How privacy could breathe new life into personalisation

Privacy protection

In the meantime, users are increasingly turning to individual means of protecting their privacy, such as VPNs and online ad blockers. Paul Bischoff, privacy advocate at tech research firm Comparitech.com, believes this will result in some firms shifting their focus to personalising ads around content rather than users.

“So instead of saying, ‘This person bought cat food three days ago, so we’ll show them an ad for cat litter,’ the logic is more like, ‘This person is reading an article about dogs, so we’ll show them an ad for dog treats.’ This model doesn’t impede on the user’s privacy, and I would be surprised if it did not surface as an alternative to more data-hungry ad networks,” says Bischoff.

But many companies in the business of personalised advertising and marketing see GDPR not as a threat, but a catalyst for more effective personalisation.

David Snocken, director of data and strategy at Internet marketing and advertising firm Clicksco, says: “In Europe, the impact of getting GDPR wrong is pretty hefty so organisations are having to take it seriously. That provides a push for industry to change, but there’s a pull as well – the benefits that come from better-quality personalisation.

“For a long time the industry has focused on reach – getting their ads in front of as many people as possible. Now we need to move from quantity to quality – targeting fewer people, but more accurately.”

People will consent to the use of their personal data, Snocken believes, but only if they are rewarded with far more valuable and compelling personalised online experiences for doing so.

“Good quality personalisation shouldn’t be intrusive – it should be a seamless experience from the consumer’s point of view, based on a detailed knowledge of where they are in the buying process,” says Snocken. “Using high-quality data on consumers – with their consent – in order to deliver a better experience is ultimately where the industry needs to move to.”

Online journey

Raj De Datta, CEO at search, merchandising and content platform Bloomreach, agrees. “Consumers are not impressed with a constant flow of advertisements, but they do value a flawless online journey. By using data to create the perfect online experience, businesses have the potential to increase engagement and profitability,” says De Datta.

At the moment, however, the mechanisms by which consumers can control the use of their data are often confusing and intrusive. “Most consumers want a simple way of exercising some control, but without it being too onerous,” says Clicksco’s Snocken.

ORG’s Killock also believes there’s a need for more transparent mechanisms, but he believes best practice is to minimise data sharing. “For instance, there are now companies seeking to give users more control of their information by using systems that do their profiling on the user’s device rather than sharing information onwards,” he says.

Such systems could finally square the privacy versus personalisation circle, giving people a guaranteed assurance of privacy, while allowing them to easily share data with companies they trust in return for ever more compelling personalised services.

Indeed, they could be the only way to realise the full benefits of personalisation in areas where people have traditionally been reluctant to share data because of its sensitivity – like health and finance.

Personal data security

Julian Ranger, founder of personal data security platform Digi.me, says: “There is only one person who knows all about you and that’s you. So why can’t you be the aggregating platform? You can bring all your data together and it can be completely decentralised – each person keeps hold of their own.”

Digi.me is currently working with organisations like Barclays, the BBC and BT to prove the system works effectively. Ranger says: “Companies never actually see, touch or hold the data. Individuals decide where to store it – Dropbox, Google Drive, etc – and it is fully encrypted.”

The system employs a layered consent model – any app can ask a user for data using a certificate system and if the user agrees the data is then processed on their own device without ever leaving it. “That means people can share massively more data with full privacy,” says Ranger.

There are other potential solutions, too. For example, the Enigma initiative is developing a protocol that will allow people to secure and control data on decentralised blockchains.

Any organisation looking to personalise marketing in future must appreciate that the days of data slurping are on the way out. And as users regain control, the onus will be on businesses to give customers compelling reasons to share their data – and the confidence they can be trusted with it.