Tuesday, January 17, 2017

New Legislation in Europe clamps down on web tracking for ads

New Legislation in Europe clamps down on web tracking for ads

I recently came back from Madrid, where I saw a watered-down version of these new rules in full effect. On Day 1 in Madrid, I was a Spain novice strolling through the downtown area attempting to find a good spot for lunch. Like any good tourist, I used the typical forums such as tripadvisor, foursquare, and primitive google searches, which all led me to actual restaurant websites. On each of these sites, a big pop up would appear requiring me to consent to website cookies . At first I found this to be sketchy/strange, but then realized that websites in the United States DONT EVEN ASK!  The new rules are meant to be a protection to the consumer and provide transparency about how companies are using an individual’s data and online movements to track/predict behavior.

The new rules will undeniably change the advertising business model in the EU, giving consumers an easy way to refuse cookies on their devices and web browsing. This wave of opt-outs The will likely hurt profits from big online ad brokers like Google and Facebook at a time when the digital ad space in Europe is growing dramatically --- last year, digital ad spending reached around $35 billion and is set to grow to $45 billion by 2020:

I think Google and Facebook will be just fine from a bottom line perspective, and will eventually find new and interesting ways to annoy us with ads.


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