The new privacy laws, which were due to be introduced to federal parliament this month, have been delayed until at least September. The new laws have substantial implications for marketers, agencies and media companies and uncertainty around timing has brought with it several implications.
The postponement has sparked discussions in the advertising and marketing industries, which are heavily reliant on customer data to craft personalised campaigns and messaging.
However, companies have been operating in this state of uncertainty for some time now not only with the Privacy Act but also with the about face on Google's cookie deprecation. There is a focus now to prioritise a first party data strategy, and privacy legislation should be a massive part of this focus helping to guide a larger strategy as opposed to tackling specific parts in isolation.
The delay in the introduction of the privacy laws has several implications for the advertising and marketing industry:
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Extended period of uncertainty: This delay creates a prolonged period of uncertainty within the industry. Many companies have been anticipating stricter regulations that would impact how they collect, store, and use customer/potential customers data. This uncertainty can make it difficult for businesses to plan their strategies effectively, especially when it comes to digital marketing efforts that rely heavily on data-driven insights.
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Short-term relief: On the flip side, the delay may offer short-term relief to advertisers and marketers. Without the new laws in place, companies can continue their current data practices without immediate changes (the good and the bad). This can be particularly beneficial for smaller businesses that may not have the resources at hand that the larger corporate entities do to quickly adapt to new regulations.
Regardless of size however, this short term relief would be particularly useful for companies that are tackling the complex nature of machine learning and AI work and how they incorporate both into their marketing activities.
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More time to plan: The additional time before the laws come into effect gives companies a window to adjust their strategies and ensure compliance when the laws do eventually come into play. This might involve rethinking data collection methods, investing in new technologies for data privacy, or working with specific experts to ensure compliance/best practice is adopted.
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Impact on trust: This point can’t be emphasised enough when it comes to brand perception. There has been growing public concern about data privacy, and the delay might contribute to consumer frustration. Companies that proactively improve their data practices, even in the absence of immediate legal requirements, might gain a competitive edge by building greater trust with their audiences. Those that don’t could potentially be seen as untrustworthy, which is hugely important in today's world, particularly when it comes to the storage and use of customer data for marketing activities.
While this isn't an exhaustive list, it is important to take advantage of this delay and continue to work towards nailing best practice, as there is no such thing as being too prepared.
The delay in the introduction of new privacy laws has also caught a few by surprise. Given the increasing global focus on data privacy, including developments like the European Union’s General Data Protection Regulation (GDPR) and California's Consumer Privacy Act (CCPA), there was an expectation that Australia would follow suit and get legislation in place as soon as possible.
However, the complexity of drafting comprehensive privacy legislation that balances consumer rights with business interests would have surely contributed to the delay. This is a very complex space and we have seen the Australian government wanting to take more time to review and seek advice, particularly around how machine learning and AI now comes into play with this legislation.
There is also the fact that privacy laws can be contentious, with various stakeholders lobbying for more time to review and influence the proposed changes, and this process can really muddy the waters and slow the process down.
This is why - although not completely predictable - we felt the delay was somewhat inevitable and people should be prepared to potentially see further delays.
To summarise, the delay in introducing the new privacy laws is a double-edged sword for the advertising and marketing industries. While it provides temporary relief and additional preparation time, it also prolongs uncertainty and could affect consumer trust the longer it is in the spotlight.
The industry now faces the challenge of navigating this period of uncertainty, balancing current practices and ROI with the need to prepare and invest for the inevitable regulatory changes.
It is crucial for companies to view the delay not just as a temporary reprieve but as an opportunity to take proactive steps to set themselves up for success in the future.
For example, investing in new technologies, refining data collection processes, or enhancing the current storage/usage of customer data.
Those that prioritise data privacy changes and incorporate it into their company’s wider data strategy will not only ensure compliance but also strengthen their brand as a company that cares about customer data/privacy.
Ed McMutrie, Head of Signal, Magic