Safeguarding personal information online has become more critical than ever as data privacy laws expand and consumers’ expectations grow. One of the most effective strategies for protecting data is through data minimization.

This principle, enshrined in various data protection and privacy laws like the General Data Protection Regulation (GDPR) and the California Privacy Rights Act (CPRA), emphasizes the importance of collecting, processing, and storing only the minimum amount of personal data necessary for a specific purpose, and retaining it only as long as needed to fulfill the stated purpose.

But what exactly is data minimization, how does it work, and how can your company implement measures to limit its data collection in beneficial ways? Let’s delve into it.

What is data minimization?

Data minimization is a fundamental principle in data protection and privacy laws like the General Data Protection Regulation (GDPR).

Data minimization refers to collecting, processing, and storing only the minimum amount of personal information necessary for a specific purpose, and retaining it only as long as needed to fulfill that purpose.

This approach aims to reduce risks associated with companies’ potential privacy overreach, data breaches, and other misuse while helping to ensure compliance with various data protection regulations. It also shows respect for customers by demonstrably limiting data collection and use to only what’s needed, communicated, and consented to.

Organizations implementing data minimization strategies only collect relevant data and retain it for the shortest time possible. They also regularly review, delete, or anonymize unnecessary information.

By adhering to this principle, companies can better protect individual privacy, enhance data security, improve data management efficiency, meet legal requirements, and improve customer experience.

Data minimization and GDPR

Data minimization is a key principle of the GDPR. It requires organizations to collect and process only the personal data that is necessary for their specified purposes. It explicitly addresses data minimization in Article 5(1)(c) GDPR, which states that personal data shall be: “adequate, relevant and limited to what is necessary in relation to the purposes for which they are processed (‘data minimization’).”

This principle is further reinforced by Article 25 GDPR, which requires that data minimization be applied by default to each specific purpose of data processing. These articles mean that website owners and businesses must identify the minimum amount of personal data required to fulfill their purpose and collect and hold only that information.

To comply with data minimization requirements, organizations should regularly review their data collection mechanisms, like website cookies, what data they collect, and for what purposes. Then they should also review what data they currently store and use, and if the purposes for which the data was collected are still valid. Finally, they should delete or anonymize data that is no longer needed.

By adhering to this principle, organizations can demonstrate accountability and reduce their risk of noncompliance with the GDPR.

Data minimization and CPRA

The California Privacy Rights Act (CPRA) also introduces data minimization as a key principle for businesses handling consumer personal information.

Under the CPRA, businesses are required to collect, use, retain, and share personal information only to the reasonably necessary extent and proportionate to achieve the specific purposes for which it was collected or processed.

Therefore, businesses must clearly define and disclose the purposes for data collection and ensure that the data is not used beyond these purposes without additional consumer notification and consent where required. In addition, the law requires businesses to implement data retention schedules and delete or anonymize (depending on the law or relevant policies) personal information once it is no longer necessary for disclosed processing purposes.

What is an example of data minimization?

Data minimization doesn’t have to be a complicated affair. For example, let’s look at data minimization in action in the context of an ecommerce website’s checkout process.

Instead of collecting extensive personal information from customers, the website could request only the necessary details for completing the transaction and shipping the product. This might include the customer’s email address, to send a receipt and order confirmation; name and shipping address, to send the order; and payment information. The company also receives various data just as part of the ordering process, like that from website cookies that track the customer’s shopping process, and order specifics like which product, size, and color.

In this example, there is no real need to ask for additional data, such as the customer’s date of birth, gender, or occupation, which are not essential for processing the order, even if these details would provide the company with more demographic information about the customer.

By limiting data collection to only what is required, the ecommerce site reduces its data liability and enhances customer privacy, while still effectively fulfilling its primary function of selling and delivering products.

Benefits of data minimization

Many website owners and companies prefer to collect a lot of data. After all, more data helps you understand your target audience and optimize marketing campaigns. However, this is a poor practice in the age of digital privacy.

While privacy laws like the GDPR and CPRA require businesses to implement data minimization practices, the benefits go beyond regulatory compliance. Additional benefits of data minimization include:

• Reduced costs: Collecting and storing only necessary data significantly lowers storage and management expenses.
• Enhanced security: Collecting less data reduces the potential impact of breaches and theft, leaving less potentially sensitive information at risk.
• Efficient data management: With less data to process, analyze, and prune, organizations can manage their information more effectively, improving operational efficiency.
• Better data quality: Focusing on relevant and necessary data improves the overall quality and accuracy of datasets.
• Reduced risk profile: Minimizing data collection and storage decreases an organization’s risk related to data access and handling.
• Enhanced customer trust: Data minimization shows a commitment to protecting customer privacy, boosting consumer confidence.
• Simplified data governance: Fewer data assets make it easier to implement and maintain effective data governance.
• Faster data processing: Smaller data volumes allow for quicker analysis and decision-making.

The principles of data minimization

Data minimization is a key principle of data privacy regulation, along with closely related ones like maintaining accuracy and purpose limitation. It’s meant to guide organizations in collecting, processing, and storing personal data to fulfill specific purposes, from ecommerce sales to marketing campaigns to product development.

Here are key principles that website owners should follow to reduce their privacy noncompliance risk.

• Clearly define the specific purpose(s) for data collection and use before any personal data is collected. This will inform what data is needed to fulfill the purpose.
• Only collect data that is directly relevant and necessary for a specific purpose. Be extra vigilant if any of the data is typically categorized as “sensitive” or belongs to children, as this often requires additional consent and safeguards.
• Do not repurpose data without necessary notification, justification, and updated consent.
• Collect enough data to fulfill the stated purpose without exceeding what is required.
• Keep personal data only as long as necessary to achieve the specified purpose. Establish and follow data retention policies to delete or anonymize data when it is no longer needed.
• Embed data minimization into the design of systems and processes from the start to ensure privacy protection is built in.
• When possible, anonymize personal data to reduce the risk of identifying individuals, especially for long-term retention or secondary uses.
• Regularly review data collection, processing, and holdings to determine if they remain relevant, or need to be updated or deprecated.

By following these principles, website owners can reduce privacy risks, enhance data security, improve regulatory compliance, roll out more precise marketing initiatives, and build trust with their customers.

Data minimization and risk mitigation

Data minimization is a powerful strategy for reducing risks when handling personal information.

By collecting and keeping only essential personal data and cookies, website owners can significantly lessen the impact of potential breaches. This approach simplifies data protection efforts, as there’s less information to safeguard.

From a legal perspective, holding less data means fewer chances of violating privacy laws. This is particularly important given strict regulations like the GDPR. Data minimization brings companies one step closer to complying with these laws, avoiding hefty fines, reputational damage, and legal complications.

There’s also a financial advantage to this approach. Storing and managing large amounts of information can be costly, from both a financial and resource perspective. By cutting down on unnecessary data, companies can save on storage and processing expenses. Not to mention the work of maintaining or expunging it, or finding all of it to fulfill a data subject access request, for example.

In the event of a data issue, having less information to sort through enables quicker response times and a higher likelihood of accuracy. This rapid action can help limit damage and preserve customer trust.

Moreover, data minimization demonstrates respect for customer privacy. By only requesting and retaining necessary information, businesses can build stronger, more trusting relationships with their clients. This practice not only protects the company but also enhances its reputation in an increasingly privacy-conscious market.

