On the 25th of May, 2018 a new digital privacy regulation was introduced known as General Data Protection Regulation (GDPR). It sums up a wide range of different privacy legislation into one solo set of regulations that will protect users in every possible manner in data privacy. This makes companies to build in new privacy settings into their digital products and their websites and switch all of them on by default. Furthermore these companies also need to regularly conduct their privacy assessments and strengthen the way they seek permission from user to use their data. This will ultimately reduce the data breaches and ensures data privacy at maximum level.
GDPR and Targeted Ads in Programmatic
It was predicted a long time ago that the GDPR will give a tough times to programmatic advertising. Programmatic advertising works on the principle of data gathering from 1st and 3rd parties personal data to personalize their ad targeting. On the other hand the newly introduced legislation known as GDPR was clearly the opposite of what programmatic programming is all about. GDPR promises to make to make the whole ad targeting process clear and transparent thus obtaining a user data for ad tech becomes obligatory.
GDPR for Programmatic means?
A report was published by eMarketer at the start of May in which they stated that 42% of media buyers were agreed that GDPR will going to decrease programmatic ads as the policies of GDPR are very much the opposite of Programmatic ads. They furthermore stated that 43% of the user data will go unusable due to the regulation of GDPR.
On the other picture number of advertisers believed and therefore predicted that there would be a better outcome due to GDPR. They said that because of GDPR the ad click-through rate will be increase in time due to GDPR as buyers would be able to collect more useful and valuable data from those customers who are really interested in the product. This makes the advertising more customer-centric.
Customers opinions GDPR
In survey that was conducted in UK revealed that more than 75% of the existing customers are worry and concern about their online privacy in 2017. In younger people this figure was goes to downhill and this percentage is even lower and recorded 58%.
It is seen that half of the total country population are ready and willing to share their personal data and online data with both the large and small brands as long as they remained fully informed about why and in which manner their data will be utilize by these brands that are using it or any company. 25% of the population prefers to keep their privacy and not to share their personal and online data under any circumstances.
It is also a notable thing that the number of people who are actually unconcerned about their online and personal data privacy increased from 16% in 2012 to 25% in 2017 and that is shocking. 73% of the people claimed that websites know about their data too much and 53% people want that these websites should not know and learn more about them and only 35% are open and ready to get personalized experience by these companies as long as the companies are providing guarantees to keep their data protected.
The Transparency issue in programmatic
Most of the customers stated that transparency is the main and most important factor that encourages and discourages people to share their personal and online information with companies and brands. If look closely transparency is the exact element that programmatic media buying lacks the most. In the past websites were allowed to gather the user data like cookies or device identifiers unrestrictedly and with the advent of GDPR restrictions signify the end of this vulnerable era.
The new laws stated that the entire system will not match the ads to different customers instead the customers will match themselves willingly to the ads. The DSPs will only be gathering the data from different publishers and advertisers only since they are the only ones that directly collect the data such as cookies etc.
Will People Opt-Out of Personal Targeting?
GDPR has created a better and well managed environment for those people who really wants to opt-out. Due to this European publishers are obliged to provide their customers with a fair and sound choice and they should inform their customers about how to stop sending their personal and online data any time if they gave consent in the past but now they want to change their mind today for any reason.
People are not comfortable and feel enthusiastic when it comes to get tracked on their browsing habits. More than 79% are saying a “NO” for response and 20% of different surveyed allow only allow the 1st party data tracking for themselves.
People only do business with the people or companies that they know well, like and trust more than any other. This trust builds through providing Transparency in the equation that’s why it is mandatory for any person or company that they should be upfront and honest about themselves and what they exactly do.
GDPR has completely changed the way of working of companies in all around the world but especially in EU countries and put a fine of €20 million if they fail to comply with the rules and regulations. Companies can seek help in this matter from their legal advertisers or from a lawyer for deciding what is or is not legal requirements for their businesses.
GDPR is not designed to stop different businesses to communicate with each other or stop the intra communications or stop communicating with the customers. It is exact the opposite and it provides quality data that’s the reason for best marketers are only seeing its bigger picture rather than focusing on small problems and takes it as an opportunity.