On 23rd-24th May we hosted our annual flagship event Interact in Madrid, where we brought leaders from across the digital advertising and marketing ecosystem together to discuss and debate the hottest industry topics of the moment.
Thanks to the support of our sponsors and media partners, and the wonderful team at IAB Spain, we enjoyed two days of keynote speeches, panel discussions and networking under the central theme of ‘Innovation, Sustainability & Growth’.
Check out the highlights video here and event images here.
On day one, we focused our attention on the trending topics of today. We tackled a whole host of industry challenges, opportunities and aspirations. If you missed it, not to worry, here you can find an overview of each session, key takeaways and video highlights.
AdEx Benchmark 2022 - The Latest European Digital Advertising Expenditure Insights
We opened Interact 2023 with a keynote presentation from our Chief Economist, Daniel Knapp around the latest AdEx Benchmark Study results.
IAB Europe’s AdEx Benchmark report is the definitive guide to the state of the European digital advertising market. Daniel Knapp unpacked the channels and formats that contributed to the digital advertising market value in 2022.
European Leaders Discussion on the Digital Ad Spend Insights
Following the opening keynote presentation, a panel of European leaders discussed and debated the latest AdEx Benchmark results and shared some of their own thoughts and predictions for the year ahead.
This session was moderated by Hannah Bowler, Senior Reporter at The Drum who was joined by:
Read ‘The Drum’s’ write-up of the session here
Resetting the Bar on Brand Communication
In this keynote session, Taide Guajardo, Brand Senior Vice-President, Europe at P&G discussed how in today’s world, full of challenges but also opportunities, it is time for our industry to not just raise, but rather reset the bar on serving the consumer with Superior Communication that delivers Growth and creates Value.
She shared insights on how Brand Communication can step up to better understand the people we serve, reach them more effectively and efficiently, and be inclusive and purpose-driven.
The Retail Media Opportunity
Alexis Marcombe, Managing Director at Carrefour Links took the audience through a Retail Media 101. He shared what Retail Media is, the kind of opportunity it represents today and gave an exclusive insight into what Carrefour plans to do with its new joint venture with Publicis.
Revolutionising TV Advertising: Unlocking Efficiency and Agility for the Digital Age
Tom Peruzzi, Spokesman of the Executive Board & CTO at Virtual Minds (ProSiebenSat.1) discussed how in today's fast-paced digital age, linear TV campaigns can no longer rely on the classic pre-planning model. With the market demanding shorter lead times and comparable KPIs to digital channels, the convergence of digital and linear TV is revolutionising the industry. He showed us how to unlock efficiency and transform TV advertising in this new landscape.
Streaming TV’s New Era: How Ads Are Powering Streaming’s Future in the EU5
Alexandra Ong, Business Development Director at Magnite too us on an in-depth look at how advertising is driving the future of streaming in the EU5. As EU5 viewers prefer ad-supported streaming to traditional television, brands can engage with addressable audiences with ever-increasing reach and scale. The cross-device viewing habits of the EU5 audience influence purchasing decisions and advertising impact. This presents advertisers with an excellent opportunity to increase their brands' visibility and create stronger connections with consumers. Magnite presented its latest study, Streaming TV's New Era, which looks at the viewer behaviour driving this change.
Connected TV (CTV): The State of Play in Europe Today
We are now entering an Advanced TV universe with CTV revolutionising how European audiences consume TV. Now is the time for advertisers to take advantage of this impactful medium and carefully plan, optimise and measure campaigns. In this panel discussion, industry leaders discussed the current challenges and opportunities for CTV in Europe. They dived into and debated measurement and shared best practices to tap into this exciting channel.
Vincent Flood, Founder & Editor-In-Chief at VideoWeek moderated this session and was joined by:
The Power of Attention - Heineken Metacase
Attention measurement continues to demonstrate that this new wave of media research is helping advertisers drive better business outcomes compared to legacy metrics. But what does attention measurement look like in action? What happens when you take attention measurement from the lab to the wild?
Teads has been putting attention measurement into action for the past 12 months. As such Phil Sumner, VP Global Research Operations at Teads shared some of their learnings, together with Peter Maxwell, Global Media Lead, The Heineken Company.
Attention Pays: The Value of Attention in Digital Advertising
The attention economy is critical for brands looking to really understand how their campaigns engage an audience at a granular level. It’s the currency of the moment, and on the tip of everyone's tongue when it comes to priorities for 2023. But why are we so invested in attention today? How does it work, how is it measured and what is its real value?
In this panel discussion industry experts came together to answer these questions and more. They looked at why attention is so important to digital advertising in Europe today and shared best practices to make the most out of this much-talked-about currency.
