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Wednesday 25.04.2018 | Name days: Līksma, Bārbala
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Expert: non-compliance with new Data Regulation may result in fines for businesses

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe digital marketing field will experience major changes this year, because businessmen will be under high influence from the new Data Protection Regulation, which has been added with stricter penalties for non-compliance. To clarify the changes businessmen and internet users can expect, BNN asked iMarketing.lv digital department manager Sergejs Volvenkins.

Website owners will have to inform every visitor about the ways they personal data could be used (if user data is collected).

2018 is the time when a new General Data Protection Regulation (GDPR) will start working across all of the European Union. New rules provide significantly stricter requirements in regards to user data protection. Website owners will have to provide users with the option to restrict the use of their data, the expert explains.

It is important to note that, according to Volvenkins, a fair penalty mechanism has been introduced to ensure businessmen’s compliance with new requirements. «The ceiling for fines is EUR 20 million or 4% of turnover,» says the expert.

The new regulation will come into force on 25 May. The regulation provides a number of updates and changes.

Advertisement content shown to users has to be much more binding

The expert notes that thanks to giants like Google and Microsoft, Machine Learning (ML) algorithms have become open source. This provides a significant stepping stone for development.

The expert says: «Let’s look at one example to get a general idea. The user enters your website (internet store). The system (ML) analyses the user’s behaviour and decides based on conclusions if the user is a ‘warm buyer’ and is ready to purchase a product. Later, the system creates advertisements based on the user’s behaviour algorithms to get the user’s attention on their next visit,» comments the expert.

Example: so-called warm users with a high probability of purchasing something can be divided based on their purchasing power. If one user’s behaviour shows that he is not sensitive to prices, the system will create product descriptions with information important to this user – expensive and specific products first, full price, underlined quality of specific products, expanded warranty, etc. If another user’s behaviour shows that the price is one of the most important parameters, the system will take that into account and adapt content for this user. This includes showing the cheapest products first and putting emphasis on discounts.

It should be added that ML works best with only large volumes of data (high numbers of users visiting the internet store), the expert notes.

Forceful advertisements create major losses

Non-binding and forceful advertisements create major losses for giants like Google and Facebook. More and more users prefer Ad Blocker to avoid having to deal with advertisements while surfing the internet.

According to estimates from different experts, more than 100 million units of ad-blocking software will be downloaded in 2020. The number of software units downloaded in 2016 was 44 million.

Experts say employers will likely hire people for so-called blogger positions

«Many businesses practice Influencer marketing approach, since it has proven to be very effective. Data demonstrates that people trust experts and publicly well-known people’s opinions, not advertisements,» explains the head of the digital marketing department.

The number of followers of different YouTube and Facebook channels exceeds the number of subscribers of many magazines. With that, Volvenkins says it is no surprise businesses want to use those channels.

What is augmented reality?

The expert admits that businessmen are actively searching for new and efficient ways of presenting their products online. Augmented reality is just one way of doing that.

Volvenkins says: «When purchasing a cabinet, a customer wants to picture how it will look in their room. Some companies already offer an innovative solution for this. Thanks to augmented reality, some furniture traders offer customers a way to ‘put’ a cabinet or other type of furniture in their room before purchase. Customers only need to turn on the camera on their phone and point it at the place they wish to put the cabinet.» iMarketing.lv digital department manager adds that the video game PokemonGo is one example of augmented reality.


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