Tuesday 31 October 2017

Will GDPR be the change of digital marketing as we know it?

The new General Data Protection Regulation, henceforth referred to as GDPR, is established for preventing companies from using personal data. GDPR will be valid in the European Union in May 2018 and will create changes in the digital landscape that will both help and harm publishers according to Ross Benes (2017). These potential advantages and disadvantages that GDPR brings for publishers have Benes listed in his article “The GDPR will help or hurt publishers, depending on who you ask”, these will shortly be presented below.
Source: https://static.pexels.com/photos/113885/pexels-photo-113885.jpe

“Publishers that users regularly visit could benefit from the regulation”, said Yves Schwarzbart, head of policy and regulatory affairs at Interactive Advertising Bureau U.K. The reason for this is that users will spend more time on less sites, because the visitors do not want to deal with all new annoying prompts, he says. Therefore users will only accept prompts on web pages that they like the most or visit most often. While the access of personal data will be reduced by GDPR, the advertisers have to change strategy. A new strategy could instead be to buy more ads on the well-known brands sites, which will increase the income for premium publishers. But on the other hand, while a few publishers will have benefits from GDPR many other publishers will struggle to keep their position because of the new strict privacy controls. The regulation can also give Facebook and Google more benefits and increased control in the digital landscape. In first hand Google make their money from searching by keywords and not by using personal data. And Facebook has a login account, which means that their users accept Facebook's terms and conditions on the web page, which means that it is not so difficult to get the users permission to use their personal data. For the publishers it is a lot more difficult.  It is still not clear how the new regulation will be enforced, but if the users need to accept every publisher and web page the companies will probably not have enough of data to continue with the measurement that is used today. This will lead to a new marketing approach (Benes, 2017).

We believe that this new regulation will impact the way companies deals with marketing today, and also that the regulation in short term will hit some companies harder than others. The main point though is not the regulation, but the increased knowledge of the users and their need of privacy. Internet is the new “living room” in the society today and in that living room people expect to have privacy, at least to a certain extent. The need of privacy is universal, and therefore people will fight for it. The knowledge and the debate about the privacy situation (or the non privacy situation) online increase and this will force companies to think more ethical and change their way of how they use personal information. Otherwise people will boycott those web pages and publishers that do not change their way of acting. For this reason, companies will need to change their marketing approach, and not solely because of GDPR. The focus on how the new regulation harms and helps publishers is therefore not essential in this case. What companies need to focus on are how they can help users to keep their privacy online, otherwise they will lose their reputation and position. This is also for Google and Facebook a necessary issue, to connect to Bennes (2017), they are not safe.
Emilia Djerv & Louise Wendel

Reference:
https://digiday.com/media/gdpr-will-help-hurt-publishers-depending-ask/

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