ResTech's approach to Data Management – the Ringo Starr version

Over the past few years, user privacy and data management have become an especially important aspect of the digital landscape.

There are several legal and technical updates that have come our way since 2016. Things are now reaching a crescendo, and the music will stop next year and there will be some equilibrium, as far as that word can be used in technology, that is.

We all know the legal requirements – GDPR, CCPA, Vermont, potential federal laws, or God forbid state-by-state laws.

The technical updates are/have largely come through also - Firefox’s announcement and default of blocking 3rd party data, Safari’s default of the same, and of course, the elephant in the room Google Chrome's announcement last year. Apple’s decision to require app-by-app permission also puts more power into the hands of their users.

Before we get into the implications and predictions of these changes for market research, let us get some definitions out of the way:

• 1st party data            – data that a company directly has access to via an website/app.
• 2nd party data           – data that is bought from a company that has 1st party data.
• 3rd party data           – aggregated data without having a direct relationship with 1st party or respondents.

Why is this important now?

2022 will mark an important date when all the major players will block 3rd party integrations, by default. Ultimately, what Apple / Google / Firefox are doing is to shift the onus (some may say liability) for privacy management from the browser/phone to the sites - i.e., the websites or app to "own" the data.

My disclaimer here is that this is a rapidly changing environment currently, which will likely mean other updates. And, there are legal considerations around whether this allows some of those companies mentioned to gain a monopolistic ability to track users, and how courts around the world will look at these changes.

From a Research Technology standpoint, let us consider what these technical changes mean to us.

First, the bad news:

1.     Big companies make the rules. Everyone else needs to follow them.

As Apple and Google decided to come up with an alternative web interaction altogether, companies that are still dependent upon it will have to change and change fast. Otherwise, the companies would not be able to interact with customers in a meaningful way.

2.     Related to the first, companies will need a big investment in Machine Learning if they haven’t already to trace their audience. Here's how Google is trying it- https://www.bloomberg.com/news/newsletters/2021-03-08/google-is-taking-away-the-cookies-and-plans-to-floc-us-all-instead

3.     Google has also stated that these rules apply to companies trying to get around 3rd party data management with digital fingerprinting or other unified IDs or techniques.

Good news:

 1.     The internet is (mostly) equitable. Unless your company's name is Google or Apple or Microsoft, we likely all have the same rules to play with. So likely, your competition or partner won’t have any different set of rules than anyone else.

2.     Surveys, by definition, are fairly involved. As we work with survey takers across the world, the additional threshold of getting their consent (which we mostly are already doing) won’t have a dramatically larger impact.

As long as research is respectful of the usage of the data, we are in good shape.

Predictions for Research Technology:

1.     Engagement

Companies that have native integration and direct access (i.e., 1st party access) will do well, specifically apps on devices, or a rich panel asset with engaged respondents. The new system is designed for their success.

2.     Traffic Management     

Exchanges, aggregators, and marketplaces that see huge volumes will now have a legitimate reason to build out a rich first party asset for themselves - in fact, this will be a blessing allowing marketplaces them to directly claim 1st party ownership. Ultimately, demand matters and this category already carries the most scalable form of demand.

3.     Rise of 2nd party data

2nd party data is the Ringo Starr of the digital landscape. With the scale limitations of John (1st party data), and death / decline of George (3rd party data), 2nd party data could finally see a rise to prominence. 2nd party data is not easy/ natural to scale though, so it likely will only benefit the big players in one-on-one deals.

(None of this happened Yesterday so Paul could not fit into the analogy, sorry)

4.     Data Quality

In the short term, these changes will help improve Data Quality. Opt-in typically would derive a more engaged population. However, in the long term, there will always be a bases for fraud because of the returns available in our ecosystem. We need to continue making the right technical investments to overcome this.