While Europe’s privacy law, GDPR, was meant to be the end of ad retargeting as we know it, the short answer to the question above is that ad retargeting is still going strong… and it’s growing!
It’s been just over two months since the General Data Protection Regulation went live, and ad retargeting spending is on the rise. While brands have cut spending on prospecting campaigns, they continue to retarget ads in the wake of GDPR enforcement.
Prospecting in Programmatic Advertising
Since prospecting in programmatic mainly uses third-party data, brands have found that it is far too risky for further investment since it is unknown whether or not the data was legally obtained. Retargeting, on the other hand, is an area of certainty for those advertisers who have shifted to GDPR-compliant tactics.
The Resilience of Ad Retargeting
Just because ad retargeting has proven to be resilient to GDPR doesn’t mean that prospecting is entirely dead. Prospecting is still taking place, but seasoned programmatic marketers realize it makes sense to target an audience they have already spent time and money prospecting. It may appear on the surface that programmatic budgets may have shifted, but in reality, they work in tandem.
One important factor to remember is that not all retargeting is compliant. Advertisers are “hedging their bets” when it comes to GDPR, and time will tell how it ultimately affects programmatic advertising. There are still a lot of jitters among advertisers over whether the policies of third-party audience targeting, and data companies meet requirements to keep their brand safe and compliant.
Market Side Effect
The resilience of retargeting is ultimately a side effect of a market that has realized there is still time to become more organized and fully implement consent-management. In the meantime, all parties are concerned that they are losing out on revenue by not being able to leverage third-party data. While there has been an initial drop in programmatic activity, it looks to be leveling out as publishers, agencies and brands realize there isn’t an immediate impact on the current market.
What are your initial reactions for ad retargeting and shifts in programmatic? We’d love to know! Leave us a comment to add to the discussion.