When it comes to internet privacy, you either fall into one of two categories:
- Those who believe that they have nothing to hide. They believe privacy is not something they are concerned with.
- Those who are very privacy conscious. They take measures to protect their information online.
No matter which category you fall into, website privacy is an important issue.
People are becoming more aware of the need to protect their personal information. This is because there are often stories in the news about data breaches and identity theft.
Can you blame them?
Most websites are currently littered with cookies, trackers, and other data-collecting tools. Customers don’t always know what is being collected or how it is being used.
And with laws like the General Data Protection Regulation (GDPR) and its hefty fines for non-compliance, businesses are under more pressure than ever.
In this blog post, we’ll take a look at what privacy-friendly analytics is and the benefits it may offer your business.
- Data is the New Gold
- GDPR
- How Does GDPR Affect Google Analytics?
- What is Privacy-Friendly Analytics?
- What Are the Benefits of Privacy-Friendly Analytics?
- Downsides of Privacy-Friendly Analytics
Data is the New Gold
There are many online services that are free to use, and people have become accustomed to this. For example, you can:
- create a Gmail account
- use Google Maps to get directions without spending a cent
- use Facebook to keep in touch with friends and family
- etc.
If a service is free and you’re not paying for it with money, then you’re paying for it with some other currency: your data.
Data has become one of the most valuable commodities in the world. Businesses are willing to pay big money for it.
This is why data-collecting tools like cookies and trackers are so common. They allow businesses to collect valuable data about their customers. This data can be used for marketing and advertising purposes.
While there’s nothing inherently wrong with this, it can be problematic if businesses are not:
- transparent about the data they’re collecting
- protecting the privacy of their customers
When you use Google, for example, the company tracks everything you do online. It knows the searches you’ve made, the websites you’ve visited, and the ads you’ve clicked on.
This information is then used to target ads at you. So, if you’re looking for a new pair of shoes and you happen to click on an ad for a pair of shoes, you’re likely to see more ads for shoes in the future.
This might not seem like a big deal, but it can be very intrusive for some people.
And it’s not just Google. Many other companies track your online activity for similar reasons.
GDPR
On May 2018, the European Union’s General Data Protection Regulation (GDPR) came into effect.
The GDPR is a set of regulations that aim to protect the privacy of EU citizens.
Under the GDPR, businesses must:
- be clear about the data they’re collecting
- get explicit consent from customers before collecting or using their data.
The GDPR also gives customers the right to
- know what data is being collected about them
- have their data erased
- object to its use
If a business does not comply with the GDPR, they can be fined for infringement.
For less severe infringements, the fine can be:
- up to 2% of their annual global revenue, or
- €10 million (whichever is greater)
For more serious infringements, the fine can be:
- up to 4% of their annual global revenue, or
- €20 million (whichever is greater)
The GDPR has had a big impact on the way businesses collect and use data. And it’s not just businesses in the EU that are affected. If you have customers in the EU, then you must comply with the GDPR no matter where your business is based.
This has led to a lot of businesses scrambling to make changes to the way they collect and use data.
It has also led to the development of privacy-friendly analytics solutions. These solutions allow businesses to comply with the GDPR while still collecting data.
How Does GDPR Affect Google Analytics?
Google Analytics (GA) is a popular web analytics tool that is used by millions of businesses.
It’s the de facto standard for tracking website traffic. GA provides a wealth of data that can be used to improve website performance.
Several European Data Protection Authorities (DPA) ruled that Google Analytics violates GDPR:
- January 2021: Austrian DPA (DSB)
- February 2022: French DPA (CNIL)
- June 2022: Italian DPA (Garante)
- Danish DPA (Datatilsynet)
The DPAs decided that Universal Analytics (GA3) does not meet their standards. They stated that the technical compliance measures provided by Universal Analytics were insufficient.
The main problem with Google Analytics is that user information is sent to the United States. The EU DPAs do not believe the US offers enough data protection.
Google announced in March 2022 that Universal Analytics will be phased out. It will stop collecting data in July 2023.
Its successor, Google Analytics 4 (GA4), was released in October 2020. GA4 is the next-generation measurement solution that Google recommends switching to.
What to Do Next?
If you’re using Universal Analytics on your website, switch to GA4. Additional measures will need to be implemented to comply with GDPR.
If you’re looking for an alternative to Google Analytics, consider privacy-focused solutions. Also, consider solutions that do not transfer data outside the EU.
What is Privacy-Friendly Analytics?
Privacy-friendly analytics is a type of web analytics that focuses on protecting the privacy of website visitors.
This type of analytics is sometimes also referred to as
- “privacy-focused analytics”, or
- a “google analytics alternative”
Privacy-friendly analytics tools are designed to help businesses comply with international privacy regulations.
Companies that provide these solutions have privacy built into their business model. They have taken steps to ensure that they meet the requirements of international privacy regulations. Privacy laws like the CCPA, GDPR, PECR, and many more.
Privacy Compliant Analytic Solutions
Some of the most popular privacy-friendly analytics tools include:
- Fathom Analytics
- Matomo
- Plausible
- Simple Analytics
There is a cost involved with using these tools. But the peace of mind and compliance with privacy regulations may make it worth it for many businesses.
If you’re looking for a free solution, you can also self-host your own web analytics.
For example, open-source software like Matomo or Plausible can be self-hosted. Or check to see if your Content Management System (CMS) has an analytics solution that you can use.
What Are the Benefits of Privacy-Friendly Analytics?