How to implement data minimization measures

Data minimization may sound simple, but in practice, companies must consider how they collect, use, store, and dispose of customer data. In addition to being prepared to do the work to update policies, processes, and the management of the data itself.

Thus, if your company is considering implementing a data minimization policy, there are certain steps you need to follow.

1. Assess your current data practices: Evaluate how your organization currently collects, retains, and manages access to personally identifiable information. This involves:
   1. identifying what types of data are being collected
   2. determining how long the organization has had the data
   3. determining why each piece of data is being collected
   4. evaluating if the collected data is necessary for the stated purpose
   5. reviewing who has access to data (e.g. third-party vendors) and what they may be doing with it
   6. review where data is stored (e.g. in various departments) and who has access
2. Implement proportional data collection: Only collect data that is proportional and relevant to the purposes for which you are collecting it. Justify why you collect, process, or store consumer data and ensure these purposes align with your current business and data privacy objectives.
3. Establish needs-based retention: Develop a strict data retention policy that ensures your business only retains data needed for specific purposes and only for as long as necessary. Once these purposes are met or the required retention period has passed, the data should be deleted.
4. Use data anonymization techniques: When possible, anonymize data to protect individual privacy while still allowing for necessary data processing.
5. Control data access: Implement a system that enables secure management of data access privileges across your organization. This ensures that only specific applications or individuals have access to the data fields required for their business processes.
6. Regularly review data and delete unnecessary information: Establish procedures to periodically review the data your organization processes and the purposes for it, and remove anything that is no longer necessary to fulfill its original purpose. Consider implementing an automated solution that deletes certain data at predefined intervals.
7. Define data retention schedules: Set specific retention periods for each type of data your website and company processes. This should be part of your overall data map and governance strategy.
8. Streamline data collection processes: Review your data collection methods and forms to ensure you’re only asking for essential information. For example, if you only need a customer’s email for communication, don’t ask for their phone number or physical address.

By following these steps, website owners can effectively implement data minimization, enhance protection, reduce risks, and build customer trust.

Collect less to build consumer trust

Data minimization is not just a regulatory requirement, but a fundamental practice that can transform how organizations handle personal information.

By collecting only what is necessary, website owners can visibly demonstrate dedication to data security, user privacy, and respect for users’ rights under privacy regulations. The principles of data minimization, as outlined in regulations like GDPR and CPRA, offer a clear framework for organizations to follow, helping companies achieve and maintain compliance.

As digital privacy concerns continue to grow, adopting data minimization practices will be crucial for any organization aiming to maintain its reputation and safeguard its stakeholders’ information.

Google is phasing out third-party cookies in Chrome, marking a significant shift in the digital marketing landscape. Our in-depth session explores what this means for marketers, advertisers, publishers, and users. We address the challenges ahead and provide actionable solutions.

During this webinar, we cover the impact on personalized advertising, delve into alternative tracking technologies, and share strategies to maintain user privacy while achieving marketing goals.

What You’ll Learn:

• How Chrome’s changes will affect your marketing and data capabilities.
• The impact on your current marketing strategy.
• Effective strategies to thrive in the new marketing environment.

Who Should Watch:

• Companies that rely on cookies for marketing and advertising.
• Marketing professionals preparing for the end of third-party cookies.
• Marketers seeking guidance on navigating the new privacy landscape.
• Anyone interested in future-proofing their marketing strategies.

Stay ahead of the curve and ensure your marketing efforts succeed in a cookieless future. Register now to watch the recording!

There’s no viable and sustainable path to app growth without user consent. Stronger app privacy regulations mean consent and compliance should be a top priority for mobile application developers, publishers, and marketers to get right.

In this article, we’ll share key context and information about user consent, privacy compliance, and the regulations governing mobile app privacy.

We’ll also cover best practices for creating your mobile app privacy policy, as well as helping to ensure compliance with tracking and data processing consent requirements. Lastly, you’ll learn how the Usercentrics consent management SDK can help automate the entire process with an easy to use, highly customizable, and industry-leading solution.

Apps and privacy

The mobile application market is stronger than ever, with in-app spending set to reach USD 233 billion by 2026, according to a Sensor Tower report.

Yet many app developers and marketers feel the ground shifting, as data privacy regulations and industry changes (like Apple’s ATT) disrupt established user acquisition tactics, such as ad buying on self-attributing networks (SANs).

Data privacy regulations that require user consent for any type of personal data processing are a major cause of this disruption.

“The global landscape of data privacy regulations is increasingly stringent, with frameworks like the EU’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) setting the tone for what is becoming a global standard. These laws are not just legal hurdles; they represent a shift towards greater transparency and user control over personal information, which is crucial in the digital age,” says Adrienne Fischer, Founder and Attorney at Basecamp Legal.

As user consent requirements are here to stay, and noncompliance poses huge risks to the bottom line and customer base, the digital ecosystem is accepting this and adapting accordingly.

For example, Google has committed to ending third-party cookie use in Chrome, while server-side tagging is a growing alternative to third-party ad tech reliance. Additionally, more digital property owners are implementing user consent policies in compliance with laws like the EU’s General Data Protection Regulation (GDPR).

But when it comes to data privacy, the mobile application market has fallen behind, with 90% of popular apps in the EU in 2022 failing to respect user consent.

Future-proofing data strategies around user consent is vital for long-term business growth, especially for those with mobile apps.

In Liftoft’s 2024 App Marketer Survey, user privacy continues to be a top industry challenge and a pressing issue for apps. As such, user consent and data privacy are top of mind for many in the mobile app industry.

We’ll examine the data privacy regulations affecting your app and share how the Usercentrics SDK can help you automate privacy compliance and optimize consent rates via providing transparency to your users.

In short, there’s no way around data privacy compliance for any app business, and companies shouldn’t be avoiding it, especially when there are real financial benefits to privacy compliance. Here’s a quick overview of the most important regulations and their key requirements for apps.

Mobile app privacy laws and regulations

Data privacy regulations typically address consent via one of two models: opt in and opt out. Around the world, the opt in or prior consent model is most common. The opt out model is the one currently used in state-level privacy laws in the United States.

Consent on apps

The European Union’s General Data Protection Regulation (GDPR) is a data privacy regulation that applies to any app that collects personal data from users based in the European Union. Art. 6 GDPR outlines six possible legal bases for data processing, of which consent is the first, and Art. 7 GDPR outlines the conditions for consent to be valid.

The GDPR’s key requirement when using that legal basis — which many apps need to — is that if your app tracks personal data from EU users, you first need their consent to do so.

European data privacy regulations and guidelines (GDPR/ePD) put the responsibility of compliance on the “data controller”, i.e. the app owner/publisher.

This means that if your app processes any personal data from EU users, you are responsible for obtaining prior consent to do so. To date, as noted, many app publishers have been lax about doing so, but data protection authorities in Europe and the US have started increased enforcement in app markets.

Many third-party app SDKs track different types of data from users, like IP addresses, which are considered personal data under the EU’s GDPR). Yet these third-party providers would not be held fully responsible if users are denied their right to prior consent or data processing is otherwise done noncompliantly. That rests with you, the data controller.

Consent-based requirements in data privacy regulations that affect apps are not limited to the European Economic Area. A number of other GDPR-influenced data privacy laws have also taken effect around the world. Brazil’s General Data Protection Law (LGPD) and South Africa’s Protection of Personal Information Act (POPIA), for example, both require user consent before data processing.

