The Harvard Business Review article titled “How GDPR Will Transform Digital Marketing” discusses the impact of the General Data Protection Regulation (GDPR) on digital marketing strategies and practices.
The GDPR, which came into effect in May 2018, is a European Union regulation that aims to protect the privacy and personal data of EU citizens. It has significant implications for digital marketers, particularly in terms of how they collect, store, and use customer data. The regulation requires businesses to obtain explicit consent from individuals before collecting their data, and it gives individuals the right to access, correct, delete, and object to the processing of their personal data.
The article suggests that the GDPR will lead to a shift from third-party data collection to first-party data collection. Third-party data, which is collected by entities that don’t have a direct relationship with the user, is often used for targeted advertising. However, the GDPR’s stringent consent requirements make it more difficult to collect and use third-party data. As a result, businesses are likely to focus more on first-party data, which is collected directly from their customers.
The GDPR also encourages businesses to be more transparent about their data practices. This means that privacy policies must be clear, concise, and easily accessible. They must explain what data is collected, why it is collected, how it is used, and how long it is stored. This increased transparency can help businesses build trust with their customers and improve customer relationships.
In conclusion, the GDPR is transforming digital marketing by promoting greater transparency, encouraging the use of first-party data, and strengthening the rights of individuals over their personal data. While it presents challenges, it also offers an opportunity for businesses to build trust with their customers and create more personalized and effective marketing strategies.
