With one day to go until GDPR, Mike Shaw, VP EMEA at dataxu, outlines some of the main worries of advertisers and industry players around the globe and combining them with examples and case studies of the preparations that companies have undertaken.
GDPR and its big changes for data privacy across the industry are looming. As all sectors gear up for the change, many firms remain uncertain of how the future of data protection legislation will affect them. Naturally, the full extent of the new regulatory environment is not yet known. But should we trust those feelings of apprehension? Could GDPR signal a change in culture that will ultimately improve brands and agencies’ data management practices?
A sense of trepidation in the air
There is no denying that GDPR is quite a shakeup for the entire digital marketing industry. With the implementation of greater regulation around the use of data, there is some sense of anxiety around what this means for businesses. Among the most doom-laden predictions was that of W8 Data, who estimated 75% of marketing data could be made obsolete. Others, though, expect a much less dramatic turn in events, and are confident that we are not facing a cliff edge scenario.
The anxiety around GDPR was confirmed in our recent research survey, based on 520 interviews with senior brand marketers and media buyers across the EU. Our findings revealed that nearly four in ten brands and agencies in the UK (39%) are worried about collecting consumer data under the new regulation. There were similar levels of concern among agencies and brands in Germany (44%) and France (45%).
In particular, UK brands were concerned about how changes in privacy regulation will translate into direct action, with a quarter of agencies voicing this concern. Marketers also expressed doubts around the direct implications of GDPR on their business: in the UK, 17% of brands and agencies we spoke to shared these doubts, echoed by 20% of French marketers, and 19% of their German counterparts.
The industry is already adapting
Despite the understandable concerns, there are signs that the industry is confidently adapting to the change. The legislation calls on businesses everywhere to transform the way they handle people’s data, and it is clear that this transformation has been under way for some time.
The internet giants have begun to adapt, with a number of moves to place more emphasis on consumer consent. Google recently added the option of “confidential mode” in Gmail, allowing users to make their messages partially inaccessible to recipients after a set time. Meanwhile, Apple has provided new updates to its operating systems giving users more information on the collection and use of their personal data.
Across the industry, preparation and planning has been underway for a long while. At dataxu, over two years ago we came up with a detailed project plan and built a cross-functional team – named “Team Voltron” – to ensure data compliance by 25th May. Elsewhere, Rubicon Project also began preparations for GDPR in 2016, with Adform and Quantcast similarly beginning preparations long in advance. The IAB has also been developing a GDPR framework to help companies adjust to the new legislative requirements. With so much preparation underway in digital marketing, there is no reason to think we are in the data “End of Days”.
How agencies should adapt to the new reality
Organisations that adapt successfully will ensure that they have company-wide awareness of data subjects’ rights. For any marketers that are unsure of the requirements, review the legislation immediately, making sure you are clear on whether you are a data processor or a controller. The concept of privacy-by-design is to be embraced, as GDPR is at its core an effort to re-shape corporate culture for the better.
The reality now is that data is more valuable than ever, and agencies will do well to double down on the thoughtful use of data. As our research revealed, agencies are already harnessing the power of data for advertising. Just over three out of four UK agencies (76%) see themselves as experts, or knowing a lot about programmatic.
Thoughtful use of data will only become stronger, now that the industry as a whole is taking a more responsible and transparent approach to it. Just under three in ten UK agencies (29%) we spoke to told us that their biggest challenge will be reducing wastage and finding ways to reach only the target audience. Other top priorities included leveraging first-party data, as well as developing cross-channel attribution to improve marketing.
Owing to GDPR, data will become even more valuable than ever, and the data provided through opt-in will mean that agencies will work even harder to make the most of it. Hand in hand with this, brands and agencies will want to spend their marketing budgets in ways that will maximise data for intelligent targeting. Predictive analytics, advanced data modelling, cross-channel optimisation… you name it. GDPR could very well turn out to be a blessing in disguise.