Andy Brown, CEO at The Attention Council moderated this session and was joined by:
Trust & Transparency: The Future of Responsible Marketing
In this keynote presentation Michael Todd, Global Director of Industry Relations at Google discussed how consumers are losing trust in the digital marketing ecosystem and that we need to come together to put responsible marketing and privacy at its core to make digital advertising safer for consumers, successful for publishers, and more impactful for businesses.
Leading the Digital Advertising Industry into a New Era of Trust & Responsibility
Digital advertising is an integral part of the European economy. Our industry is at the forefront of technology innovation and creativity, building digital products, ensuring media pluralism and enabling consumer choice.
But the industry has fallen short of creating a trusted and credible environment towards policy makers and civil society on how it operates. IAB Europe’s Industry Leadership Council (ILC) was conceived in response to this realisation. It brings together actors across the advertising ecosystem to build a bridge to policy makers for an open and constructive dialogue.
Our closing panel of the day discussed what is currently being done in the ILC and what else is required to ensure a sustainable future for the industry.
Townsend Feehan, CEO at IAB Europe moderated this session and was joined by:
IAB Common Commitment agreement signed by National IABs and Federations shows alignment on a work plan and framework that supports sustainable developments in Europe
Brussels, Belgium, 8th June 2023 -IAB Europe, the leading European-level industry association for the digital marketing and advertising ecosystem, today announced the release of a new European IAB Common Commitment Agreement on Sustainability signed by 20 National IABs and Federations across Europe. The Commitment demonstrates the need and wants from National Federations for a collaborative and consistent approach to the measurement methodology of carbon emissions. This includes the regulatory and policy taxonomy, and the mapping and standardisation of best practices for the delivery of ads across the digital supply chain.
Uniting on Sustainable Digital Advertising: Reducing Carbon Emissions and Taking Climate Action
The digital advertising industry has identified that the carbon emissions associated with the internet, devices, and supporting systems have reached nearly 4% of global greenhouse emissions. With these emissions projected to double in the near future, it is crucial for the industry to acknowledge the climate crisis and take decisive action now. This will help to ensure a sustainable advertising choice for brands while most importantly, helping to reduce the overall carbon footprint of the digital advertising ecosystem.
In response to this urgent need, IAB Europe, along with National IABs and Federation signatories, is committed to providing guidance and support to organisations on their sustainability journeys. By working collectively, they aim to establish consistent European standards, practices, and solutions that address the critical issues of sustainability.
The Common Commitment reflects a shared vision and dedication to a comprehensive work plan. This plan will be delivered by IAB Europe’s Sustainability Standards Committee and will involve developing strategies, guidelines, and taxonomies that align with regulations and policies while considering the broader aspects of sustainability, including environmental, social, and economic impacts. It will also help elevate work being done at a National level to bring it up to a European level in a consistent manner and will prioritise the reduction of carbon emissions specifically associated with digital advertising and emphasise the importance of climate action.
By uniting its efforts, the digital advertising industry can take significant steps towards a more sustainable future, mitigating the environmental impact and contributing to the United Nations' 17 sustainable development goals.
Commenting on the release of the Commitment, IAB Europe’s CEO, Townsend Feehan said, “The aspiration to reduce CO₂ emissions in the digital advertising supply chain will test our capacity to act in unison more than any other policy or business goal. The Common Commitment we are announcing today is a modest but critical step, enabling our European network to collaborate at an unprecedented pace internally and bringing critical mass to our engagement with global partners."
The Participating National Federations can be viewed here:
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Notes to Editors:
About IAB Europe
IAB Europe is the European-level association for the digital marketing and advertising ecosystem. Its mission is to promote the interests of the industry, and enable cross-ecosystem collaboration amongst its national federation and corporate members to drive solutions to shared challenges and develop frameworks, standards, and programmes that contribute to sustainable growth and innovation.
About IAB Europe’s Sustainability Standards Committee
IAB Europe’s Sustainability Standards Committee was formed in October 2022 with the primary focus of bringing the industry together to create standards for the delivery of digital advertising and to help all industry participants to reduce the amount of energy consumed and carbon emissions produced through the use of digital media.
Brussels, Belgium, 1st June - IAB Europe, representing a diverse membership of thousands of digital marketing and advertising companies, media publishers, and independent third-party measurement firms, has released a policy paper outlining its position on the draft proposal for a European Media Freedom Act. The paper aims to provide valuable insights to Members of the European Parliament (MEPs) and national officials working on their negotiating positions.
