All start-ups depend on marketing of their services of products to be successful. But what if it is no longer legal to market to people who have not categorically stated they want to receive your information? Take the hypothetical example of a small garden supplies business in Ireland.
Having been made redundant during Ireland’s recession, Ann retrained in horticulture and decided to set up her own garden supplies shop in an underserved area. Her local “start-your-own-business” course recommended the benefits of direct marketing so Ann uses a big part of her limited marketing budget to rent an emailing list of people who have gardens, and who have expressed their consent to receive emails related to gardening.
On Ann’s opening weekend, 60% of her customers bought products using the discount voucher included in the email she sent out. She plans to continue using email marketing in the future. However, under the proposed EU Data Protection Regulation, personal data processing may only be allowed with the explicit consent of each individual on the list. In other words, each person will have to explicitly consent to receiving information from Ann’s garden supplies shop.
Given the hassle involved for individuals to explicitly sign up for each and every usage of their data, few are likely to bother. This means that Ann’s marketing tactics, having been successful to date, will be rendered much less effective. She will have to use other more expensive options such as mass advertising, or resign herself to fewer sales.
Direct marketing uses a variety of marketing channels, such as traditional mail, email, telephone, and online advertising, to communicate about customized products and services for people like you and me. This makes the communication we receive more relevant to our needs.
In this example, email marketing allows new companies, like Ann’s, to enter a market by making their brand, products, and services known to the most relevant prospective customers. And these prospects have agreed to receive emails related to gardening. With the proposed legislation, Ann would need an explicit consent from each individual she would like to send a voucher to. Considering this, it would be difficult for her to reach out to individuals who are not already her clients. Consequently, prospection of new customers would become very difficult.
Targeted advertising allows companies to put their budget where it is most effective, freeing time and money to invest in their core business. Direct Marketing is particularly important for niche or innovative products and services as well as for small businesses since it is the most cost-effective way to target the right group of individuals.
FEDMA understands your need for online privacy and knows that privacy is also an important issue for you. That is why we do our best to respect your privacy when you use this website.
FEDMA is a founding body of the European cross-industry self-regulatory initiative on online behavioural advertising, providing transparency and control to internet user over online behavioural advertising they are served. You can find more information about the programme on http://www.youronlinechoices.eu/
Collection and use of the data
Personal data is compiled s on this website. The personal data may be collected via electronic forms when you subscribe to updates or request for more information. Data may also be compiled when you use a service that is offered on the website.
The personal data you fill in via these channels is stored in files held by ZN sprl under public law, Chaussée de Boondael 6 box 8, 1050 Brussels. This data is used to provide you with the service or information that you requested, to improve service quality website usability.
If your personal data needs to be changed, we invite you to submit your change request to email@example.com
. We will amend your data as soon as possible based on your request and the information you provide us.
The databases in which your data is stored are protected against unauthorized access.
Third parties acting on FEDMA’s behalf may be given access to FEDMA's files. Such third parties only have access to this data on a need-to-know basis to enable them to complete their assignments for FEDMA. Otherwise the collected data is not disclosed to third parties unless explicitly specified or the communication of your data is required by law.
Cookies are used on this website. A cookie is a file that is sent from the website server to your computer’s hard drive when you consult the website. The code contained in the cookie makes it possible to identify your PC the next time you visit the site. Cookies are used to store information which can make it easier for you to use this website: for example, they enable your language choice to be registered, so that you are automatically routed to that language the next time you visit the site. Cookies are also used to tailor the website to your interests.
If you do not want to accept any cookies, you can reject them via your browser settings.
The website registers information about the connection you make to the website and about the software you use to accomplish this. This information includes your IP address, the time of your visit to the website, the type of browser you use and the pages you visit. This data is used to create anonymous statistics and improve the quality of our website and service through analyses of your surfing behavior on our website.