We’ve all learned the life lesson that there can be “too much of a good thing.” Although some would argue it’s much less addictive than candy, data has the potential to fall into this same category as the amount we have at our fingertips would have been unimaginable 20 years ago. So, it’s no big surprise that data is one of the fastest growing segments in advertising, but with this explosive growth has come a dictionary’s worth of terminology and data strategy acronyms to learn. Understanding what people are talking about when they start dropping the alphabet soup in conversations can make all the difference in becoming an expert on data strategy. Let’s start with the basics. Get access to all the data strategy acronyms you need to know now; but fair warning, you might become a know-it-all after reading this blog post.
Data Strategy Acronyms: Learn the Lingo
California Consumer Privacy Act (CCPA)
Passed by U.S. legislators in June 2019, the CCPA establishes new privacy requirements for businesses that operate, buy, sell or receive consumer information in California. CCPA requires organizations to provide transparency in how they’re collecting, sharing and using consumer data. As part of the law, consumers can specifically request this data, and companies must be able to provide it in a digestible format.
Customer Data Platform (CDP)
A marketer-managed system that creates a persistent, unified customer database, and this database is typically accessible to other systems. A CDP:
- Makes data selections based on a specific customer identifier (e.g., email address).
- Persistently stores date/time.
- Stores data in a single place.
- Allows for more flexibility when building customer audiences.
- Is used to enhance and mature your relationship with the customer.
Customer Relationship Management (CRM)
Prospect or customer information collected is typically managed in a CRM system. This data is often referred to as CRM data. This first-party data can include both offline data (e.g., customer data ranging from coupon mailers to loyalty cards) and online data (e.g., customer data from online activities ranging from website visits to online transactions). Both the offline and online data can contain PII (e.g., name, email address, phone number, etc.). We often get questions from clients about how their CRM data stacks up. The good news is that regardless of where your customer data comes from or the shape it’s currently in, we can always help you leverage this data, or help understand how to grow your CRM data to make your people-based marketing dreams a reality.
Data Management Platform (DMP)
A unifying platform to collect, organize and activate first-, second- and third-party audience data from any source, including online, offline, mobile and beyond. The DMP pushes audience data to other platforms, such as DSPs, SSPs and ad exchanges to facilitate targeted advertising, personalized messaging and content customization. A DMP can create fuller customer profiles by centralizing data sets that otherwise would be siloed. Then by linking your DMP into a DSP, you can boost advertising ROI and more accurately target the right person with the right message.
General Data Protection Regulation (GDPR)
European legislation that aims to ensure protection and privacy for all individuals within the European Union by imposing rules on controlling and processing PII. GDPR seeks to standardize data protection laws across all 28 EU countries. Under GDPR, the definition of personal data was extended to include pseudonymous data (e.g., online identities, IP addresses and mobile device IDs). This requires companies to gain approval from European customers to collect, use or share their data for advertising purposes. It’s important to note that while the road to GDPR compliance has been challenging for some companies, it has had positive impacts on the industry, too. The new regulation increases transparency and requires companies to review their data handling and processing procedures – which is just good business all around. And while GDPR is still in its infancy, there is good reason to celebrate and embrace the new level of cooperation it achieved among ad tech stakeholders.
Health Insurance Portability and Accountability Act (HIPAA)
A U.S. regulation enacted in 1996 that strictly governs how patient records are handled and shared. HIPAA seeks to guard the privacy and security of certain medical information pertaining to an individual. At Goodway, our employees are all HIPAA-certified and are required to get recertified every two years. This ensures we have a firm understanding of patient privacy and can diligently follow all regulations. We keep patient data secure and anonymous because we use a secure hashing process to anonymize hospital CRM data before targeting it, then delete that data when a campaign is over.
Personally Identifiable Information (PII)
Information included in any data set that allows for the resolution of the real-world identity of the data subjects. In everyday terms, PII is data used to identify a particular person (e.g., name, email address, Social Security Number or personal IP address). PII is extremely useful for marketers who want to better segment, target and advertise to customers. This information helps you identify individuals online so you can apply more relevant messaging to your ads. Now that you have the top data strategy acronyms in your arsenal, are you ready to learn all the lingo? Download our data strategy glossary for all the essential definitions you need to know now. Or if you’re craving sweeter results from your digital marketing efforts, talk to one of our experts to learn the best recipe for capturing, enhancing, managing and activating data in your marketing strategy.