André Koegler (easy Marketing) talks with Tobias Rast (Ingenious Technologies) about why tracking cookies for conversion tracking fall under legitimate interest, developments in legislation, the major risks we must be prepared for in the worst-case scenario, and why it is so important for all of us to address this issue.
#Affiliate Marketing Podcast – PM07 Data Protection and Conversion Tracking – with André Koegler
Data Protection and Conversion Tracking – Risks for the Industry, Current Developments, and Legitimate Interest
André Koegler is a Performance Consultant at easy Marketing. In a conversation with Tobias Rast (Senior Manager of Customer Success at Ingenious Technologies), he not only explains how he became a data protection specialist, but also why tracking cookies for conversion tracking fall under legitimate interest. We also discuss developments in legislation, the major risks we might face in the worst-case scenario, and what we can all do to make a difference.
This episode is about:
- Tracking technologies and data protection have been intertwined, at least since the GDPR (starting at 01:47)
- Conversion Tracking = Legitimate Interest (starting at 04:58)
- The problem facing small and medium-sized publishers is a problem for all of us! (starting at 16:53)
- The risk of stricter data protection laws for cookies. And: Why don’t decision-makers understand our industry?! (starting at 21:08)
- Scenarios: A world with and without conversion tracking (starting at 29:46)
- A new paper from the BVDW! Read and share! (34:13)
Tracking technologies and data protection have been intertwined, at least since the GDPR
Tracking has always been a pet project of André Koegler’s, and data protection is directly tied to tracking. So it made sense for him to develop expertise in this area following the GDPR. Marketers often assume that tracking works and focus on performance optimization; technicians often don’t question implementations; and data protection experts often make sweeping statements that marketing requires consent.
Conversion Tracking = Legitimate Interest
Currently, we (BVDW) consider conversion tracking in partner marketing/affiliate marketing to fall within the scope of legitimate interest, particularly with regard to the simple "last cookie wins" principle.
We’ll also discuss the Planet49 Federal Court of Justice ruling and the misconception that all marketing cookies require consent. This is because the Federal Court of Justice ruling pertained to retargeting measures used for profiling.
The question is also whether simply linking two touchpoints (customer journey building) already constitutes profiling. While this argument certainly holds water, there is currently no case law establishing which procedures constitute profiling and at what point.
The problem facing small and medium-sized publishers is a problem for all of us!
Small bloggers (representing small publishers) receive little support or guidance from the industry, yet they cannot afford costly legal advice. For them, too, the issue is one of costs (which can often eat into their revenue) and risks. If stricter laws were to be enacted, the worst-case scenario would be that publishers would no longer be compensated for transactions conducted without consent.
The risk of stricter data protection laws affecting cookies. And: Why don’t decision-makers understand our industry?!
There are currently several developments regarding legislative initiatives, including the e-Privacy Regulation, the TTDSG, and the European Data Services Act. While large international companies can certainly adapt well, small and medium-sized digital businesses are slower to do so. In particular, the approximately 40,000 publishers that rely on affiliate marketing for funding would be affected. And this would impact public opinion as a whole.
We should all talk to our data protection officers, learn more about data protection, and take action.
Scenarios: A World Without and a World With Conversion Tracking
A world without cookies would certainly be a world of “dumb advertising” that is no longer user-centric and would be financed exclusively by advertising budgets. This could lead to a concentration of large display networks.
To build a future with performance tracking, we need greater understanding at various levels, all the way up to the political sphere. We can all—and must—contribute to this effort.
A new paper from the BVDW! Read and share!
The new compendium on affiliate/performance marketing provides an overview of the industry. It is titled “The Digital Paradigm Shift: Legal and Technical Foundations for Digital Sales Management – A Functional Perspective.” Share it!
