June 14, 2019

One year of GDPR: what were the effects of European legislation on marketing?

Picture of Valentin Bolboacă

Valentin Bolboacă

On May 25, 2018, the new General Data Protection Regulation (GDPR) was introduced at European level. On a theoretical level, its main objective was a simple one: the protection of personal information for any citizen within the European Union.

Businesses use a wealth of data for different purposes, starting with targeting marketing campaigns on demographic considerations and ending with informing and mobilizing the individual consumer. In this context, the regulation came with a series of directives on the ways of storing and using data.

The initial concerns about how to apply it were gradually removed and even if the consequences of its application were relevant, they did not completely change the business processes. On the one-year anniversary of the entry into force of the GDPR, we will mention the most important of them below:

  1. Increasing transparency

During 2018, following the introduction of the GDPR, businesses prioritized transparency over personal image. Thus, 1700 personal data security breaches were reported by the companies where they took place, and experts estimate that this trend will continue in 2019, at the end of the current year the number is estimated to reach 36000.

According to a study conducted by DLA Piper, the total number of cases was 60000 in the first 8 months following the introduction of the new directives.

  1. Developing the importance of explicit consent

The GDPR has introduced important changes to marketing tools such as cookies and newsletter sign-ups, the existence of opt-in systems being imperative in their case. User consent is thus no longer optional, and sales tactics had to be adapted to this new reality.

But falling within the legal limits implies, at least in the case of medium and large companies, more than just the permission of a person, they have to modify their systems so as to clearly demonstrate the ways of storing data, their different typology and the levels of access to them.

  1. Emerging opportunities to increase consumer confidence

The GDPR has opened up new possibilities for developing the image of companies. Responsible businesses use the data collected for the benefit of consumers, communicating with them about their needs and providing information on the possibilities of satisfying them.

Aligning with new standards opens the door to innovation by providing multiple data usage verticals while maintaining data privacy. Both marketers and companies have the chance to develop their brand image and increase sales by promoting transparency and visibility.

  1. Changing the relational paradigm between marketer and consumer

In the desire to adopt the latest technologies and understand the latest innovations in the digital field, marketers have sometimes ignored responsibility for the data they operate. In many cases, they have been a convenience, not so often used to improve the consumer experience, but to test different campaigns outside of pre-established limits.

The GDPR thus meant a reiteration of the main policy on which marketing must be based, namely that of putting the consumer first. The collection of data depends on its consent, and the responsibility for using it in its interest is no longer optional.

  1. Development of creativity and the thought process

Before the application of the GDPR, any information could be collected through an automated system, this possibility giving businesses access to an impressive collection of data.

By introducing the opt-in clause and restrictions on the nature of what can be used, marketers must accept a limitation of the informational content they have. This has effects on the ways of building and targeting different campaigns, thus making the transition from quantity to quality. In other words, nowadays it matters more how you use the data you have and how you apply creativity in interpreting it.

The adaptation to the new European regulations continues in the marketing world even after a period of one year. Even if the practical effects were not so harsh, they required at least a reassessment of the way business relationships are maintained.

Both the strong negative consequences mentioned at the beginning by the party that rejected the implementation of the GDPR, and the positive ones highlighted by those who supported it were delayed to appear in full force and to fundamentally alter both the world of marketing and the online space in general.

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