How Data Privacy Laws Impact B2B Targeting

Henry McIntosh
Oct 1
15 min read

Data privacy laws are reshaping B2B marketing, making it harder to target audiences while staying compliant. Marketers now face stricter rules on data collection, storage, and usage, which complicates traditional strategies. From GDPR to California's CCPA and CPRA, global regulations are forcing businesses to rethink their approach to personalised outreach. Here's what you need to know:

Key Challenges:
- Limited access to third-party data due to consent requirements and cookie restrictions.
- Complex compliance demands across multiple regions (e.g., GDPR, UK Data Protection Act).
- Rising costs for compliance, data security, and staff training.
- Risk of hefty fines and reputational damage for non-compliance.
Solutions for Marketers:
- Focus on first-party data collection via owned channels (websites, email, apps).
- Use privacy-compliant tools like CRM systems and intent data platforms.
- Build trust by offering transparent data practices and clear consent options.
- Implement robust data governance and regular audits to stay ahead of regulations.

Privacy-first marketing isn’t just a legal requirement - it’s now a competitive advantage. Marketers who prioritise trust and transparency can still achieve effective targeting while navigating the evolving regulatory landscape.

Main Data Privacy Laws Affecting B2B Targeting

Three key privacy regulations shape how B2B marketers collect and use data for targeting. Each introduces unique requirements and influences how data is handled.

The General Data Protection Regulation (GDPR) is often regarded as the global benchmark for data privacy. Under GDPR, marketers must secure explicit consent and collect only the data needed for a specific purpose. Pre-ticked boxes or assumed consent won’t cut it - individuals must actively agree to data collection.

For instance, if you're organising a webinar, limit data collection to details essential for that event. GDPR also grants individuals significant control over their personal data. They can request access to the data held about them, demand corrections, or even ask for complete deletion. Handling these rights can be particularly challenging when targeting decision-makers across numerous companies.

Privacy notices must be transparent, detailing what data is collected, why it’s needed, and how long it will be retained. Vague or generic policies won’t suffice; clarity is essential for each data processing activity.

Cross-border data transfers add another layer of complexity. If you’re targeting European businesses but storing data outside the EU, you need safeguards like Standard Contractual Clauses (SCCs) or recognised adequacy decisions to remain compliant. Similarly, California’s privacy laws introduce their own unique challenges for data handling.

CCPA and CPRA: California's Influence on Global Privacy

California’s privacy laws, including the California Consumer Privacy Act (CCPA) and its successor, the California Privacy Rights Act (CPRA), have a global impact, affecting organisations with ties to the state.

Under CCPA, data collection is allowed initially, but businesses must provide clear opt-out mechanisms. Marketers are required to display a “Do Not Sell My Personal Information” link prominently and act quickly on opt-out requests. They must also disclose details about data collection practices, such as the types of personal information gathered and the third parties involved.

The CPRA strengthens these protections, especially when it comes to employee data. If you’re targeting employees at California-based companies, their personal information is treated with the same care as consumer data. Sensitive personal information, like precise geolocation data often used in targeting, is subject to stricter rules, requiring explicit consent or limiting its use to what’s absolutely necessary.

UK Data Protection After Brexit

Post-Brexit, the UK has developed its own framework for data protection, guided by the UK Data Protection Act 2018 and the UK GDPR, which closely aligns with the EU GDPR but includes some UK-specific nuances.

One notable difference is the UK’s more flexible stance on legitimate interests. This approach can benefit B2B marketers, allowing data processing for legitimate purposes, provided it doesn’t infringe on individual rights.

When it comes to international data transfers, the UK requires its own safeguards. While the UK recognises EU adequacy, transfers to non-EU countries must adhere to UK-specific mechanisms, adding another layer of complexity for global campaigns.

The UK Information Commissioner’s Office (ICO) takes a practical view of B2B marketing. It acknowledges that B2B communications often align with legitimate interests, as long as they’re not excessive or intrusive.

Direct marketing rules in the UK are also more lenient for B2B communications. Businesses can contact work email addresses to promote similar products or services without explicit consent, as long as they provide an easy opt-out option. However, this exception doesn’t apply to personal email addresses or mobile numbers, even if they’re used for work purposes.

UK regulations also emphasise the importance of defining and documenting data retention periods. Organisations must clearly justify how long data is stored and for what purpose, making regular data audits and deletion schedules essential for compliance.