The proposed European Media Freedom Act seeks to establish a common framework for media services in the internal market, addressing various aspects of the digital media landscape. IAB Europe acknowledges the significance of audience measurement provisions, particularly Article 23, and emphasises its importance for independent and pluralistic media in European democracies. Digital advertising enables media publishers to monetise their content and maintain their independence while fostering a diverse media landscape. IAB Europe recognises the investments undertaken by publishers in audience measurement for transparent pricing of their advertising services. These systems are crucial to enhance their advertising strategies, serve new advertisers online, and evaluate advertising campaigns effectively.
In its policy paper, IAB Europe supports the principle-based approach to audience measurement outlined in Article 23(1) of the draft proposal. The implementation of these principles has the potential to enhance transparency in audience measurement systems, leading to a fairer allocation of advertising revenues across the media ecosystem. However, IAB Europe asks policymakers to consider three key aspects when regulating audience measurement.
Firstly, respecting the importance of existing self-regulatory initiatives, such as Joint Industry Committees (JICs), which are well-established in many member states. These frameworks, based on self-regulation among media publishers, advertising agencies, and independent audience measurement providers, have significantly contributed to improving audience measurement systems.
Secondly, IAB Europe emphasises the need for transparency in audience measurement methodologies (Article 23(2)) to ensure fair pricing of digital advertising, questioning the effectiveness of the current draft proposal in achieving this objective. The lack of a clear definition for "providers of proprietary audience measurement systems" creates ambiguity and may unintentionally impact third-party audience measurement providers, including traditional research companies and JICs.
Thirdly and finally, IAB Europe urges policymakers to strike a balance between transparency and innovation. While advocating for increased transparency in audience methodology, IAB Europe highlights the importance of protecting proprietary methods and technology that result from substantial investments in research and development. Transparency should not impede investments in research and innovation, which are essential for the evolution of audience measurement systems.
IAB Europe stands ready to engage in constructive dialogue with MEPs and national officials to ensure that the European Media Freedom Act upholds the principle of transparency. The full policy positioning paper can be accessed here.
This week's member guest blog post is from Maria Ramiro, Head of Business Development EU at Pteal Ads, Huawei Mobile Services Europe, who discusses her experience at OMR Festival 2023, and the prominence of AI as a topic at the event. She explores the future of AI marketing and the core elements required in order to make it thrive now.
It was an eventful time at this year’s OMR Festival 2023 and one thing is for sure, AI innovation was the talk of the town. When OMR polled the Festival’s participants about their favourite topics at the masterclasses, they unanimously agreed. AI-focused presentations got the highest average experience scores outshining traditional themes such as content, email or even new work. For me, it became abundantly clear that AI is no longer a buzzword. Virtually everyone now fully agrees on its boundless potential, and the natural progression forward.
The Future of AI Marketing
Over the course of this year, we have witnessed first-hand how AI is transforming the mobile marketing landscape, including new ways of reaching audiences across borders. Elvin Altun, Country Director at Mobile Marketing Association (MMA) in Germany, shared some practical examples of how AI is being used in mobile marketing already. At the OMR masterclass held by Petal Ads, she explained how marketers have adopted the use of AI generators to create distinctive visuals capable of serving multiple scenarios. She also pointed out that AI capabilities are further optimising the way we advertise by providing helpful suggestions on methods and tools we can use.
But for AI to thrive we believe that three core elements need to come together: Computing Power, Data and Algorithms. Without these three components, AI will simply not work as it should. Based on our predicted analysis, detailed in Huawei's Intelligent World 2030 report, we strongly believe that these core elements will play a pivotal role in driving the success of future AI marketing solutions. Allow me to provide you with some explanation, as well as insight into how Huawei addresses each of these core elements:
1/ Computing Power
With the advancement of technology, the computing power of devices has increased significantly, with a predicted 105 ZetaFLOPS (1021 Floating Point Operations per Second) of computing power, marking a 500x increase since 2020. This computing power is solely dedicated to processing AI applications and algorithms for connected devices. In anticipation of such processing needs, Huawei has actively focused on the development of AI infrastructure, including chipsets, processors, and servers, to ensure the provision of abundant computing power necessary to drive AI algorithms. This ability to analyse vast amounts of data in real-time will empower advertisers to optimize their campaigns and enhance engagement.
2/ Data
The volume of connected devices has witnessed a substantial increase in recent years, accompanied by advancements in connectivity, notably the emergence of 5G capabilities. Our projections indicate that the number of smart devices is expected to reach 200 billion by 2030. This surge in connected devices is set to generate a significant accumulation of data, resulting in the expansion of storage capacity by 23x since 2020, equivalent to 1 Yottabyte or one million trillion megabytes. Recognizing the potential value of such vast data, Huawei adopts a comprehensive approach, utilizing both hardware and software aspects to effectively collect and harness it.
