Privacy affects business. Google Consent Mode v2 is in line with what laws and users are asking: better data management and higher control of personal data
— Andrea Giannangelo, CEO, iubenda
MILAN, ITALY, December 4, 2023 /EINPresswire.com/ — The state of privacy and data protection is affecting business in a major way. Looking at the data, we notice stricter enforcement of privacy laws, correlating to both new responsibilities and innovations for business. Privacy has also become a determining factor for users, who prefer companies with a transparent approach to data processing.
One key example of this is Google’s Consent Mode v2. By making the use of a Consent Management Platform central to its ad services, Google is in line with what both legislators and users are demanding: better data management and higher user control of personal data.
The enforcement of privacy laws is getting stricter
Privacy laws are being enforced more strictly, with Data Protection Authorities issuing very large fines. Looking at the data provided by the GDPR Enforcement Tracker, a total of 1,883 fines have been issued since the GDPR enforcement on May 25, 2018. Over the years, Data Protection Authorities have started issuing larger and larger fines, too. The highest fine so far was issued by the Irish Data Protection Commission against Meta, and it amounts to €1,200,000,000.
Looking more closely, there’s a pattern of the largest fines being directed towards some of the biggest players. Under the new EU Digital Markets Act, these companies have been designated as gatekeepers. The Digital Markets Act wants to ensure a more fair competition, and gatekeepers are large online platforms that can have a great influence on the market they operate. By March 2024, the gatekeepers need to implement further measures to ensure that fair competition is respected.
Users pay attention to how companies process their data
The enforcement of privacy and data protection laws has consequently created a new expectation in users, who now pay more attention to how their data is used and processed by companies.
A recent study carried out by Cisco shows that privacy is a priority for 87% of respondents, and that 33% of them are willing to take action when it comes to protecting their data. This percentage reaches 42% with younger generations.
Privacy laws are viewed positively all over the world, and as of today, we count 162 privacy legislations globally. In fact, according to another research, 57% of respondents are more willing to use a website that demonstrates GDPR compliance.
The rising market of Consent Management Platforms
Following the demand for privacy, a new market has flourished: the market of Consent Management Platforms (CMP).
According to a report by Mordor Intelligence, the global consent management market is expected to register a compound annual growth rate (CAGR) of 19.3% over the next five years. In more specific terms, the consent management market was estimated to be worth around $0.45 billion in 2022 and is projected to reach about $2.02 billion by 2030, growing at a CAGR of 20.4% from 2022 to 2030.
As part of this market, we have also noticed an impact. From iubenda CEO, Andrea Giannangelo:
“Post GDPR while we’ve seen a steady increase in website CMP installs, huge waves of demand tend to align with policy changes or new privacy features from the largest Tech companies. Definitely, some parts of the privacy industry are both shaping and being shaped by them.”
Though still in the early stages, we could also suppose that the latest requirements by Google will have a significant impact on the market as well.
Google’s journey to more privacy-conscious products and features
This leads us to Google’s journey to more privacy-conscious products and features. Since the enforcement of the GDPR in 2018, Google tried to align its products with the EU regulation, by releasing more user-centric features, that could still help publishers and advertisers make data-driven choices.
We can see pretty clearly that privacy-related enforcement has been a major influencing factor for new and innovative privacy features like Google Consent Mode.
Google Consent Mode v2 is just the latest release of a comprehensive set of features, that aim to help publishers and advertisers get useful insights, while still respecting users’ privacy rights. This AI-enhanced use of aggregate data and the recent partnership with Consent Management Platforms show a well-thought-out effort to balance legal and public privacy demands with business needs and innovation.