Europe has come up with new data privacy laws to make personal data more secure. This law will seem to affect the future of tech firms which run on the basis of tracking people’s data online. Amidst the $200 billion global digital advertising industry the big tech firms like Google and Facebook will however only seem to benefit from this new law.
European Union’s General Data Protection Regulation (GDPR) is in place from the month of May. The focus GDPR is to protect the personal information of an individual in the online platform. One of their strategies is by making it necessary for websites to get permission from the user to use their personal data. Companies flock to gather user data from the internet and analyze it for their advertising purposes. Some of this data is even gathered without the user’s consent and is used to create a consumer-based profile for each person.
By implementing GDPR, all these companies will struggle as they will have to get the user’s permission for gathering data. Some companies are in a dilemma to leave Europe as the intensity of GDPR is not clear for now. While the small tech firms ponder over this, the big firms like Google and Facebook will only benefit from GDPR. The reason being, since they are the popular tech firms, many people will give consent to the firms for using their data. This will let the companies gather a massive amount of user data and even analyze it.
Since how GDPR is going to be implemented is still unclear as of now many firms like Verve and Drawbridge have left Europe. The former helps advertisers in targeting consumers on mobile phones with the help of location, and the latter is a cross-device user data firm.
One another firm which is based on providing user data based on a location named Factual has also stopped its operations in Europe temporarily. Facebook and Google-backed up with plenty of money will be able to ensure that they are GDPR compliant with the help of lawyers and data engineers. These companies also have a high customer base most of whom are loyal to the firms and will most likely give the consent to the firms. However, even the tech giants have felt the effect of GDPR.
Google also asks publishers to secure consent while they are using the ad products in its properties. The options like showing the report of which ad was most viewed or clicked by a user is not easily available anymore. Google’s Ads Data Hub application is the main source to analyze the effectiveness of a campaign for advertisers.
Many speculate that the publishers will most benefit from the ad revenue as the supply chain will be minimized. The effect of GDPR and its timing is still not clear. Since many users give consent to the apps out of exhaustion from too many permission requests, GDPR’s impact will be known only in due course of time.