Companies Prepared for GDPR will gain a Competitive Advantage
There is a competitive advantage for companies that prepare adequately for the GDPR compliance. The European Union’s new data privacy regulation builds on the foundations of the current data protection regulations.
Consequently, GDPR should not be viewed as a burden to businesses. Although the new law demands for accountability for personal data handling and enhances individuals’ rights, it is fundamentally about trust. Companies that can develop trusted relationships with the public can structure their use of personal information and gain a competitive advantage over their competitors.
Digital advertising giants such as Facebook, Amazon and Google stand to gain much from the new European Union data protection regulation, GDPR. Currently, there is a general feeling that companies will face an uphill task in complying with the new law. This may not necessarily be true. Some of the global advertising giants have succeeded in the market due to their ability to give their consumers the services and products they want while respecting individuals’ privacy. Consequently, regulators will not stop customers from agreeing to share data they must to continue enjoying the services.
Google, Amazon, and Facebook will have it easy with the GDPR. Their current data handling cultures enable them to derive customer relationships. Moreover, they have proprietary ad-tech and plenty of in-house resources. These are some of tools and structures necessary to gain customers’ trust and consequently consent for personal data collection. The General Data Protection Regulation demands that companies must obtain clear consent from the users before processing their data. Google, Amazon and Facebook seem to be a step ahead in preparations for compliance with the law. Consequently, they are likely to gain a competitive edge.
The European Union law is not out to destroy the digital advertising firms in Europe. The aim of the regulation is to make the companies appreciate the fact that privacy is a fundamental human right. Publishers and brands that practice transparency in data collection and strive to offer consumers with real choices about the collection and use of their personal data stand to gain more value and trust. This means that businesses that observe the regulatory requirements of the GDPR reduce their regulatory risk and gain a substantial competitive advantage over less prepared counterparts.
Businesses can undertake several steps to prepare for GDPR. These steps include:
- Ensuring that compliance can be seen by people visiting the business’ website.
- Having a compliance strategy that can be presented to the regulators.
- Being aware of the individuals who collect data from the business’ digital properties, what they collect and how they use such data.
- Avoiding tech providers whose data collection and monetization methods are not transparent.
Advertising companies that can build first-party data assets and deliver quality services to the customers will have a significant advantage over brands that depend on third party data sources. Genuine rewards await businesses that concentrate on GDPR compliance. Advertisers and brands can gain a competitive advantage by focusing on the EU regulations, identifying their consumers’ compliance responsibilities and strategizing on how to assist the consumers to manage the regulations.