For years we worked, tinkered and changed again until the EU General Data Protection Regulation (EU GDPR) was finally passed in April last year. From May 25, 2018, this Regulation must be complied with by all companies in the EU, which poses a significant task for companies – the digital advertising industry must be intensively prepared to abide by the regulations of the Regulation and possible penalties Avoid non-compliance.
In this context, one constantly reads references to the ePrivacy Regulation. But what exactly is E Privacy? It can be said that it is about the protection of personal data, primarily in the Internet area, but also in other electronic communication channels. The EU introduced the E Privacy Directive in 2002. It specifies the minimum data protection requirements that must be complied with. In addition to the E Privacy Policy, the Cookie Policy was introduced in 2009, which, among other things, requires customers to be informed about the setting and use of cookies on websites.
So far, guidelines such as E Privacy and cookies have mainly been regulated nationally – from May next year; the EU now wants to enforce a uniform basic data protection regulation. The E Privacy Policy, intended to provide better protection against tracking and encrypted communication, will also be responsible for the defense against cookie walls and offline tracking via Bluetooth and public networks. Opinions on this vary widely, with advocates pointing to the improved user rights and opponents, in turn, meaning to the resulting problems for Europe’s digital economy. Affiliate marketing is particularly affected,
With the new Regulation, the digital economy is faced with significant tightening and complex changes – one can certainly speak of disadvantages. The E Privacy Guidelines want to guarantee a high standard of data protection for electronic communication, but this is almost impossible to reconcile with the reality with which companies are confronted. The entire online marketing industry is affected by the changes and the establishment of the new guidelines. This includes not only tracking specialists and targeting providers but also online journalism and programmatic advertising.
User data that could previously be learned through cookie tracking could only be accessible in the future with the user’s consent. The customer’s permission must be available for this, which he can give through the so-called “opt-in”. The mere alternative of providing support or even a rejection could deter customers in the future, leading to an enormous loss of data. Furthermore, data may only be used and processed if they are either “strictly necessary” or “strictly technically necessary”. The new Regulation focuses primarily on cookie walls and cookie banners.
In the future, information such as “By visiting this website, you accept the use of cookies” may no longer be considered sufficient. The fact that the user can make data protection settings himself in his browser may also no longer be enough in the future. Instead, it will be the case that when the user accesses an affiliate site before cookies are placed, the user receives a notice about the use of cookies on the website, to which the customer can either agree or reject it. Consent must be given via opt-in. If the customer disagrees, he can still use the website.
The most important question arises here: How should affiliate marketing companies earn money in the future? Smaller operators, in particular, are also affected, as the changeover to and adaptation to the new guidelines represent a great deal of effort. But not only the companies themselves but also the users are affected, as they are confronted with advertising consent over and over again every time they visit a website.
A big problem with the new rules arises from the fact that the guidelines will not restrict advertising, but this advertising will be more uncontrolled and buzz around. Because with user tracking, relevant advertising can be displayed with little wastage. According to the new Directive, this would no longer be possible and online advertising would become less targeted. As a vegetarian, I could be shown banners for meat products, because how should the advertiser know that I am a vegetarian? The assumption that advertising will disappear is arguably a complete fallacy. The risk that even more advertising will be displayed to compensate for the wastage is very high. Should the new e-privacy guideline prevail in its current form.
Also Read: Cyber Risk Supply Chain: Why Your Partners’ Cybersecurity Is Your Business Too