Data protection

Navigating Privacy Landscape and Marketing Evolution: Insights from India’s Data Protection Shift

  • A 2021 survey by the Internet and Mobile Association of India (IAMAI) found that 72% of Indian internet users are concerned about their privacy.
  • The same survey found that 62% of Indian internet users have taken steps to protect their privacy, such as using ad blockers or deleting cookies.
  • A 2022 study by the World Economic Forum found that India is one of the most privacy-conscious countries in the world.
  • The study found that 82% of Indian internet users believe that their personal data is not safe online.
  • The study also found that 78% of Indian internet users are willing to pay for privacy-focused products and services.

The information from research is showing that people in India who use the internet are becoming more concerned about keeping their private things safe. This feeling is expected to keep growing because internet users are starting to realize how important it is to have privacy. Because of these worries, the government has made a new rule to protect people in India.

Just yesterday, the Indian Government passed a new rule in Lok Sabha to keep data safe. It’s called “The DPDP (Digital Personal Data Protection Bill)” and they talked about it in a meeting. This rule is all about making sure that personal things about you are kept safe. With this new rule, companies have to follow strong rules about getting data, asking people for permission, keeping data locked up, and letting people have more say over their own private things.

The journey of the India's Data protection bill
Digital Personal Data Protection Bill, 2023 passed in Lok Sabha- 7th August 2023

Decoding the Core Tenets of the DPDP Bill

The landscape is witnessing rapid changes in data protection regulations, with the implementation of the Digital Personal Data Protection Bill (DPDP) aiming to establish a robust data protection framework. As data privacy becomes a focal point, companies in India are grappling with the task of ensuring compliance while adapting their marketing strategies to accommodate the evolving privacy-conscious consumer mindset and following are key highlights of the Personal Data Protection Bill (DPDP).

  • Data Localization : The DPDP proposed that critical personal data, as determined by the government, should be stored and processed only within the territory of India. This provision aims to ensure data sovereignty and protect sensitive data from unauthorized access or misuse.
  • Data Processing Principles: The bill outlined principles for the processing of personal data, including purpose limitation, data minimization, and storage limitation. These principles are designed to govern how organizations handle and utilize personal data.
  • Consent Management and Data Rights: The DPDP Bill emphasized obtaining explicit and informed consent from individuals before collecting and processing their personal data. It also granted individuals the right to access their data, correct inaccuracies, and withdraw consent when needed.
  • Sensitive Personal Data: The bill classified certain categories of data, such as financial data, health data, and biometric data, as sensitive personal data. It proposed more stringent requirements for the processing of such data to ensure its utmost protection.
  • Data Protection Authority: The DPDP aimed to establish a Data Protection Authority of India (DPA) responsible for overseeing the implementation and enforcement of data protection laws. The DPA would have the authority to investigate data breaches and impose penalties for non-compliance.
  • Data Breach Notification: The bill mandated organizations to report any data breach to the DPA and affected individuals, ensuring timely notification in case of any security incidents.
  • Cross-Border Data Transfers: The DPDP provided provisions for cross-border transfer of personal data, subject to certain conditions and safeguards to protect data privacy during international data transfers.
  • Penalties: The bill proposes penalties for non-compliance, ranging from Rs 50 crore to Rs 250 crore, depending on the nature of the breach.
  • Global Alignment: The DPDP legislation aligns with global data protection models like the EU’s GDPR.

Ensuring Compliance and Success: DPDP Bill’s Reshaping of the Marketing Landscape

As 3rd Party cookies and deviceIDs are deprecating which are being used for ad targeting. Hence, first party data will the key identifier for effective targeting, however, DPDP bill will significant impact the marketers by requiring them to obtain explicit consent from individuals and deploy DPDP compliedtech/data infrastructure before collecting and using first party data in marketing campaigns:

Interestingly, 63% of consumers believe personalization should be standard when they’re being served or sent promotional offers, even in the privacy safe marketing. This is because consumers still want to receive personalized messages from brands, but they also want to be able to control how their data is used. This has left marketers wondering how to meet consumer demands without access to a wealth of consumer data.”

