The Challenges and Opportunities of data collection in today's Digital Era

About the author & translator: Steven van Eck (author) is Web Analytics Specialist, and Dave Swart (translator) is Web Analytics Expert & Lead Data Strategy at SDIM. 

Legal and technical limitations 

When it comes to collecting and processing data, the restrictions are quite varied. We have detailed the most crucial legal limitations that will directly influence these processes below. 

GDPR 

Ever since its inception in 2018, the GDPR (also known as AVG in The Netherlands) has significantly restricted the collecting of personal data. Businesses are now required by law to be transparent about the data they collect and how they intend to use it. One of these (very familiar) changes is the explicit request for consent to store and process user data. This is a clear indicator that user privacy has become, or even has been, the epicentre of this new era. 

Cookiewall 

One of the direct consequences of the GDPR has been the implementation of cookiewalls on websites. This lets users consent to or refuse the placement of cookies such as marketing cookies on their devices and browsers. However, implementing a cookiewall on a website does have a direct and large impact on the quantity of data collected. A sizable decrease in data is very common, but also largely depends on how the cookiewall is configured, making this a crucial step during a tracking setup. 

Adblockers 

Another familiar consequence that has garnered quite some fans in recent years are adblockers. These tools can assist with matters such as automatically blocking browser tracking scripts, even if a user consented to it. Like cookiewalls, the share of lost data due to these blockers can be quite substantial, with some websites experiencing losses reaching into the higher percentages. This makes it more difficult for digital advertisers to assess campaign results, consequently limiting the ability to optimise said campaigns. 

ITP and ETP 

Apple’s Intelligent Tracking Prevention (ITP) and Mozilla’s Enhanced Tracking Prevention (ETP) are techniques that limit third-party tracking. These techniques are built into the browsers of Safari and Firefox and affect the way we collect our data, depending on the user, their browser and its settings. This can range from blocking trackers by default, (automatically) denying third-party cookies or even reducing the lifespan of said cookies. Even our first-party cookies are not off limits for these restrictions, as their lifespan is severely reduced if the user decides not to change any settings. Moreover, blocking or limiting third- and first-party cookies will also negatively impact the accuracy of user recognition and by extension their value attribution. 

An ethical approach 

Besides the legal ramifications and technical hindrances, we also need to develop an ethical conscience or approach towards this matter. This is why it is vital to strike a good balance between collecting actual valuable data while simultaneously respecting user privacy and wishes. Is the data you currently collect absolutely useful and/or necessary? And what effect does this have on user trust? There are businesses and organisations that choose to collect less data, even if it is technically allowed. Sometimes offering up valuable resources such as data might increase the level of trust users will have in you, ultimately positively impacting user loyalty and retention. 

Chances and opportunities 

Despite the many limitations that make it more difficult to collect data, while also respecting laws and regulations and overcoming various technical difficulties, there are two main reasons not to be discouraged. Besides the fact that the rules apply to everyone, there still are plenty of chances and opportunities out there to benefit from. 

First-party data 

We could probably all agree that randomly sharing your or anyone’s data with third parties is something best left in the past. The data you collect from your own channels like websites, apps or physical storefronts, however, has become incredibly valuable. These datasets can be stored locally in a data warehouse without having to necessarily rely on a third party. Simply put, you own this data. Furthermore, this data can be analysed and leveraged to gain useful insights into your customers and their behaviour. For example, if you collect email addresses through your website, you can store these and follow-up on them, again, without the need for a third party if you choose to do so. Especially now that third-party cookies are (very slowly) disappearing, this specific form of data is becoming invaluable. 

Server Side Tracking 

Server Side Tracking serves two important purposes: it offers a technical solution to modern tracking challenges and it protects your data while ensuring user privacy. This is due to not being solely dependent on browser or client-side tracking as most tags will fire from your server environment. Moreover, it prevents adblockers from blocking your tags, allows you to set the lifespan of cookies, and gives you control over what data you want to collect and what tags are fired from the server, as (personal) data sets can be deleted or masked. Oftentimes our influence over client-side tracking is fairly limited, especially when it comes to what data is being sent to various platforms. Tracking scripts that capture personal data from filled in forms for example are not unheard of. That is why server side tracking is a great countermeasure, as it allows you to exert control over these scripts by preventing this data from being sent. 

Google (and Microsoft) Consent Mode 

Google has developed something called Consent Mode that allows data collection in a limited form. It focusses on users that have declined (full) consent for placing cookies. In these situations, Consent Mode allows you to still gain these insights but in a more privacy-friendly manner, which (in some cases) can drop the use of cookies entirely. The amount of data collected is dependent on the level of consent a user has granted and/or denied. Consent Mode can also contribute to creating a more accurate overview of user activity and behaviour on a website. Besides Google, Microsoft now also released their own version of Consent Mode that is needed in order to ensure the effectiveness of Microsoft pixels. 

A.I. and Machine Learning 

If we’re discussing hot topics, we definitely cannot leave A.I. and Machine Learning out of the conversation. While arguably some of the most popular developments in recent years, these ‘new tools’ are still in the early stages of their respective lifecycles. Nonetheless, it is expected they will play an even more significant role in the future. For example, think of analysing large data sets or recognizing and predicting patterns and trends. Not only will it assist in making certain processes more efficient, but it can even contribute to decision-making when it comes to data-related issues. 

Conclusion 

Collecting data and maximising your online results can be a huge challenge at times, while simultaneously creating new opportunities we should fully embrace and utilise. Even though we can’t stop the continuous changing of the digital landscape, we can choose to play along. How? By simply making an effort to understand the rules and how the game is played. The fact that we have to be aware of the data we collect does not mean we can’t do it in a way that respects our users and their privacy. Oftentimes we’re too keen on rejecting change because “it’s unfamiliar”, but when all these new rules and limitations force us to think differently, it could open the door to new and creative possibilities. 

Steven van Eck

Data & Analytics Manager, SDIM Online Marketing