Businesses need to take user privacy into consideration much more than before. With the introduction of international regulations such as GDPR and CCPA, users’ privacy has become an important part of business policies.
While many businesses neglected individuals’ right to keep their information private, others were always considerate. However, with the fines ranging up to millions of dollars, everyone needs to take compliance seriously.
Various tools, such as Google Analytics, have been the go-to tools for marketers for years, but they aren’t compliant by default. Thankfully, Google realized why this is troubling and implemented features such as Consent Mode, helping marketers to conduct their tasks compliantly.
This article will break down the popular Google Analytics tool, Consent Mode, and its latest version.
Google Consent Mode Explained
The base version of Google Analytics isn’t compliant on its own. Instead, Google Consent mode aims to make it. The initial purpose of this tool was to make data tracking anonymous, but its capabilities have evolved over time.
Consent Mode allows you to continue gathering user information, but in a way that’s compliant and customizable. Before the website starts collecting any information, a pop-up appears asking the users to customize which cookies they would allow.
This gives users the freedom to prevent the website from tracking information they aren’t comfortable with sharing while the website owner is still able to gather data that can be used for various operations.
For example, UX designers will be able to understand the user’s behavior on a certain website and allow them to make better designs. The pop-up needs to be transparent, metaphorically, not visually, and provide the users with the explanation in simple language.
As of 2024, Google Consent Mode supports the following Google tools and services:
- Google Analytics
- Google Analytics 4
- Floodlight
- Conversion Linker
- Google Ads (Google Ads Conversion Tracking and Remarketing)
Importance of Google Consent Mode
All companies have some internal metrics that they need to either improve their services or stay “alive.” For example, tracking finances is essential if you want to ensure scaling and avoid bankruptcy.
In terms of marketing, impressions, clicks, and user behavior are essential for making better campaigns. In the past, companies were able to gather and sell data of their users without consequences. Cookies could last for a long time, and this was quite an intrusive practice.
With the rise of GDPR and other regulations, companies were forbidden to do such activities, all with the intention of respecting the privacy of users. So, the purpose of Google Consent Mode is to allow websites to continue gathering useful data, but only in a way that’s compliant.
Of course, if you’re using other tools to gather data, you will still have to find ways to do this in a compliant manner. Google Consent Mode is constantly improving, and it provides a great advantage to small and medium businesses that often don’t have the proper personnel and resources to track regulations on the go.
Google Consent Mode v2 Breakdown
The Google Consent Mode v2 brings a couple of interesting additions. New versions of Consent Mode aim to improve compliance while allowing you to get better insights.
The Consent Mode v2 has brought users two new tag settings. They are based on “ad_storage” key. These two tag settings are “ad_user_data” and “ad_personalization.” The new version also brings advanced behavioral models that help you understand user behaviors.
Through a combination of basic probabilities and machine learning, Consent Mode v2 allows you to understand certain behaviors in a compliant way. You will greatly benefit from using consent management platforms.
Consequences of failing to comply
As a company that values its users and customers, it’s best if you’re motivated by respect for them rather than the consequences of failing to comply.
The obvious consequence that everyone’s afraid of is astronomical fines that can be imposed on your business. These fines can go up to 4% of annual earnings or 20$ million. The number of fines imposed each year is increasing, meaning that the compliance sphere is becoming more important and stricter.
Even if you find the fines not problematic for your situation, failing to comply can lead to other kinds of problems. If you’re labeled as a company that’s misusing user information, your reputation will wither.
Users won’t feel comfortable leaving their precious information with you and will avoid lending you any type of data when they visit your website.
It’s likely that your partners will try to avoid being mentioned along with you. Broken partnerships, clients who no longer want to collaborate with you, and unsatisfied employees are all going to be consequences.
Top talents in the industry will always choose other companies if they consider your business to be a downside to being mentioned on someone’s portfolio. Overall, the consequences of breaching GDPR and other regulations are going to reflect poorly on numerous business aspects.
Being compliant is essential in 2024
The frightening fines that breaking GDPR can bring shouldn’t be your main motivation. This is a wrong approach. The main reason to be careful with user information and consent is because it’s simply ethical and the right action to take.
Leveraging transparency and a compliant approach can help you get an advantage over your competitors and improve your reputation. It’s unlikely that these regulations will become less strict over time.
The regulatory bodies have decided to take a good look into how companies, large and small, handle their user’s information and decided that this needs proper regulation. The sooner you start taking a compliant approach, the better for your business in the long run.
Make compliance a part of your value as a company and expect to thrive.
About Writer
Veljko is a student of information technology who paired his passion for technology with his writing skills. He enjoys researching topics such as robotics and programming and cultivates his knowledge in philosophy, classical literature, and fitness.
