What next for Europes Ad Tech sector

first_imgGuest post by Steven Roberts, who is head of marketing at Griffith College. A certified data protection officer and Fellow of the Chartered Institute of Marketing, he writes on data protection, strategy and marketing.European regulators appear to have the AdTech industry firmly in their sights. In the past two months, two of Europe’s largest data protection authorities – the Information Commissioner’s Office (ICO) in Britain and the CNIL in France – issued reports on the sector. Alongside this, consumers are increasingly concerned about the security of their personal data, whilst significant issues remain as to the level of fraud in online advertising, and in particular programmatic ads.This is set within a broader environment of substantial fines for breaches of the General Data Protection Regulation (GDPR). The Regulation states that failure to comply can result in penalties of up to €20 million or 4% of global turnover, whichever is greater. In July, the ICO stated its intention to fine British Airways £183 million and the Marriott hotel group £99 million for data privacy breaches.UK and French Regulator ReportsOn 20th June, the ICO report warned ad tech to clean up its act. It outlined several areas of concern regarding the use of personal data in real-time-bidding for programmatic advertising. In particular, it highlighted issues around transparency, lack of clarity in privacy notices, the scale of data creation and sharing, and the reliance on contractual agreements within the supply chain. The report referenced a ‘lack of maturity’ among some participants in what was deemed an extremely complex marketplace involving multiple technologies.In France, the CNIL also targeted online advertising, making it a priority area in its action plan for 2019-2020. The regulator recently issued Google with a fine for €50 million fine for breaches of GDPR. The agency is also due to publish guidelines on the use of online cookies and what constitutes consent on the part of the consumer. Stakeholders will have a grace period of 12 months within which to achieve compliance.Online advertising is big businessThese developments pose a sizeable challenge for the advertising industry. In Ireland, total online advertising spend in 2018 was estimated at €489 million. Facebook and Google dominate the market, with 73% of online spend going to these two tech giants.Globally, digital advertising is forecast to grow from $294 billion this year to $520 billion by 2023, an average annual growth rate of 15%. Analysts expect Amazon to play an increasing role, with its ad revenues forecast to reach $40 billion that same year.The ePrivacy RegulationLooking further ahead, as part of the EU’s commitment to a digital single market, legislative work is ongoing around the introduction of a new ePrivacy Regulation. This will seek to update the 2002 Directive and subsequent amendments in 2009. It will aim to provide more clarity around data protection regarding electronic communications and the use of website cookies, recognising the step change in technology and services that has taken place. The EU originally intended to introduce the ePrivacy Regulation at the same time as GDPR. However, with ongoing lobbying by sectoral groups and differing positions within EU member states, current forecasts suggest the regulation is unlikely to be introduced before 2020.SummaryThe online advertising industry faces a range of challenges – from increased regulatory attention, growing consumer anxiety around how businesses use their personal data, and from marketers concerned about the prevalence of ad fraud. The latest reports from the French and UK data protection authorities indicate that legislative momentum is likely to continue to gather pace over the coming years.Steven Roberts is head of marketing at Griffith College. A certified data protection officer and Fellow of the Chartered Institute of Marketing, he writes on data protection, strategy and marketing.More information about Irish Tech News and the Business ShowcaseFYI the ROI for you is => We now get over 1.5 million monthly views, and up to 900k monthly unique visitors, from over 160 countries. 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Contact us, by email, twitter or whatever social media works for you.Home What next for Europe’s Ad Tech sector? If you would like to have your company featured in the Irish Tech News Business Showcase, get in contact with us at Simon@IrishTechNews.ie or on Twitter: @SimonCockinglast_img

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