Cookie consent for apps

For apps that collect data from EU customers, complying with cookie consent requirements is essential. Apps now need to establish a cookie policy that is transparent and informative. (While “cookies” is a term more commonly used for website tracking, apps absolutely do track users and collect data from and about their actions.)

Additionally, apps consent management should provide customizable cookie preferences, so users have the power to manage access to their data. This approach helps to ensure legal compliance, andestablishing clear and user-friendly consent mechanisms is also a critical step in respecting user privacy and securing data needed for marketing operations.

Opt-out on apps

While EU data privacy laws often require users to opt in, current state-level privacy laws in the U.S. typically follow the opt-out model.

These laws allow apps to collect data in many cases without requiring user consent first, but require businesses to provide a clear and straightforward way for users to opt out or revoke their consent. This opt out can be for data collection and use, sale, sharing, targeted advertising, or profiling, depending on the law.

Every data privacy regulation is distinct and applies differently, so be sure to review the specific regulations that apply to your data handling operations and where you do business.

Broadly speaking, the world’s strongest data privacy regulations have set a standard that’s had an enormous impact on the app market, especially for app marketers.

What are the key data privacy regulation requirements for apps?

Again, it depends somewhat on what data your app tracks/processes and where your user base is located, but online, customers can be anywhere, especially with mobile apps. So here are best practices to keep in mind when developing your app privacy compliance strategy and implementation.

Obtaining and managing valid user consent

Apps with users in many regions globally must collect and securely store consent from every user before processing their personal data and must provide an easy way to change their consent choice (e.g. if you have users from the EU, Brazil, or South Africa). Consent banners must enable freely given, unambiguous, explicit consent from each user. Pre-ticked checkboxes, for instance, are not allowed in most consent-based laws.

Enabling users to opt out of data processing

If you have users in the U.S., enable them to opt out of data processing and respect their choices. A designated link or button must make it easy for users to opt out of data collection and sharing, e.g. through a Do Not Sell Or Share My Personal Information link, as is required by the CCPA and CPRA in California.

Even for European app users who may have given consent, the GDPR requires that they be able to change or withdraw it at any time as easily as they gave it.

Comprehensive privacy notice and/or policy

Provide a clear, easy to access privacy policy for full transparency into your app’s data processing, including the trackers in use, purposes of collection, method of processing, and which third parties you share this data with. This type of notification is a requirement in most data privacy laws around the world.

Mobile apps need data protection regulation compliance just like websites, and risk the same financial penalties. Heavy fines (e.g. up to EUR 20 million or up to 4 percent of annual global turnover, whichever is higher, under the EU’s GDPR) and loss of customer trust and active users are among the biggest risks for any app that doesn’t respect user consent and violates compliance.

However, with the industry moving away from third-party cookies towards server-side tagging, app companies that don’t update their data strategies for consent and compliance face additional risks.

As data privacy regulations have cemented consent as the industry paradigm, the ad tech industry is restructuring accordingly. For example, many advertisers are only buying ad space on apps that can prove valid user consent has been collected.

As dependence on third-party tracking declines across digital marketing operations, user consent is vital for establishing sustainable, data-driven marketing strategies. For apps to keep up with this change, and to capitalize on its opportunities, implementing proper and compliant consent policies must be a top priority.

Mobile app privacy policy best practices

For your mobile app to maintain compliance with data privacy regulations, you’ll need to create a detailed privacy policy that clearly and comprehensively details your company’s approach to user data. Here are best practices to consider when crafting your mobile app privacy policy.

• Transparency: Clearly outline in plain language:
  • types of personal data your app collects
  • how data is collected
  • purpose for its use
  • legal basis for processing
  • how long the data will be stored/retained
  • which third parties it’s shared with
    It’s common for there to be a separate document or privacy policy section that serves as a specific cookie or tracker notice.

• User rights: Detail user rights regarding their personal data, including how they can make requests to access, correct, delete, or transfer their data, if allowed under relevant data privacy law.
• Security measures: Describe the security measures in use to protect user data from unauthorized access or other breaches.
• Consent: Include how the app obtains user consent for data collection and use, especially for sensitive data (however “sensitive data” is defined under applicable regulations). Some privacy laws require specific notifications about and access to data that is categorized as sensitive by default, like that belonging to children.
• Contact information: Provide contact details for users to reach out to if they have privacy concerns, complaints, or data access requests. Under some circumstances this would need to be the data protection officer.
• Updates to policy: Inform users about changes to the privacy policy and when the last update was. Keeping the policy regularly updated is a regulatory requirement under many privacy laws.
• Compliance: Ensure the privacy policy includes relevant information like the legal basis for processing, where relevant, and other information about compliance practices, like how to change or withdraw consent, existence and use of automated decision-making (e.g. AI tools), or handling of third-party or international data transfers.

While a mobile app privacy policy can be written by anyone from scratch, doing so can be resource intensive and risks potential gaps that lead to noncompliance. Privacy policy generators can save time and provide the right level of detail, but you still need to be careful to customize it correctly for your business and relevant regulations. Consulting qualified legal counsel and/or a data privacy expert with mobile apps expertise is strongly recommended.

What are the benefits of app privacy compliance?

Mobile app publishers and marketers are all too familiar with the challenges that come with data privacy regulatory enforcement for apps. According to a Sensor Tower report, 2022 was the first year on record where app store growth slowed to a halt, with Apple’s ATT framework being seen as the biggest influence. (The ATT framework was launched and enforcement began part way through 2021.)

Some of the challenges mobile marketers face include users declining to share personal data, resulting in a loss of data for marketing needs, and more imprecise performance evaluations.

In other words, mobile app marketers may struggle with a “blindness” when it comes to creating retargeting campaigns and optimizing user experience for better retention and customer lifetime value (CLV).

Besides the challenges to user acquisition and attribution, a recent case study from Blinkist shows the steep potential consequences of an incorrect setup of consent banners.

“Contrary to the common focus on the challenges of privacy compliance, we see significant benefits. Adhering to these standards not only reduces legal risks but also signals to users that an app prioritizes their data security, fostering user trust and loyalty in a competitive market,” says Yekta Ozcomert, COO of MobileAction.co.

It’s time for a change of perspective. Consent is not an obstacle to a thriving app business, it’s a necessity and an opportunity. Increasingly, premium advertisers are requiring proof of consent to unlock desirable inventory. For apps, data privacy can be a boon to revenue growth.

1. Outcome-based marketing

Mobile marketing is trending towards outcome-based marketing, which means working backward from desired customer behaviors to build and optimize the factors that drive those behaviors. User privacy is the key factor for this strategy, as it relies on accurate behavioral and identity data.

2. Brand loyalty

Enhancing brand loyalty with a positive privacy experience can increase your app’s brand preference by 43 percent, according to a 2022 Google and Ipsos study. Furthermore, users are twice as likely to share their personal data with a brand they trust.

3. CRM and lifecycle management

CRM and lifecycle tactics are more important than ever, with an increased focus on user retention and remarketing campaigns. The aforementioned study clearly shows that consent is key to user acquisition and retention, as it helps build customer trust, avoid fines and reputational damage, and helps ensure ongoing compliance with data privacy regulations.

In other words, prioritizing consent offers a clear competitive advantage. Those who migrate first and draw up better data strategies for their companies will profit in the long run. Google’s Consent Mode is a good example of this.

