Starting in 2020, CCPA Could Change Your Marketing Strategies

Posted on November 22nd, 2019 by nms

Digital marketers know that evolving practices and techniques are an integral part of their field. If there is one certainty in internet marketing strategies, it is that nothing remains the same for long. Marketers must adapt to changes and adopt new tools at a continual rate. One area that is often overlooked by digital marketers is that of the regulatory changes that may influence marketing practices. A perfect example of this is the California Consumer Privacy Act (CCPA), which goes into effect on January 1, 2020. In this guide, we’ll explore what the CCPA means for online marketing and how your internet marketing strategies may have to be modified to remain in compliance with this potentially-groundbreaking regulation. 

California Consumer Privacy Act (CCPA): An Overview

Data privacy has become a hot topic in recent years; as more and more consumers and companies do business online, the chances of becoming victim to cybercrime like data theft have skyrocketed. Highly-publicized breaches of data, including credit card information, Social Security numbers, and banking details have affected millions of people. To combat the rise in cybercrimes, many states have implemented laws designed to protect consumers. The California Consumer Privacy Act (CCPA) is only one of many such laws.

Approved by voters in 2018 and slated to go into effect on January 1, 2020, the CCPA provides protection for consumers regarding how their personally-identifying information can be used by companies doing business within the state of California. There are three major components of the CCPA:

  • Giving consumers certain rights about how businesses sell or share personal information
  • Giving consumers a certain amount of control over their personal data, including options for consumers to tell businesses not to sell or share this information. The CCPA also forbids discrimination of consumers who opt out of information sharing.
  • Requiring businesses that collect and share consumer information to put into place certain safeguards that protect this data. 

Not all companies are required to comply with the CCPA. Primarily, the law applies only to companies that do business within the state of California. Businesses that the law applies to must meet at least one of the following parameters as well:

  • Annual gross revenues exceeding $25 million;
  • Collection or possession of personally-identifying information for 50,000 or more consumers, computing devices, or households;
  • Earning more than half of annual revenue from selling personal data collected from consumers. 


What Does the CCPA Mean for Digital Marketers?

Many digital marketing agencies rely on second- or third-party consumer data collection to identify and target new audiences. These agencies may utilize data brokers to obtain consumer data. Under the CCPA, this industry practice may have to change, potentially necessitating the need for marketers to seek alternatives for gathering consumer data. 

One strategy is to collect data directly from consumers, ensuring that while doing so, the marketing agency is complying with the CCPA and giving consumers adequate information on the type of data being collected as well as providing opt-outs for those consumers who do not wish to share their data. 

Marketers may wish to try exchanging incentives with consumers in an effort to share their information. This is sometimes referred to as an open value exchange; by offering a discount or by providing some sort of personalized experience, marketers can gain the trust of consumers while giving them the ability to actively consent to data collection. This tactic can further reinforce perceptions of transparency as well. 

It should be noted that first-party data collected directly by the marketer has a distinct competitive advantage. It tends to be much more accurate than data obtained from third-party sources, giving marketers the ability to directly target those consumers’ preferences and desires. This added effect is a benefit that cannot be overstated, as tailored internet marketing strategies are far more cost-effective. 

Leveraging the CCPA as a Competitive Advantage

New consumer protection regulations are often received with confusion and fear among digital marketers. However, the CCPA can offer distinct advantages to those forward-thinking marketers that wish to use the new law as a means of competitive differentiation. By being transparent about data collection and use, companies can help to strengthen perceptions of consumer trust, which has the added effect of improving loyalty among consumers.

To best leverage the CCPA as a competitive advantage, here are some tips:

  • Provide consumers with a quick reference guide on data collection practices used by the company, including the type of personal information collected and what is done with it.
  • Educate consumers about the CCPA and the rights afforded to them by this new law.
  • Allow customers to easily and directly opt in to data collection through incentive/rewards programs, or to just as easily opt out.
  • Update all relevant privacy policies to reflect on the CCPA. This serves to let consumers know that the company is up to date on regulatory requirements. 

For digital marketers, there are many advantages to the CCPA if one chooses to be proactive. Although it may require new practices in regulatory compliance as well as in data collection, marketers need to know that the advantages outweigh the challenges presented by the new law. 

About Agency Tsunami

Agency Tsunami is the digital marketing division of Neilson Marketing Services, who has provided the insurance distribution sector with innovative marketing and communication solutions for over twenty-five years. With our Agency Tsunami program, we have implemented an integrated marketing strategy that includes optimized, professional websites supported by high-quality SEO and Social Media for hundreds of insurance retailers and wholesalers. Our goal is to help your insurance business perform and generate new opportunities. Give us a call at (800) 736-9741 to learn more about how we can do that for you.