Google and Apple privacy moves fuel compliance fears

data_adtech1The penny seems to have finally dropped over the need for brands to increase data protection measures, but it is moves by Google and Apple rather than GDPR and new US data protection laws that are driving change, with more than four-fifths (81%) of advertisers admitting they are now concerned about compliance.

As tech firms, data companies and agencies search for new solutions to replace third-party cookies, and Apple launches its latest operating system update, iOS 14, allowing users to turn off their so-called Identifier for Advertisers (IDFA), consumer interest in data privacy is soaring.

According to the white paper, published by AppsFlyer and IDC, although the majority of advertisers (79%) in the UK, Germany and the US are confident vendors will keep attribution effective after the implementation of Apple’s new framework, just under half (49%) are less confident that this will be the case for future privacy measures.

Even so, across all three countries surveyed, the top concerns were privacy protection and compliance (81%); physical and environmental data security (80%); and compliance with privacy protection laws and regulations (79%).

And, according to the report at least, firms are right to be concerned. It claims companies have a one-in-three chance of being investigated for privacy violations, although quite where it gets this figure is not known.

It goes on to claim that most investigations find non-compliance, leading to a fine that averages 2.9% of annual revenue or about $40m – with significantly higher fines in the US.

The white paper also details the current state of advertiser satisfaction with measurement solutions and reveals that while digital measurement is now the minimum requirement for increasing ROI and competitiveness, advertisers feel they must increase their ability to comply with privacy protection laws and regulations and ensure physical and environmental data security.

Respondents say the most important measurement features are effectiveness and accuracy (79%), fraud detection (75%), and quality of customer support (75%). Over half (55%) of advertisers expect return on advertising spend will worsen with new measures in place.

However, in classic Panglossian style, the industry is still optimistic about the future, with nearly 80% saying they are confident there will be new solutions to keep measurement at the current level of efficacy.

AppsFlyer president and general manager Brian Quinn said: “This [report] demonstrates that for measurement technology to ensure an increased return on advertising spend and support overall competitiveness, it must enable advertisers to comply with evolving privacy regulations around the world so they avoid fines for non-compliance.

“This is about far more than one vendor’s feature set. It’s about our industry understanding the challenges our customers will face long before they do – and future-proofing our solutions to minimize disruption as the regulatory environment evolves over the coming years.”

Related stories
Publishers’ first-party data ‘to be new media currency’
What the FLoC? Google’s new adtech ‘breaches GDPR’
Data firms in demand as brands look to replace cookies
Brands build first-party data at last as cookies crumble
Brands all talk, no action on first-party data adoption
Why first-party data is the gift that keeps on giving
Brands eye first-party data as the penny finally drops
How to unlock the power of first-party customer data

Print Friendly