  • Purpose limitation: Marketers can only collect personal data for the specific purpose for which it was collected. This means that marketers will need to be careful about how they use first-party data. For example, if a marketer collects data about a customer’s purchase history, they can only use that data to send targeted marketing emails about similar products. They cannot use the data for any other purpose, such as building a customer profile or selling the data to a third party.
  • Data minimization: Marketers should only collect the personal data that is necessary for the specific purpose for which it is being collected. This means that marketers should avoid collecting excessive amounts of data about their customers.
  • Single View of Customer : The DPDP Bill requires marketers to give individuals control over their data. This means that marketers need to have a unified view of the customer’s journey, across all channels and devices. This can be a challenge, as data is often siloed across different systems.
  • Consent is KING : Marketers must obtain explicit consent from individuals before collecting their personal data. This means that they need to be transparent about how they collect and use data, and they need to give individuals a clear way to opt out at any point of time.
  • Data Localization : The DPDP proposed that critical personal data, as determined by the government, should be stored and processed only within the territory of India. This provision aims to ensure data sovereignty and protect sensitive data from unauthorized access or misuse, hence,  Marketers has to choose the right cloud based  system which is storing data with-in India.
  • Increased cost of compliance : Marketers will need to invest in new technologies and processes to comply with the DPDP Bill. This will increase the cost of doing business for many marketers.
  • Shift in marketing strategies:  Marketers will need to shift their marketing strategies to focus on collecting and using first-party data. This will require them to build stronger relationships with their customers and to create more personalized experiences and this can lead to increased customer loyalty and engagement.

Customer Data Platform : Shaping the Future of Business

A customer data platform (CDP) is a power solution that helps businesses to collect, unify, and activate first-party data from multiple sources. CDPs can be used to manage consent, build a single view of customer, and enable better marketing in privacy environments.

Customer data platform (CDP)

And, Why CDP & Where Does It Fit Into The Martech Landscape?

CDP in Martech landscape
  • Unifying first-party data from multiple sources : CDPs can collect first-party data from a variety of sources, such as websites, CRM systems, and marketing automation platforms. This allows businesses to create a single view of each customer, which is essential for personalized marketing and better decision-making.
  • Managing consent :  CDPs can help businesses manage consent for the collection and use of customer data. This is important in a privacy-focused environment, where customers have more control over their personal data. A CDP can help businesses obtain consent for data collection, track consent preferences, and revoke consent when requested.
  • Building a single view of customer : CDP scan help businesses build a single view of customer by unifying data from multiple sources. This allows businesses to see a complete picture of each customer, including their demographics, purchase history, and engagement with the brand. This information can be used to create personalized marketing campaigns and improve customer service.
  • Personalization: Armed with insights from the CDP, marketers can create highly personalized and relevant campaigns. Personalization can extend to product recommendations, content suggestions, and messaging that aligns with each customer’s preferences and past interactions.
  • Enabling better marketing in privacy environment : CDPs can help businesses market more effectively in a privacy environment by helping them to:
    • Sharp Targeting : Target customers with relevant messages based on their interests and purchase history
    • Reduced Paid Media Waste : Precise targeting and personalization reduce wastage of resources by ensuring that campaigns are directed towards the most relevant audience, maximizing the chances of conversion.
    • Unlocking profitable segments using predictive analytics : With historical and real-time data available in a CDP, marketers can leverage predictive analytics to anticipate customer behaviour and preferences. This foresight aids in crafting campaigns that resonate with customers before they even express their needs.
    • Testing and Optimization: Marketers can use the data stored in a CDP to conduct A/B testing and other optimization strategies. Testing different messages, visuals, or offers and analyzing the results helps refine campaigns for better performance.

Conclusion Unlocking Success: Redefining Approaches for Modern Marketers

In conclusion, the landscape of data privacy in India is rapidly evolving, with both users and regulators placing greater emphasis on safeguarding personal information. The introduction of the DPDP underscores the need for transparent data practices and individual consent. As marketers adapt to these changes, a shift towards first-party data and personalized experiences is becoming pivotal. Leveraging Customer Data Platforms (CDPs) stands as a strategic move to navigate these challenges, ensuring compliance while delivering effective, privacy-conscious marketing. This convergence of data protection and innovative strategies marks a crucial juncture in shaping the future of digital interactions in India.