3/ Algorithms
Given the vast amounts of data available, it is fundamental to leverage machine learning and deep learning techniques to gain insights and effectively target your audience. Huawei capitalizes on this by incorporating advanced algorithms within our Petal Ads platform. This empowers us to elevate on-device advertising to unparalleled heights of effectiveness and efficiency, allowing for precise audience targeting and enhanced advertising outcomes.
Harnessing On-Device AI Advertising to Reach Chinese Shoppers
AI capabilities and recent breakthroughs in how AI is being applied have inspired us at Petal Ads to explore mobile ad solutions targeting China’s growing outbound travel and tourism market.
Over the past six months, we have witnessed more than 2.5 million Huawei device users from China venturing into the EU, and this figure is expected to rise to reach two-thirds of the 2019 level when 13 million Chinese tourists came to the EU¹. What's more, is that over 70% of these travellers heavily rely on smartphones to get around.
As these Chinese travellers eagerly anticipate the opportunity to purchase tax-refundable goods, there is a strong expectation of a surge in demand for such products. To cater to the needs and preferences of these typically high-value consumers, we’re currently working with several multinationals in the luxury retail, automotive and travel industry. Specifically, these brands are trialling Petal Ads' capabilities to target and segment Chinese users travelling to Europe or particular countries. To enhance targeting effectiveness, Petal Ads customises campaigns to be either specifically tailored for overseas platforms or precisely catered to Chinese platforms, or both depending on campaign goals.
To make any significant impact targeting Chinese consumers it is crucial to use the right advertising strategy. Whilst that’s always been a challenge in itself, I’m encouraged by the fact that AI’s integration into mobile marketing is real and happening as we speak. Moreover, it has coincided with the advertising sector in China projected to reach 6.3% growth in 2023² and a promising outlook forecasting 30% increase in international travel among Chinese consumers³.
Sources:
¹Eurostat ING Research, Oxford Economics 2023
²GroupM advertising forecast for China; March 8, 2023
³Tourism Economics, March 2023
Are you a motivated individual looking to embark on a career in EU affairs? Are you seeking a hybrid and flexible traineeship opportunity? Join our multicultural and dynamic team based in Brussels, where you will have the chance to take on responsibilities from day one and foster your professional growth.
About IAB Europe:
IAB Europe is the leading European-level association for the digital marketing and advertising ecosystem. Our membership includes media, marketing, and high-end technology companies. As a Public Policy Trainee, you will play a vital role in shaping the digital advertising and marketing policy landscape in Europe.
Responsibilities/Scope of Work:
As a Public Policy Trainee, you will closely collaborate with IAB Europe's Public Policy Manager and the Director of Public Policy. Your primary responsibilities will include:
About you:
To be considered for the role of Public Policy Trainee at IAB Europe, you should meet the following criteria:
What we offer:
If you are a motivated and passionate individual with an appetite for EU affairs and a desire to make an impact in the digital advertising and marketing industry, we encourage you to apply for this exciting opportunity.
To apply, please submit your resume and a cover letter explaining your interest in the position to policyteam@iabeurope.eu. The application deadline is June 16, 2023.
We appreciate all applications, but please note that only shortlisted candidates will be contacted for an interview.
IAB Europe is an equal opportunity employer and welcomes applicants from diverse backgrounds.
European Digital Advertising Market Grew by 9.8% to a Market Value of €86bn
Total Display Accounts for 50% of Total Market Value
Brussels, Belgium, 23rd May, 2023 – IAB Europe, the leading European-level industry association for the digital advertising and marketing ecosystem, announced at its flagship conference Interact 2023 in Madrid today that digital advertising spend in Europe increased by 9.8% in 2022 to achieve a market value of €86bn.
2022 Digital Advertising Investment
Now in its seventeenth year, The AdEx Benchmark study is the definitive guide to advertising expenditure in Europe with data collected across national markets to provide a total harmonised figure for Europe. For 2022, IAB Europe has amended the geographical coverage of AdEx Benchmark to remove Belarus and Russia and add in new markets; Estonia, Latvia and Lithuania, meaning the study now accounts for 29 European markets. Amongst the markets, Turkey achieved the strongest total growth of 93.3%.
Despite the economic and political headwinds in Europe, €7.7bn was added to the digital advertising market total in 2022.
Daniel Knapp, Chief Economist at IAB Europe commented on the results: “Brands are digitising their overall businesses to drive efficiencies and in the same vein are shifting advertising budgets into digital. Thus, digital advertising in Europe has experienced robust growth despite the volatile macro environment. It reinforces the importance of digital for brands during a period of downturn due to its measurability and performance.”
