It’s been an inauspicious start to the new year for Facebook and Insta owner Meta, which last week was slapped with a whopping $390m fine for breaching EU online privacy regulations.
In all Ireland’s Data Protection Commission imposed two fines which could shake up the social media giants business model targeting users with ads based on what they do online.
It should serve as a reminder that global regulators are taking increasingly tough measures to tackle the huge issue of online data privacy.
We’ve asked some of our leading adtech minds for their take on the matter…
Pete Wallace, General Manager EMEA, GumGum
“Some in our industry have continued to stick to the status quo when it comes to personal data, despite the concerns of consumers.
“But with regulators getting increasingly tough, it seems things are starting to change.
“This ruling is testament to the fact that consumers need to be put in the driving seat on how their data is being used.
“Anyone wishing to use this personal data to be totally transparent and give consumers a clear view on what data is being used and provide an explicit opportunity to reject this.”
“This news is another reminder that players in the media and advertising world have to start diversifying their targeting strategies and investing in technologies such as contextual intelligence, which require no personal data at all and don’t require an opt-in from the user.”
Simon Reed, Chief Revenue Officer, multilocal
“Margrethe Vestager has been a long-term force for good at the European Competition Commission and has always championed the European citizen’s individual data rights to be protected.
“Meanwhile, Meta will no doubt challenge the recent European ruling for the €400m fine it has just received.
“Yet, whilst sizeable, it pales into insignificance versus the tens of billion for European ad revenue it took last year and the years prior to this. Indeed, Meta could consider the fine as a cost of doing business.
“That said, Meta is going to need to make some significant changes to its offering to play effectively and successfully in the EU region moving forward.
“Contextual targeting is where the market is moving to, so it may well be worth them getting involved.”
Alex Hobhouse, Managing Director, Automated Creative
“The inability to use targeting based on personal data opens up the opportunity for performance marketers to leverage truly data-driven creative; building audiences based on what resonates and drives results versus relying on Meta’s brand of targeting.
“This means shifting from audiences based upon personal profiles to those based on valued actions such as site visits or conversions.
“In this way, it’s important to focus on what resonates. This enables brands to generate their own targeting data instead of relying upon Meta.
“Essentially, this also means adopting a new approach: Building audiences with creative instead of building creative for audiences.”
Tanwa Edu, Chief Strategic Officer, Lumen Research
“Advertisers should remember that there’s more value to Meta than targeting.
“Formats like Reels and Stories deliver – and will continue to deliver – high levels of attention and recall for advertisers, regardless of targeting strategies.”
Anya Libova, UKI MD, Apester
“Meta chose to hide the legal basis for its data processing deep within the T&Cs; essentially forcing users to agree to their data being used.
“That’s not transparent and this ruling is a major move towards user privacy, by pushing Meta to give users a straightforward ‘yes’ or ‘no’ option.
“This ruling, if it goes into effect, will have a major impact on Meta, forcing it to implement changes. Yet, the fact remains that, ultimately, many users would still prefer targeted, personalised ads as these can result in improved experiences.
“The issue lies in having the option to say ‘no’ easily, if desired.”