AppsFlyer White Paper Reveals Measurement Solutions Are Table Stakes as Advertisers Remain Concerned About Compliance with Privacy Protection Laws and Regulations
AppsFlyer, the global attribution leader, published a commissioned IDC white paper, The State of Measurement, Privacy and Compliance – Top List of Advertiser Priorities. The white paper offers guidance for advertisers seeking to optimize return on their investment in mobile advertising campaigns. According to the white paper, while advertisers are generally satisfied with the features of their measurement solutions, concerns remain high when it comes to privacy protection and compliance capabilities.
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Based on a survey of senior advertising decision makers in large companies in the US, the UK and Germany, the white paper details the current state of advertiser satisfaction with measurement solutions and reveals that while digital measurement is now the minimum requirement for increasing return on advertising spend (ROAS) and competitiveness, advertisers feel they must increase their ability to comply with privacy protection laws and regulations and ensure physical and environmental data security.
“This IDC White Paper demonstrates that for measurement technology to ensure an increased return on advertising spend and support overall competitiveness, it must enable advertisers to comply with evolving privacy regulations around the world so they avoid fines for non-compliance,” said Brian Quinn, President and General Manager, AppsFlyer. “This is about far more than one vendor’s feature set. It’s about our industry understanding the challenges our customers will face long before they do – and future-proofing our solutions to minimize disruption as the regulatory environment evolves over the coming years.”
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- Measurement as table stakes: Digital measurement has become required for running mobile marketing campaigns because measurement has proven to significantly increase ROAS and support advertiser competitiveness.
- Feature satisfaction but concerns about privacy compliance: While generally satisfied with their measurement solution features, advertisers are concerned about the impact of non-compliance with privacy laws and regulations on their reputations. In both the U.S. and the UK, almost three quarters of respondents (73% in both countries) were “concerned,” “more concerned,” or “very concerned.” In Germany, more than half (53%) of advertisers surveyed were “concerned,” “more concerned,” or “very concerned.”
- Top privacy compliance concerns: Across the three countries, the top concerns were:
- Privacy protection and compliance (81%)
- Physical and environmental data security (80%)
- Compliance with privacy protection laws and regulations (79%)
- Risks of non-compliance: Privacy law enforcement actions are not rare. Companies face a 1 in 3 chance of an investigation, and most investigations find non-compliance, leading to a fine that averages 2.9% of annual revenue or about $40 million – with significantly higher fines in the U.S.
- The future: Nearly 80% of respondents are confident that industry players and organizations will find new solutions that will keep measurement at the current level of efficacy.
“Advertisers have been navigating an evolving privacy landscape in Europe since the enforcement of GDPR, so it’s not surprising to see that on the one hand, compliance is top-of-mind, but on the other, there’s confidence that measurement solutions can adapt to any changes,” said Gal Ekstein, General Manager, EMEA and LATAM, AppsFlyer. “As an industry, we have a responsibility to ensure that measurement and compliance go hand-in-hand, so that advertisers can continue reaping the benefits, both now and in the future.”
“For advertisers that run mobile campaigns, using digital measurement is not optional and having the right measurement partner in place is critical to protect advertisers from being fined for non-compliance with privacy rules,” said Karsten Weide, Vice President, Media and Entertainment, IDC. “We also found that being investigated for non-compliance is not a rare occurrence. There is a one-in-three chance for this to happen, and when it happens, one is likely to be found non-compliant, and be slapped with a penalty. And fines are quite stiff: Almost 3% of annual revenue or $40 million on average – with penalties being even more severe in the US.”