“From my perspective, the benefits of app privacy compliance are manifold. Firstly, compliance fosters trust between users and applications, which is foundational in building and maintaining a user base. Secondly, it encourages developers to design with privacy in mind, leading to more secure and user-friendly apps,” says Adrienne Fischer, Founder and Attorney at Basecamp Legal.

A privacy by design approach means consent management is integrated into the core of products. Having a robust consent solution that enables full compliance for your app is also likely to result in higher acceptance rates from users (i.e. more consent and data), in addition to other benefits. Also critically important is a consent solution that is customizable and flexible to ensure seamless user experience that doesn’t get in app users’ way.

“For instance, implementing privacy by design principles can help minimize the risk of data breaches, protecting both the user and the application from potential harm.” For app owners looking to protect user privacy, a comprehensive approach is crucial. This includes conducting regular privacy impact assessments, ensuring clear and accessible privacy policies, and implementing technical measures like encryption and anonymization to safeguard data.” Adrienne Fischer, Founder and Attorney at Basecamp Legal

However, navigating the complexities of the regulatory landscape can be difficult for mobile app developers and marketers, especially as sole proprietors or in small companies with limited resources.

This is where a consent management SDK can be easily integrated to automate the entire process.

What is a consent management SDK?

A consent management software development kit (SDK) is a tool designed to automate data privacy compliance within apps, and simplify the process of obtaining and managing user consent. Here are a few key benefits.

Efficiency: Automating consent management significantly reduces the manual workload for developers and marketers, so they can focus on other core business activities.

Enhanced marketing: Consent management SDKs enable more effective marketing campaigns by helping to ensure that all user data used is legally obtained, in compliance with relevant privacy regulations, and, increasingly, requirements of business partners.

Fosters user trust: These SDKs increase user adoption and retention by fostering trust through transparent handling and use of their data. This is enhanced when the texts and UI are optimized for clarity and user-friendliness.

Benefits of the Usercentrics Consent Management SDK

The Usercentrics Consent Management SDK is designed to address complex compliance requirements automatically, so your app can continue thriving with data protection peace of mind. Here are some key benefits:

Plug-and-play

Our SDK is designed to be ready to enable privacy compliance out of the box once you configure the CMP to your business needs and relevant regulatory requirements. Integration and maintenance efforts are minimal, just present the privacy banner when needed in your user flow, and our automated compliance technology helps take care of the rest.

Tailor-made fit

We value great user experience, and for a CMP this means maximizing transparency while minimizing intrusiveness. We want users to have a seamless experience when using your app. Our SDK offers several levels of customization that will help you adapt our privacy banner to your design and messaging, as well as roll out advanced features such as Dark Mode and A/B Testing.

Geotargeting for global compliance

Thanks to our remote configuration setup and location awareness, the same SDK integration can address your privacy compliance needs whether your users are in Europe (GDPR), U.S. (CCPA/CPRA), Brazil (LGPD) or other countries with comprehensive data privacy regulations.

Data-driven optimization

Whether your priority is to maximize your monetization strategy or provide a personalized experience to your users, you will need user insights. For this reason, optimizing your opt-in rates can make a vital business difference. The Usercentrics Consent Management SDK gives you robustanalytics with multiple levels of granularity, so you can track how changes to the banner influence interaction and opt-in rates.

Broad support

With support for iOS, Android, Flutter, React Native, and Unity, the Usercentrics Consent Management SDK offers a flexible approach to solving data privacy compliance for mobile apps — and can be integrated with your app in less than an hour.

“A prominent part of the user experience is the ‘privacy experience’ (i.e. ATT permissions, GDPR permissions, etc.) which should also be seamlessly integrated in the journey. Having permission pop ups and banners randomly breaking your experience is becoming a no-go.”
— Valerio Sudrio, Global Director, Apps Solutions, Usercentrics

Stay ahead with mobile app privacy

The mobile apps market is thriving, but ignoring user consent and privacy compliance continues to grow as a liability as the technology industry centers on data privacy and user engagement in response to growing regulatory coverage and the demands of influential tech platforms and business partners.

Integrating a consent management SDK on your app can help future-proof your data-driven business: boosting transparency and trust, smarter data strategies, and better remarketing campaigns.

If you want to continue leveraging user data to build high-performing campaigns, you need user consent. There’s no way around it.

The Usercentrics App CMP SDK brings industry-leading compliance technology to your app. Get in touch with one of our experts to learn more about how the Usercentrics SDK can help automate consent and compliance on your app.

Data privacy and user consent are vital when developing and operating a mobile app or game. Without it, you risk breaking trust and breaching legislation.

Many mobile apps have already been penalized for not meeting the requirements of global data regulations like the California Consumer Privacy Act (CCPA), Brazilian General Data Protection Law (LGPD), ePrivacy, and the EU’s General Data Protection Regulation (GDPR).

GDPR came into effect in 2018, giving individuals control over their personal data and setting the pace for similar regulations around the world. It requires app owners to seek explicit consent from customers before they’re allowed to collect, use, or sell any personal data.

This means you need mobile app consent for data such as location, name, address, telephone number, biometrics, health, or financial data. It also covers cookie consent and any data that can identify an individual, like IP address.

Mobile apps and games have important reasons for gathering this data — often to improve functionality and deliver a better app experience. We’ll share five best practices for obtaining and managing mobile app consent.

What is mobile app consent?

Mobile app consent involves asking for explicit permission before accessing or using a client’s personal data.

Along with being a regulatory requirement, this is a cornerstone of building trust and loyalty with app users and mobile gamers. By clearly outlining what data is being collected and the purpose behind it — such as a personalized app experience, improved service delivery or access to special features — individuals can make informed decisions about their privacy.

Mobile app consent typically works by presenting clear, easily understandable choices regarding customer data.

This often includes a clear way to opt in or opt out of data collection for certain features, along with a detailed explanation of how data will be used and what security measures are in place to protect customer information.

5 top app consent best practices

Here are five proven strategies to navigate mobile app consent, so you can deliver an outstanding app experience while ensuring compliance.

Following these best practices will help you communicate with clarity, offer meaningful choices and respect customer preferences — to ultimately build a solid foundation of trust and transparency with your users.

1. Timing is everything: present disclosure at the point of request

An app user is far more likely to grant you permission to use their data if they understand exactly what you’re asking for and why you’re asking for it. They’ll be even more likely to do so if you make it clear what’s in it for them if they grant permission.

It’s recommended — and often legally required — to present disclosure when you request to use an individual’s data.

For example, let’s say your app is for a fashion retailer, and you offer a free home delivery service. If you ask a customer for consent to use their location data while they’re browsing men’s shirts, it likely won’t be clear why you need that data.

However, if you present that same consent request while the customer is checking out and arranging the delivery, your request will make better sense; you need their location data to provide the delivery service.

Being upfront, transparent and clear about the data you need — what’s in it for your users — helps to build trust and ensures your customers can make informed decisions.

2. Give the consumer the choice to decline consent

While we all want our mobile app users to grant consent, it’s important to provide a clear and simple way for them to decline. It should also be easy for individuals to change their mobile app consent preferences at a later date, as this is a legal requirement of some privacy laws.

And it’s a violation of GDPR to make consent a condition of use. If a consumer declines consent and that data is necessary to power a certain feature, then degrading that feature on your app is a better approach than denying full access.

