With recent data privacy scandals (especially Facebook and Google who were respectively fined by Great Britain and France), GDPR burdens tech giants’ business model which relies majorly upon data trading. Whilst Facebook, Google, and Amazon might see a threat in the launch of the Regulation, other companies such as Apple might take advantage of the opportunity it represents.
Instead of fighting the trend, tech companies should embrace it:
Reimagine Business Model
Today, Europe and the Western World are growing towards an increasing individual power. Data privacy is one of these new rights individuals are managing to regain control over. Similarly to digitalization in the past decades, companies’ business models have to change, and GDPR set the pillars for data privacy management.
Whilst, selling data might not be the end goal, letting users taking action upon their own data and providing them with tools to manage and to monetize them, might be as lucrative. Take a bank for instance: a bank does not ‘sell’ you money; it helps you managing it, transferring it, securing it, borrow it, or getting more of it through loans. We can imagine the exact same services for data: data vaults, data marketplaces, data-renting service etc.
There are so much services to be created, where large cloud companies could win. Apple could become the new leader, thanks to its relatively smaller implication in data privacy trading compared to other Tech Giants, and thanks to Tim Cook’s ‘fiery speech’ requesting a federal law in the United States for data privacy.
Poor advertising experience has been discussed for years, but still in 2019, we see low-quality banners and annoying pop-ups at every corner of the Internet. The result is a massive increase in adblocker usage. Regardless of pure statistics, my recent experiment with Varanida is an actual proof that there are millions of people that want to get rid of it. However, most people are ready to pay for the content they are consuming through high-quality, entertaining and informative advertising. This is the path we, as tech entrepreneurs, must follow.
Advertising needs to bring value, to inform, and to entertain. With data being more private than ever, and clear consent required for advertising purposes, brands could create a real ‘advertising experience’. There is so much to do in the advertising field, that I could not list all the aspects of it in this article. However, I can summarize it the following way: we have changed the way we consumed and the way we lived, growing from a purely practical system, to a whole new one linked to pleasure and wellness.
Today, we (as customers) require a personalized experience for any service we are ready to pay for. It will be the same for advertising. As an advertiser, you would prefer to spend more on people who are your primary targets, and today your primary targets do not want you to play around with their data or to overwhelm them with poor advertising. They want quality, and the only way your business will make its way through, will be by increasing its very quality.
Make the Internet a better place
The Internet is currently monopolized by large tech companies. These “data monsters” provide the entire world with unprecedented technologies and services. However, these empires are built over the people who use them; and now that these users are becoming more and more conscious, the rules have to change. This is what the European Union did with the launch of the GDPR.
Take Facebook as an example, where 99% of its content is being creating by its user, but where 99% of the value created is being shared with its shareholders. Unfortunately, these models are raising critics and are associated with excessive capitalism. With more creativity and some tech (i.e. blockchain?) we could have a way better share of value among all actors.
New governmental regulations are burdening the large tech companies who based their business models upon data privacy trading. However, these obstacles can become opportunities for many tech entrepreneurs. Indeed, new business models relying upon service to users for data management and new advertising focused on experience can be developed, enhancing user experience and brand loyalty more than ever. Furthermore, new technologies such as blockchain can extend business opportunities in the tech industry, especially at times where data privacy is at the core of all business discussions.