What is Consent Management Platform?

“The data does not exist independently in the world, nor is it generated spontaneously. Data is constructed by people, from people,” (source 1). Indeed, in such a scenario, taking consent is very much important.

So, what happens if you use your consumer data without their consent? Simple – it’s illegal and may lead to severe data privacy issues. Therefore, to avoid these consequences, businesses are using consent management platforms.

Consent management platform

So, what is a consent management platform, and why is it required? We’ll get to that part in a while. But, before that, let’s see why is taking digital consent necessary in digital marketing?

Users and marketers share an interconnected bond; both are equally dependent on each other to survive. While users need better products and services, marketers require consumer data to showcase them. But, till some time, digital marketers were utilizing customer data without actually taking the consent of the consumers.

It led to the issue of data privacy as consumers were not aware of what was happening to their data. So, the user consent policies came as a result.

Further, we’ll understand what user consent policy is?

Owing to the concerns over rising data privacy issues, they had to bring out specific regulations to use the data for marketing. It is purely for securing personal information and seeking permission from the user to utilize their information.

As of now, GDPR and CCPA are the major data privacy policies that companies follow worldwide. However, each country or region is gradually constructing their data privacy regulations to protect the privacy of its citizens. 

So, to adhere to GDPR and CCPA and any local privacy policies (if any), most publishers who deal with data are implementing consent management platforms. Yes, wondering what is a consent management platform, and why is it required?

What is a CMP (Consent Management Platform)?

CMP or consent management platform is a platform or a tool to take consent from the visitor to use his/her digital identity for marketing efforts. CMPs have to comply with GDPR and CCPA to gather information/data of EU users and California users.

The consumer data, stored in the form of cookies or cookie ids, help marketers to identify and understand the target audience. But, collecting the cookies without the permission of the consumers may lead to privacy breaches. So, CMP helps in gathering and categorizing consumers who have given consent and who have not given consent to use their data.

Why is the Consent Management Platform Important for Brands and Publishers? Are They Cost-Effective?

The main agenda of a CMP or consent management platform is to take consent from the users to store the consumer data for various advertising and marketing purposes.

consent management

A CMP has different options where it seeks permission from the visitor to gather the data, utilize that data for sending personalized ads, and share the data for many other online marketing purposes.

However, the user, on the other hand, can accept or deny this request. It’s a personal choice of every visitor to give consent to the publisher to share his online identity for digital marketing.

So, in case the visitor disagrees with options in the consent management platform, the marketer can’t use the cookies for marketing.

CMPs or consent management platforms are cost-effective options for any publisher because you’ll be legally collecting the consumer data in compliance with GDPR and CCPA.

Of course, you’ll need to know more about GDPR and CCPA to understand why the concept of CMP came into existence. So, next, we’ll discuss GDPR and CCPA in detail.

What is GDPR and CCPA?

GDPR (The General Data Protection Regulation) is the law of data protection and privacy designed explicitly for the people of the EU (European Union) and EEA (European Economic Area). The goal of GDPR is to protect the personal information of EU users.

CCPA (The California Consumer Privacy Act) is the data privacy law meant for the residents of California, US. It is also one of the consumer rights laws related to access & sharing of customer information for marketing.

Even though there are many other region-specific privacy laws, all consent management platforms comply with GDPR and CCPA laws. Although these laws are for EU and California consumers, they apply to international businesses as well.

Since there are no specific universally standardized privacy laws, most companies follow the GDPR and CCPA data privacy regulations in the digital advertising space.

Why is User Consent Crucial as Per GDPR and CCPA?

To answer this question, let’s introspect why we need any law? Laws help in securing the rights of any individual. Likewise, GDPR and CCPA help in safeguarding the personal information of consumers.

gdpr and ccpa

The laws implicate specific guidelines to brands & publishers who are into data-driven marketing. Since data is a valuable asset for any business, there have to be some rules while accessing it for marketing.

Here you are dealing with someone’s personal information to make a profit. Though you are utilizing it to provide a better shopping experience, it’s a must to take consent to use that data.

As per GDPR and CCPA, data processes or data controllers have to take some strict measures to anonymize the data before using it for any purposes. Only then will you be legally performing digital marketing.

Therefore, to be compliant with these guidelines, publishers, brands, and agencies are making use of CMPs (consent management platforms) as one of the data privacy measures.

How Does CMP Work?

Usually, a consent management platform works as a popup on a webpage. As soon as you visit a page, you will see it in the form of a popup that has many options regarding the usage of cookies.

However, different organizations use this platform for different things. Mostly, it has various options to take permission from the visitor to store, use, or share personal information.

If a visitor doesn’t give the consent to use the cookies, then you have to delete the data and not use it for audience targeting. However, many users like to get ads to get more information about new products and services. So, most users agree to the terms & conditions applied through a CMP.

What Happens If You Don’t Use a CMP?

Well, don’t you think it’s better to be compliant with data privacy laws then face the heat later? Yes, CMPs are a must in data marketing as you are dealing with the user data.

By doing so, you are safeguarding your business from any data breaches or illegal data marketing. Since consent management platforms mostly follow with GDPR and CCPA, your business will not be under the scrutiny of any consumers as well.

Benefits of Using a CMP?

  • CMP helps you in storing the consented user information and filtering those who haven’t agreed to the terms & conditions.
  • CMP also has an option to indicate different categories through which you’ll understand how many visitors have permitted you to utilize the data for what purposes.
  • The consent management platform will be compliant with GDPR and CCPA regulations. So, you can prevent any allegations regarding consumer privacy in case someone slaps you with a lawsuit.

AudiencePlay Consent Management Platform

Why is Audienceplay CMP One of the New-Age Adtech You Should Try This 2020?

Audienceplay is an advertising technology platform to perform audience-centric marketing.

Here you can perform various functions such as audience data segmentation, audience data extension, audience data monetization, and so on. So, it’s a go-to platform for all apps/website owners to leverage audience data for digital advertising.

Audienceplay, along with all these features, has an additional feature/tool – Audienceplay Consent Management Platform. Yes, apart from other features, you can use Audienceplay CMP with customizable options to utilize in your site.

Interestingly, Audienceplay is not charging you for this platform. Yes! Audienceplay CMP is FREE, and it works in compliance with GDPR and CCPA rules and regulations.

Conclusion

As you advance in the tech-driven world, there will be more threats to your customer data. To prevent any data breaches, you need to be compliant with data privacy laws.

Also, your customers trust you with their personal information, so it’s crucial to use it with utmost care. Hence, implementing consent management platforms will be one of the most critical data security measures.

Digital marketing is not just a practical concept; it involves real people. As a marketer, it’s your responsibility to be compliant with laws to carry out successful marketing.

 (Source 1: The Guardian)

Akshatha Vinayak

I’m a technical writer who has a keen interest in digital marketing. I avidly follow the MarTech and AdTech industry and even enjoy writing about them. As a writer, I love to bring out more engaging and creative content for my audience. I’m also fond of writing travel blogs, articles on feminism and silly poems (sometimes). When I’m not writing, you’ll find me shopping like crazy or being a bookworm.

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