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EU Cookie Directive & Effect on Ad Revenues

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  • ju2ltd
    As the above regulations start to be put into place in the EU does anybody have any idea how ad revenues will be effected. Will advertising
    Message 1 of 4 , May 30, 2012
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      As the above regulations start to be put into place in the EU does anybody have any idea how ad revenues will be effected. Will advertising networks/advertisers be able to differentiate between compliant site with higher levels of opt outs (opt ins) and less ability to facilitate behavioural targeting. Presumably inventory on these sites will be less attractive to advertisers and attract lower eCPMs. What metrics will they use to establish this?

      Jim.
    • Steve Bashiri
      Will Ad revenue be effected? Yes. Will the EU eCommerce revenue be effected? Yes, in the short term. Will most EU web sites follow this directive to the
      Message 2 of 4 , May 30, 2012
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        Will Ad revenue be effected? Yes. Will the EU eCommerce revenue be
        effected? Yes, in the short term. Will most EU web sites follow this
        directive to the tee? No. Many governments know how difficult it is to
        enforce this, and are already back-pedaling on the language of the law.
        According to Business Insider, the British government has amended its
        version of the directive to include that it is ok for web sites to obtain
        user's "implied consent" to be cookied. Lets face it, it's the use of
        cookie to obtain user behavior and retarget them, that is really the reason
        behind all this fuss. And using cookies to accomplish that is not in danger
        anytime soon. Even if it was, let's say in EU, and they came hard on all
        on-line businesses and they turned into cookie Nazis that we all hope they
        won't become, there are other means of tracking user behavior and retarget
        them. The fact is governments are not as agile as tech businesses, they
        just don't move fast enough to keep up with the pace of innovation.
        Business will find it's cheese, no matter where you hide it.

        Having said all that, the online marketing and Ad industry must take
        responsibility and proper measures to keep its practices fair to the user
        community and each other. This self-policing must be organic and come from
        within, or, eventually some regulatory body will impose restrictions on
        their business. And the next time they may have the consent of the
        majority.



        Steve Bashiri



        [Non-text portions of this message have been removed]
      • ju2ltd
        Steve - so if a site were to become compliant and a significant number of their users opt out of 3rd party cookies will they loose ad revenue? Jim.
        Message 3 of 4 , May 31, 2012
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          Steve - so if a site were to become compliant and a significant number of their users opt out of 3rd party cookies will they loose ad revenue?

          Jim.

          --- In webanalytics@yahoogroups.com, "Steve Bashiri" <stevebash@...> wrote:
          >
          > Will Ad revenue be effected? Yes. Will the EU eCommerce revenue be
          > effected? Yes, in the short term. Will most EU web sites follow this
          > directive to the tee? No. Many governments know how difficult it is to
          > enforce this, and are already back-pedaling on the language of the law.
          > According to Business Insider, the British government has amended its
          > version of the directive to include that it is ok for web sites to obtain
          > user's "implied consent" to be cookied. Lets face it, it's the use of
          > cookie to obtain user behavior and retarget them, that is really the reason
          > behind all this fuss. And using cookies to accomplish that is not in danger
          > anytime soon. Even if it was, let's say in EU, and they came hard on all
          > on-line businesses and they turned into cookie Nazis that we all hope they
          > won't become, there are other means of tracking user behavior and retarget
          > them. The fact is governments are not as agile as tech businesses, they
          > just don't move fast enough to keep up with the pace of innovation.
          > Business will find it's cheese, no matter where you hide it.
          >
          > Having said all that, the online marketing and Ad industry must take
          > responsibility and proper measures to keep its practices fair to the user
          > community and each other. This self-policing must be organic and come from
          > within, or, eventually some regulatory body will impose restrictions on
          > their business. And the next time they may have the consent of the
          > majority.
          >
          >
          >
          > Steve Bashiri
          >
          >
          >
          > [Non-text portions of this message have been removed]
          >
        • Matthias Bettag
          Hi all, I just want to mention that the term cookie law or cookie directive is misleading. Yes, cookies are the most common technology for identifying a
          Message 4 of 4 , Jun 1, 2012
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            Hi all,

            I just want to mention that the term "cookie law" or "cookie directive" is
            misleading. Yes, cookies are the most common technology for identifying a
            visitor, but in fact the directive is about privacy. It does not matter
            which technology is used. What is required is getting user consent
            regardless of the tracking method (cookie, IP, login, device ID,
            fingerprint, ... ...).

