Cross-border data transfer rules complicate global marketing campaigns. What’s legal in one country could cost you hefty fines in another. This hidden risk prevents international marketing campaigns from getting started.
Cross-border data transfer restrictions put pressure on international marketers. Countries have different rules regarding the collection, storage, and sharing of customer data. The GDPR imposes strict limits on transferring data outside the EU, whereas Russia and China require data to be stored on servers within their respective countries.
And there’s the money factor. The GDPR sets a maximum fine of €20 million or 4% of the company’s global annual revenue, whichever is greater. The LGPD (Brazil’s data protection law) sets fines of up to 2% of a company’s revenue in Brazil (with a maximum fine of R$50 million).
The damage to your company’s reputation from violating data protection rules is just as bad as the fine. However, expanding into new markets provides an opportunity to seek assistance from a localization company. They not only translate your content but also assist you in navigating the complex data protection laws in various countries.
Product managers at small and medium-sized companies face unique challenges. They lack the resources that larger companies possess. They need quick ways to comply in multiple markets. A localization company helps by providing valuable advice on local data rules and localizing your marketing content to meet regional needs.
Most marketing teams are unaware that data protection rules apply to how they collect and use data. Different regulations in each country govern email marketing, retargeting, and personalization. For example, Canada’s CASL has more restrictive rules for email marketing consent than most other countries.
Building a compliance system adds to the complexity. Teams must adapt their cookie consent, privacy policies, and data access procedures for each region.
When hiring a localization company, ask them about their experience with data protection rules in target markets. A great partner will help you build a marketing strategy that’s compliant with local data laws without sacrificing campaign results.
From GDPR to LGPD: What You Need to Know Before Launching
Data privacy is a global discussion topic more than ever before. Product managers should be aware of the differences in privacy laws across various countries to introduce their products to new markets successfully. More than 160 countries have enacted their privacy regulations since the European Union’s General Data Protection Regulation (GDPR) came into effect in 2018. That means a complicated set of rules for product managers to navigate.
The Brazilian Lei Geral de Proteção de Dados (LGPD), enacted in 2020, is one example of this new trend toward complete privacy laws. LGPD, inspired by GDPR, has significant differences that product managers should be aware of before bringing their products to Brazil.
Key Differences Between GDPR and LGPD:
The LGPD has four additional legal bases for data processing, compared to GDPR. These include processing by academic bodies, credit protection, judicial proceedings, and health protection. The law grants law enforcement agencies a “reasonable period” to report a data breach rather than the strict 72-hour requirement of the GDPR.
Fines for LGPD violations are capped at 2% of a company’s Brazilian revenue or R$50 million, which is lower than the maximum of €20 million or 4% of a company’s global revenue under the GDPR.
Requirements for Data Protection Officers (DPOs) are another area where the LGPD differs significantly from other regulations. LGPD requires every controller to appoint a Data Protection Officer (DPO), regardless of the company’s size or volume of data processing. That’s not the case with GDPR, which only requires a DPO if the company is subject to multiple jurisdictional privacy laws or is part of a data processor or data controller group.
Product managers should collaborate with localization companies that understand these regulatory nuances. A competent localization partner can do more than just translate. They provide real guidance about local compliance requirements that could impact product features, marketing, and data collection methods.
New privacy laws and regulations continue to emerge. The UK’s Data (Use and Access) Bill, data protection laws in 14 U.S. states, and new privacy rules in India, Indonesia, and China are just a few recent examples.
AI is increasingly entangled with data privacy laws. Privacy regulators are closely examining the use of AI technologies to ensure compliance with relevant data protection and privacy rules. This creates another challenge for product managers as they bring products to new markets.
The right localization partner to work with understands these new laws. This lets product managers focus on building great user experiences instead of worrying about legal compliance.
Consent, Cookies, and Campaigns: How to Stay Compliant Without Killing Performance
Product managers can also expect their most significant challenges to arise at the intersection of consent requirements and marketing performance. Only 33% of global marketers are confident in their ability to navigate and comply with privacy regulations. Product managers must strike a balance between compliance and performance.
Consent requirements have the most impact on data collection capabilities. Research indicates that 70% of consumers dislike seeing targeted ads, while 83% are concerned about sharing their personal information online. Marketers must adapt to perform while honoring customers’ privacy preferences.