These diverse regulations highlight the importance of precise and compliant strategies when targeting B2B audiences. Each framework brings its own challenges, making it crucial to stay informed and adaptable.

B2B Marketing Challenges Under Data Privacy Laws

The rise of data privacy regulations has reshaped the landscape for B2B marketers, disrupting established targeting methods. From data collection to campaign execution, these laws demand a complete rethink of traditional strategies.

Limited Third-Party Data Access

One of the most immediate hurdles is the reduced availability of third-party data. A striking 88% of advertisers believe privacy regulations significantly impact their ability to deliver personalised advertising, with 61% pointing to audience targeting as the hardest hit [1].

For B2B marketers, the challenge is even greater due to the smaller audience sizes compared to consumer markets [3]. Traditional data onboarding services, which work well for consumer data, often fail to deliver meaningful results for B2B efforts, with low offline-to-online match rates [3].

Strict consent requirements have also curtailed the use of third-party cookies, forcing 47% of marketers to reduce the number of data partners they work with [1]. Beyond this, geographic constraints add another layer of difficulty. Outside the U.S. and other English-speaking regions, access to reliable B2B data products and services is limited, creating challenges for UK companies aiming to expand into European or global markets [3].

The quality of available data remains a persistent issue. Nearly 44% of B2B marketers rank data quality and completeness as a top challenge when dealing with second- and third-party data [4]. Additionally, 31% struggle to find reliable data sources, while 27% face issues with security and compliance [4]. These limitations complicate compliance efforts, especially when navigating multiple regions with varying rules.

Multi-Jurisdiction Compliance Complexity

Operating across different regions introduces a maze of compliance requirements that can strain marketing teams. Rachel Gantz, managing director of Proximic by Comscore, highlights the issue:

"There are now 11 states that have some form of privacy regulation applied to them. With the state by state approach… this has become a little bit of a challenge, given the differential nature in which these regulations are being rolled out for folks to navigate." [1]

This patchwork of regulations creates a logistical headache. Each jurisdiction has its own rules, requiring unique documentation, consent mechanisms, and data handling protocols [1].

For UK businesses, the situation is even more complex. Post-Brexit, companies must address both domestic data protection rules and the EU’s GDPR when targeting European markets. International data transfers now require additional safeguards, adding to the administrative burden.

Meeting these demands is costly and time-consuming. Businesses often need to maintain multiple privacy policies, implement region-specific consent systems, and train staff on a variety of regulatory frameworks. In fact, 38% of advertisers report struggling to keep up with the ever-changing landscape of privacy laws [1].

The financial impact is substantial. Around 31% of advertisers cite increased costs due to compliance, which includes expenses for legal advice, technology upgrades, staff training, and hiring data privacy experts. Additionally, 30% of global B2B marketers identify a lack of data expertise as a significant barrier to effective data-driven marketing [3].

Non-Compliance Risks and Penalties

Failing to comply with data privacy laws carries severe consequences. Under GDPR, companies can be fined up to €20 million or 4% of their annual global turnover, whichever is higher [6][7]. In the U.S., the California Consumer Privacy Act (CCPA) imposes fines ranging from $2,500 for unintentional violations to $7,500 for intentional ones [6].

Recent cases highlight the risks. Meta was fined €1.2 billion, Amazon faced a €746 million penalty, and TikTok was fined €345 million for breaches of data protection laws [7].

Beyond financial penalties, the reputational damage can be devastating. Research shows that 36% of consumers are less likely to engage with a company after a data breach, while 22% would sever ties altogether [5]. In B2B markets, this could mean losing contracts, damaging partnerships, and diminishing trust.

"Fines can reach millions of dollars under laws like GDPR. Businesses may face reputational damage as well. Losing customer trust can be detrimental to operations." [2]

Operational disruptions are another major concern. Data protection authorities can impose warnings, reprimands, temporary bans on data processing, and even mandatory audits [7]. Non-compliance can also strain business relationships. Many third-party service providers require GDPR compliance as part of their terms, and violations could lead to account terminations or service restrictions [7]. Partners and vendors may even seek compensation for breaches of contractual agreements [7].

