By focusing on the protection of consumers' personal information, this regulation significantly reduces the amount of data available for analysis and targeting. This may seem worrying, but it's also an opportunity for organizations to rethink marketing tactics and adopt strategies that respect privacy... and comply with the law.
The consequences of Bill 25
It is essential to understand that the application of Law 25 confronts companies and organizations with two major challenges:
- A reduction in the quantity of data collected
- A deterioration in data quality.
These challenges will have a major impact on the analysis and effectiveness of advertising campaigns. They will also have an impact on the way you plan your media actions.
Europe as an example
The implementation of a user consent management platform (CMP) will be necessary to comply with Law 25.
In France, where the RGPD has been in force for several years, the average consent rate is 55%. This impacts not only analytics services such as Google Analytics and Adobe Analytics, but also paid advertising platforms such as Meta, TikTok, LinkedIn, etc.
If a user refuses to share their data with these third parties, their conversion pixels or APIs will not be triggered. As a result, your analytics will have to rely on less accurate data.
► This affects the evaluation of the number of users on our websites, the examination of their behavior, as well as the analysis of conversions from our advertising campaigns.
Reduced audience size and consequences for advertising algorithms
The reduction in user consent leads to a reduction in audience size and accuracy. This has a particular impact on specific audiences, such as retargeting audiences and behavioral audiences.
Retargeting audiences, which focus on users who have already interacted with our brand, and behavioral audiences, based on user behavior, are the most affected.
► This situation can limit our ability to run personalized advertising campaigns that are truly tailored to our audiences.
It also has consequences for the algorithms of advertising platforms, whose performance depends on the quantity and quality of the data collected.
A drop in data quality can lead to a decline in the performance of advertising campaigns. The harder these platforms have to measure traffic and conversions on a website, the less data they have, the smaller the audience size, the more effective the algorithms become.
► This chain of events results in a reduction in the platforms' ability to optimize, which impacts the performance of advertising campaigns.
Conclusion
Although Law 25 focuses on data protection, it does, in fact, have repercussions on organizations' marketing and communications actions. There are a number of steps organizations need to take to prepare themselves:
- Familiarize themselves with the alternative solutions available
- Identify the steps involved in implementing a software solution (Consent Management Platform or CMP), designed to help them manage the collection, storage and use of customer data.
- Consider a decision-support tool when choosing a platform
- Tame Google Analytics 4 (GA4), through the "behavior modeling" option, to compensate in part for this loss of data.
For further information, we invite you to attend a conference examining the potential implications of Law 25 for marketing activities, and the options available to organizations to adapt to this new regulatory environment.
Law 25: user consent and marketing actions