First-party data is now the lifeblood of privacy-compliant marketing, as 92% of marketers find it more valuable than ever. Product managers should collaborate with their customers to establish first-party relationships, encouraging them to share data voluntarily and openly. Product managers should collaborate with reputable localization companies to develop region-specific consent-gathering mechanisms, resulting in higher opt-in rates across markets.
Some effective compliance mechanisms that maintain performance include:
- Installing consent management platforms (CMPs) to capture, store, and signal purpose-based consent across channels. CMPs include audit-ready documentation of user consent.
- Employing contextual targeting as third-party cookies are deprecated. This method serves ads based on webpage content, not user behavior.
- Creating transparent and user-friendly consent experiences with customized branding and geolocation rules that serve different banners based on location.
Privacy compliance gives businesses a competitive advantage. Customers who own their data often establish trust, which can lead to higher conversion rates. When consent mechanisms are correctly implemented, they become marketing assets rather than compliance impediments.
Product managers need localization partners with experience in the region-specific nuances of consent requirements. This enables localization companies to install cookie consent mechanisms that follow regional requirements while maintaining the user experience that drives market conversion.
Building Trust: Why Data Protection Is a Competitive Advantage in New Markets
Data privacy has evolved from being a compliance requirement to becoming a powerful market opportunity in the new privacy-conscious world. Companies can earn an average of $2.70 in returns for every $1 spent on privacy. Responsible data management can produce measurable business results.
The lifeblood of customer acquisition and retention worldwide is trust. Consumers make this clear in their actions. About 87% of global consumers would stop buying from a company they don’t trust to protect their security. Americans blame companies more than hackers when a breach happens – 64% to 34%, to be exact. Companies have to be accountable.
Product managers face varying levels of consumer trust when they expand into new markets. U.S. research found that the top two industries earning the highest levels of trust are healthcare (44%) and financial services (44%). They score high due to the extensive regulation they have been held accountable for over time. The lowest trust ratings are for consumer packaged goods (10%), media and entertainment (10%), and Internet services (10%).
Product managers can leverage these trust differences when expanding into new markets by collaborating with experienced localization companies. Companies can leverage their regulatory compliance into a market opportunity by effectively communicating it in the local context through a clear privacy policy and a robust consent mechanism.
Trusted brands reap the rewards. Consumers of privacy-conscious companies spend up to 13% more and share their email addresses up to twice as often. Consumer loyalty is also higher – switching rates fall by up to 30%, and referrals increase by up to 60%.
Mid-sized companies’ product managers can benefit from working with localization specialists to establish trust in new markets. They can implement “privacy by design” by integrating data protection into products from the start rather than retrofitting them.
The numbers speak volumes – 79% of consumers believe that technology providers don’t do a good job of explaining data privacy policies. Product managers who emphasize clarity around data collection and usage can achieve significant success in new markets.
Conclusion: Protect Data, Protect Brand—Marketing Growth Starts with Compliance
A thoughtful approach can help you tackle the complexity of global data privacy. When product managers prioritize privacy compliance, they can gain an edge in emerging markets. Innovative companies view data privacy as an investment rather than an imposition, creating brand trust and loyalty.
In this article, we demonstrate how data privacy laws vary by region, from the GDPR’s stringent requirements to Brazil’s LGPD. If you fail to comply, your brand may suffer financial and reputational damage. Your localization partner is the best bet in this situation and will help you learn about region-specific data laws beyond just translation.
Privacy-compliant marketing strategies typically begin with first-party data. Product managers must design transparent consent processes tailored to meet the specific needs of each region. Your localization company can be a valuable resource for finding region-specific solutions that keep your marketing on point while adhering to local regulations.
Privacy compliance pays off financially. Companies make $2.70 for every dollar they invest in data privacy. Customers also spend more with brands that know how to protect their personal information.
Expanding into global markets can be overwhelming for product managers. Those who master cross-border data laws have huge growth potential. Innovative leaders view data privacy regulations as opportunities to establish long-term brand trust with global audiences.
The regulatory landscape will undoubtedly continue to evolve, particularly in relation to AI technologies and data privacy. However, by working with a localization company, product managers have the agility to adapt to new rules while maintaining their focus.
Regulatory compliance and effective marketing are equally important to global expansion. Product managers who strike this balance can leverage data privacy as a differentiator that appeals to privacy-minded consumers everywhere.