            Also, I do not think it is helpful to draw a picture where the authorities
            might become "cookie nazis", as ourself could quickly be named "tracking
            nazis" in return.. I'd rather have a more constructive discussion. (don't
            get me wrong Steve, I understood this was only a description and in
            quotation marks, not meant as an insult, but imho we should be a little
            more careful here)

            The intention of the privacy regulation is not senseless. It does not help
            us to blame authorities for a lack of technical understanding.
            In other words (now I am drawing a picture..): One does not need to know
            how a motor is constructed when requiring a speed limit in front of a
            school.

            Instead we have to explain our profession, our methods, and the reason for
            tracking and targeting. All this must be made transparent and controllable
            for an end-user. This is certainly challenging, but our industry has
            probably not made the very best job in terms of transparency so far. The EU
            directive is just a logical consequence of this. Now, it's on us to find
            solutions, as well as educating about what we do in an honest and
            transparent way.
            I am confident that neither the online business will die, nor that we
            cannot use and track any data any more. But we need to do some homework..

            best,
            Matthias

            --

            Matthias Bettag
            Vice President Analytics, Europe
            Semphonic - Office Berlin
            http://semphonic.com/consulting-services/europe/

            Email: mbettag@...
            Skype: matthias.bettag
            Twitter: @MatthiasBettag
            Mobile: +49 173 2008758



            > 3b. Re: EU Cookie Directive & Effect on Ad Revenues
            > <http://groups.yahoo.com/group/webanalytics/message/29313;_ylc=X3oDMTJzMnJxMWJyBF9TAzk3MzU5NzE1BGdycElkAzEyOTc5MTQxBGdycHNwSWQDMTcwNTAwNTU4MgRtc2dJZAMyOTMxMwRzZWMDZG1zZwRzbGsDdm1zZwRzdGltZQMxMzM4NDgxNTU1> Posted
            > by: "ju2ltd" jim@...
            > <jim@...?Subject=+Re%3A%20EU%20Cookie%20Directive%20%26%20Effect%20on%20Ad%20Revenues> ju2ltd
            > <http://profiles.yahoo.com/ju2ltd> Thu May 31, 2012 3:38 am (PDT)
            >
            >
            > Steve - so if a site were to become compliant and a significant number of
            > their users opt out of 3rd party cookies will they loose ad revenue?
            >
            > Jim.
            >
            > --- In webanalytics@yahoogroups.com, "Steve Bashiri" <stevebash@...>
            > wrote:
            > >
            > > Will Ad revenue be effected? Yes. Will the EU eCommerce revenue be
            > > effected? Yes, in the short term. Will most EU web sites follow this
            > > directive to the tee? No. Many governments know how difficult it is to
            > > enforce this, and are already back-pedaling on the language of the law.
            > > According to Business Insider, the British government has amended its
            > > version of the directive to include that it is ok for web sites to obtain
            > > user's "implied consent" to be cookied. Lets face it, it's the use of
            > > cookie to obtain user behavior and retarget them, that is really the
            > reason
            > > behind all this fuss. And using cookies to accomplish that is not in
            > danger
            > > anytime soon. Even if it was, let's say in EU, and they came hard on all
            > > on-line businesses and they turned into cookie Nazis that we all hope
            > they
            > > won't become, there are other means of tracking user behavior and
            > retarget
            > > them. The fact is governments are not as agile as tech businesses, they
            > > just don't move fast enough to keep up with the pace of innovation.
            > > Business will find it's cheese, no matter where you hide it.
            > >
            > > Having said all that, the online marketing and Ad industry must take
            > > responsibility and proper measures to keep its practices fair to the user
            > > community and each other. This self-policing must be organic and come
            > from
            > > within, or, eventually some regulatory body will impose restrictions on
            > > their business. And the next time they may have the consent of the
            > > majority.
            > >
            > >
            > >
            > > Steve Bashiri
            > >
            > >
            >
            >


            [Non-text portions of this message have been removed]
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