Better enforcement of Europe’s strong data protection and privacy legislation, as well as new measures to boost trust and transparency in the online advertising ecosystem, are needed and are welcome.
But there are #NoEasyWins in digital policymaking, and we owe it to Europe’s citizens to get this right
Proposals to ban or restrict targeted ads in Europe as part of the new Digital Services Act (DSA) package would have far-reaching consequences. Data-driven advertising is crucial for the small businesses that depend on it to find audiences, for the publishers who rely on it for revenues, and for exporting economies that need frictionless access to the Digital Single Market.
There are #NoEasyWins in digital regulation, but let’s see who would really lose out if these proposals became law:
Local news outlets and small online publishers often depend on targeted ads to complement income from subscriptions and contextual ads. Advertising accounts for 81% of European media digital revenues. We cannot just dismiss these vital pillars of European democracy.
75% of European consumers prefer an ad-supported internet because it is largely free to access. The average EU consumer does not want to pay more to get less, and only European elites can afford multiple subscriptions.
European SMEs increasingly rely on targeted ads to find and sell to customers. Digital marketing has been a lifeline during the pandemic, with 50% of small businesses saying that digital advertising is now more than ever important to their business. Restricting targeted ads now would remove a vital component of many SMEs’ post-pandemic recovery strategies.
The percentage of consumers buying goods online in Central and Eastern Europe has increased by double digits during the pandemic, and businesses from the region depend heavily on digital ads to market themselves across the Single Market. Banning or restricting targeted ads would be a huge step backward and does not have broad support across the EU.
Read more about the value targeted ads provide to European businesses and people in the latest research report: The Wider Socio-Economic and Cultural Value of Targeted Advertising in Europe.
