GDPR’s Impact on Ecommerce Advertising Strategies

We recently updated our working paper, 𝘛𝘩𝘦 𝘐𝘮𝘱𝘢𝘤𝘵 𝘰𝘧 𝘵𝘩𝘦 𝘎𝘦𝘯𝘦𝘳𝘢𝘭 𝘋𝘢𝘵𝘢 𝘗𝘳𝘰𝘵𝘦𝘤𝘵𝘪𝘰𝘯 𝘙𝘦𝘨𝘶𝘭𝘢𝘵𝘪𝘰𝘯 (𝘎𝘋𝘗𝘙) 𝘰𝘯 𝘖𝘯𝘭𝘪𝘯𝘦 𝘛𝘳𝘢𝘤𝘬𝘪𝘯𝘨, which is now available on SSRN (w. Karlo Lukic and Bernd Skiera) This research provides an in-depth look at how GDPR has influenced online tracking practices. Here are some key findings and implications: 𝐌𝐚𝐢𝐧 𝐅𝐢𝐧𝐝𝐢𝐧𝐠𝐬 - The GDPR led to a 14.79% reduction in the number of online trackers used by EU publishers, effectively curbing privacy-invasive trackers that collect and share personal data. - Despite GDPR, many trackers remain, and some categories—notably advertising trackers—saw only marginal reductions. - News publishers continue to use twice as many trackers compared to non-news publishers, highlighting the continued reliance on tracking for monetization. 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 - 𝐅𝐨𝐫 𝐀𝐝𝐯𝐞𝐫𝐭𝐢𝐬𝐞𝐫𝐬: The heterogeneous impact of GDPR means advertisers may face uneven access to user data across different publishers, possibly reducing the effectiveness of behavioral targeting. Advertisers might need to adapt by investing more in privacy-preserving alternatives, like contextual targeting or PETs. - 𝐅𝐨𝐫 𝐏𝐮𝐛𝐥𝐢𝐬𝐡𝐞𝐫𝐬: While the GDPR reduced highly invasive trackers, many publishers still face challenges balancing compliance with monetization. The decreased number of essential trackers, such as content delivery trackers, might even affect user experience. - 𝐅𝐨𝐫 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐬: Although GDPR achieved some intended privacy protections, the persistence of many trackers indicates that additional measures or stricter enforcement may be needed to better protect user privacy, but better privacy protection may further hurt the industry. In the study, we highlight both intended and unintended consequences of GDPR, offering insights for advertisers, publishers, and regulators seeking to navigate privacy and data use in digital advertising. Link to full study: https://lnkd.in/gFe5nT3M #GDPR, #onlinetracking, #privacy #regulation, #advertising #trackers, #dataprotection HEC Paris, Hi! PARIS Center - AI for Science, Business & Society

We are more or less living in a tracked society since #onlinetracking is one of the cornerstones of #digitalization. Since its implementation in 2018, the General Data Protection Regulation (#GDPR) has transformed the digital #advertising landscape, but has it truly curtailed online tracking? In their new IJRM - International Journal of Research in Marketing paper, Klaus Miller, Karlo Lukic, and Bernd Skiera provide answers. They analyzed 32 months of data from 294 #publishers to assess GDPR’s real impact, that is, how the number of trackers used by publishers changed before and after the GDPR. They find that: 1) GDPR led to a 14.79% decrease in trackers per publisher, primarily reducing #privacy-invasive trackers that collect and share personal data. 2) Advertising trackers remained largely unaffected, meaning targeted advertising is still viable despite the regulation. 3) Larger tracker providers (e.g., Google, Facebook) were better at adapting, while smaller tracker providers saw a sharper decline, suggesting GDPR may have unintentionally reinforced market concentration. 4) Non-news publishers (e.g., e-commerce, recreation sites) reduced tracking significantly, while news publishers continued using trackers at nearly the same rate, potentially due to ad-driven revenue models. In sum, GDPR effectively curbed the most invasive tracking, yet left advertising tracking largely intact, which potentially benefits the dominant players. Hence, future public policy might have to better balance privacy protection, competition, and economic viability in the digital advertising ecosystem.

For over two decades, digital marketers have leaned on third-party cookies to track users, target ads, and build campaigns around behavioral data. It has worked well for performance, but it has also encouraged a mindset of easy access over earned trust. That era is coming to a close. Apple's iOS updates, particularly App Tracking Transparency (ATT), have already reshaped the advertising landscape. Combined with regulations like GDPR and CCPA, growing consumer awareness, and tighter browser restrictions, the way we collect and use data is undergoing a permanent shift. According to Statista, more than 30% of marketers are still fully dependent on third-party cookies, and many are unprepared for what comes next. This is not just a challenge to update tools. It is a moment to re-evaluate priorities. As marketers, we should be asking hard questions: - Are we prioritizing short-term targeting over long-term relationships? - Are we building strategies based on user consent and value? - Do we truly know our customers, or are we simply watching them? The most forward-thinking brands are not looking for technical workarounds. They are investing in first-party data, transparent communication, and trust-based engagement. They are building the kinds of experiences people actually opt into, not opt out of. This is a defining moment for marketing leadership. It is a chance to move away from extractive models and toward ones that are more respectful, human, and sustainable. How is your team navigating this transition? Are you ready for a world where trust is the most valuable currency? #CookielessFuture #MarketingLeadership #DigitalTrust #FirstPartyData #CustomerExperience

Brands must take the lead in embracing data minimization, guiding their agencies to prioritize contextual and environmental signals over invasive personal data collection. With privacy regulations tightening globally—from GDPR and LGPD to the CCPA and Maryland’s MODPA—relying on excessive data hoarding is both legally risky and not in line with what consumers want. Instead, brands should focus on signals that truly drive performance. A consumer’s interest in cooking or sports is often enough to build brand affinity and drive conversions, proving that privacy-conscious, context-driven advertising isn’t just compliant—it’s more effective. https://lnkd.in/eWPJXWMi