The financial toll of a data breach is steep. In 2023, the global average cost of a breach reached $4.45 million, covering regulatory fines, legal fees, remediation efforts, and business disruptions [6]. For B2B companies, where trust and long-term relationships are crucial, these incidents can cause lasting harm to market reputation and growth potential.

Trust remains a critical metric, with 87% of consumers saying they would avoid doing business with a company if they had concerns about its security practices [5]. For B2B decision-makers, who are increasingly vigilant about privacy, these concerns translate directly into missed opportunities and weakened sales pipelines.

These obstacles highlight the growing importance of adopting privacy-first marketing strategies.

Compliant B2B Targeting Solutions

Navigating the complexities of data privacy laws doesn't mean B2B marketers have to compromise on effective targeting. The secret lies in adopting privacy-focused strategies that prioritise trust and transparency while delivering meaningful results.

Transition to First-Party Data Collection

First-party data collection is a cornerstone of privacy-compliant marketing. This approach involves gathering information directly from prospects through your owned channels, such as websites, email campaigns, mobile apps, and customer service interactions.

"Privacy regulations actually favour first-party data collection when done correctly. Direct customer relationships enable clearer consent mechanisms, transparent data usage communication, and more precise data minimisation compared to complex third-party data sharing arrangements." – Secure Privacy

To ensure compliance, consider implementing granular consent management platforms (CMPs). These tools block unnecessary tracking without explicit consent, maintain detailed records of user permissions, and synchronise preferences across all touchpoints. Transparency is key - use plain language to explain how data will be used.

Progressive consent collection works particularly well for B2B audiences. Instead of overwhelming users with lengthy privacy notices upfront, provide consent options gradually throughout the user journey. User-friendly interfaces and centralised preference centres make it easy for individuals to manage their data settings.

Equally important is data minimisation. Regularly review your data collection processes to ensure every field serves a specific purpose. Streamline forms by eliminating unnecessary fields and establish routines to delete outdated information. Consistency across platforms - whether websites, apps, or email campaigns - is vital for maintaining trust and compliance.

Leverage Privacy-Compliant Tools

Using privacy-compliant tools can help you manage data responsibly while maintaining effective targeting. CRM systems and specialised B2B data providers can ensure data accuracy, legal sourcing, and adherence to GDPR and UK Data Protection laws.

Take Cognism, for example. It verifies UK mobile numbers against TPS/CTPS lists and checks compliance with Do Not Call lists in other countries. With ISO 27001 and SOC Type II certifications, it offers a streamlined opt-out process and a dedicated team to handle Data Subject Access Requests (DSARs). Richard Caldicott, IT Director at Henderson Scott, shares his experience:

"Cognism is our comfort blanket when it comes to compliance. Whenever a prospect asks where we get their data from, we can confidently say that we've sourced their information from a reputable ISO 27001 and SOC Type II certified data company."

Similarly, ZoomInfo supports compliance through ISO 27701 certification and TRUSTe GDPR Practices Validation. It provides detailed privacy notices and a self-service Privacy Centre for transparency. UK businesses can also benefit from platforms like Insight Data's Salestracker CRM, which offers permission tracking, access controls, and audit features to help grow customer bases responsibly.

Other tools, like server-side tracking and consent mode technologies (e.g. Google Consent Mode v2), allow compliant data collection by anonymising signals when consent is denied and shifting processing to secure server environments. Regular compliance monitoring is essential - automated tools can detect unauthorised tracking scripts, while ongoing privacy training for staff reinforces a culture of compliance.

Use Intent Data to Build Relationships

With a solid, compliant data foundation, B2B marketers can harness intent data to refine their targeting and focus on relationship-driven outreach. Intent data reveals prospects' interests through their online activities, such as visiting websites, downloading resources, searching for specific terms, or engaging on social media. For hard-to-reach B2B audiences, this data acts as a spotlight, identifying those actively researching relevant solutions.

First-party intent data is the most reliable and compliant option, offering greater control and accuracy. If you use third-party intent data, ensure that providers collect it with explicit consent and comply with GDPR, CCPA, and CPRA standards.

Mat Phillips, Co-founder of DemandWorks Media, stresses the importance of clarity:

"There is often confusion around what 'intent' really means. Is the intent data first- or third-party? How is the data being collected, collated, and scored? Is intent being monitored at the company or contact level?"

