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Can Location Data Be Utilized in a Private World?

By: Kyle Bisesi    March 27, 2019

Marketers no longer operate in a landscape that underestimates data. Instead, marketers now leverage data to inform strategy and glean insights about their audience from an immeasurable amount of information. However, advertisers are experiencing a new challenge in understanding and reaching their audience. Consumers are catching on to how private data is being collected, and they’re becoming uncomfortable with the knowledge that companies can see their location, contact information and consumer habits, in certain instances. Recently, a new report suggested that location data drove dramatic increases in mobile programmatic outcomes. However, with the implementation of new digital privacy legislation, the industry will have to figure out how to collect key personal data from a sharing-averse audience.

According to a recent study from Blis, a global leader on location data, “83% of people are aware that their location is being tracked,” and this awareness has led to a new landscape of personal data collection. Increased awareness birthed the EU’s General Data Protection Regulation (GDPR) and eventually the enactment of the California Consumer Privacy Act (CCPA), a state-level law going into effect in 2020. And because of California’s population and economic impact, the law will affect a large portion of businesses and how they collect personal data.

The question for marketers becomes, “How do I collect the data I need from people who don’t want me to have it?” The answer may lie in more data: according to the Blis study, consumers who have opted out of location tracking “would re-enable, if they had more options and controls to filter only relevant content, or if they were sure to be getting deals and coupons from places they have shopped or recently visited.” This suggests that if consumers were sure the data being collected would be relevant to them, or if they were incentivized in some way, they’d be more willing to give up information.

Marketers are navigating privacy matters in brand-new ways in order to ensure they have the information they need while maintaining their customers’ trust. This is evidenced by online retailers offering customers a discount in exchange for their email address, and by a specific example in France. A company called Teemo, which specializes in location-based advertising, sent out a simple, transparent and easy-to-read notice that told consumers their location data was being used by third parties and that they could opt out at any time. This notice resulted in an 80% opt-in rate and illustrates that transparency could be all consumers are looking for.

Private data and personalized information collection will always have to overcome consumer skepticism and should be used in an ethical manner. The path moving forward should involve being transparent about how data is collected and what it is used for – and should show how that information is transformed into relevant content for the consumer.