Audio and Video Post Strongest Growth
The study shows that audio saw the largest growth across all formats in 2022 with a 22.1% increase to €0.7bn. Video also experienced significant growth with an increase of 13.6% to value the format investment at €18.3bn. Meanwhile display grew by 9.5% to €40.1bn with search experiencing a 10.7% increase to €37.4bn.
The AdEx Benchmark Study highlights can be downloaded here.
The full AdEx Benchmark 2022 Report, which will provide full commentary and data across all 29 markets, will be published in June 2023.
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Notes to editors:
AdEx Benchmark is the definitive guide to advertising expenditure in Europe. The study is now in its seventeenth year and covers 29 markets. The geographical coverage of the study has changed to remove Belarus and Russia and add in new markets; Estonia, Latvia and Lithuania.
The study covers the following advertising formats: display, social media, video, audio, programmatic, classified, directors & affiliates and search.
Contacts:
Helen Mussard, CMO, IAB Europe - +44 (0) 7399 919594
Marie-Clare Puffett, Marketing & Insights Director, IAB Europe - +44 (0) 7973836917
On the 4th of May, IAB Europe hosted its first Virtual Programmatic Day to discuss and debate the latest trends, drivers, and barriers impacting programmatic trading in Europe.
This event brought industry experts together to discuss the value and evolution of programmatic, programmatic omnichannel, the programmatic angle of Retail Media and commerce, and what the future holds for programmatic, including AI.
A big thank you to our event partner Xaxis for hosting this hybrid event.
In this post, you will find an overview of each of the sessions as well as links to the video recordings for you to view in your own time. Enjoy!
Panel Discussion with Audience Q&A: The Value and Evolution of Programmatic – From Header Bidding to SPO to Conquering AV & TV
Programmatic advertising has transformed the way digital ads are brought and sold. First introduced to the market in the mid-2000s through the advent of real-time bidding (RTB) technology, advertisers can now target specific audiences with greater precision and efficiency through automation. Something that adds immense value to any media plan. But what is the real value of programmatic today and how has it evolved from Header Bidding and Supply Path Optimisation (SPO) to tackling new and emerging channels and formats such as AV and TV?
Jaidev Kakar, Director, Advertiser Solutions, EMEA at PubMatic, moderated this session and was joined by:
Watch the session recording here
Panel Discussion with Audience Q&A: Programmatic Omnichannel
In this session, a panel of experts discussed the challenges and opportunities of programmatic omnichannel campaigns. They addressed how the programmatic ecosystem has evolved to enable the delivery of effective omnichannel campaigns and what we can expect to come in this area.
Rebecca Rose, Head of Clients EMEA, Verve Group moderated this session and was joined by:
Watch the session recording here
Panel Discussion with Audience Q&A – Retail & Commerce Media – The Programmatic Angle
Retail media is no longer an ‘emerging’ channel and is expected to reach 25bn in ad spend by 2026. But what impact do programmatic capabilities have on retail and commerce ads? This panel of experts discussed this plus how retail and commerce media can be planned, bought, and sold programmatically.
This session was moderated by Nick Welch, Head of Programmatic, EMEA, Integral Ad Science (IAS) & Chair of IAB Europe’s Programmatic Trading Committee who was joined by:
Watch the session recording here
Panel Discussion with Audience Q&A – AI & The Future of Programmatic
AI is widely adopted and utilised in the programmatic space, with DSPs creating machine learning algorithms and buyers adopting key processes to help optimise toward campaign success but what does the future look like and how will AI technologies help advance programmatic trading and the digital advertising industry?
In this session, a panel of industry experts discussed the role that AI and new technologies play in programmatic advertising, the current opportunity and challenges in this space, and what the future holds with new technologies and innovations on the horizon.
Chloe Nicholls, Head of Ad Tech at IAB UK moderated this session and was joined by:
Watch the session recording here
If you’d like to find out more about programmatic and view some of the work of our Programmatic Trading Committee, please check out the links below:
A note from IAB Europe's CEO, Townsend Feehan on her remarks for delivery at the DG Just Stakeholder Roundtable on the Initiative for a voluntary business pledge to simplify the management by consumers of cookies and personalised advertising choices.
Thank you for the invitation to attend today (Friday 28th April) and the opportunity to participate in DG JUST’s reflection over the coming months.
In my speaking time, I would like to call out two assumptions in the Discussion Note circulated in advance of today’s meeting that are worth bearing in mind, and two ways that IAB Europe can support the reflection.
First, the Discussion Note helpfully acknowledges that personalised advertising delivers benefits to both consumers and advertisers. The reality is that personalisation is attractive to advertisers because it offers the prospect of less wasted spend; the Discussion Note explicitly suggests that consumers understand and accept this fact.
