A Complete Guide: GDPR Compliance For Google Analytics

With the size of Google, it seems illogical that Google Analytics isn’t actually GDPR compliant by default. While this is an interesting fact, it doesn’t change the way that small and medium businesses need to comply with regulations. 

However, Google fixed this by implementing what’s called a “consent mode.” It’s up to every business to research GDPR and similar documents individually and understand their responsibilities. The seriousness of GDPR can be easily seen through the fact that fines exceeded billions of dollars in 2021. 

The resources that give you exact information are rare, but this article aims to arm you with all you need as a business owner. 

Google Analytics Explained

One of the most helpful tools that you can use as a website owner is Google Analytics. This is a software made by Google that allows you to get insights into various metrics of your website. Starting from the most basic metrics such as traffic, clicks, and ranking up to more advanced data. 

The data collected can then be used to make better business decisions or adjustments to your website. Many larger companies have data scientists who turn these numbers into graphs and charts, allowing for a better understanding of the metrics. 

From a technical perspective, Google Analytics achieves these through JavaScript, which is running on your website. On the user’s side, their data is collected via cookies that harvest various types of data, which can range from the most basic data, such as time spent on a page, up to sensitive personal information.  

Because GDPR requires companies to ask for explicit permission for any type of tracking to be applied, Google Analytics isn’t compliant by default. This can be quite problematic depending on the size of your company and your business goals. 

Many European countries such as Austria, France, Italy, and others recognized this problem and made actionable steps to prevent this. 

However, Google realized the importance of GDPR and other regulations and made some adjustments that can make Google Analytics compliant. 

Google consent mode

To ensure that no information can be tracked by a single user, websites that implement Google’s consent mode can allow their users to customize the cookies they’re allowing. This can mean that each user can select all or only a few types of cookies.

On the other hand, they can reject all cookies and accept only those that are strictly necessary.  With the Google Analytics consent mode, companies can continue gathering the data in a way that’s compliant and transparent. 

From the technical aspect, Google tags are loaded before the cookie consent banner, allowing the Google Consent mode to adjust tags according to the user’s choice. The consent mode can be adjusted by third-party consent management platforms or via Google Tag Manager. 

However, don’t worry about switching to consent mode. It’s compatible with many different services. Google consent mode supports: 

• Floodlight
• Google Analytics
• Google Analytics 4
• Conversion Linker
• Google Ads (Google Ads Conversion Tracking and Remarketing)

Although being compliant with GDPR is a requirement, adequate implementation of these principles can bring you a competitive advantage. A consent manager is also a part of the user experience, which can help you make this part of someone’s experience more enjoyable.  

Overall, you’re going to be able to gather information that you can later use for marketing operations without worrying about fines or other problems. Furthermore, it’s unlikely that these regulations will ever start becoming less strict; it’s actually quite the opposite. The sooner you embrace compliant processes, the more advantages you can have in the long run. 

End-user consent

When you’re obtaining user consent, you need to achieve that in a manner that’s understandable and straightforward. If you’re running a website for a specific country or a region, use the local language, if the website is in English, use simple language. 

Consent must be given explicitly, and no data should be tracked before the users give you permission. Furthermore, the users must be allowed to withdraw their consent whenever they like. Even if the users don’t withdraw their consent, the cookies should have a deadline.

Renewal of consent needs to happen periodically, based on data protection guidelines. The complexity of compliance and data gathering should encourage you to pay more attention to your cybersecurity protocols.

Information about consent, data that are gathered, and legal documentation that the consent is obtained need to be stored securely. In case of a data breach where a wrongdoer gets access to this information, your company will be held accountable. 

IP Anonymization

As the name suggests, an internet address (IP) is the internet equivalent of our home address. It can play a crucial role in getting sensitive information about an individual, thus why it’s considered personal data in GDPR.

By default, IP isn’t included in Google Analytics reports, yet they are sometimes used to provide geolocation data. An important advice for compliance is to avoid collecting data that you don’t need. 

This ensures that you’re a smaller target for hackers and wrongdoers, and you won’t have to commit as much resources. Turning on IP anonymization prevents gathering such identifiable data of your users. 

Detailed privacy and cookie policy

The cookie banner will be one of the first visual elements that your users will encounter when visiting a website. They don’t have all the information about your policies. The encouraged simplicity of this element also prevents it from providing the user with all the necessary information.

A separate page needs to be created that explains your privacy policy and how cookies are used. The reasons why you’re gathering cookies and how you’re using them should be explained in your privacy policy.

Disclosing information about how your business is earning money is also considered an important way of showing transparency. On the user’s side, this page should also help them with understanding how to customize their cookies and opt in and out of them. 

Consequences of failing to comply

When we’re talking about compliance, it’s often the consequences that businesses fear. However, they should introduce compliance based on values and other benefits rather than the fear of consequences. 

Nobody likes it when someone stuffs their nose in our business. When we’re talking about internet surfing, many companies never thought that exploiting personal data must be stopped. Being transparent and open with your users and customers, unfortunately, must be enforced.

The consequences of failing to comply with GDPR and other international regulations can be quite severe. Companies can suffer financial penalties, with the maximum fine going up to a staggering 20$ million.

These fines alone can bankrupt a business, but the consequences of being non-compliant don’t end here. Nobody wants to use services or buy products from businesses that are known for committing worrying acts.

Whether a business had a data breach or someone from the company made decisions that led to failure to non-compliance, this will lead to a significant loss of trust among the customers.  

Individuals who feel like they aren’t satisfied with the repercussions that the company suffered can start their own legal actions against it. Lawsuits can lead to additional problems for the company. 

Just like customers, your partners or clients can stop any collaborations. This can be because you have lowered profits or traffic or because they don’t want to be associated with such companies. The loss in terms of business opportunities can be immense in the long run, leading to stagnation or even bankruptcy.

GDPR compliance is essential for businesses in 2024 

Even after you’ve read this article, there’s a high likelihood that there are a lot of aspects that have changed in the meantime. Regulations change constantly, and even if you comply with the state of compliance regulations in 2024, the year after will change this.

Regardless of the size of your company, it’s advised that you or your team members keep up with the compliance landscape and ensure that you’re operating safely. Each of the methods mentioned in the article varies in complexity and importance. 

You can also start using services and platforms that manage compliance methods on your behalf. They can help you with understanding what steps you should take and whether you’re at risk. 

Starting with understanding GDPR and then Google Analytics are essential steps to a compliant business. Consent mode and all the complementary measures for compliance are important methods that will futureproof your business. 

About Writer

Veljko is a student of information technology who paired his passion for technology with his writing skills. He enjoys researching topics such as robotics and programming and cultivates his knowledge in philosophy, classical literature, and fitness. Veljko’s favorite writers are Borislav Pekić, Miloš Crnjanski, and Ernest Hemingway. 

Veljko Petrovic

Writer Veljko