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If anything, GDPR should be seen as an opportunity to disrupt the quasi-monopolistic online ad market. The problem is that the market itself is shrinking (as w
by downandout 8y ago
If anything, GDPR should be seen as an opportunity to disrupt the quasi-monopolistic online ad market.
The problem is that the market itself is shrinking (as we speak) as a result of GDPR. There won't be much of a market left to disrupt. Ad targeting got as invasive as it did because that was the only way to make it profitable. The moment that ads stop becoming profitable, advertisers will pull out. This won't be gradual thing for most companies - this will be a next week type of thing. Few companies can afford to light money on fire in the form of ad spend if they can't recoup it. Some ads might still work in the EU, but it will be a dramatically smaller market within a month or two.
- tannhaeuser 8y agoI think that's a misunderstanding of what the market is in the first place. If there ever was an ad budget, it'll go elsewhere (native advertising, direct sponsoring, whatever). It might be that big media, everything-and-the-kitchen-sink portals with a large target audience get a cut back, to the benefit of small, focused sites and maybe also paywalled content. I'd say that could be another welcome collateral effect of GDPR, and give us back the federated Web we lost, though I'm not sure it'll be world-wide any longer given different incentives in US and EU markets, let alone the Chinese and regional (such as Russian and Turkish) markets.
- downandout 8y agoIf there ever was an ad budget, it'll go elsewhere (native advertising, direct sponsoring, whatever). I'm not exactly sure what you mean here. There was quite a bit of money being spent on advertising to people in the EU on May 24th. Due to GDPR, many of the advertisers that were spending this money will no longer be able to make a profit from this activity. They will therefore cease that spend, and the EU online ad market will dramatically shrink as a result. The EU companies that were receiving the money from those advertisers will no longer receive it, and many EU publishers will go out of business.
- KozmoNau7 8y agoIf your business model depends on systematically violating people's right privacy, then it needs to die ASAP. Some ad-dependent leeches will die off, good riddance. Let others take their place, with a privacy-friendly model.
- joering2 8y agoI love this approach pushing every advertiser and publisher into spit bucket. An analogy here would be someone hating cars' tag readers in public. Law gets passed its illegal, yay! Then 2 months later your car payment goes up 30% and you scratching your head. Yeah well since they couldn't recover enough cars from people who don't pay, they had to adjust their financial models and you are the one to pony up for it. GDPR will wipe out many niche blogs that make few hundred bucks a month top and - as this article clearly points out - will ironically help companies like Google to make more money and jack up pricing for remaining ads, as the whole ad network will get much thinner.
- KozmoNau7 8y agoIf I'm completely honest, I wish the marketing and advertising industries would simply die off completely. I don't need businesses to tell me what I "need" to buy, in order to feel fulfilled. >"An analogy here would be someone hating cars' tag readers in public. Law gets passed its illegal, yay! Then 2 months later your car payment goes up 30% and you scratching your head. Yeah well since they couldn't recover enough cars from people who don't pay, they had to adjust their financial models and you are the one to pony up for it." Maybe they should have shown some responsibility, and not just pushed unrealistic loans on every Joe Six-pack who walks through the door. Also, this culture of instant gratification that advertisers and money lenders have created is truly vicious. It has become culturally accepted to just take another loan to buy stuff you "need" (read: desire, to one-up your peers), never mind the consequences. Try saving up instead or (shock and horror!) simply doing without the trivial material possession in question. You'll be tired of it in a short while anyway. >"GDPR will wipe out many niche blogs" That is purely unfounded speculation on your part.
- KozmoNau7 8y ago>" Ad targeting got as invasive as it did because that was the only way to make it profitable. The moment that ads stop becoming profitable, advertisers will pull out." Good. The situation was absolutely unacceptable, and I'm glad the EU decided to shake it up.