The digital market has grown at an accelerated rate over the last decade, but it’s facing a scary reality going forward. The digital market is facing a lot of pressure from regulators and consumers who are becoming increasingly aware of the lack of transparency and control over their data. The Cambridge Analytica scandal was just the tip of the iceberg, as more and more stories about data breaches and privacy violations emerge almost every day. According to PWC research, trust in companies handling personal data has fallen from 66% in 2017 to 44% in 2018. This means that things are about to get even worse for the digital market unless something changes soon. This article will explain why we need to act right now – before it’s too late – and what you can do as an individual and business owner to protect your data, reputation, and customers while also reducing your risk exposure to future regulatory crackdowns.
What is Causing the Scary Reality for the Digital Market?
The current state of affairs that is causing so many problems for the digital market can be traced back to a few core issues. First, consumers are more aware than ever of their lack of control and transparency over their own data. And they are fed up with it. The second core issue is the fact that digital businesses have grown so large and powerful so quickly that they are now running into the limits of their model. Finally, the third core issue is the fact that digital businesses are built on data and models that are unsustainable in the long term. Data is the oxygen of the digital market. It’s the currency that powers everything from targeted marketing and personalized websites to machine learning algorithms and AI services. Every time you visit a website or app, use an e-commerce platform, or ask a chatbot a question, you’re generating data that businesses use to optimize their value propositions and grow their revenues.
The EU General Data Protection Regulation has been in the works for years, and finally came into force on May 25th, 2018. This is one of the most important new regulations for the digital market in years, and it’s causing a lot of problems for businesses. The GDPR is a new standard for privacy that is designed to give consumers more control over their data.
The GDPR also creates new transparency requirements for businesses to make sure that consumers know how their data is being collected, used, and protected. These new standards will certainly help to reduce the trust issues that are currently so prevalent in the digital market. But what most people don’t realize is the massive impact that GDPR will have on the digital market as a whole.
Why Is This Regulation So Important to Consumers?
If you look at any of the stories in the news about the GDPR, you’ll notice that it’s not what businesses are doing that has people so upset. It’s what businesses are not doing that’s causing the problem. The biggest concern for consumers is the fact that businesses are holding onto their data for too long, using it for purposes that the consumer doesn’t understand, and refusing to delete it when consumers ask them to. The GDPR aims to fix this by requiring businesses to delete data when consumers ask them to.
How Will GDPR Change The Digital Market?
The GDPR is expected to cut digital marketing revenues by up to 50% in the short term. This is a major adjustment for the whole industry that could result in significant business disruption. Many businesses will have to completely rethink their approach to the market and their data-driven marketing strategies. But others will find ways to use data responsibly and transparently to build stronger, more sustainable businesses that offer more value to consumers.
The GDPR will force the digital market to shift from a focus on scale and growth to one that favors sustainability and long-term value creation. This will open the door for new players that can create innovative solutions that don’t rely on unsustainable data practices.
More Transparency in Marketing and Advertising Practices
The GDPR also requires businesses to be much more transparent about their marketing and advertising practices. They will have to provide consumers with easy-to-understand notifications when they are collecting data, what data they are collecting, and how they plan to use it.
This will allow consumers to make more informed decisions about what data they share with whom, and what they expect to get in return. Sharing too much data is a problem that many people have. They don’t understand what data they’re generating and sharing, and they don’t know how it’s being used. The GDPR will force businesses to offer consumers more education about their data practices and provide them with a way to easily manage the data they share with others.
More Security and Control for Consumers
One of the biggest problems with the digital market today is the lack of security and control for consumers. Businesses are collecting far too much data from consumers and storing it in insecure databases that are easy to hack.
The GDPR will force businesses to implement better security practices, including encryption and data anonymization practices that protect consumer data and improve overall security. The GDPR will also require businesses to give consumers better control over the data they share and how it’s used. This will allow consumers to make smarter, more informed decisions and protect their privacy.
Where Does Blockchain Fit In?
One of the core issues facing the digital market is the fact that it is extremely centralized. Most of the data that powers the digital market is hosted on centralized servers where a handful of large companies have easy access to it. This creates significant risk. If just one of these companies suffers a data breach, it could expose the sensitive data of millions of consumers. This type of centralized data storage also leaves the digital market vulnerable to government crackdowns and new regulations.
Bottom Line
The GDPR is here, and while it will certainly cause some short-term pain for businesses, it will also usher in a more sustainable, more secure, and more transparent digital market that offers better value to consumers. GDPR is all about regaining control over your data. And it’s about time!
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