Data tracking is one of the most vital tools that a business can use to inform marketing strategy and grow their revenue. There are a variety of types of data collection technologies that companies utilize, some of the most significant being cookies and tags. Cookies allow businesses to track user behavior online, while tags are the mechanism by which cookies are stored on a consumer’s device. Because data collection is so valuable to companies across the globe, there are many regulations that have been put in place in order to protect and prioritize user safety and privacy.
Q4 2021 hedge fund letters, conferences and more
In Europe, ePrivacy Directive governs the user experience online and secures their rights to privacy through data protection. Under the guidelines of General Data Protection Regulation (GDPR), the European Union has been aggressively enforcing laws governing online policy by giving users a variety of specific rights and powers. In the United States, there are similar legislations adopted by individual states that grant users power over their data and personal information. Colorado, Virginia, and California are among the many that value privacy online.
Because of how restricted data collection is online, it may be difficult for businesses to gather sufficient data to make helpful inferences about their customers. If too many users refuse to consent to sharing their data with a website, analytics that can be used to improve a company may be useless and sparse. Additionally, there are large fines associated with non-compliance towards data privacy regulations. Large corporations like Amazon and Google have been fined millions of dollars for offenses like failing to obtain proper consent and violating privacy notice requirements. Not only is it difficult for companies to jump these hurdles, but it is also tedious for consumers to consent to data sharing every time they visit a new site, leading to a smaller pool of consenting users to study.
Despite these challenges, InfoTrust has developed a new approach to measuring online activity and data collection. Their new measurement methodology involves collecting anonymous data so that consent and cookies are not necessary. Also, InfoTrust suggests prompting a user to register and create a login as a method of gathering information in a lawful way. Businesses need to invest in solutions that will protect the privacy of their consumers without sacrificing quality of data. With InfoTrust’s new methodology, both businesses and users alike can find peace in knowing that their data is safe and is ethically utilized to make decisions that will benefit the industry as a whole.
Learn more about cookieless tracking in the infographic below:
