In the new landscape under GDPR advertisers are rightly cautious about using data. The fines are huge and it is the advertisers who will be first in the cross-hairs for any breach.
As it is, until GDPR has been robustly tested in court, the position of the line the regulators have drawn is far from clear. In this landscape, agencies and their advertisers need to act cautiously and intelligently to make the best use of their current data assets.
Finding success in a post GDPR world
The World Cup and Winter Olympics have provided agencies and their advertisers with great opportunities to spend, but it seems inevitable that GDPR will eventually create negative pressure in the data industry. The increased, indirect costs—legal, administrative, and compliance—are likely to drive some marketing professionals to seek alternative options.
Of these alternative options, TV stands out as one of the more obvious, risk-free choices. When compared to other sources of more traditional media, such as print, TV innovation is evolving at a rapid pace, enabling marketing professionals to truly enhance their media strategies.
Innovative companies, like Sky, have realized that there is an opportunity for them in utilizing their data. Subscribers to these companies’ services provide them with a large-scale, deterministic dataset. Separately, the broadcasting regulations, while burdensome, have well-prepared broadcasters for the additional regulation in GDPR. Many broadcasters have large, high quality, consented, validated, and engaged user bases that they can leverage. The problem that we as an industry need to navigate is how to make these technologies fit the well-established world of broadcast TV.
“When you have that consent, it really pushes the value of it up.”
Sandy Ghuman, Sky Campaign and Delivery Controller.
Innovating with new formats around GDPR
TV has always been a key budget line in most media plans. The emergence of the word “omnichannel” gives us an indication of where the market is headed. The lines between TV, video, print, outdoor, radio, and display are starting to blur.
It is now fairly commonplace in the US to buy Connected TV inventory in addition to traditional linear TV and digital video buys. In fact, Spotify has a programmatic offering allowing you to execute alongside both video and display; and Clear Channel has been building out programmatic out of home.
This channel consolidation is highly beneficial for marketing professionals as they have known for a long time that the best kind of multi-channel campaign is a coordinated one. GDPR is forcing marketing professionals to take stock of their data assets, treat the data they do have with a higher degree of scrutiny and place a higher value on what they have validated—which is what needs to happen to really take advantage of the new landscape.
The independent agency in the new GDPR world
An emerging trend that has been seen in the US is the rise of the independent agency. As new technology opens up new channels, it can lower the barriers to access for the smaller independent. In particular, CTV is allowing independents to compete on similar commercial footing as the giants of the ad world.
The US market has demonstrated to broadcasters that the demand for new forms of TV is out there, and that there are budgets waiting to be taken. For the larger agencies, the sheer scale of the assets they control put them in a strong position to develop the opportunities offered at scale. Ultimately, while we may be peering around the corner right now, GDPR forces us as an industry to look at what we are doing with the data assets we control and we foresee some significant innovation on the horizon in this sector.