Why GDPR Won’t Stop Programmatic Advertising

Learn the impacts of GDPR on marketing technology, and why programmatic advertising is stronger than ever

The General Data Protection Regulation (GDPR) went into effect on May 25, 2018, and since then organizations around the world have been updating privacy policies, and consumers have become even more concerned about online transparency and confidentiality.

The privacy changes have proven to be especially relevant to marketers and advertisers, industries that already had to manage a delicate balance between consumer data and privacy compliance.

What follows is a look at how GDPR is affecting marketing technology (MarTech) and why brands are actually continuing to increase programmatic advertising, despite rumors that it was on the way out.

Impacts of GDPR on MarTech

The implementation of GDPR got many in the marketing industry talking about how it may be the end of programmatic advertising. With the stricter privacy laws, many thought programmatic would be too complex to monitor and too prone to violating the new regulations.

Because GDPR requires the consent of consumers if their personal data is involved in an interaction, it was said that it would be too complicated for marketers to have an entirely opted-in subscriber base, as Global Web Index put it, making it impossible to continue targeted digital advertising.

Most respondents (79 percent) in a report conducted by London Research and Truth said they were worried about levels of transparency in programmatic advertising. The research surveyed over 100 executives at well-known brands and senior marketers and only 14 percent of respondents said they had a good understanding of the portion of their budget that actually gets to the consumer. One of the biggest industry concerns was a lack of visibility into third parties.

However, programmatic advertising isn’t going anywhere anytime soon. In fact, it’s been increasing since GDPR was implemented last year. The use of third-party data on social media platforms, after a decrease following the implementation of GDPR, started rising again in October 2018. Data from Adaptly shows that 15 percent of Facebook media is purchased with third-party data and that data usage has increased almost three times since the initial decrease.

eMarketer predicts that by 2020, U.S. advertisers will see $69 billion in digital display ad spending programmatically, which will make up 86.3 percent of the entire digital display spending.

Why brands are continuing with programmatic advertising

Programmatic advertising is still going strong because it’s such an effective method. Using data like demographics, geography, personal interests, behaviors, and even weather conditions, programmatic advertising platforms can use this real-time data to identify the right audiences and cater ads to devices specific to that audience.

The accurate, real-time data that programmatic advertising takes advantage of has been the foundation to the method’s success. These ads are personalized to each consumer’s unique interests, behaviors, location, and demographics. Put simply, programmatic advertising allows marketers to put a message in front of a person based on what they’re doing at that exact moment.

In the aforementioned London Research survey, 61 percent of respondents said the greatest benefit of programmatic is the ability to target and optimize effectively. Programmatic enhance personalization and improves the overall brand experience for the consumer while increasing marketing ROI.

So how can these benefits be taken advantage of while following GDPR?

First, marketers must address that consent concern. Make it a priority to receive consent from consumers in everything on your website, including cookies, newsletters, or other subscriptions. Adaptly research shows that 3 in 4 consumers in the UK welcome the changes that GDPR brings, so they’re going to be grateful for your transparency and often willing to give their consent.

Updated privacy regulations also mean quality standards are rising. It’s thus more important than ever to put more energy into creating high-quality ads that are competitive and relevant. It’s a great time for marketers to revisit their entire ad strategy along with updating privacy concerns.

And remember that it’s impossible to produce quality ads without quality data. The BDEX Data Exchange Platform (BDEX DXP) has 900 million searchable data points on tens of millions of U.S. consumers. These data points span 19 categories of shoppers and 5,000 additional categories, such as science, sports, and health, to help marketers home in on the audience they need for effective real-time marketing.

Take advantage of programmatic advertising that’s backed by quality, accurate real-time data. Learn more about how BDEX can help you get the data you need to push your real-time targeting strategy forward. Contact us today to learn more about our advanced data platform.