A revision of EU privacy law could have a devastating effect on online advertising.
Under the new rules publishers must gain users' consent before placing cookies on their machines. Online ad practises like behavioural targeting, retargeting and audience segmentation will all be effected.
The change will see national governments having to:
"ensure that the storing of information, or
the gaining of access to information already stored, in the terminal
equipment of a subscriber or user is only allowed on condition that the
subscriber or user concerned has given his/her consent, having been
provided with clear and comprehensive information."
The EU are objecting to online advertisers collecting data without the users' knowledge. Common practice is to make users aware of cookie use through privacy policies posted in their small print. With ever-improving behavioural and semantic targeting relying on cookies, the EU's threats to step in if the industry doesn't regulate itself will raise concerns at publishers in an already-difficult advertising market. The gloves, it appears, are most definitely off.