Using the example from before, if a consumer declines your request to use location data and then realizes that they can’t see where their delivery driver is, they may want to change their mind and grant consent. Make this as easy for them as possible.

Under GDPR, mobile app consent must be explicitly stated, so be clear and transparent with your requests and offer both “accept” and “decline” options equally.

3. Request explicit consent for each use case in clear, friendly language

Usercentrics is engineered with a deep understanding of the unique requirements and challenges of native apps. We do all the hard work, so you don’t have to.

In the early days of the GDPR, some apps tried to gain user consent by writing vague or confusing consent messages. This is not a viable tactic.

Not only has enforcement ramped up, but consumers are far more knowledgeable about what data might form a part of any mobile app consent process — and what their rights are.

Being explicit, clear and transparent will help to build trust while giving your app users the best chance to make an informed decision.

When you use clear language that makes sense to your customers, they’re more likely to grant you consent to use their data. Google recommends writing your mobile app consent messages to the reading age of a 13-year-old. (Under many laws, 13 is the age when individuals can legally provide consent, rather than requiring a parent or guardian.)

4. Use disclosure prompts that look like your app and not like the operating system (OS) notifications

Your disclosure prompts shouldn’t look like OS notifications, as this may confuse your consumers. You want your customers to be clear that it’s your app — rather than Apple or Google — that’s asking to use their data.

Let’s refer back to the example of a fashion retailer mobile app. If a mobile app user understands that you, the shopping app, are asking for consent to use location data to track deliveries, there’s a good chance that consent will be given.

By comparison, if a user mistakenly believes that the OS is asking for consent for the use of location data, they may think they’re giving permission for all apps to use their location data, and decline.

To help clarify this, customize your user interface with a seamless look and feel — including fonts and colors that match your app. Then optimize your user experience and place your consent request where it makes contextual sense. Both will be possible with a good consent management solution.

5. Be transparent, clear and specific with your consent requests

Consumers are increasingly educated about their data rights, so trying to distract or confuse them is a risky business — both for user trust and regulatory compliance.

To build long-term, trusting relationships with your customers, be transparent, clear and specific in your consent request. The GDPR requires consent to be “freely given, specific, informed and unambiguous.”

Write in clear and simple language that’s easy to understand, as your mobile app users often won’t spend much time deciding to accept or decline consent. If your audience is global, being able to present information and requests in multiple languages is also valuable.

Be clear what users get out of the transaction in return for granting consent. People want to know what’s in it for them, so make sure all cards are on the table.

Manage mobile app consent management with Usercentrics

Effective consent practices include asking for consent at the right time, allowing users to say no, using clear language for each request, making sure consent prompts match your app’s style, and being transparent and specific with your requests.

Also remember to use simple language that a 13-year-old could understand, as suggested by Google. While it’s good to keep things brief, detailed explanations are better if they help readers understand. Plus, if you’re sharing data with third parties, explain who they are and why they need the data.

Achieving privacy compliance need not be a headache. A CMP, such as the one offered by Usercentrics, can help you manage the processes of obtaining, managing and optimizing mobile app and website consent.

Data privacy is no longer a niche crusade led by a few organizations or governments. Regulators are introducing new rules — and enforcing them — all over the world. In fact, Gartner has predicted that 75% of the world’s population will be protected by data privacy regulation by the end of 2024.

This is the new reality, and app developers must adapt to it, or, better, embrace it. It’s time to take your users’ data privacy seriously.
The best way to respond? Implement a Consent Management Platform (CMP). A CMP will build trust by providing clear information and consent choices about tracking in your app. With the upcoming Google Consent Mode for mobile, app developers need a reliable and Google-certified CMP to ensure precise attribution and analytics.

But which CMP?

Many developers are looking at Google’s own solution, which is understandable. After 16 January 2024, Google stopped publishers that were not using a Google-certified CMP from serving personalized ads to users in the EU/EEA or UK.

Among those options was Google’s own CMP. It’s certainly an easy choice. But is it the right one?

At Usecentrics, we don’t think so. We are pioneering specialists in consent management, and we believe our SDK for mobile consent management is the best option. You get many more features than with Google’s CMP, all in one easy-to-integrate package.

In this article we will look closely at the essential features of a CMP and explore why the Usercentrics CMP is a compelling choice for developers.

Get a Google-certified CMP for your business

Start 30-day free trial

What makes a good CMP? 6 criteria to consider when choosing your SDK

It can be confusing to consider all the features of a typical CMP and compare them to your business needs. So let’s simplify the SDK components down to six key areas.

1. Supported regulations and frameworks: GDPR, CCPA/CPRA, etc; TCF 2.2, Google Consent Mode, Google Additional Consent for TCF
2. User experience core features: A/B Testing, Cross-device Consent Sharing, offline capabilities
3. Customization: logos, buttons, texts, background, etc
4. Analytics: Interaction Analytics, Granular Analytics, etc.
5. Technical benefits: quick setup, user-friendly templates, support for cross-platform frameworks, etc.
6. Commercial benefits: fast support response, free trial, etc.

The Usercentrics team has an extensive technical and legal expertise that we use to develop our own products, and to evaluate others on the market.

Google CMP vs UC CMP: feature by feature comparison

Let’s explore each of the six components and their specific characteristics in depth, comparing the Google and Usercentrics CMPs.

Supported regulations and frameworks: are you compliant everywhere?

Regulation — by government agencies, and, increasingly, by large tech platforms — is the main factor influencing developers to embrace consent management. The product they choose must meet every compliance need, especially as companies grow and regulations evolve.

Global multi-regulatory support is essential. The CMP must enable compliance with privacy laws like the GDPR, CCPA, LGPD and many more. Ideally, it must enable compliance with multiple regulations for the same user base in jurisdictions where this is necessary.

Geolocation functionality enables this. Clear, transparent regulatory compliance not only builds trust, but also protects the app developer from violations and potential fines and other penalties.

Usercentrics’ SDK was built to ensure it recognizes all relevant privacy regulations. It supports auto-location and auto-language detection, which are essential tools for any mobile app publisher looking to expand globally.

The ability to adapt seamlessly to a user’s location and language preferences also enhances the user experience. It makes the app accessible to the widest audience and can increase user engagement, because it makes the app’s messaging culturally relevant, in addition to legally relevant.

Customization: can you adjust settings to boost opt-in rates?

When App Tracking Transparency (ATT) was first released at the end of April 2021, opt-in rates didn’t look promising. Even though they weren’t as low as the predicted 5%, in May 2021, they were at a pretty low level of 16% (Adjust). However, soon enough, the numbers started rising. By the end of 2021, the average opt-in rate climbed to 25% and continued to rise, reaching 29% in 2022. In 2023, they increased even further, averaging at 34% (Adjust).

Why did they improve so much? Customization.

Customizing your consent banner user interface, notification texts, and consent requests makes it easier for users to understand the process. What data do you collect, and for what purposes? Who has access to it, and other considerations. It gives you the chance to motivate users to opt in. You can address privacy concerns and highlight the user benefits of consent.

Now, with the entire industry facing new Google requirements, customizing your consent banners has become even more important. It is crucial to adopt best industry practices to increase your opt-in rates and continue to monetize.

Analytics: do you know what works and what doesn’t to make changes?

Great user experience is an art, and once that needs to constantly evolve. You need to tweak your settings to provide the information and choices in the best way to maximize how many of your users choose to opt-in. The best CMPs enable you to customize extensively, and, just as importantly, analyze the results to see what works.

