Even though the Cambridge Analytica scandal has scarred the trust of people from Facebook and google regarding their data privacy, looks like Facebook and google are still here to stay and rule the market. A new study has disclosed that consumers are more likely to trust Facebook and Google with their PII than smaller ad tech firms in the market.
Findings from the study using replica websites which has various opt-in request types, the discovery from Smartpipe and PSB Research declared that consumers are more trustworthy to give in their data to giant firms than the budding ones which promise better security. With over 54 percent maximum and a 27 percent minimum consent rate, it is clear that the digital giants still dominate the market despite their privacy loophole which garnered major backlash and led to stringent and new European data regulations.
Adhering with the new transparency regulations from the government will be really tough as most of the ad tech firms now have an added risk of being denied access to consumer data as the regulations imply “FULL TRANSPARENCY“ and one hundred percent consent from each vendor on its route.
The “select all” opt-in provided beneficial at first as the consumers opted in without the knowledge of choice they had. However, after it was made clear that the consumers can actually choose even the percentage of access they would want to provide in the form of their information, the layered trick of the ad tech giants saw some falling results as opposed to a successful start.
Chad Wollen, CMO of Smartpipe compounded that GDPR will have severe adverse effects on the ad tech world, but also threw some light on how this will give a chance to new entrants enhancing their technologies to overcome the challenges and hence supplying data to the digital advertising ecosystem.
Wollen added: “Once you add consumer behavior into the mix, worse case scenarios are compounded.
“The three strategic challenges to the use of data within digital advertising which will play out is the ‘publishers dilemma’ of the ‘layered approach’ to consent gathering, the advantages accruing to the duopoly from being large, familiar brands bring, and finally the power of new entrants to keep the flow of data into the ad sector by leveraging new technology and transparent user experiences which offer meaningful choices to their customers.”
Every cloud, however, has a silver lining. That is what the study revealed on the flip side. In one hand baby boomers said they hop into cookies, but as many as 60 percent millennials and Gen Z consumers agreed to provide consent for a “agree to all” condition.
As of now, the ad techs in Europe are in for some dark time due to the recent stringent GDPR developments. It was also showcased that Google had post-pone its collaboration with an ad-tech consortium in regards with the GDPR compliance till as late as August, which leaves some interdependent firms that make use of its services to pay heavy fines and taxes complying and regulating to the newest set of GDPR laws.