- The online advertising ecosystem is transforming as governments worldwide ramp up regulations to rein in collection of consumers’ personal data
- Google’s Privacy Sandbox works toward the end of third-party cookies in Chrome, giving rise to a whole new privacy-compliant identity ecosystem
- As a company driven by the evolution of data privacy and its impact on consumers and companies, Reklaim appears well-positioned to capitalize on emerging market opportunities amid a paradigm shift happening with new privacy laws
User privacy is taking the online space by storm as consumers become increasingly conscious about how their online data is harvested and used. As a result, the online advertising architecture is about to transform, and companies like Reklaim (TSX.V: MYID) (OTCQB: MYIDF) appear ready to seize the market opportunity that emerges amid intensified regulatory and consumer data protection scrutiny.
As consumers increase their presence in the digital space, the data they generate presents both an opportunity for brands to enhance their engagement with target audiences and a responsibility to keep that data safe. In a post-Cambridge Analytica world – a high-profile case exposing how Facebook used personal data from millions of profiles without their consent – consumers are increasingly wary about what data they share and with whom. According to Pew Research, an overwhelming majority of them – 72% – think their online activity is constantly tracked (https://ibn.fm/6AlKv).
Consumers seem to be constantly reminded that their heightened distrust may not be all that unwarranted as the lineup of companies coming into the spotlight due to their data protection failures expands. Most recently, it was Chegg Inc., an EdTech company providing services for high school and college students.
In its commitment to better protect Americans’ privacy and clamp down on businesses that collect personal information without consumers’ complete understanding, The Federal Trade Commission recently announced that it is taking action against Chegg Inc. for its lenient data security practices that exposed personal information about millions of its customers and employees, including, email addresses, passwords and Social Security numbers (https://ibn.fm/GE3H4).
Still, businesses and their digital marketing rely on collecting data on the online behavior of their target audiences. As a result, the sector has been on a winning streak (with revenue exploding at a record 35.4% in 2021) and is gearing up for another watershed year (https://ibn.fm/eOA4i). Without the free rein to collect consumers’ data, digital advertising needs a paradigm shift aligned with the new world in which consumers, regulators and technology companies require improved data privacy standards, which means the end of third-party cookies.
Previously, businesses could track consumers as they moved across multiple platforms and apps, collecting troves of information about their browsing habits. For example, Facebook aggregates a vast amount of data its users share about themselves as they engage with content and their connections. This information was then distributed to businesses that advertise on the platform so that they could deliver more relevant offers to their target audiences. With a bit of tech help called cookies – a piece of code stored in users’ browsers that collects data about them as they visit and interact with the web – businesses were able to learn about consumers’ online behavior. However, as it turns out, not all cookies are created equal. First-party cookies are limited to a single website, platform or app. Third-party cookies are designed to track users across the online space, allowing third parties to follow the entirety of a user’s internet activity and their online behavior and habits across practically the entire digital space.
It’s the third-party cookies that the latest privacy regulation aims to crack down on, and major tech companies play an essential role in these privacy-driven efforts. To protect users’ online privacy and help companies build thriving digital businesses, Google created Privacy Sandbox, a collaborative effort of the web community to develop privacy-first alternatives to third-party cookies. “Stage 1” of the transition will begin in late 2022, while support for third-party cookies is expected to be removed from Google’s Chrome browser in late 2023.
In a cookie-less reality, brands need to rethink their marketing approach and build advertising strategies around alternatives to third-party cookies. The new strategy relies on migration toward a zero- and first-party data approach, which presents a significant opportunity for innovation that allows businesses to mitigate regulatory risk while protecting and growing marketing revenue. This can improve customer satisfaction and enable marketers to make smarter decisions by reducing data silos (https://ibn.fm/mhInK).
Reklaim intends to step in as a company driven by the evolution of privacy and how it impacts consumers and businesses. Founded in 2018 and with headquarters in New York and offices in Toronto, Reklaim offers a privacy-compliant identity ecosystem. The company is focused on selling compliant, zero-party data to Fortune 500 brands and agencies that buy advertising, as well as platforms and data companies that sell data. Reklaim not only helps clients stay compliant amid the rapidly changing privacy market but also gives consumers visibility regarding how their data is collected and compensates them for its use. Positioned for the cookie-less future that is fast approaching, Reklaim seeks to empower consumers to take back control of their digital data that has been collected and sold for years without their explicit consent.
For more information, visit the company’s website at www.ReklaimYours.com.
NOTE TO INVESTORS: The latest news and updates relating to MYIDF are available in the company’s newsroom at https://ibn.fm/MYIDF
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