Second, the Discussion Note’s focus on improving information to consumers seems to confirm DG JUST’s continuing faith in the information-and-choice paradigm for European consumers on which existing privacy and data protection law are based (as opposed to contemplating a different paradigm that would take choice and control out of consumers’ hands).
These seem to us to be important and positive foundational assumptions.
With respect to how IAB Europe can support the reflection that is being kicked off today, we believe we are well-placed to contribute to each of the two key areas of focus laid out in the Discussion Note.
First, with respect to information to be provided to consumers, IAB Europe can help give practical effect to a future DG JUST pledge by ensuring that its Transparency & Consent Framework (TCF), which is implemented on hundreds of thousands of EU websites, integrates additional information disclosures. TCF is a best-practice minimum standard that helps websites solicit, establish, record, and signal a GDPR legal basis and ePrivacy consent for data processing for advertising. The TCF dialogue box that opens when a user visits a website or app for the first time could be modified to include an explicit reference in the first layer to the site being “ad-funded”, or “partially dependent on advertising revenue”, or “ad-free and subscription-based”. The dialogue box could also explicitly state that content is offered in exchange for a willingness to receive advertising. TCF UIs already indicate what “trackers” or other personal data the website or app is asking for user agreement to process, for what purpose(s), and the legal basis/es for processing (whether consent or legitimate interests) if the user agrees.
Second, with respect to exploring “alternatives to tracking-based advertising” that are also personalised in some way, we can provide insight into the state of play on the industry’s own work to identify and further develop alternatives to third-party cookies and help the stakeholders participating today understand the implications of that work for consumers. As DG JUST and other colleagues here today will be aware, there are already alternatives (for example, personalisation based solely on context) and work to identify means of personalising advertising that do not involve the use of cookies has been accelerated in recent years by technology and business decisions taken by browser and operating system manufacturers.
It is important that this reflection be clear-eyed about there being winners and losers in any evolution of the paradigm. As an example, arguably contextual advertising works for eCommerce platforms, single-topic or ‘niche’ sites, and large news sites that have the resources to run sports and lifestyle feature sections, but less well – or not at all – for smaller news sites that do not have those resources. Even large news organisations using only contextual would need to let a great deal of content go “unmonetised” as it is difficult to match advertising content to serious news content. Similarly, certain news media platforms cannot build commercially attractive audience segments based solely on first-party data due to their content being limited to “serious” news, user engagement with which reveals nothing about a product or service that someone might be interested in buying.
And when specific categories of online actors “lose”, the consumers that have benefited from free or low-cost access to their content and services also lose.
IAB Europe would be pleased to host a workshop to which DG JUST and all attendees of today’s Roundtable would be invited to present the state of play on the development of these alternative models. I hereby formally extend that invitation.
We are looking forward to participating in this important reflection between now and the end of the year.
Thank you again,
Townsend Feehan, CEO, IAB Europe
27th April 2023. Brussels, Belgium: IAB Europe, the leading European-level association for the digital advertising and marketing ecosystem, signed today a letter to policymakers on the Data Act with fellow European-level Industry Trade Associations including the Advertising Information Group (AIG), the Federation of European Data and Marketing (FEDMA), The European Confederation of Pharmaceutical Entrepreneurs (EUCOPE) and SMEUnited and its National Digital Advertising Association members including Alliance Digitale (IAB France), BVDW, IAB Ireland, IAB Poland, IAB Spain, and IAB Sweden.
The letter, sent to several Members of the European Parliament, the Swedish Presidency, and Commissioner Mr. Breton, warns of potential conflicts between the Data Act and the GDPR, emphasising the importance of ensuring a fair playing field. In particular, the letter expresses signatories’ concerns about the European Commission’s original proposal and the Council’s position on Article 6.2 (b) that clearly interfere with the GDPR and would lead to unintended consequences that will work against achieving a level playing field and impede innovation.
The signatories made a recommendation to policymakers involved in the trilogue negotiations to ensure that the Data Act aligns with the GDPR by supporting the text adopted by Parliament concerning article 6.2 (b). Furthermore, they urged policymakers to ensure that the provisions set out in the GDPR, including safeguards to user privacy, prevail for the processing of personal data. Granting that the current EU data protection legal framework will secure a future-proof Data Act text, welcoming competition, growth in the digital economy and future innovations instead of ruling them out from the outset.
The full letter can be viewed on IAB Europe’s website here and below.
