This year, GDPR will go into effect. With that comes new rules surrounding digital data collection — specifically, data from consumers.
Now, EU audiences will have more control over how their personal information is mined and used.
In the advertising world, reception to this new regulation has generally been icy. Advertisers rely on consumer data to develop personal — and ultimately successful — advertising experiences. GDPR, however, will treat both anonymous and personal data in the same way, which could have a major impact on ad experiences for consumers in Europe.
What’s more, there are some compliance costs that go hand-in-hand with GDPR. Those who don’t comply will face fines that could amount to as much as 4% of global revenue. While this new law will likely cause problems for advertisers, it also brings several long-term benefits for those who choose to embrace the inevitable. Here’s a closer look at two of them.
1. Data Quality
While the compliance costs advertisers face under GDPR might seem problematic on the surface, these hikes actually stand to benefit advertisers, particularly given how the industry perceives data strategy. Most advertisers are interested in volume. They like to hoard data in the hopes that something will reveal an actionable signal later.
Under GDPR rules, however, it’ll become more expensive for advertisers to maintain and analyze this limitless library of data. As a result, they’ll be forced to ditch size in favor of only the highest quality information.