How Is GDPR Causing Disturbance In Location-Based Marketing?

The technology has evolved so fast that it has created various branches to operate the contemporary business industry. Where business relies entirely on technology, the smartphone has become the center of the system. Here comes a critical aspect for the business and marketers that are the location-based marketing or LBM. 

The technique helps the marketers in notifying the user about any nearby deal or offer to depend upon their location for marketing purpose. Location-based marketing not only helps the business to turn a user into a loyal customer but also strengthen the relationship between them. Whenever the users are spotted in an area having a deal of the day or any special offer that might interests user, the marketers push the alert message to the user regarding that. 

Besides, the apps also use the location tracking to provide location-based services to the users and target users for marketing purpose. In a survey, 90% of users have accepted that they regularly use the apps for getting information about their nearby services according to their requirement.

In order to track the user’s location, the apps require the user’s to opt-in for the service. The opt-in request may be asked by the app while opening the first time after downloading it. If the user said yes to the request, the app could track the user’s location going forward. 

Now, comes the General Data Protection Regulation (GDPR) act by the European Parliament and the Council of European Union in the picture. The new regulations from the government body make it hard for the marketers to use location-based marketing further.

What is GDPR?

GDPR is the EU law for the individuals falling in the European Union that protects their data and privacy. According to the regulation of the companies organizing under EU has to follow the new acts and respect every individual right to privacy. With the GDPR the government aims to change the way consumers data has been gathered and used by the markets for various marketing tactics. The regulation has been implemented on 25th May 2018 and active for the all the bodies working under EU.

Individual Rights And Data Privacy Under GDPR

• All the countries under the European Union have to work in accordance with the jurisdiction of GDPR by following all the new clauses.
• Now, all the businesses performing location-based marketing have to follow the GDPR regulations strictly otherwise they have to face the charges.
• Every organization needs to undertake a data protection impact assessment in order to complete a project and successfully push it to the market.
• Under GDPR the organization or businesses working on the projects having the higher risk related to the user’s personal data will be pressurized to minimize the risk by working under the guided regulations.
• The company’s using the location-based marketing will see a massive change in their work, under the law they have to change the way of collecting and processing the data.
• According to GDPR, the organization must have a legit and relevant reason to acquire the user’s personal data.
• More importantly, the businesses have to inform their employees or consumers which data they need to collect and why they are using it in explicit terms. Besides, only the specified data will be allowed to collect and store in the required security by the organizations.

How Will GDPR Affect Organizations And Location-Based Marketing?

With the implementation of the GDPR, the markets have to follow the tight rules regarding data collection. This means the companies now can't make the user’s to say yes for accessing private data via passive opt-in permission while the app is being installed or vai offering any deal. The markets are now required to provide a standalone consent to the user sharing why, what, and how they need your personal data for successful location-based marketing

Besides, the user has to opt-in for a particular time and once it expires the opt-in process has to carry out again. There will be no more hidden clauses, twisted language and untold conditions for accessing the users’ data by the organizations. Every marketer has to share the consent with bold and clear information about why they need the data, what kind of marketing process they have that demands the data and how they gonna take care of the privacy.

After the GDPR implementation, some of the organizations are simply stepping down from the EU market, whereas there are some other that are figuring out how they can optimize the existing agreements according to the GDPR. Besides, there also some of the marketers starting from the scratch by dropping all their users’ data related to previous consent and regulations, so they continue their marketing tactics.

All the organizations have to update their agreements and clauses for accessing the required data successfully going forward. All these changes require investment, time and effort that could slow down the growth of the marketing industry for a while. However, once everything is aligned this could be the best way for all.

What If Companies Fail To Comply With GDPR?

The privacy act not only comes with a number of strict policies but also with a hefty fine for those who failed to fulfill all the requirements while performing location-based marketing.

• The company who fail to meet any of the GDPR compliance will be fined up to €10 million or has to pay 2% of their annual global turnover.
• In case of violating any of the individual’s privacy right the company will be charged up to €20 million or 4% of its global annual turnover.
• Under the “Data Subject,” every customer or employee whose personal data has been processed by the company has the right to request a copy of their stored data. If the request has not been approved within 30 days, the company has to face severe consequences.

The Final Thought

So, what does GDPR doing? Is it stopping the developers and organizations from developing a useful app that could provide better service by accessing the user’s data? Or  Now, it is not possible to develop a great whether or any service related app for providing location-based precise information to the user.

The answer is a big No, GDPR doesn't bother all these operations, the companies are still free to develop innovative apps and services. The companies are still allowed to access the users’ sensitive personal data but under the strict policies of their product marketing. All the amendments have been made to ensure the user’s data privacy and safety. Recent incidents like Facebook -Cambridge data revelation has made it important to take steps for users’ safety.

Written By

Arpit Business Development Head

He is responsible for marketing programs, brand management, and corporate sponsorships. He thrives on challenges, particularly those that expand the company’s reach. Next to work, Shadow, his dog, immensely contributes to his happiness.

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