At Criteo, we are well aware of the implications of the European Union’s General Data Protection Regulation (GDPR). A data company with European roots, we see the GDPR as a win-win for businesses and consumers alike, and are ready to assist our clients and partners in best-practices on how to prepare as well.
In a new report by Stuart Williams, Vice President (@s2_williams) and Zach Rabel, Research Analyst (@ZacharyRabelTBR) at Technology Business Research, Inc., the research firm confirms that the impact of GDPR on the data economy will be significant, including its fines for noncompliance: either €20 million or 4% of global turnover, whichever is greater.
More alarming however, is that the report finds over 40% of U.S. companies don’t view compliance as a high priority. They should. GDPR also apply to non-European companies, American included, when they serve European citizens and residents.
According to the report, consumers overall are aware of the benefits of personalized, targeted marketing but that there is still a “knowledge gap regarding what data is collected by which ecosystem players.”
While the benefits for consumers require little effort on their part, the effort required by companies to become compliant can be time-consuming and expensive, including changes to personnel, processes, and technology. However, the report states, companies that “take a ‘sit and wait’ approach or focus resources elsewhere may become examples for others as fines are levied.”
A possible way to avoid this, the report states, is for advertisers to partner with solutions providers who “understand regional nuances and can demonstrate the capability to address regulatory concerns, such as the EU’s GDPR.”
Whether you’re an advertiser or advertising solutions provider, GDPR compliance should be a top priority.
According to TBR’s 1Q18 Digital Marketing Services & Technology Customer Research Topical Report, 44% of companies are requiring that their partners demonstrate GDPR compliance. If these partners are unable to address the new laws, those surveyed in the report states they would be willing to switch partners.
Further, TBR believes that data-centric companies with a global presence like Criteo, can act as “GDPR shepherds,” and offer insights for companies that seek GDPR guidance and want to both avoid noncompliance risks and operational slowdowns.
Download the report here and visit our analyst reports page for more insights from industry watchers.