Developed by the European Union, the General
Data Protection Regulation (GDPR) entered into force on May 25, 2018. This new
set of regulations are designed to protect and empower the data privacy of all
EU citizens. Addressing the consumer's concerns about data privacy and
security, GDPR improves how much control an individual has over his/her
personal data. Under GDPR, businesses are required to harmonize data privacy
laws across Europe, even if it doesn’t primarily target Europeans. If a
business tracks the behaviour or manages data of an EU resident, it is required
to be compliant with GDPR. These regulations are majorly going to impact the
online advertising ecosystem. Some of the prominent sections of the bill that
relate to digital marketers and PPC'ers are:
•
Personal data of a user can only be used after
an express consent; and companies won't be able to hide these requests within
legal terms
•
The “Right to Forgotten” and “Right of Data
Portability” comes handy for a consumer; he/she can easily opt out of their
data being used
•
Safe and secure administrative record
•
Reporting any regulatory breach
Online advertising is an open and vibrant space
consisting of digital publishers, advertisers, their partners, and consumers.
Advertisers create relevant and engaging advertisement to reach out to the
consumer, who in turn helps independent publishers monetise their content and
creativity. This further allows publishers to offer the content to billions of
consumers, free of charge. The consumer at the front end remains unaware about
what goes behind the scenes. The targeted and relevant advertisement that's
been driving the digital marketplace is enabled through the collection and use
of personal data. It becomes important that the personal data that is being
retrieved from a consumer is used in a safe and transparent way, so that the
user has a firm control over his/her data. This is the concern that is being addressed by the EU
with GDPR.
How
GDPR will Impact Online Advertising
Prior to GDPR, advertisers and publishers have
been targeting consumers by using their personal information derived by mining,
or understanding their online behaviour. This requires involvement of dozens of
vendors. Today, after the development of GDPR, there's been a contraction of
the number of vendors that a publisher and an advertiser are actually allowed
to be using. Some other noticeable impacts of GDPR on online advertising are:
•
New
Opportunities in Native Marketing: Native advertising uses paid
ads that are in sync with the look, feel and function of the editorial flow of
the page. Native ads are often seen on social media feeds; majorly on Facebook
and Twitter.
•
Thoughtful
Targeting and Publishing of Content: Quality lead generation and
putting in more thought to publish native content will be the aim of marketers
and salesperson.
•
More
Visibility to Content Recommendation Platforms: GDPR
will benefit the content recommendation platforms, like Taboola, TripleLift and
Nativo, to name a few. Businesses that want to target a niche audience that's
beyond their capabilities, can rely on the above mentioned platforms to help
them get good results.
•
Boom
in the Influencer Marketing: After GDPR, user-generated advertising will see
a significant rise in the online market. The trust of today's shoppers and
advertisers on the consumer-centric content compels them to make a purchase.
This sounds more cost-effective for advertisers, thus avoiding the noise that
multiple intermediaries otherwise generate.
While GDPR might seem adversarial, it is the
path forward for the much-needed consumer-centric advertising that does not
revolve around poor quality tracking and irrelevant ads. Moreover, GDPR will
give an individual the control over his personal data that should have always
been there.