Europe's new privacy regime is likely to disrupt global digital advertising by preventing companies from using an individual's data unless they have direct consent from the consumer.This is all common sense stuff, and it's done everywhere else, but the only folks don't want to do it, because ……… Internet.
The European Union's General Data Protection Regulation (GDPR) doesn't come into force until May 2018, but when it does it will have a profound effect on businesses. The regulation will apply to data about every one of the EU's 500 million citizens, wherever in the world it is processed or stored.
Stephan Loerke, CEO of the World Federation of Advertisers, said, "I'm surprised more marketers have not woken up to the implications of GDPR. The new regulations will be a significant challenge for the ecosystem and it's difficult to forecast how technology will adjust."
Put simply, targeting and tracking companies will need to get user consent somehow. Everything that invisibly follows a user across the internet will, from May 2018, have to pop up and make itself known in order to seek express permission from individuals.
Companies can be fined as much as 4% of global revenues for breaching the regulations. They must also report hacking incidents within 72 hours and ensure parental consent for under-16s.
Would you like some cheese with that whine?