing to it, but must give the option to opt out with a “Do Not Sell or Share My Personal Information” link prominently displayed on the website.
Its other main difference is how it structures penalties for violations, with fines of up to $7,500 per intentional violation or $2,500 for unintentional breaches. Most other US privacy laws follow this structure.
Other US State Privacy Laws
While the CCPA is arguably the most significant US privacy law, one of the challenges with achieving privacy compliance in the US is the patchwork of different privacy laws that different states have adopted.
Let’s compare the CPRA/CCPA to another prominent US data privacy law—this time based in the state of Virginia. Passed in 2021, the VCDPA has many similarities to California’s data privacy law, including being applicable to any business collecting data from state residents. It’s slightly narrower in scope, however. For example, the VCDPA only applies to companies that handle data from at least 100,000 consumers or earn over half of their revenue from selling personal data.
On the consumer rights front, the VCDPA grants Virginia residents the same rights as the CCPA and GDPR, including the ability to access, correct, delete, and obtain copies of their information.
Its consent model, however, is slightly different.
Where GDPR requires users to opt in and CPRA lets them opt out, the VCDPA takes an in-between approach: you can collect most data without prior permission, but sensitive information still requires a clear opt-in.
These characteristics vary across states. Some US privacy laws have higher or lower applicability thresholds. Some allow for sensitive data processing without explicit opt-in consent. Some have strict requirements around assessments. A full overview of these differences is outside of the scope of this blog, so if that’s what you’re looking for, we recommend checking out our US Data Privacy Laws Guide.
The Impact of Data Privacy on Digital Marketing Strategies
The emergence of data privacy regulations like those above is reshaping how digital marketers work. You must now be more strategic and intentional with how you connect with audiences, particularly in how you approach personalization, targeting, and profiling.
While Google still permits the use of third-party cookies in Chrome, other browsers have phased them out. If you want to effectively target consumers with advertising and measure marketing effectiveness, you’ll want to round out your data strategy with information shared directly by consumers and ensure that the martech tools and systems you use are designed to respect privacy.
The good news is that the quality of your data will improve. Third-party cookies, acquired lists, and opaque data collection practices are notorious for delivering inaccurate, incomplete, or out of date information. The people who raise their hand and provide you with their information are also indicating their interest in your product or service, giving you yet another signal to use in your campaigns. That means higher ROI and conversion rates because the people who give you their data actually want to hear from your brand.
Building Trust and Transparency With Customers
Trust is at the crux of modern marketing. You need people’s data in order to learn about your customer base and advertise to them effectively, but your customers will only share this information if they trust you to protect it. The bottom line? Building trust isn’t just responsible, it’s crucial.
Here are three ways you can demonstrate transparency and build a positive reputation:
- Use zero- and first-party data: Ask users to share their data directly (zero-party) via surveys or forms for your newsletter, content, webinars, or any other reasonable gates. You can also gather data from their actions on your site or socials with their consent (first-party). This brings users into the loop rather than feeling like you’re snooping on them. The result is a more respectful and open relationship.
- Make privacy a brand value: Companies like Apple do this to great effect. Consumers are becoming increasingly aware of data privacy issues, and companies can seize on this opportunity by discussing what they do to protect their customers’ privacy. Are your competitors discussing privacy in their outreach and sales conversations? By making privacy a brand value, you’ll either be capitalizing on an opportunity to differentiate yourself or closing a competitive gap.
- Prioritize visible privacy: There’s a lot to data privacy compliance, but not all compliance tasks are equally impactful from consumers’ perspective. The actions with the biggest impact will be the ones that are externally visible to consumers and regulators–that includes consent management and subject rights management.
Best Practices for Marketing Data Privacy
Privacy-first marketing, or data privacy marketing, is becoming a competitive advantage as customers become more selective about who they share their data with and expect to be targeted by higher-quality, relevant campaigns. But what practices actually constitute a “privacy-first” approach? The following exercises, when implemented consistently, will ensure you’re always placing the protection of your customers’ personally identifiable information (PII) at the heart of your marketing efforts.
Conduct a Data Audit
Perhaps you know what an ethical, compliant use of data should look like, but do all your current collection and usage practices reflect this? One way to find out is by conducting a thorough audit.
To do this, you first need to map out all of the data flows into and out of marketing-owned systems. Where are your data entry points (such as website forms or third-party data lists)? How does this information then flow between your departments, systems, or external sites? And where is it then stored or disposed of?
Once you have this information, you can determine whether any of your current practices don’t comply with data privacy regulations, identify any risks that could lead to further non-compliance, and see if there is any unnecessary data processing taking place or alternative approaches you could take.
Update Your Privacy Policy
Your marketing data privacy policy is your promise to customers. This document details exactly what information you collect from them, why, and how it will be used, among other things. Data privacy laws require you to regularly update your privacy policy, so it’s essential that you work with your legal team and update it regularly to remain compliant.
If your legal team wants to make changes, don’t make updating the page the last item in your task queue; update it as soon as you’re able. Some organizations give their legal team access to a trust center, enabling them to make changes directly without waiting on the marketing team to make updates for them.
Manage Consent Effectively
Although some regulations, like the CCPA/CPRA, only require the option to opt out of data collection, a GDPR-style opt-in approach is a stronger way to build trust. By actively asking users to agree to data collection before you do it, you can always stay compliant and demonstrate transparency and respect to them.
As part of this step, you should also keep records of what data was collected and exactly what was consented to, so that you can easily respond to DSARs. Being able to prove compliance is a requirement too.
Consent management platforms can help you both operationalize consent gates and create auditable records should a regulator come knocking. They can also help you coordinate opt-in and opt-out consent across different jurisdictions, including browser-level consent signals like the Global Privacy Control.
Clean Email Lists Regularly
Email is an essential channel in digital marketing and one that couldn’t function without prospects’ or customers’ personal information (their email address at the very least). But without organized cleaning, it’s easy to let email lists build up and expand, raising the risk of using outdated, inaccurate information.
Giving your email lists a regular spring cleaning is good for deliverability and engagement. Old or inactive addresses increase bounce rates or get you flagged as spam, hurting your reputation. On the contrary, a small, spotless list of engaged subscribers achieves higher open rates, CTRs, and conversions.
Implement Consent Management Tools and Platforms
It’s easy for data privacy in marketing to feel like a bit of a minefield–there are so many regulations and evolving standards, as well as different channels and tactics with different requirements for operationalizing privacy compliance. As important as it is, the duty of maintaining privacy in this landscape can be overwhelming and time-consuming.
Luckily, the responsibility doesn’t have to fall entirely on your shoulders. Privacy management platforms like Osano can save you a lot of time and effort, as well as reduce the risk of errors by automating complex compliance tasks. From cookie consent to subject rights management to privacy assessments and more, our platform addresses the full scope of your privacy program’s needs.
With Osano’s solutions, you can protect your customers’ privacy seamlessly while freeing up time to focus on creating innovative marketing strategies.
Get a demo of Osano today to start simplifying your data privacy processes.