I recently attended the Westminster eForum policy conference, Competition in the digital economy - the Furman Review, digital advertising, and the regulatory framework in the UK and worldwide, 10th September 2019. The collection and monetisation of personal data by digital platforms is increasingly coming under scrutiny.  There is a considerable lack of transparency about the data that they hold and how it is being used.  With the UK spending 4 billion hours online per month in 2018, regulation will be important in establishing consumer trust in such a rapidly expanding market.

Professor Philip Marsden, Member, Digital Competition Expert Panel and Professor, Law and Economics, College of Europe discussed the Digital Market Unit, which has been recommended by the Furman review.  They will be tasked with setting up a Code of Conduct to identify which practices are so toxic that they need to be driven out of the market.

The growth of the digital ecosystem relies heavily on innovation.   

"Platforms are incredibly important for innovation. The ability to be acquired drives innovation and entrepreneurship within the digital market."

Antony Walker, Deputy Chief Executive Officer, techUK

But, it is this culture of acquisition that has led to tech giants having a monopoly in the market. Many consumers are not aware of the fact that the data they are sharing with Facebook, Instagram, and What's App are all being pooled into the same place. In effect, making Facebook an extraordinarily powerful organization within the digital economy. 

There's a real danger in a market that lacks trust.  Matt Rogerson, Head of Public Policy, Guardian Media Group, reflected that industry best practice is often ignored by the biggest players.  These organizations have access to significantly greater resources, and are capable of moving at a far greater pace than everyone else. 

One of the main areas of concern for parents is the marketing of harmful adverts to children through Real Time Bidding (RTB) placement.  

Read our blog Regulating Online Advertising in the Digital Ecosystem for more. 

Sarah MacDonald, Partner, Wiggin, highlighted the need for analysis on how prolonged exposure to certain types of advertising affects people.  For example, it may be different for adults as opposed to children.  It might be the case that adults actually benefit from a more targeted advertising approach. The Internet Advertising Bureau have a Gold Standard certification. This certification aims to reduce ad fraud, to improve the digital advertising experience, and to increase brand safety. 

The IAB Gold Standard is about creating a trusted set of companies that have publicly stated their commitment to best practice for consumers.  As with any market of this nature, it is the consumer that drives demand and makes it successful.  Increasingly it is not just the quantity of data, but the quality of data that matters.  For consumers to engage, there will need to be trust. 

"We (IAB UK) are no longer trying to make the industry bigger, we are trying to make it better."

James Davies, Public Policy Manager at IAB UK

Lord Gilbert of Panteg, Chairman, House of Lords Communications Select Committee noted that an innovative advertising industry is critical to Britain's future: "Advertising is critical to the future of the tech industries. Therefore, trust in advertising is hugely critical."

Post Contributor:

Caitriona Fitzsimons Digital Reporter