There are several benefits of using privacy-friendly analytics over Google Analytics. Some of the benefits include:
Easier to Comply with Privacy Regulations
As mentioned above, Universal Analytics violates GDPR according to several European DPAs.
Even with GA4, companies will need to implement additional precautions to ensure compliance. There’s no way to know whether this would be sufficient enough to satisfy the European DPAs.
By using a privacy-friendly analytic solution, it is ready to comply with regulations such as GDPR out of the box. Data is stored in Europe (or wherever the customer wants it to be stored), and not transferred to the US.
Analytics at a Glance
Google Analytics can be overwhelming for some users with all of the data that is available. It’s bloated and our clients find it difficult to use.
Most website owners only want to see the essentials, such as:
- the number of visitors
- where they’re coming from
- what pages they’re looking at
- etc
And for them, Google Analytics may be overkill.
Privacy-friendly analytics tools often provide a simpler interface. This makes it easier to understand what’s going on with your website traffic.
No more wading through pages of data to find the information you need!
Improved Website Performance
We weren’t happy with how Google Analytics loads on websites. It can slow down your website due to the size of the scripts that need to be loaded.
For example, on a typical website, Universal Analytics loads:
- Google Tag Manager (41.8~kb compressed)
- Google Analytics (20.1~kb compressed)
And GA4 loads:
- Google Tag Manager (50.0~kb compressed)
Imagine our dismay crafting a lightweight page for speed only to find out that Google Analytics could undo all of our efforts!
Thankfully, privacy-friendly analytic scripts are often lighter-weight. They have a minimal impact on website performance.
For comparison, Fathom Analytics is only 2.5~kb, Simple Analytics is 3.7~kb (1.9~kb for the light version).
This can make a significant difference on websites where load times are important, such as on mobile devices or for users with slow internet connection speeds.
No Cookie Banner Needed
Universal Analytics (and other traditional web analytics tools) use cookies to track visitors.
This means that websites using these tools need to display a cookie banner. The banner informs users about the use of cookies.
Some privacy-friendly analytics are cookieless. Meaning that there’s no need to display a cookie banner on your website. Others that aren’t cookieless can be set up to work without cookies, like Matomo.
This is a plus as we never liked cookie banners. We always felt they are a source of annoyance that broke the user experience.
Downsides of Privacy-Friendly Analytics
There are some downsides of privacy-friendly analytics that you should be aware of before making the switch.
Not Free
Unlike Google Analytics, which is free to use, most privacy-friendly analytics solutions are not.
For example, Fathom Analytics costs $14/month for up to 100,000 monthly pageviews. Simple Analytics starts at $9/month.
Paying for a privacy-friendly analytics solution may not be feasible for everyone. However, if you’re serious about protecting your website visitors’ privacy and staying compliant with privacy laws, it may be worth the investment.
Free to Download Versions Require Self-Hosting
There are some privacy-friendly analytics solutions that offer free versions. However, these typically require self-hosting, which means you’ll need to set up and manage the software yourself.
For example, Matomo is a free and open-source web analytics platform that you can host on your own server.
Most businesses, however, may prefer the simplicity of a managed solution that takes care of everything for them. A few less thing to worry about!
Limited Features
If you’re a marketer or website owner who relies heavily on data, you may find that some of the features you’re used to are not available with privacy-friendly analytics.
The minimalistic nature of privacy-focused analytics means that some of the more advanced features found in Google Analytics may not be available. And if they are available, a modified script may be required.
Cookieless Tracking is Less Accurate
The nature of cookies is that they’re stored on the user’s device, which allows for more reliable tracking. Without cookies, visitors are determined by their IP address and other footprints, which can be less accurate.
This affects basic metrics like unique visitors as well as more complex ones like conversion tracking.
Conclusion: Address Privacy Concerns
There’s no doubt that privacy concerns are on the rise. And as more people become aware of how their data is being used, they’re demanding more control over it.
That’s why privacy-friendly analytics is an important consideration for any business.
There are many Google Analytics alternatives that are privacy friendly. You can choose from a variety of options that suits your needs. Just be aware of the limitations before making the switch.
Not only can it help you comply with privacy laws, but it may make your visitors feel more comfortable. It will show them that you’re committed to protecting their data. And that’s a win-win for everyone involved!
While there are some downsides to privacy-friendly analytics, you may find that the benefits outweigh them. If you’re looking for a Google Analytics alternative, consider a privacy compliant solution! Your website visitors will thank you for it… probably!
For us, the decision was simple, the visitor’s user experience is always our top priority. Privacy-friendly analytics is the best way to achieve this. No more cookie banners or bloated analytic scripts!
Recap
- Data is becoming an increasingly valuable asset, and businesses are implementing data-collecting tools to track customers’ activity.
- General Data Protection Regulation (GDPR) is an EU regulation that sets standards for data collection and use, with hefty fines for non-compliance.
- Google Analytics is the de facto standard in terms of tracking website traffic, but it violates GDPR according to several European Data Protection Authorities.
- Privacy-friendly analytics is a type of web analytics that focuses on protecting visitors’ privacy and helps companies comply with international privacy regulations.
- Benefits of using privacy-friendly analytics include easy compliance with regulations, simpler interfaces, improved website performance, no need for cookie banners and potential cost savings.
- Downsides include the cost of solutions, limited features, self-hosting requirements for some solutions and cookieless tracking being less accurate.
Limitless Networks, A Kerry Web Design Company
If you’re in need of a web design, consider Limitless Networks! We’re a web design company that puts the needs of our clients first. We’ll work with you to create a website that meets your needs and goals.
Contact us today! We’re happy to chat about your web design needs and see how we can help you.
