Tag Archives: privacy

Impact for business post cookie changes

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When we think about cookies, most of us equate that to an American term for a sweet biscuit. In the internet and marketing world, cookies have become a billion-dollar business driving advertising and are a way to spy on an individual’s internet habits. Big cookie changes are occurring, and in this guide, we will demystify what is happening and how it might affect you and your business.

Cookies are small text files with pieces of data (for example, a username and password) that will identify you and your computer. Cookies were designed to improve your web browsing experience. When your cookie is exchanged between your computer and the network server on the internet, the server reads the ID and knows what information to specifically serve to you.

WHY should I care about cookie changes?

Internet cookies are built for web browsers to track, personalise, and save information about your browsing. Your browser stores cookies on your PC, tablet or phone, and a web server will send and read cookie information when you visit a website.

Another way of thinking about it is a trail of bread crumbs (or cookie crumbs) left behind and can be followed.

A session cookie is deleted when you leave a website, however, a persistent cookie may remain on your computer forever.

Personal

Websites use cookies to improve your web browsing experiences. For example, cookies save you from logging into a site every time you visit, personalising how a page appears or remembering a shopping cart if you accidentally close a page.

Business

As a business, you can target customers with personalised advertising. This can take the form of sending ads to an individual on other sites after visiting your site, known as retargeting. Alternatively, you might target someone who has seen a competitor’s website or may be interested in your offering based on their internet browsing.

If you run an online store, a cookie will track items users previously viewed, allowing you to suggest other goods or services they might like.

Why are cookies Bad?

Cookies are bad due to their ability to track your browsing history. There are two types of Cookies:

First-Party Cookie created by a website you are directly using. Collects and saves data directly associated with you using only that website. Assuming you are visiting a reputable website, these are considered safe.

Other 3rd party web servers create third-Party Cookies, generally from advertisements appearing on the page you are surfing. 3rd party cookies let advertisers and analytics companies track your long-term browsing history across the internet on any sites that contain their ads. Thus, your personal information is collected and shared even if you did not think you had given permission.

Security vulnerabilities may allow a cookie’s data to be read, allowing unauthorised access to data or the website to which the cookie belongs.

WHAT is changing for cookies?

Put simply; your privacy will increase with the drop of support for 3rd party cookies by the major browsers.

Announcements so far:

  • Browsers Apple Safari and Mozilla Firefox have already blocked 3rd party cookies
  • Google has announced it will restrict 3rd part cookies from the end of 2023
  • Many companies are now asking for permission to use first-party cookies when you first visit their site
  • Apple iOS14 now requires users to opt-in for information to be shared with publishers
  • Apple iOS15, yet to be launched, will hide IP addresses. Users will see how often apps access their personal information, for example, location.
  • Due to these changes, Facebook is asking its users to allow “Facebook” to track your activity across other companies’ apps and websites.
  • The Australian Federal Government is currently reviewing the Privacy Act. In addition, the ACCC is taking submissions to its digital advertising services inquiry – due late August 21.

With the removal of this tracking (remove 3rd party cookies), you will no longer see a creepy advertisement for those shoes that you looked at online two weeks ago. Also, with governments worldwide reviewing their citizens’ privacy policies, your data will remain more secure and more private and require a business to jump through more hoops.

HOW will cookie changes affect my business?

The biggest business change will be the ability to target appropriate customers, as the 3rd party data will not be as readily available.

How should I respond:

Build out 1st party data – This is building your own database of your customers and relevant information. When you have this, you don’t have to pay others.

Use First party cookies to improve your customers’ experience on your website and to provide them with a journey that will benefit them and hopefully make you a sale.

Reward customers in some way for providing their data, like discounts or information.

If you don’t have first-party data to communicate with your customers, the targeting advantages of digital marketing versus traditional media will still be available. Companies such as Google and large media players like Nine in Australia will sell you access to their large private databases.

For a small business that is buying some keywords and possibly doing a few Facebook or Google digital advertisements, it is unlikely you will see a great deal of difference. Still, for those more advanced advertisers, how you take your advertising to market will be turned upside down.

