How does the new European data protection law affect ecommerce?

You have probably heard in the news about the controversial data protection law that came into force on January 11, 2024 and that has very important implications for e-commerceat both national and European level. 

This new law replaces the previous Directive 96/9/EC dating from 1996, which had become obsolete in the face of technological advances and the evolution of the data market. The new law harmonizes rules on the use and exchange of data throughout the EU both personal and non-personal, in all economic sectors. It aims to ensure fairness, innovation and digital sovereignty in the single market, as well as to protect the fundamental rights of European citizens and businesses.

How does the new data protection law affect ecommerce?

This sounds so nice in theory, but in practice it leads to important implications for all websites that use their users' data to create quality shopping and advertising experiences. Ultimately, from now on, users have the right to choose completely bypass advertising and tracking during your visit to a website by your complete and utter rejection of cookies. 

In the case of online stores, users must give their express consent for Google to store user data. that allow advertisers to create the remarketing lists that we use so much in advertising platforms. This system is called Consent Mode V2 and if it is not implemented in online stores by March 2024, these remarketing lists will cease to impress and ultimately cease to function.

Have you already entered panic mode? You're right, it's serious. Just to give you an idea, Google has already completely deleted 2% cookies from users. and this percentage will progressively increase until June 2024, when they will be totally and definitively eliminated.

What needs to be done to get user data from now on?

  • The first thing we must to be aware that if or if not, we are going to lose informationmore than has been the case in the past. From now on, user data will no longer be the property of the websites where it is generated and will play a vital strategic role in the new ecosystem. Whoever has the data, has a treasure.
  • Secondly, what we must do is  place a cookie banner on our website that is certified by the IAB organization. as Consent Management Platforms (CMPs). This banner will ensure that the website collects the user's privacy preferences and acts accordingly. With respect to the banner, in this pdf by FLAT101 make a very interesting study of how to design it so that the % of acceptance of cookies is as high as possible.
  • Next, we must modify our measurement codes for both Google Ads and Analytics GA-4. to work or not depending on the permissions granted by the users in the previous step. In the case that these pixels are implemented by code on the web, the ball falls on our friends the developers. We leave here the Google Developers Guide in this respect. If, on the other hand, you have implemented the measurement pixels via GTM, it is necessary that the CMP you have selected includes a Google Tag Manager template through which you will have to make the changes in the labels. If you have a account manager Google's assigned, they will offer you Google TagTeam support to implement the changes.

As reported by Google, the process is neither easy nor fast and it usually requires a lot of back and forth with modifications until everything is ready, so... get to work!

More recommendations to minimize data loss

Finally, we leave you here other considerations The following are equally important things to keep in mind in order to minimize data loss:

  • Improved conversions: It is very important for Google Ads to have them implemented and running smoothly. They will help us to eliminate some of the information gaps that we will have.
  • Customer Match customer lists with data from registered users or customers of our website. Now, more than ever, it is very important to create and update them regularly (at least twice a year).
  • GA-4 Analytics Predictive Audiences: according to Google, they are designed precisely to replace UA's advanced audiences, but has anyone been turned on?... We're going down this road badly.

As you can see if 2023 was the year of our beloved, great friend Google Analytics 4With all these changes in European legislation, 2024 is no less intense with all these changes in European legislation that undoubtedly change the rules of the game for the entire ecosystem. In our opinion, this will clearly benefit those websites with the most media and traffic. to the detriment of small online retailers, who will see a significant reduction in the volume of data from which increasingly "intelligent" campaigns are fed.

From Geotelecomin the Google Tag Manager team we are in full swing with the tool, learning how to implement all these changes to help our customers "transition" to the new paradigm. We will update you with the new discoveries we make.

Good luck to all of you and may the data be with you 😉.

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