Here are three important configuration choices you can explore.

1. Accept and interaction rates. App publishers must strike a balance between user consent and data collection. By analyzing user responses and interactions with consent prompts, publishers can identify patterns, then optimize their design and content to boost acceptance rates. This helps ensure your compliance with data protection regulations while still gathering user data from your app.

2. Changes in user behavior after design changes. Monitoring user interactions after design changes will help you understand how your audience has responded to the new user interface and/or user experience. Higher acceptance rates may indicate the redesign is well received. Lower ones might signal potential issues that need further investigation or adjustment.

3. User Interactions based on region. Analyzing how users from specific countries interact with your CMP can help you tailor consent prompts to align with regional data protection and privacy laws.. This can build trust and help with the informed consent aspect of compliance.

User experience: what can you do to provide a seamless user experience?

When it comes to consent management, seamless UX really matters. Your UX must be tailored to the specific needs of mobile app and game users. A generic CMP will never be as good, and may be a detriment if it gets in users’ and gamers’ way.

Recent research by Gamebiz Consulting found the opt-in rates achieved with specialist CMP solutions surpassed those of Google’s CMP by nearly 10%, an average 82.6% versus 72.9% respectively.

You can improve your UX by continuously monitoring A/B test results and gathering user feedback. This will help you to make informed adjustments to maximize your engagement metrics. In addition, you can conduct preview simulations to get valuable insights into how users interact with the app or game interface, then make tweaks to improve usability and engagement.

White-labeling also helps. It enables you to customize the branding and aesthetics of the app or game to match your target audience’s preferences and expectations. By integrating white-labeling you can create an immersive user experience to builds brand recognition and loyalty.

Technical benefits: is your CMP SDK easy to integrate?

How easy is it to install your CMP SDK? For a busy app developer, this is a critical question.

The best platforms work hard on this integration process. At Usercentrics, we make it as seamless as possible by providing tools such as the App Scanner. It will scan your app to find all the third-party technologies in use that need to be declared on your consent banner. It drastically reduces setup times.

With the App Scanner, we automate a major part of the App Consent Management setup. App Scanner identifies all third-party technologies and vendors and provides our customers with a consolidated report for effortless configuration.

Commercial benefits: can you get the support you need?

Every developer will have questions when it comes to integrating a CMP. Usercentrics created a dedicated Customer Success team to handle all your questions. Get personalized support and guidance, resolve issues, optimize your app, maximize your resource allocation, and get you access to insights and updates.

It’s a partnership designed to help you quickly integrate the SDK, overcome challenges, and achieve your privacy compliance and data use goals with confidence.

Final thoughts: six reasons to choose Usercentrics’ CMP

The Usercentrics Consent Management SDK is powerful, feature rich, flexible, easy to install and enables global privacy compliance. It simplifies privacy compliance and consent management so you can focus on what’s most important: growing your app user base and revenues.

Here’s a quick recap of the key benefits:

• addresses the privacy requirements of the TCF 2.2 standard
• boost revenue with more consented users and optimized opt-in rates
• deliver a branded, privacy-first and trustworthy user experience with customized banners and screens
• improve your opt-ins over time with customizable consent screens, A/B testing and exportable analytics
• set up quickly and easily with a developer-friendly SDK that’s fast and intuitive to implement, thanks to features like App Scanner
• meet global data compliance needs with support for multiple regulations and languages, auto-location, and auto-language detection
• deliver a best-in-class user experience with consent choice persistence, which helps users who move between jurisdictions in a short period of time avoid repeated banner ads across geographies.

Companies using the Usercentrics SDK include Zynga, Homa Games, Bombit, and many others. Join them now and enjoy the same benefits.

As the mobile gaming industry continues to grow, developers and publishers face new challenges in monetizing mobile games to generate sustainable revenue while ensuring user privacy and data protection.

Google’s Action Mobile Genre Report reveals a shift in player sentiment towards in-game ads, with 75% reporting a positive or neutral impact. It suggests adopting a hybrid monetization strategy combining in-game ads with in-app purchases for higher revenue.

But mobile game ads don’t just benefit the developers. They also benefit the users (gamers) and advertisers, making them a popular choice for monetizing apps. And while in-game advertising is just one of the ways to monetize your game — besides in-app purchases and paid downloads —, with the Google AdMob requirements update, the game has changed for mobile game monetization.

Google’s deadline for app publishers: January 16, 2024

Google has set a deadline for mobile app publishers — including mobile games — to adopt a Google-certified Consent Management Platform (CMP) that enables privacy compliance.

Starting from January 16, 2024, Google will be making important changes to its ad serving protocols. If you have a mobile game that uses Google AdMob, you’ll be required to secure user consent via a Google-certified consent management platform (CMP) that integrates the Transparency and Consent Framework version 2.2 (TCF 2.2) developed by the International Advertising Bureau (IAB).

This is to ensure adherence to consent under GDPR requirements. The CMP serves as a bridge among publishers, users and vendors, enabling transparency with users and securely storing consent signals that can be provided to partners like Google that require them.

However, if a user does not give consent for data use, Google will drop the ad request and no ads, not even non-personalized ones, will be served. Non-personalized ads still need consent for cookies and mobile identifiers.

If you have a mobile game that uses Google AdMob and want to ensure your AdMob game’s revenue stream and stay ahead of the competition, it will be crucial to ensure your game is privacy compliant, provides great user experience, and is able to achieve optimal and continued monetization.

What is mobile game monetization?

Before we delve into the nitty gritty of AdMob for Games, let’s first understand mobile game monetization models.

As a game developer, your primary goal is to generate revenue from your game. This can be achieved through various methods, such as in-app purchases, subscriptions, or advertising. AdMob focuses on the advertising aspect and provides a platform for you to monetize your games through serving ads.

Exploring effective mobile game monetization strategies

Monetizing mobile games requires a thoughtful approach that balances revenue generation with user experience. By incorporating in-app purchases, advertisements, subscriptions, sponsorships, crowdfunding, merchandising, licensing, and data monetization, you can tap into various revenue streams while keeping players engaged.

Remember, however, that you need to understand your game’s target audience to choose the best monetization strategies that align with your game’s concept and user preferences.

In-app purchases

One of the most common monetization strategies is offering in-app purchases. This involves selling virtual goods, power-ups, customization options, or additional levels within the game. By enticing players with exclusive items or enhanced gameplay, you can generate revenue and enhance user engagement.

Ads

Incorporating ads is another effective way to monetize mobile games. You can opt for different ad formats, such as banner ads, interstitial ads, or rewarded videos. Ad revenue can be generated either through impressions or by incentivizing players to watch ads for in-game rewards.

Subscriptions

Implementing a subscription-based model can provide you a steady stream of revenue for your mobile games. By offering monthly or annual subscriptions, players gain access to exclusive content, early releases, or premium features. This model works best for games with a strong community and regular updates.

Sponsorships and brand partnerships

Forming partnerships with brands or sponsors can be a mutually beneficial strategy. You can get companies to collaborate with you to integrate their products or services within the game, providing a unique advertising opportunity. This approach works well when the brand aligns with the game’s theme or target audience.

Crowdfunding

Crowdfunding platforms offer an alternative monetization strategy for mobile games. By pitching your game concept to potential investors or the gaming community, you can secure funds to fuel the game’s development. In return, backers may receive exclusive perks or early access to the game.

