What marketers can do when pandemic and privacy regulations ‘gang up’ against them

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Pandemic and data regulations are the drivers of change this decade. We invited Ron Lunde, a former senior executive in retail and a large advertising agency, and Dr. Martin Block, professor of integrated marketing communications at the Medill School of Journalism at Northwestern University, to explore the dual issue of government-mandated data flow and access restrictions and changing consumer privacy laws in a two-part series: this first part focuses on the impact of restricted data flow to globally, regulations and laws relating to information about business models, marketing practices and their ultimate impact on markets and revenues. For the second installment, Lunde and Block will discuss the article that Dr. Block has just published in The Journal of Applied Marketing Analysis that addresses the market need and the proposed solution for a compliant and efficient means of identifying and communicating with prospects and customers without the use of restricted or prohibited Personal Identification Information (PII). In my opinion, Marketing Leadership needs to be proactive in developing new innovative and compliant data solutions if they are to meet and resolve the challenges of restrictive data / privacy regulations and the pandemic. This is especially important for brand equity and brand trust, as data from Prosper Insights & Analytics shows that 2 in 3 consumers ‘don’t like it’ when advertisers access their personal data in order to target advertising on them.

Gary Drenik: Now let’s see what the experts think. Marketers seem to be facing a simultaneous dual challenge of the pandemic and privacy regulations, tell us more about that.

Ron lunde: Change always has collateral impacts. The Covid-19 pandemic is a societal and economic shock unlike any other in world history. Uncertainty over the trajectory, duration and scale of the pandemic could point to a future vicious cycle of weakening business and consumer confidence, tightening financial scenarios, and loss of jobs and costs. ‘investments. When the global pandemic subsides, business and government leaders will undoubtedly reexamine their thinking about the global supply chain, their business models, and where, when and how to “work”. They will need better near real-time data, improved algorithms and reliable predictive analytics to account for the heterogeneous, non-linear and uncertain micro and macroeconomic effects of the pandemic on a sector, country and global base. .

You can’t plan for a good future without good analytics and data. As if a global pandemic weren’t disruptive enough after years of unlimited data flow fostering innovation and the market insights needed for sustainable growth, companies are entering a new phase of data flow or more access. restricted. The public and governments demand and enact restrictive laws on the distribution and use of Personally Identifiable Information (PII) and Critical Information Infrastructures (CII) data. The creators of the Internet in the 1990s probably never anticipated that the flow of data would evolve as a regulated critical public infrastructure. Business leaders now face not only the challenges of saturated markets, geopolitical tensions, supply chain disruptions, changing demographics and ‘best data’, but also public pushback and regulations. government authorities regarding previously unrestricted access, collection and use of data.

Drenik: Are privacy regulations more of a global or national challenge?

Martin Block: According to the United Nations Conference on Trade and Development, 128 of 195 UN member countries have some form of privacy or data protection laws and 10% of countries are in the process of draft legislation. Laws and regulations not only cover PII data, but also extend to new areas such as, but not limited to, extra-territorial processing, data localization requirements, critical information infrastructure and cross-border transfers, all of which may or may not require separate consents. or licenses.

One of: Legislation in the EU, China and California presents major problems for marketers and other industries that have historically relied on the availability and free flow of data. A significant focus of EU, China and California law relates to the traditional sharing or sale of marketing data by 2sd and 3rd party data providers, especially for companies that use data containing personally identifiable information (PII).

Drenik: What is the potential impact of privacy regulations?

To block: For marketers who depend on hyper-relevant targeting to engage with their audience, the process becomes more complicated and the flow of data access can “dry up”. Apple, Google, and Facebook are developing and deploying permission-based first-party and potential product models that empower users to have a better say in how their data is used, but also severely limit a specialist’s ability. from marketing to delivering customer-specific messages and products to interested consumers.

Industry dollars at risk? The 2021 forecast for global ad spend is $ 651 billion and the United States is $ 237 billion according to forecasts from WPP’s M Group. In 2021, Publicis Group Zenith Media reports that the Internet accounted for 62.2% of all media spending in the United States. 97% of total Google revenue comes from advertising. 98.5% of Facebook’s worldwide revenue comes from advertising. Therefore, any disturbance is, most likely, disruptive.

One of: New global privacy regulations provide consumers with considerable protection, autonomy and anonymity. Privacy and data protection laws likely cover all devices or applications, not just cookies, which follow PII, [GDPR, China’s Data Security Law, (DSL), Personal Information Protection Law, (PIPL) and the Cyber Security Law as well as California’s Consumer Protection Act (CCPA), Virginia’s Consumer Data Protection Act (CDPA) and New York’s SHIELD Act.] The collection and sharing of personal data is now more transparent to consumers and regulated by governments. Results? Apple’s recent iOS14.5 update prevents apps from tracking a user without the user’s explicit permission. Google will stop using personal information tracking “cookies” at the end of 2023.

Drenik: Next week I will ask, “… If cookies crumble – if there are no ‘cookies’ after 2023 – what is plan B? Lunde and Block will continue the discussion and explore marketing options. The recently published article by Dr Block, “Assessing Privacy Protected Cohort-Based Market Segmentation” suggests not only two possible solutions to the current regulations and laws on data privacy and restricted data flows, but also an overview of the potential of “Better data”. We will also provide a direct link to Dr. Block’s article.


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