We recently spoke about no such thing as a free lunch and how companies use of our personal data has an impact on us as consumers. Now lets take a look at the other side of the coin.
There is no question that big data, social networks,… have brought about one of the largest transformations in marketing since television (and Mad Men). Digital advertising is expected to overtake TV advertising in the US for the first time this year, in China this already happened and this year the expectation is that digital mobile advertising will be larger than TV advertising.
The ability of brands and marketers to better understand and reach consumers directly and with a “personalized” message is in everyone’s agenda. Whether we are talking about brands, retailers, or even presidential candidates the objective is to leverage data, understand your customer’s preferences and personalize the content to beat the competition. Simple right?
As the technology to mine, explore, share, analyze data has increased dramatically, companies in a very competitive environment have leveraged it (and sometimes sold it) to try and gain an advantage. Digital marketing has boomed to a point some may even consider freaky or “big brotherish” (pendulum swings to one side).
GDPR or General Data Protection Regulation, is a new EU law coming online in one month that deals with data privacy and how companies need to behave have to get acquire consent from customers to retain and use their data. (pendulum swings to the other side).
A few days ago I read this article on CNN which I believe in layman’s terms explains the core of GDPR (CNN Link):
- Any organization that holds or uses data on people inside the European Union is subject to the new rules, regardless of where is it based.
- Companies will have to obtain an individual’s consent in order to store and process personal data. Requests must be clear and written in plain language.
- Organizations aren’t allowed to hold data for longer than is necessary, and anyone can ask for their personal information to be deleted from a company’s servers.
- European regulators can impose fines of at least €20 million ($25 million) or up to 4% of annual global sales
Wow, that impacts a lot of companies outside the EU…
SAP recently announced the launch of SAP Customer Data Cloud based on the Gigya platform to help companies drive the personalization capabilities that marketers, brands and especially consumers are looking for while at the same time helping companies that need to or want to comply with GDPR. Hear more of the Customer Data Cloud Launch in this Podcast with Patrick Salyer here .
You probably have started to receive bunch of emails from companies that have started to change some policies given GDPR. In my next post we’ll have a look at one example that I found very interesting.