Digital marketing strategy and advertising rely heavily on data, especially personal data. Companies have long been collecting consumer data to determine potential customers, change the market, and find out what consumers want. Regulatory oversight will now stop collecting data. Due to growing consumer privacy concerns, tech giants are struggling to protect their users’ privacy, making it harder for advertisers to find online. Apple’s iOS 14 update gives users an idea of whether they want their activities to be tracked online. Google has also added a similar feature to Apple’s App Tracking Transparency for Android 12. With Android and iOS together accounting for more than 99% of the global mobile market share, the issue of opaque ad tracking, permissions, and privacy is now at the forefront.
While it is too early to determine the exact magnitude of the impact, micro-segmentation and interest-based marketing strategy on online platforms are being tested. India’s $17 trillion digital advertising market is on the brink of change and needs to explore the opportunities and threats of these implications. The government’s recent stance on WhatsApp’s data sharing policy sent a strong signal to technology platforms to ensure privacy first. Globally, privacy is enforced by new laws.
Governments subject scanner companies that have modified data to gain an unfair advantage. In Britain, for example, they are considering how Amazon decides which retailers appear in the all-important “shopping box.” There are strict laws, such as the General European Data Protection Regulation, the Consumer Protection Act of California, the Personal Data Protection Act of Singapore, and so on. In India, although the Personal Data Protection Act has not yet been passed by Parliament, the government is strengthening consumer privacy and eliminating unfair benefits where appropriate. Social media influencers must postpaid promotions by the guidelines in effect as of June 14, 2021.
These developments have forced companies to struggle to build stronger relationships with customers and look for better ways to mine and manage data. Until now, targeted online advertising has allowed marketers to assign an ID to their devices and monitor web and in-app behavior across all platforms. Advanced AI then begins building profiles composed of demographic information, shopping habits, and life events. The digital advertising business is micro-targeted.