Merchandising and licensing

Successful mobile games can create opportunities for merchandising and licensing deals. You can leverage your game’s popularity by selling branded merchandise, such as t-shirts, toys, or accessories. Additionally, licensing the game’s intellectual property (IP) for spin-offs, movies, or merchandise can generate substantial revenue.

Data monetization

Mobile games generate a vast amount of user data, which can be valuable for targeted advertising or market research. By anonymizing and analyzing this data, you can offer insights and reports to advertisers or research firms, creating an additional revenue stream.

So what is AdMob?

AdMob is a mobile advertising platform owned by Google. It enables you to monetize and promote their mobile and tablet apps and games by displaying a variety of ad formats — including banner ads, interstitial ads, rewarded video ads, and native ads — helping them generate revenue.

We need your consent to load the YouTube Video service!

We use a third party service to embed video content that may collect data about your activity. Please review the details and accept the service to watch this video.

More InformationAccept

powered by Usercentrics Consent Management Platform

Although AdMob enables you to easily integrate ads into your game and start earning money, what you need to remember is that it’s crucial to obtain user consent in many regions that have adopted data privacy regulations when collecting personal data for targeted advertising.

The game-changing power of AdMob: What are the benefits of AdMob for game developers and mobile game studios?

Mobile game publishers are constantly searching for ways to monetize their games effectively. With the increasing privacy concerns from consumers and the complexity of privacy regulations making specific compliance requirements often unclear, finding the right solution can be challenging.

However, AdMob is here to save the day, especially for the gaming industry. AdMob for Games has the potential to revolutionize game monetization, and it’s time for you to take advantage of this opportunity. You can reap numerous benefits by implementing AdMob for your games.

1. Diverse ad formats

AdMob offers a wide range of ad formats, including banner ads, interstitial ads, rewarded video ads and native ads. You can experiment with different formats to find the ones that work best for their games and target audience.

Effective ad formats, such as rewarded ads and interstitial ads, along with a well-designed game economy, are key for a successful mobile game monetization strategy.

2. Robust targeting and optimization features

With AdMob’s advanced targeting capabilities, you can display ads that are more relevant to your users, increasing the likelihood of engagement and conversions.

3. In-game ad revenue optimization

AdMob’s optimization algorithms help maximize the revenue generated from ads, helping ensure you get the most out of your monetization efforts.

4. Increased revenue potential

By implementing AdMob ads, you can generate additional revenue streams from your games, especially if they have a large user base. For example, implementing rewarded video ads can provide users with in-game rewards while generating revenue for the developer.

5. User engagement and retention

AdMob ads can be used strategically to enhance user engagement and retention. For instance, you can offer gamers the option to watch a rewarded video ad to unlock premium content or gain extra lives, increasing user retention and satisfaction.

6. Analytics and insights

AdMob offers detailed analytics and insights about ad performance, user engagement, and revenue generation. You can then use this data to make informed decisions about ad placement, targeting, and optimization strategies.

7. Seamless integration with Unity

Unity is one of the most popular game development platforms, and makes it easyto add AdMob ads to your Unity games and start monetizing your studio’s creations.

Games privacy: How data regulations affect game monetization

In today’s digital landscape, privacy regulations have a significant impact on game monetization. While Google Play and Apple’s App Store have their own guidelines, there is no specific government regulation targeted to mobile for game publishers to follow. However, AdMob is set to change the game for mobile game developers and publishers. By complying with AdMob’s requirements, you can continue to use Google’s monetization and marketing services.

The importance user privacy and compliance with the GDPR

Data protection and user privacy are critical considerations for any mobile game developer. On the regulatory side, in the EU, the General Data Protection Regulation (GDPR) is in effect, requiring that you obtain explicit user consent before collecting user data. But smart reasons for compliant consent collection don’t stop there.

Starting from 16th January 2024, Google will stop serving personalized ads if you don’t collect and signal consent with a Google-certified CMP. Therefore, if you have a mobile app that uses Google AdMob it will be crucial to ensure that your app is privacy-compliant to achieve optimal and continued monetization.

By implementing a Google-certified consent management platform (CMP) with the IAB’s Transparency and Consent Framework (TCF v2.2) integrated, you can ensure that your game meets the necessary privacy standards.

Mobile game privacy compliance with Usercentrics In-App SDK

To implement AdMob and obtain user consent effectively, consider the platform, SDK, and features provided by Usercentrics mobile app consent management platform.

Consent message for user tracking

Usercentrics App CMP offers a comprehensive solution for managing user consent in mobile games. Our platform features include customizable consent message templates, granular consent management, and the ability to obtain consent on behalf of a single user.

As a Google-certified CMP with support for iOS, Android, Flutter, React Native and Unity game engine, the Usercentrics SDK provides a flexible approach to solving data privacy compliance for mobile games. Integrate it into your game in less than an hour. Plus, Usercentrics Apps CMP supports Google Consent Mode and is also TCF-certified.

Unity games compliance with Usercentrics Unity SDK

The Usercentrics Unity SDK helps you comply with the latest Google requirements, TCF 2.2 compliance standards, and privacy laws like the GDPR and the Digital Markets Act (DMA) in the EU and CCPA in California. Our intuitive drag and drop integration enables compliance out of the box, furnishing you with our entire suite of optimization and analytics features. This not only enhances your monetization and retention performance but also helps to ensure you adhere to the DMA law requirements and other necessary privacy regulations.

Mobile game monetization success story: How Homa Games achieved 10% increase in ad LTV via user consent

When faced with the challenge of integrating user consent into their popular app game, Tape Thrower, while maintaining user engagement, Homa Games turned to Usercentrics Consent Management SDK. By integrating this consent management solution, Homa Games unlocked ad network inventory in regulated regions, resulting in a 10% increase in ad LTV, all while ensuring gamers’ privacy was upheld in accordance with local regulations.

The implementation of Usercentrics’ solution has not only enhanced Homa Games’ monetization efforts but also provided clearer information to their users about data privacy and use and their consent options – fundamentals in consent marketing. The success of this integration has the team at Homa considering additional implementations of the Consent Management SDK into games in their portfolio, aiming to further increase monetization and avoid potential privacy fines

Conclusion: Level up your mobile game monetization strategies with AdMob

Game app monetization is a complex process, especially in the context of regulatory compliance and user consent. However, with AdMob, you can navigate these challenges and increase your game’s revenue while respecting user privacy.

By leveraging AdMob’s advertising capabilities and implementing a Consent Management SDK like Usercentrics, you can maximize your game’s revenue potential while continuing to deliver great experiences to users.

Remember, Google’s January 2024 deadline is fast approaching, so if you’re a game developer or mobile gaming company looking to monetize your games in the EU, it’s essential to act now. Consider integrating AdMob and implementing a consent management solution to enable and signal your privacy compliance. Level up your game’s monetization strategy and create a win-win situation for both your users and your business.

As a mobile app developer, you probably face the dual challenge of monetizing your apps for revenue generation while abiding by data protection regulations.

The time mobile users spend in-app continues to grow, so in-app advertising (IAA) is becoming an integral part of any comprehensive mobile marketing strategy. In-app ads not only benefit developers, but also users and advertisers, making them a preferred choice for app monetization. And while IAA used to be just one of many app monetization methods, with the recent update to Google Admob’s requirements, the rules of app monetization have changed.

