As the EU’s General Data Protection Regulation (GDPR) comes into play, brands could view the price of personalized advertising skyrocket. The giant players in the field of online advertising, namely, Google and Facebook, have already informed businesses that they must authenticate the data used to serve ads. To ensure that the businesses remain vibrant, digital marketers must adapt their business models to comply with GDPR.
With the growing popularity of cookies, advertisers started realizing that they could track user behaviour across the web. Advertising companies have been adding trackers to get a better understanding of user behaviour. Online firms should start focusing on the positives which are as follows:
- GDPR will retrieve trust between users and online advertisers
GDPR puts the power and control back in the hands of users. This establishes trust between users and online advertisers. Online visitors are the major recipients of online advertisements. With GDPR set to significantly change digital advertising, it may be the right time to explore multiple channels of distributing ads where strict opt-ins are not an issue at all. Advertisers can explore the use of alternative media channels where the impact of GDPR is quite prevalent.
- Personal data can only be used with the expression of consent from the consumers
This basically means that businesses cannot use information about the user without their active agreement. This includes any kind of information that is related to the user, like, email address, IP addresses, payment information, location data, device ID’s and so on.
- Maintenance of data security
Once you have got permission for the data, you must try to keep it secure. If a data breach is to happen, it is required to be reported to the ICO (Information Commissioner’s Office) within 72 hours to all users.
GDPR introduces a duty on businesses to report various types of personal data breach to the relevant authority. This must be done within 72 hours of becoming aware of the breach.
- How Will GDPR Affect Online Advertising
GDPR affects behavioural campaigns across PPC and social media platforms. With the new cookies consent requirement, activities like remarketing campaigns and client match will also be affected.
Google and Facebook have already made the required changes to ensure that they are compliant with GDPR. Advertisers still require acquiring clear cookies consent from users by offering information on how the cookies are used having a clear opt-in option. Businesses that are still using current client emails as a targeting method are responsible for cookie consent and how the data is handled. If businesses are found using email data without the customer’s consent for marketing purposes, they could face a severe fine of up to €20,000,000 or 4% of the group worldwide turnover.
Remarketing is a clear winner across multifarious marketing channels, however, GDPR is putting a stop to this way of targeting, however in the long run, it will actually improve. Now that users have to opt-in to the use of cookies, the audience data collected will be of higher quality and more receptive to personalized advertising.
Wrapping it Up!
Under GDPR, advertisers will have access to better data because of opt-in requirements. This will allow for smarter and effective advertising. This rule will help advertiser swap out irrelevant data and let them create meaningful and tailored user experiences. For advertisers, improved personalization will lead to successful and effective ad strategies along with an increased ROI. With strong data quality and better experience, these new regulations will make marketing strategies stronger and revenue-generating.
Remarketing strategies need to change with the onset of GDPR. Ultimately, GDPR will offer control and accountability for everyone moving to a world where advertising is quite transparent. Marketers should ensure to work with partners who have addressed regulatory compliance when it comes to the data used for advertising campaigns. If they don’t, brands will not only face hefty fines but also may experience a negative impression on their businesses.
The new regulations will create part of the industry’s move to an open and transparent surrounding. This can only be a great thing for businesses operating within it and the consumers who want to continue shopping or sharing great content.
