Small businesses often rely heavily on third-party data, so you need to understand how these changes will affect you to retain a clear competitive advantage.
Its goal is to make privacy features more accessible to users and provide transparency in how/what data is collected. Unlike privacy policies of yesteryear, it’s written in plain language rather than legal jargon and long strings of text that “no one reads.”
Ultimately, they seek to better protect user data.
Reiterating the Mutually Beneficial Nature of Data Collection
Of course, user data is a huge part of Meta’s monetization strategy. But as is common, the app states that it uses the data collected to improve and personalize user experience.
Users have long said they would trade personal data for a more personalized experience. According to McKinsey’s most recent Personalization Report, that appears to still be true. 71% of consumers expect businesses to personalize online experiences through data.
Better Data Management Tools to Address Privacy Issues
Through the Privacy Center, users can control data collection and their Meta experience. A “guided experience” takes them through each setting one by one, which is likely to result in more users actively making decisions about their data.
No New Rights for Meta
The policy updates seek to correct communication about privacy issues, reassure users, and make it easier for them to control their data. It doesn’t, however, give Meta any new rights to data.
How Small Businesses Can Use This Information
- All businesses should be aware that more users may opt out of data collection. This may impact your ability to target certain audiences, and you may find you need to adapt your strategies to continue to run effective social media ad campaigns and continue to get the highest social media ROI.
- More First-Party Data Needed
- Consider investing in customer relationship management tools (CRM) to collect more first-party data from consenting customers.
- Recommit to Personalization
- Understand that customers still want to share data in exchange for a personalized experience. Personalized experiences can increase revenue by 40%, according to McKinsey.
- At the same time, focusing on delivering more personalized experiences can reduce the number of users who feel they have no choice but to apply Meta’s most restrictive data collection tools.
You may notice an impact on social media performance. But this represents an opportunity for you to recommit to delivering personalized experiences and show you value customer privacy.
We encourage you to learn more about how you can get more out of social media. Use change to boost your performance. Let’s talk about how Dream Local can assist you with social media management.