Date: 27 April 2023
Dear MEP Ms del Castillo and MEP Mr Lagodinsky, MEP Mr Bielan, MEP Mr García del Blanco, MEP Ms Kumpula-Natri, MEP Ms de la Pisa Carrión, MEP Mr Mituța, MEP Mr Boeselager, MEP Ms Lizzi, MEP Ms Kontoura,
Dear Ms Björesten and Mr Källström,
Dear Commissioner Mr Breton,
Industry representatives warn of potential conflicts between Data Act and GDPR and emphasise the importance of ensuring a fair playing field ahead of the trilogue negotiations.
We are a group of diverse stakeholders, including SMEs, representing different industries within the business community, including digital advertising and marketing. As the institutions enter trilogue negotiations on the proposal for a regulation on the harmonised rules on fair access to and use of data (the “Data Act”), we would like to reiterate our concerns about the potential unintended consequences of Article 6.2 (b). These concerns apply to the wording in the European Commission’s original proposal and the Council’s position that clearly interfere with the GDPR and work against achieving a level playing field and impede innovation.
Regarding the Council’s changes to Article 6.2. (b), we fear that the scope of action for third parties is unjustifiably restricted by adding ambiguity to what constitutes an “objectively necessary” service and allowing profiling solely for the purpose of service delivery. Lack of legal certainty in the already complex digital world will trigger reticence to innovate for fear of a sanction.
While we support the changes proposed by the European Parliament for Articles 6. 2 (b) and 6.2 (c), we point out that the current wording of Article 5 (1) contradicts Article 6.2 (b) by adding an indicative list of limited purposes for data processing. On the contrary, we believe that the Data Act should be flexible and future-proof, welcoming future innovations instead of ruling them out from the outset.
The Data Act interferes with the GDPR and eliminates the legal basis of processing for third parties
By effectively prohibiting practices that are fully compliant with the GDPR in Article 6.2 (b), the Data Act substantially undermines the existing data protection framework (GDPR) and its core principle that processing of personal data is permitted so long as it relies on one of the six legal bases.
Germany’s statement on 12 January 2023 proposed to remove Article 6.2 (b) from the Data Act, arguing that “the GDPR and the sector-specific data protection law must not be circumvented and their level of protection must be maintained”. We agree that the Data Act should establish norms for a coherent legal framework and should align with the GDPR's legal basis, as stated also in Article 1.3 of the Data Act, to ensure that the European data protection legal framework, especially the GDPR, remains applicable.
Circumventing the GDPR with a set of contradicting provisions would create commercial and legal uncertainty for entities that have adapted to its rules and strip them of the possibility to legally process personal data for profiling purposes. Additionally, due to a very broad definition of profiling that is still being interpreted by Data Protection Authorities and Courts, the magnitude of such prohibition is well underestimated and will outlaw longstanding and widely accepted processing activities in all industry sectors.
This can be also illustrated by the following example in the energy sector:
A connected product, such as an electricity meter, collects data through the use of its product. The data is then made available to the user through a third-party user-facing interface. Such an interface assists the user and facilitates his/her decision-making, for example by answering questions, such as “How much energy am I consuming per month?”. The possibility to answer this question relies on profiling operations related to the user’s activities and the use of the electricity meter. The prohibition of profiling would ultimately prevent device manufacturers from exploring lawful partnerships with
trusted third parties. The possibilities to enhance their products by offering customised, value-added services to consumers by handling personal and non-personal data would be significantly curtailed.
Current provisions of the Data Act fail to ensure a level playing field and are in contrast with the regulation’s aim to foster innovation and economic growth
The main issue lies in the differential treatment of the “data holder” who is allowed to carry out profiling activities, compared to the “data recipient”, who is prohibited from doing so under Article 6.2 (b) of the Data Act.
This discrepancy could favour vertically integrated enterprises that already hold large amounts of data, aggravating data concentration, and enabling such enterprises to leverage further their integration and their data, including for profiling purposes.
The Data Act aims to facilitate new and innovative uses of existing data. However, some businesses, which rely on the lawful processing of data for profiling , could be affected by Article 6.2 (b) of the Data Act. This could limit their ability to use data, create and train algorithms, which could have negative consequences not only for incubators of high-end digital skills but also SMEs that support the wider EU economy. Widespread data sharing allows SMEs to leverage customer data and provide efficient services and goods tailored to customer’s needs. Hence, the Data Act is crucial for SMEs’ willingness to access and process data and to allow new, innovative SMEs to emerge, grow and scale up. As highlighted above, such developments cannot be in line with EU’s competition goals and threaten the diversity of the digital economy.
