Showing posts with label #Regulations. Show all posts
Showing posts with label #Regulations. Show all posts

Saturday, 25 November 2017

How to separate advertisement from content?

Ads become more and more difficult to separate from content. This because marketers have come up with methods, that make ads look like something other than ads, according to David Rodnitzky. Rodnitzky describes “transference” which is a physiological concept that explains why we transfer positive associations from a celebrity who promotes a product to the product itself. Do we transfer these positive feelings because we really think that the celebrities actually use the products that they promote? Probably not, is Rodnitzky’s answer to the question, but still the celebrity-used ads work.
The reason why the companies try to achieve ads that don't look like ads is that the power of the ad decreases when consumers discover that it is nothing else than an ad. To make advertising more effective and to keep the power of the ad, companies use some methods to create ads that look like editorial content. Rodnitzky describes some of these methods as native advertising, sponsored editorial content, influencer marketing, adwords and social media advertising in his article. What these methods have in common is that they in different ways fool the potential customer and the way they are thinking about the ad. When an ad looks like native content, some customers will perceive the ad as real content and not paid advertising. Influencer marketing, when a person gets paid to promote products on various social media, becomes more common. Influencers are perceived as more authentic than celebrities and therefore can customers more easily relate to influencers than celebrities. This personal connection makes the transference in this case even stronger, according to Rodnitzky. On social media channels, such as Facebook and Twitter, it can be difficult to distinguish between ads and content for the user, even if they have symbols that separate ads from content, they are difficult to distinguish.

Due to the difficulties for users to separate between ads and content, some guidelines have appeared. For example do influencers today need to inform their followers about that the companies compensate them when promoting their products. This indicates that it is an ongoing fight between companies, which want to advertise their products as content instead of ads, and the regulation that want to protect the customers by setting up different guidelines that the companies need to follow. We think that it is important that the regulators takes the fight against the companies because it is important that the customer are aware of what is content and what is advertising, so he or she can take a stand based on fact. However, it will be difficult for the regulators to act in the speed of the companies’ developing methods. Companies need to continuously change their methods to keep the power of the ads, before the customers become aware of the new methods.

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/