It only feels like yesterday that there was a flurry of media attention and columns written about the revised Privacy and Electronic Communications Directive but what has happened since?

I had almost forgotten about it until a client meeting earlier this week in which we were discussing the issue and the client wanted to know if there was any update – which to my knowledge there hasn’t been since the 25^th May. I have sporadically seen the ‘i’ icon in the corners of some display ads but that is about it.

So what do we know so far about it? The DCMS, ICO and IAB are working together to work out how best to implement the required changes for advertisers in the UK and have a year so and that it may be having to provide opt-in to cookies via browser settings – which will have important implications for the future for OBA.

Having spoken to a handful of people (admittedly my friends and family – which isn’t entirely an accurate profile of society) I get the impression that the average consumer (i.e. not working within the industry) isn’t aware of the issue and the advanced advertising techniques available to brands. They were all in favour of being shown more relevant and targeted ads to them which is the premise of behavioural advertising. As personal experiences shown with numerous Navigate Digital clients, consumers do respond to it which is shown through greater ROI vs standard run of network/section targeting.

However I can forsee a situation where if the need to opt-in takes place that consumers are faced with headlines about privacy invasion and are thus dubious about opting-in.  I really hope that when it comes down to implementing the changes next year, consumers are aware of all the facts involved and understand why behavioural targeting is used and aren’t just faced with sound bites and hear say. Of course we need to make sure that data collection is more transparent and that there are rules and regulations in place but there is a need to educate consumers who don’t even know it exists. We need a bottom up approach to ensure that everyone is informed but I fear that this may unlikely.

 25^th May 1938, The Spanish Civil War – the bombing of Alicante takes place, with 313 deaths.

25^th May 1940, World War II – The Battle Of Dunkirk begins.

25^th May 1977, Star Wars premiers for the first time.

3 dates from history that changed the world forever.

Whilst 25^th May 2011 is likely to pass most of the UK population by, for many of us in the digital industry it’s poised to be a significant day, as the long awaited ‘Privacy and Electronic Communications Directive’ from the EU comes into force.

However, despite the apparent importance of this new legislation a sense of confusion shrouds it, with many people in the industry still unsure exactly what it is or what should be done about it. 

To clarify – the legislation stipulates that from May 25^th, all online businesses in the UK that collects, stores and uses data on visitors to their websites, should gain consumer consent for cookies to be dropped on to their computers.  Put simply, the EU is attempting to ensure that the digital world is on a similar footing to the rest of the advertising world in terms of data privacy and ensuring that consumers are ‘protected’ online.

The Department for Culture, Media and Sport (headed by Navigate Digital’s friend Jeremy Hunt) will be responsible for implementing the directive in the UK and they have been working with the Information Commissioner’s Office (ICO) and IAB to work out how best to help marketers meet the requirements of the legislation in the UK. 

Information Commissioner, Christopher Graham, recently said “We are proactively working with the government, businesses and the public sector to find a workable solution (to the impending legislation). We recognise that the internet as we know it today depends on the widespread use of cookies and there are of course legitimate business reasons for using them. So we are clear that any changes must not have a detrimental impact on consumers nor cause an unnecessary burden on UK businesses”

Given the proliferation in use of retargeting and online behavioural advertising (OBA) over recent years (which relies on the use of cookies to work effectively) it is clear that many people in the industry are worried about how it will impact online advertising – with some observers saying the law could ‘decimate’ the industry.

In my opinion this whole issue has been fuelled by a minority of scare mongers who simply don’t understand online marketing.  Naturally consumers who ‘don’t get’ online are a little uneasy about the concept of  OBA and retargeting techniques because until now, there has been little information about how it works and the privacy issues that surround it but to say it could decimate the industry is totally ridiculous.

Hopefully the coming months will shed some clarity on the issue.  Having spoken with Specific Media in the UK it appears that independently of the EU legislation, the industry is already making significant progress on increased user consent and control via self-regulation. Essentially, this will result in a European version of the US DAA “Ad Options” programme where a “more info/opt-out” icon is added to online advertising (see picture).

Specific Media described this icon to me as being similar to the “Caution Filling Is Hot” message found on McDonald’s apple pies – “it will discreetly advise the user what the situation is, ensuring the maximum value from their online experience to the benefit of all parties involved”.  We shall see.

What is apparently that key industry bodies and publishers all need to work together to quickly deliver a set of clear guidelines.  Whilst it is unlikely the ICO will enforce the legislation against businesses and organisations in the short term, it is clear that greater consideration needs to be given to how cookies will be used going forward.

Until more direction is given by the DCMS and ICO, advertisers and especially media owners need to be as transparent as possible in their collection and use of consumer data – and as subtly as possible provide users options to opt out, but without scaring them away forever. 

Implementing a ‘best practice’ process now will ensure they are at the front of what is still a rather long and confused queue of publishers, advertisers and agencies.

For more information, see these links:-

http://www.youronlinechoices.com

http://www.aboutads.info

http://www.easa-alliance.org/page.aspx/386

http://www.ico.gov.uk