Google will implement new rules today governing how firms advertise in preparation for the European Union’s (EU) General Data Protection Regulation (GDPR). Any Forex company using Google’s DoubleClick for Publishers (DFP) service, whether directly or indirectly, will have to make substantial changes to their advertising models in the EU to comply with the new regulation.
GDPR, which was adopted by the EU in April 2016, will go live on the 25th May 2018. The regulation means there will be a single set of data regulations across the EU. This may mean firms find it easier to navigate the EU’s cyberspace, but the rules are much more stringent than any other prior legislation.
This can be seen in the new set of rules that Google will enforce today in preparation for the launch date. Most notably, digital publishers using DFP, one of Google’s ad-management tools, will only be able to share data with 12 vendors.
CEO Spotlight: Alon Rajic on the Future of UK/EU Trade and EconomicsGo to article >>
This may sound like a lot, but it is not unusual for companies to share data with over 100 vendors. Forex companies are unlikely to use DFP directly, but a sizeable number of their advertisers do. With no customer data as a reward, these new rules will likely increase the price of advertising or reduce the impetus for companies to provide any online advertising services at all.
No more tailored ads
Even more damaging than the cap on vendors is the requirement to provide site visitors with the option to not share their data. When given the choice, 70 percent of users opt out of providing their data to websites. Companies must also list the vendors they will be sharing data with – something that has been found to further increase opt-out rates.
The impact of this will likely be that it becomes substantially harder for firms to reach their target audience. With site visitors opting out of tailored ads, firms will have to invest more time and money, and be much more strategic, with their advertising efforts.
All of these developments will be a further blow to FX firms’ marketing teams who have already had to deal with Google’s ban of cryptocurrency, CFDs, FX and spread betting advertising. While some FX brokers can apply for Google certification that would enable them to advertise with the search-engine, it would only be in within jurisdictions where they have regulatory approval.