Thought Of The Week

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GM Thought of the Week – Embracing GDPR

May 25th will see GDPR come into force. This will herald new laws regarding data collection, specifically, digital data from consumers. Once in effect, consumers, at least those in the EU, will have more of a restraint on how their personal information is collected, stored and then used.
In the advertising industry, this new regulation has generally been met with trepidation. Not only are the penalties for non-compliance severe (4% of global turnover) but also marketeers are heavily reliant on data to aid successful targeting.
While this new law will likely cause problems for advertisers in the short term, it has the potential to benefit and enhance advertising in the long run. Namely that data will be more high quality and useful to the user.
Under GDPR, advertisers will no longer be able to hold vast volumes of meaningless data and will instead have to switch towards holding a higher quality of information with meaningful insights – ultimately driving value and ROI.
On the other side, there will also be superior information fed in from consumers than before. They will have to opt in and give consent, which will lead to a richer yield of information for advertisers.
Ultimately, data that is more relevant and useful will positively impact ad experiences. There is an inefficiency with many consumers choosing to disregard advertisements, especially when armed with capabilities to block them. A growing annoyance of generic targeting.
Personalised, relevant ads are more likely to be engaged with, here is where GDPR can help.
Brands and agencies will have a richer pool of data to plug into. This should lead to more effective and efficient advertising. For advertisers, improved personalization will deliver more successful campaigns and increased returns on investment.