So how is Admob positioned in the mobile advertising market? AdMob holds a pivotal position in the mobile advertising market. As per the projections, the in-app advertising market is expected to grow from USD 135.92 billion in 2022 to USD 904.61 billion by 2032, indicating a Compound Annual Growth Rate (CAGR) of 20.87%. This growth is fueled by the increasing use of smartphones and mobile apps, enhancing the reach and effectiveness of in-app advertisements.

Around the world in 2023, almost one thousand companies are using Google AdMob as mobile marketing tool, including mobile game studios such as Homa Games, JOYCITY, GameHouse, IGG, and more.

Most popular mobile adverting platforms

Key:

• CPI (Cost Per Install) – Advertisers pay each time the advertised app is installed.
• CPC (Cost Per Click) – Advertisers pay each time a user clicks on the ad.
• CPM (Cost Per Mille) – Advertisers pay for every thousand impressions of their ad.
• CPA (Cost Per Action) – Advertisers pay each time a user completes a specific action, like making a purchase.
• CPCV (Cost Per Completed View) – Advertisers pay when a video ad is viewed to completion.
• iOS: Apple mobile operating system
• Android: Google mobile operating system
• Unity: Game development platform

The impact of user consent on apps and games revenue

Collecting user consent positively impacts the bottom line of your game. By optimizing opt-in rates and complying with privacy regulations, you can increase your app’s Average Revenue Per User (ARPU). Mobile users appreciate being given a choice and are more likely to engage with targeted ads if they have given their consent.

What’s more, starting from 16th January 2024 Google will stop serving personalized ads if you do not collect consent with a certified CMP. Therefore, if you have a mobile app that uses Google AdMob it will be crucial to ensure that your app is both privacy-compliant and able to achieve optimal and continued monetization.

Embracing mobile app privacy and obtaining user consent is not just a requirement, but also a smart business move that can significantly impact your app monetization strategy.

Best practices for obtaining user consent in mobile apps and games

User consent is a must whenever we collect personal data, but obtaining user consent can be a delicate process. Here are some best practices to improve your opt-in rates and ensure a positive mobile user experience:

1. Clear explanation of user consent

It’s crucial to explain the necessity of user consent and its implications lucidly. Make sure your explanation is not buried in legal jargon but is easily understandable for your player base. For example, a pop-up message stating, “We need your permission to collect and use your data to enhance your gaming experience.” Get more tips on mobile app consent.

2. Easy opt-in and opt-out options

Include an easy way for users to give or withdraw their consent. This could be a simple toggle in the settings menu, allowing users to change their preferences at any time.

3. Transparent data use policy

Be open about how you use and protect the player’s data. This could take the form of a ‘Privacy Policy’ link within the app/game menu, which lays out how data is collected, used, and protected in layman’s terms. Learn how to create a user-friendly privacy policy or notice.

4. Age verification

Implement age verification to ensure compliance with children’s online privacy laws, particularly important for mobile games. For instance, a pop-up asking for a player’s birth date before starting the game.

5. Consent for third-party sharing

If you share data with third parties, make sure the players are aware and have given their consent. An example could be a checkbox during the sign-up process that states, “I agree to share my data with select third parties for personalized ads.”

6. Regular updates and consent renewal

Regularly update your users about any changes in your data practices and ask for renewed consent if necessary. This can be done through in-app notifications or emails.

7. Localization of consent messages

Tailor your consent messages to suit the local regulations and languages of your users. For example, General Data Protection Regulation (GDPR) compliance messages for European users.

What is a consent management software development kit (SDK)?

A consent management SDK is a software development kit that helps developers manage user consent for data tracking and personalized advertising. It enables developers to display consent messages to users and obtain their explicit and informed consent before collecting and using personal data.

Admob does not provide a consent management SDK directly. However, you can integrate a third-party consent management SDK like Usercentrics into your app to manage user consent for personalized ads.

Usercentrics In-App SDK is a popular choice among developers for implementing consent management solutions and ensuring compliance with data protection regulations. By integrating Usercentrics or a similar SDK, you can easily handle user consent preferences and tailor your ad experience accordingly.

Take action and

Achieve compliance with Google’s new ad privacy requirements

Learn why a Google-certified CMP like Usercentrics is essential for serving ads in the EU and EEA.

Learn more

How do app and game developers benefit from a consent management SDK?

Consent management SDKs like Usercentrics in-app SDK offer several benefits to app and game developers:

• Meet Google requirements and ensure compliance with data protection regulations such as GDPR

Meet the latest Google requirements and ensure compliance with data protection regulations such as GDPR. By obtaining user consent, you can collect and use personal data legally, mitigating the risk of fines and penalties.

• Provide transparent and user-friendly consent messages.

Users appreciate transparency and are more likely to grant consent when they understand how their data will be used. This improves the overall user experience and builds trust with your user and/or gamer base.

• Customization options

Consent management SDKs allow you to tailor the consent flow to match the look and feel of your apps and games. This ensures a seamless integration of consent management into the overall user interface.

• Analytics and reporting features

You can track and analyze user consent rates, allowing you to optimize consent messages and strategies for better results.

• Demonstrate your commitment to data privacy and protection

This can enhance your reputation among users and potentially attract more users who prioritize privacy.

Overall, consent management SDKs offer a comprehensive solution for developers to comply with regulations, improve user experience, and build trust with their audience.

Mobile app compliance with Usercentrics in-app SDK

To implement Admob and obtain user consent effectively, you should consider the platform, SDK, and features provided by Usercentrics in-app SDK.

Our platform features include customizable consent message templates, granular consent management, and the ability to obtain consent on behalf of a single user.

What’s more, as a Google-certified CMP with support for iOS, Android, Flutter, React-Native and Unity game engine, our SDK offers a flexible approach to solving data privacy compliance for mobile apps and games, integrated in your app in less than an hour. Plus, Usercentrics Apps CMP is also TCF-certified.

What’s the future of data privacy regulations in mobile apps?

Data policy regulations in apps are constantly evolving, and developers and publishers must stay informed. Valerio Sudrio, Global Director of Apps Solutions at Usercentrics, predicts that user consent will continue to be a key focus in the future.

“As premium games and ad networks prioritize compliant data, the industry is moving towards consent-based marketing. Developers who embrace privacy and prioritize obtaining user consent will future-proof their monetization strategies and stay ahead of the competition.”
– Valerio Sudrio, Global Director of Apps Solutions at Usercentrics

Data protection regulations like the Digital Services Act (DSA) and the Digital Market Act (DMA) are also significantly affecting mobile game compliance and game monetization. The DSA focuses on transparency and protection for consumers, which means mobile game companies must ensure their data collection practices are transparent and protect user data. If in-game ads are employed, they cannot be based on sensitive data, potentially affecting targeted advertising strategies.

The DMA law, on the other hand, is designed to prevent market dominance by large tech firms like Google, Meta and Apple, who may add additional data privacy requirements for businesses advertising on their platforms. For mobile app and game companies, this could mean they need to ensure fair competition and avoid combining data in a way that may be seen as self-preferencing, potentially impacting how you cross-promote your apps or use user/player data for monetization.

Overall, these emerging data privacy regulations compel mobile companies to rethink their data collection, use, and monetization strategies. Non-compliance could lead to legal repercussions and loss of user trust. “App and game developers targeting European audiences must adapt to these regulations to ensure compliance and maintain their revenue streams”, Valerio adds.