Intent signals can guide your outreach, enabling you to personalise messaging, content, and offers based on prospects' specific interests and their stage in the buyer's journey. For example, research shows that live webinar attendees are 22% more likely to make a purchase decision within three months, while on-demand webinar participants are 50% more likely to invest within six months. These insights allow for more strategic follow-ups.

Incorporating intent data into account-based marketing (ABM) strategies can help identify high-value accounts showing active interest. This enables you to create tailored campaigns that resonate with key decision-makers. By focusing on consent-based marketing, you not only meet data protection requirements but also build trust and foster long-term relationships. This positions your brand as a reliable partner in an era where privacy is paramount.

First-Party vs Third-Party Data Comparison

Understanding the distinction between first-party and third-party data is essential for effective B2B targeting. Each type comes with its own set of strengths, weaknesses, and compliance considerations, all of which influence how businesses approach their marketing strategies.

First-Party Data: Benefits and Challenges

First-party data offers a wealth of advantages, especially for B2B marketers aiming to build strong customer relationships while staying compliant with data protection laws. This type of data is highly accurate and exclusive, providing insights that are unavailable to competitors. Over time, it also proves to be more cost-efficient.

From a compliance perspective, first-party data aligns naturally with GDPR and the UK Data Protection Act because businesses maintain full control over its collection, processing, and usage. This control enables precise audience segmentation and highly personalised marketing efforts, which can directly boost revenue and conversion rates.

However, gathering first-party data isn’t without its hurdles. Scalability can be a significant challenge, particularly for companies targeting niche or hard-to-reach B2B audiences. Building a robust dataset requires time and is limited to the interactions available through owned channels. Linking data across departments can also be technically demanding, especially when internal expertise is lacking. Moreover, data silos often emerge when different teams collect information independently, reducing the overall value of the dataset. While investing in CRM systems, analytics tools, and other infrastructure can be costly upfront, these investments typically yield long-term benefits.

Third-Party Data: Risks and Limitations

While first-party data provides clear advantages, third-party data is becoming increasingly problematic for B2B marketers due to compliance and reliability issues. Privacy regulations impose strict requirements on businesses that share or process personal data through third parties, adding layers of complexity to its use.

Under UK GDPR, organisations must establish binding Data Processing Agreements with third-party vendors to ensure security, confidentiality, and compliance with privacy rights [8][10][11][12]. Additionally, businesses are required to conduct thorough due diligence, including ongoing monitoring and audits, to verify that third-party vendors meet data protection standards [8][10][12]. Cross-border data transfers face even stricter controls, necessitating mechanisms like Standard Contractual Clauses or Binding Corporate Rules to maintain equivalent levels of protection [8][9][10][11][12].

The quality of third-party data is another significant issue. Often sourced from a variety of channels, this data can be outdated or lack clarity on consent parameters, undermining its reliability. Privacy laws also require businesses to inform individuals about how their data will be shared, including the purpose and legal basis for doing so. This adds complexity to privacy notices and can erode customer trust [8][10][12].

Moreover, while businesses remain accountable for data shared with third parties, they are exposed to additional risks, such as data breaches or non-compliance, if vendors fail to meet required standards [8][10][11]. With 86% of Americans expressing greater concern about data privacy than economic issues, third-party data strategies are increasingly met with scepticism [13]. On top of this, 83% of leaders at companies reliant on third-party cookies report that nearly a third of their target market operates in environments where such cookies are ineffective, such as on social media platforms or Apple devices [13].

As traditional methods of attribution, targeting, and personalisation become less reliable, the move away from third-party data is no longer just about meeting regulatory requirements. It’s a necessity for businesses striving to succeed in a privacy-focused digital world, where first-party data is proving to be the cornerstone of effective B2B marketing.

Conclusion: Privacy-First B2B Marketing

Data privacy laws are reshaping how B2B marketers approach building relationships and crafting targeting strategies. Businesses that prioritise privacy-first principles are better equipped to thrive in a regulatory-heavy environment.

Key Takeaways for B2B Marketers

Adopting privacy-first marketing is no longer optional - it's essential. By 2024, an estimated 75% of the global population will have their personal data protected under privacy regulations [14]. Trust plays a critical role in this landscape: 88% of customers who trust a brand are likely to repurchase, and companies with high trust levels can outperform their competitors by up to 400% in market value [15][16]. On the flip side, three-quarters of consumers refuse to engage with organisations they don't trust to handle their data responsibly [15].

