AppsFlyer: Three quarters of advertisers are concerned about non-compliance with privacy regulations

Advertisers are generally satisfied with the features of their measurement solutions but concerns remain high when it comes to privacy regulations and compliance capabilities.  That’s according to an IDC commissioned study and white paper from ad attribution firm, AppsFlyer.

The study – The State of Measurement, Privacy and Compliance – Top List of Advertiser Priorities – surveyed of senior advertising decision makers in large companies in the US, the UK and Germany and looked specifically at advertiser satisfaction with measurement solutions. It revealed 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.

Key Findings

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.

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,. 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.

 Brian Quinn, President and General Manager, AppsFlyer