As an individual, you will still have advertisements targeted at you. Still, it is likely to happen more anonymously and less creepily.

HINTS

Cookies can be deleted from your browser at any time. If you surf the web incognito, cookies will not be saved. However, remember not all cookies are evil and can actually be helpful.

Apple refers to 3rd party cookies as Apple’s identifiers for advertisers (IDFA).

Also, read Small Business Answers guide to advertising for better sales.

SUMMARY – Cookie removal changes digital advertising

Cookies enable a web browser to keep track of our user data and activities. From 2023, using this data to track our browsing habits and be targeted will be removed to increase privacy. However, consumers will still benefit from first-party data enabling an improved website experience. Still, businesses will need to look to other means than 3rd party cookies to find and target customers with advertising.

Angus Jones, the author of this guide and all guides on Small Business Answers, is a marketing veteran of more than 30 years and is available for consulting projects. I can be contacted at angusojones@optusnet.com.au

Privacy and Protecting Personal Data

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It may seem harmless that in the process of doing business you collect customer data to transact business or communicate with them.  However, if that data is used without the user’s permission, or worse stolen, you may find yourself breaking the law. This guide will help you understand Privacy and Protecting Personal Data and what you should or must do.

Data protection is to secure data against unauthorised access. Data privacy is about authorised access — who has it and what you can do with it. Data protection is essentially a technical issue, whereas data privacy is a legal one.

WHY should I protect my customers’ personal data?

Apart from the fact that a customer will not be very happy with you, it is the law. You must comply with the Australian government Privacy Act 1988 if your annual turnover exceeds $3 million.

You are responsible for protecting your customers’ personal information from:
  • theft
  • loss
  • unauthorised access
  • modification
  • interference
  • misuse
  • disclosure
If your small business turns over less than $3 million you must comply with the act if you are a:
  • private-sector health service provider
  • business that sells or purchases personal information
  • contractor providing services under a contract with the Australian Government
  • credit provider/credit reporting body
  • residential tenancy database operator

All other small business operators are exempt from the Act however protecting your customer’s data is good business practice.

WHAT types of information are considered private?

Any information that can identify a person and could include:

  • name
  • signature
  • address
  • email
  • telephone number
  • date of birth
  • medical records
  • bank account details
  • place of work
  • photos
  • videos
  • information about their opinions

If you do have a breach of personal information you need to notify both the person it has affected and the Office of the Australian Information Commissioner (OAIC).

HOW do I protect customers personal information?

The following actions will assist with your compliance of the Privacy Act:

  1. Do not collect personal information you do not need
  2. Develop an internal policy to handle and process personal information
  3. Take ownership yourself or delegate to a senior member of staff
  4. Do not share this data with anyone else
  5. Sensitive information like race, religion, health etc can only be collected with individual consent
  6. Ensure unauthorised staff members do not have access
  7. Take reasonable steps to protect personal information from unauthorised access, modification, or disclosure and against misuse, interference, and loss
  8. Destroy or de-identify personal information when it is no longer needed
  9. Develop a plan for a data breach

HINTS

If processing credit card transactions by EFTPOS or e-commerce store you should ensure your network/equipment is secure and encrypted. You should restrict who has access to that data and preferably do not store the card information. A security assessment of cardholder data can be done here.

If you plan to contact customers via direct marketing like an email, phone call or text, post, social media or web advertising you should enable a customer to opt-out (request not to be communicated with).  If the Privacy Act covers your organisation (> $3m turnover) legally you are required to allow a customer to opt-out.

Australian privacy law gives a consumer the right to access their personal information. This includes their health information. This right does not extend to commercial information.

Be sure to read our guide on internet security.

Additional information on privacy and protecting personal data can be found here.

SUMMARY – Privacy and Protecting Personal Data

If your small business has a turnover less than $3 million it is unlikely you will have a legal requirement however for both your customer and your sake it is good practice. If possible don’t keep personal data like credit card details but if you do, ensure it is protected from theft or abuse. It is worth familiarising yourself with the intent of the Privacy Act and taking the necessary actions in your business.