The financial benefits of prioritising privacy are equally compelling. Cisco's 2024 Data Privacy Benchmark Study found that 95% of businesses reported a positive return on their privacy investments, with an average return of £128 for every £80 spent [17]. First-party data is becoming increasingly important, with over 90% of marketers agreeing that better use of first-party data is essential to navigate privacy changes [14]. However, the risks of non-compliance remain steep, as the average cost of a data breach globally reached £3.6 million in 2023 [6].

"Privacy is evolving beyond a compliance obligation toward an imperative of trust for brands and an opportunity to accelerate economic growth." – Usercentrics [15]

Turning these insights into actionable strategies often requires expert support.

How Experts Can Help Navigate Privacy Challenges

To stay ahead, businesses must integrate privacy measures with effective marketing strategies. With new privacy laws emerging across various regions, working with specialists who understand both the regulatory landscape and strategic opportunities is crucial.

Twenty One Twelve Marketing excels at transforming privacy requirements into opportunities for competitive growth. Their approach to precision marketing in complex B2B sectors prioritises building genuine relationships with hard-to-reach audiences, avoiding intrusive data collection practices. With a special focus on industries like financial services and technology - where trust and compliance are critical - they deliver sales-qualified leads through consent-based, compliant strategies.

Their expertise in account-based marketing is particularly effective in privacy-conscious environments. Instead of relying on broad, data-heavy tactics, they focus on creating meaningful connections with carefully targeted prospects, all while adhering to strict regulatory standards.

"By shifting the focus from mere compliance to the responsible use of data - integrating privacy, consent, and governance into their data infrastructure - marketers can foster consumer trust whilst enhancing customer experiences." – Blake Brannon, Chief Product & Strategy Officer at OneTrust [16]

Specialists like these help businesses turn what might seem like compliance hurdles into strategic advantages. Privacy-first marketing is not a one-time effort - it’s a continuous process that evolves alongside the regulatory landscape. The organisations that succeed will be those that show a genuine commitment to ethical data practices and building lasting trust with their customers.

FAQs

How can B2B marketers collect and use first-party data while staying compliant with UK data privacy laws?

B2B marketers in the UK can stay on the right side of data privacy laws, like the UK GDPR, by adopting transparent and ethical data collection practices. A key step is securing explicit consent from business contacts and making sure they fully understand how their data will be used. Keeping detailed records of this consent is equally important to demonstrate compliance.

To make the most of first-party data while adhering to the law, marketers can turn to privacy-focused technologies and leverage contextual targeting. These methods allow businesses to engage with their audience effectively without stepping outside legal boundaries. By putting trust and transparency at the forefront, companies not only meet regulatory demands but also strengthen connections with their audience, navigating the ever-changing data landscape with confidence.

The EU GDPR sets a high bar for consent, focusing on safeguarding individual rights, limiting data collection to what's necessary, and ensuring transparency. It applies to any business handling the data of EU residents, no matter where the business is based.

The UK GDPR, while closely aligned with the EU GDPR, is specific to the United Kingdom. It upholds key principles like fairness and transparency but includes slight differences, such as not requiring non-UK businesses to appoint a physical representative within the country.

The CCPA (California Consumer Privacy Act) takes a different approach, prioritising consumer rights like opting out of data sales and accessing personal information. Its consent requirements are less strict than GDPR, but it strongly emphasises giving California residents greater control and clarity over their data.

For B2B marketers, grasping these distinctions is essential to stay compliant while tailoring strategies for audiences in different regions.

How can businesses ensure compliance with data privacy laws in B2B marketing?

To align with data privacy laws in B2B marketing, businesses should begin with a detailed audit of their data practices. This involves examining how personal data is collected, stored, and processed to maintain transparency and accountability.

Implementing robust security measures, like encryption and routine system checks, is essential for protecting sensitive information. Equally important is adhering to consent-based practices in line with GDPR and UK GDPR requirements. This means securing explicit consent from individuals and offering clear, easy-to-understand privacy notices.

Taking these steps not only helps minimise the risk of non-compliance and hefty fines but also strengthens trust with your B2B audience.

How Data Privacy Laws Impact B2B Targeting

Main Data Privacy Laws Affecting B2B Targeting