Concluding remarks
Given the potential impact of the Data Act on the digital economy and data-driven innovation, we believe it is crucial for policymakers to support the text adopted by Parliament regarding article 6.2 (b). Specifically, we recommend that policymakers ensure that the Data Act aligns with the GDPR and that it enables, rather than undermines, new data-driven business models and supply chains. In order to deliver pro-competitive outcomes, it is important for service providers, including commercial partnerships acting as third parties, to be able to continue to rely on the relevant GDPR legal bases when processing personal data for the purposes of profiling. Only these prerequisites will ensure that the EU's regulatory framework promotes innovation, competition, and growth in the digital economy while maintaining user privacy and data protection. We therefore urge co-legislators to take these considerations during the trilogue negotiations on the Data Act.
Signatories
Press contact: Helen Mussard, IAB Europe - mussard@iabeurope.eu
Footnotes:
On the 18th of April, IAB Europe hosted its first hybrid Great Debate event of 2023 to discuss and debate Retail Media.
This event brought industry experts together to discuss how the Retail Media market in Europe is developing, how a Retail Media solution can be developed, key measurement principles to consider, and how Retail Media investment can provide effective closed-loop measurement.
In this post, you will find an overview of each of the sessions as well as links to the video recordings for you to view in your own time. Enjoy!
Keynote Presentation: The Retail Media Landscape in Europe with IAB Europe’s Chief Economist Daniel Knapp
In this keynote presentation, Daniel shared the latest stats and facts on the Retail Media landscape and the opportunities available in Europe today. He shared why he feels too many marketers are still seeing retail media as nothing more than a dedicated channel and instead that it is “an infrastructure that will bring about great change in digital advertising”.
If you’re a member of IAB Europe and would like to receive the presentation deck, please email Marie-Clare (puffett@iabeurope.eu)
Watch the session recording here
Panel Discussion with Audience Q&A: The Retail Media Landscape in Europe
A panel of industry experts discussed the key trends and developments happening in the Retail Media market across Europe. They shared how Retail Media is brand safe and a win win win for advertisers, and how it is a good way to reach engaged audiences. They also addressed key challenges around transparency and technical implementations that still need to be overcome.
Giles Longhurst, Managing Director, EMEA & APAC, Connexity (e-commerce division of Taboola) moderated this session and was joined by:
Watch the session recording here
Panel Discussion with Audience Q&A: Retailer 101 – What You Need to Know
In this session, a panel of retail media experts came together to share insights and best practices from their own businesses. They discussed the need to be bold to monetise the retail media space, as there is such high demand for it, and the importance of opening up the opportunity to purchase and creating standardisaton to establish a successful retail media solution.
Babs Kehinde, Senior Director, Commerce Media at PubMatic moderated this session and was joined by:
Watch the session recording here
Panel Discussion with Audience Q&A – Closing the Loop – Retail Media Measurement
Our final panel of industry experts rounded up the above-mentioned conversations to discuss how Retail Media offers the promise of closed-loop measurement. They discussed the importance of first-party data for measurement, the advantages for advertisers being able to optimise in real-time - “By directly matching customer ID data with impressions, it is transforming how we are optimising our advertising budgets.” Laura Badea, Partner eCommerce at Wavemaker - and the value of data clean rooms in this process.
Salvatore Cospito, CEO, Reetmo & Head of Retail Media Group, IAB Spain moderated this session and was joined by:
Watch the session recording here
If you’d like to find out more about our Retail Media event and access other available materials on the topic, please follow the links below:
We’re teaming up with GroupM Nexus to invite you to participate in an exclusive survey that aims to understand consumption habits and the development of Digital Audio Advertising in Europe.
Have your say before 12th May and be in with a chance of winning a €200 Euro Voucher!
Back in 2019, we conducted a survey in partnership with Xaxis to understand the changing landscape of Digital Audio Advertising in Europe. Now, four years on, we’re keen to see how the landscape has evolved and if key challenges and barriers have been overcome and we are inviting those involved in audio media buying, planning, and selling to get involved!
The survey will take less than ten minutes to complete and all responses will be treated with the strictest confidence. All respondents will receive the research results directly to their email if provided.
The results will be used to showcase the audio opportunity and how audio can be used to enrich media strategies. Take part in the survey here today.
We will be selecting a participant, at random, to win a €200 Amazon voucher. So what are you waiting for? Share your expertise and enter for your chance to win.
IAB Europe is excited to release the new Digital People's Poll.
The Digital People’s Poll reveals what's really happening in the digital advertising industry by asking you, the digital people, a short set of questions to gain your thoughts and expertise.
Every quarter, we will poll the digital advertising industry on a hot topic of the moment.
To wrap up Q1, we are looking at Retail Media and asking you whether you see it as a key growth area for digital ad investment? Let us know your thoughts in the short poll below.
