Thursday, March 08, 2018

Why GDPR Will Actually Help Publishers

One potential upside of GDPR, is that the regulation will be a boon to publisher revenues. Over the last two decades, digital publishers have seen their revenues decline, in large part because budgets have been further dedicated to various ad tech vendors and intermediaries. The digital advertising ecosystem has become increasingly fragmented and the balance of power has left the supply side and shifted to the demand side, specifically advertisers and DSPs.

GDPR will not reverse this entirely. However, as publishers will remain the gatekeepers between audiences and advertisers, they will have an advanced position in media buy conversation. GDPR will not allow data to be shared or resold to vendors without publisher's knowledge and therefore, publishers will have a greater monopoly on cookie behavior, data and audience segmentation. This is predicated on publishers convincing users to still share their data with them, but if they are successful, they will be in the drivers seat when it comes to audience behavior data.

No one knows for sure how GDPR will affect the industry. But one thing is for sure: ad tech vendors will no longer have the same ability to understand audience behavior and subsequently data vendors will have to be creative. Much of this power could potentially shift to publishers, who will have unique purview into the digital behaviors of billions.

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