CMG's Marketing Minds Give The 411 on APRA
Roll out the bureaucratic red (tape) carpet, the star of the privacy law conundrum has arrived: American Privacy Right Act, better known as APRA. While the concept of a federal privacy policy isn't foreign to agencies or consumers alike, the will-they-won't-they of privacy law chatter in general, and the APRA specifically, has digital marketers on their toes of the starting line waiting to sprint into a full marketing strategy overhaul.
In this post, we'll break down the implications of this impending law, including what cookies are if you're someone who's smiled and nodded at the mention of them but never really knew the chew on what they actually do — it's never too late to learn. Finally, we'll illuminate how these changes impact both the ad industry at large and your business' marketing strategy including advice on prioritizing the more authentic side of marketing and data collection.
APRA: the cookie monster
What are cookies? Cookies are small pieces of data within text files that are used to identify your computer while you surf the web, shop for goods, or interact on social profiles. Depending on the network you're using, data brokers can instantly gauge where you are — which can actually say a lot. In other words, they're the double-edged sword helping sites remember your usernames, passwords, and cart items while also granting sites access to your network including your location and other information depending on the site's advertisements. This can improve your web browsing experience but it also allows sites to access personal data to better cater what information to serve you. We can further group cookies into the foreground and background settings. Whereas first-party cookies are directly created by the website you are using, third-party cookies are generated by ads on that page, meaning they are less regulated and offer more opportunity for data breach. Third-party cookies allow advertisers or analysts to track an individual's web journey on any sites that contain their ads. The TLDR; first-party data is consumer provided, third-party data is acquired. The latter is what our government seeks to regulate: cue the APRA.
The APRA law was enacted by House Energy and Commerce Chair Cathy McMorris Rodgers (R-WA) and Senate Commerce, Science, and Transportation Chair Maria Cantwell (D-WA), and seeks to protect the privacy rights of U.S. citizens, similar to policies of the General Data Protection Regulation in Europe (GDPR) and the California Consumer Privacy Act (CCPA).
So what's the difference? The APRA eradicates the state-by-state exceptions and offers a nationwide set of privacy ethics. This allows for a more cohesive approach when companies need to be held accountable for data breaches and unauthorized data sharing. Entities covered under the APRA include any company that interacts with personal data including those who hire second-party companies to mine, collect, and sell data for them.
There are certain companies and entities that do not fall under the regulations of this proposed law. Unlike state-mandated data privacy laws, the APRA does not apply to small businesses. What constitutes a "small business?" The APRA includes a defined set of parameters that determine which companies fall under the small business umbrella where these regulations are concerned.
A small business:
Revenues $40M or less annually
Accesses the data of 200,000 individuals or less
Does not profit from the transfer of covered data to third party entities
First-party data FTW
Whether this does or doesn't apply to your business, there are distinct silver linings to the notion of a strategy overhaul. A small victory for those who felt the pressure of the impending restructure, Google has delayed cookie depreciation (again), meaning this halt to third-party data collection likely won't take effect until 2025. Furthermore, CMG has been a Google premier partner for 14+ years, so we'll have early access to pertinent information regarding timelines and changes that affect your business. This also means you have ample time to evaluate and adapt your current strategy — call us optimists, but a strategy refresh (especially one focused on personalization rather than data quantities) can often result in a more loyal following with a higher number of recurring customers.
Collecting first-party data may require a more robust approach to consumer learning, but the efforts will not be wasted. Every touchpoint on the consumer journey can be leveraged to learn more about their interests and consumer tendencies. This provides companies with the golden opportunity to learn more about their customers while forging stronger, more impacting relationships with them. While customers determine what personal information they are willing to share, it's up to markets to get creative while getting to know their audience.
Be first to the party of first-party data
Building a reliable first-party data strategy isn't rocket science, but a successful strategy can require a reacquaintance with your company's core values. Then it's just a matter of reassuring your potential customers they're in good hands. Strike a balance between authenticity and the promise of equal exchange that consumers can trust. Being authentic is the core mission of most companies, but your actions (in this case your reliability and transparency) will dictate whether people believe what you're selling them. Here are a few tips to consider when reevaluating your first-party data approach:
Make sure you're informing your customers that their data is safe.
Keep it safe by implementing a Customer Relationship Management (CRM) and Property Management System (PMS).
Find unique ways to help them understand how their data sharing can improve their consumer experience. In this over-saturated market, a tailored experience means convenience.
Consider all those touchpoints where you may interact with your customers. Tailor the touchpoint content to flex for the projected demographic in that arena.
Reevaluate your social media presence and find ways to get real. Lo-fi, authentic content is king.
Cox Media Group is famously optimistic, but these new privacy laws could even the playing field for many entities, resulting in a fairer market and a more trusting consumer base. Keep an eye out for further updates from CMG about the latest in APRA news.
