Behavioural targeted advertising and end consumer information management - A balancing act to grow the digital advertising market and sustain consumer trust

01 April 2010

Helene Miksche, Ida Smed Sörensen, Johan Tydén

Introduction

The advent and increasing use of behavioural targeted advertising and associated end consumer information management is a welcome potential source of increased revenue for the digital advertising market. At the same time this business opportunity needs to be balanced with the protection of the individual’s privacy and other interests. Bird & Bird has conducted a study of 10 territories in the field of targeted advertising. This white paper concludes that targeted advertising and associated end consumer information management is a highly regulated field. Any commercial launch of products or services in this field needs to be preceded by robust preparations to safe guard technical, operational and commercial compliance as well as increasing end consumers’ trust and confidence.

By 2011 online advertising is expected to account for 15 % of all ad expenditures (up from 11% in 2008). From 2011 to 2013 global online advertising is expected to grow at a compound annual rate of 7%; with mobile advertising’s growth accelerating to a compound annual growth rate of 20% for the same period.

Despite strong growth in recent years, online advertising is still in its infancy with future expectations on channels and formats like Web-TV, IPTV and mobile in-application advertising.

The mobile advertising market is expected to grow at a faster rate as compared to other advertising channels such as internet, print, direct mail, and television, according to industry analysts at Gartner, who recently released a global report on the Mobile Advertising market. Gartner predicts that global mobile advertising revenues will grow from an approximate $530 million in 2009, rising to $13.5 billion by 2013.

The introduction of many different forms of mobile advertising such as display advertising, in-application advertising, and search are giving marketers ever increasing opportunities to reach consumers. But apart from reach, mobile advertising holds an even more significant attraction and value for advertisers with mobile targeting. The vast amount of consumer data contained in the networks of the mobile operators is beginning to be technically harnessed, with respect to the privacy of individuals, enabling advertisers to deliver relevant and personalized ads to desired consumers, based on contextual, behavioural and demographic targeting.

To read the full article, please download the pdf: Behavioural targeted advertising and end consumer information management