The Future of Web Analytics in an Era of Privacy Compliance

In an evolving digital world, how we approach web analytics is undergoing a seismic shift. With increasing focus on user privacy and stricter legislation like the GDPR, marketers face challenges that require more than just technical solutions – they demand a change in mindset.

At IndieAd, we had the chance to sit down with Michael Kornobis – who was, at the time of this conversation, Lead Consultant Analytics at fusedeck. Originally presented in our podcast, this article dives into the current landscape of web analytics and how marketers can stay compliant while driving insights that matter.

The Privacy Compliance Challenge in Web Analytics

The introduction of the GDPR in 2018 was a turning point. It redefined how businesses collect, store, and process data. While it began with mandatory consent banners, the legislation has evolved to address more nuanced issues.

“Privacy compliance isn’t just about consent banners anymore,” says Michael. “It’s about fundamentally rethinking how we handle data – from collection to processing—to align with privacy by design principles.“

Countries like Austria and France have now ruled that tools like Google Analytics may violate GDPR even with user consent due to data transfer to U.S.-based servers. This has sent shockwaves through the industry, forcing marketers to reconsider their reliance on these tools.

Why Google Analytics May No Longer Be Enough

With 70% of the web analytics market dominated by Google Analytics, these legal rulings pose a massive challenge. Google’s introduction of GA4 – a complete overhaul of its previous Universal Analytics – addresses certain features but doesn’t solve compliance issues with GDPR.

Michael explains: “GA4 isn’t a solution for European businesses from a legal perspective. It’s still an American product operating on American infrastructure, which leaves it exposed to privacy concerns under GDPR.”

As more courts and data protection agencies raise concerns, businesses are exploring alternatives. Solutions with a privacy-first approach sidestep these pitfalls.

Web analytics in the privacy era is like Paul Atreides navigating Arrakis - it’s about respecting the harsh rules of a new world while leveraging limited resources (data) to craft smart strategies.

Privacy by Design: The New Standard

A standout concept discussed during the podcast was privacy by design – building web analytics solutions prioritizing user privacy from the ground up. Michael highlighted the benefits of this mindset:

Focus on Sessions, Not Users:
Instead of identifying individuals, privacy-focused tools track session-level behavior. This allows marketers to analyze traffic patterns and optimize performance without storing personal data.
Late Consent:
Some tools offer innovative features, such as requesting consent at a later stage. For example, after a user engages with specific products, the site prompts for consent in a contextual, personalized way – making it less intrusive and more likely to convert.

“Late consent is about asking users at the right time and with the right context,” Michael notes. “It’s more respectful and often results in better outcomes for both parties.“

Hybrid Tracking: Bridging the Gap

Michael also introduced the concept of hybrid tracking – a mix of cookieless analytics and consent-driven tracking:

Cookieless Analytics:
Gather valuable data like referral sources and session interactions without storing cookies or personal identifiers.
Consent-Driven Analytics:
Once users grant consent, tools can switch to cookie-based tracking, unlocking advanced features like retargeting and user journey mapping.

This approach balances compliance with actionable insights, allowing businesses to respect privacy while optimizing performance.

Navigating the Future of Web Analytics

The transition to privacy-compliant solutions may seem daunting for businesses reliant on free tools like Google Analytics. Michael offered a pragmatic perspective: “Tools like Google Analytics were never truly free. If you weren’t paying with money, you were paying with your data. Now, businesses need to prioritize solutions that provide value and peace of mind in a compliant way.”

While there’s a cost associated with privacy-first tools, the risks of non-compliance – including hefty fines and damage to brand reputation – far outweigh the expense.

Key Takeaways for Marketers

Michael left marketers with actionable advice:

Audit Your Tools: Understand which analytics tools you use and whether they align with privacy regulations in your region.
Prioritize Privacy by Design: Shift your mindset from workarounds to solutions that natively respect user privacy.
Explore Alternatives: Consider tools that balance privacy compliance with actionable insights.
Future-Proof Your Strategy: Anticipate stricter regulations and build a sustainable analytics infrastructure now.

Web analytics remains a cornerstone of modern marketing, but its landscape changes rapidly. By adopting privacy-first solutions and staying ahead of compliance trends, marketers can continue to glean insights while respecting user rights.

>> PERSONAL COMMENT OF INDIEAD'S CEO <<

If you’re working for an SME operating in the EU or any other privacy-focused area of the world, there are no more excuses to use a cookie-based analytics solution exclusively.

Switching to a cookieless analytics solution, or at least adding one in parallel to your existing solution (wild guess: you’re using GA4…), will not only lower your legal exposure under GDPR but also allow you to analyze 100% of your web traffic data, compared to 20%- 30% for consent-based analytics.

Are you really willing to give up 80% of your data only because switching to a new web analytics solution after so many years is uncomfortable?

If you want to grow the company, you need to leave your comfort zone and move on with technology. Also, you need to work with as close to 100% of your data 😉