EU Cookie Law and the Impact On Digital Marketing


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Overview of thesis which looks at the impact of the EU cookie law on Digital Marketing.
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  • operating within the EU. This includes the UK! Also if the company is based in the USA and sells to people in the uk – they have to comply
  • Misconception that the law only affects cookies. Came into affect on the 26th of may 2011 – 1 year graceKMPG – UK 95% of website are yet to be compliant
  • site name and unique user ID. They build a profile of the user.
  • Methods of online direct marketing Studies average website as 14 cookies per page 32% from website owners 63% from 3rd party (web analytics/ advertising companies)
  • privacy concerns vary with age. Older respondents were more concerned about online privacy than young respondents. To add results revealed Internet experience was the best predictor as to whether the user took action to protect their online privacy.
  • EU Cookie Law and the Impact On Digital Marketing

    1. 1. EU Cookie Law and the Impact On Digital Marketing George B and Tina T
    2. 2. AGENDA• The Issue: The New EU Cookie Law• Aims and Objectives of Research• Methodology• Overview Of The Law• What Is A Cookie• Issue For The Consumer• DCMS Survey• Recommendation: What business needs to do
    3. 3. The New EU Cookie Law and Why It Is An IssueThe Issue: Reform of the ‘2009 EU Privacy and Electronic Communication ‘E-Privacy’ Directive’ or ‘EU Cookie Law’ Reason For DiscussionDirectly impacts: • Digital Marketing • Business that have websites • Website operators • Affects all connected devices (fixed and mobile)
    4. 4. Aims & Objectives• The impact on digital marketing/ business/ user behaviour.• How important the issue of privacy is to the consumer/ citizen.• What businesses in the UK needs to do to comply
    5. 5. Methodology Secondary and Primary:Primary Research: DMA Conference on Data Privacy • Christopher Graham, Information Commissioner • Achim Klabunde, Directorate General for Justice, European Commission • Fedelma Good, Head of Marketing Privacy & Suppression Management, BarclaysSecondary Research: • Governmental website (EU/UK) • Governmental User Surveys • Consulted academic journals • Trade Publications • Academic newspapers • Industry expert blogs • Trade association websites
    6. 6. Overview Of The Law 2009 ‘E-Privacy’ Directive (PECR)Aim: To protect the online users privacy• From the 26th May UK websites must comply with the ‘EU Cookie Law’• Must gain consent from website users before servicing cookies
    7. 7. What Is A Cookie?
    8. 8. What Is A Cookie?• A small file containing small amounts of information which are dropped on to the users device and stored on the web server (text and flash files).• Contains two bits of information• MUST BE CLEAR: It’s about all technologies i.e. flash cookies, web beacons, web bugs.• If you use advertising and web analytics tools...
    9. 9. What Is A Cookie (Continued)Functional (essential) Targeted & Advert Cookies (non-essential)• Browser History • Browsing Habits (web• Login / Password surfing)• Credit Card Payment • Web Analytics• Shopping Cart Content • Ad Response Rates• Prevent offering services • Affiliate Tracking again • Targeted Adverts • Providing links (social networks, email, etc.)
    10. 10. The Issue For Consumers• Data retention is subject to European Privacy Laws• Legal context: ‘Right to be let alone’The technologies encourage the sharing ofconsumer data as well as the capture ofpersonnel information.
    11. 11. DCMS Survey (Feb 2011)Understanding of Cookies, Privacy and EU Cookie LawOnline survey: 1,012 of respondents from all social –economic groups. All used the Internet intensely.• 77% - concerned with online privacy (Virus 88%/ fraud 82% /abuse of information 75%)• 32% - had actively changed privacy settings• 83% - not aware of changes to the privacy law• 13% - knew how a cookie worked• 37% - had heard of cookies but did not know how they worked
    12. 12. Education & Information• What is happening to help Government is working with browser manufacturers (Firefox Taco) The ICC & DMA: Strategy to educate consumer and business.• Development of two websites: Business Facing : Code of Common Language Consumer Facing: Educational and Informational website. (Simplifying legal jargon)• IAB cookie icon
    13. 13. RecommendationDMCS Opt in – would lead to thebiggest change in behaviorFollowed by Enhanced informationEnhanced browser settings
    14. 14. RecommendationMUST GAIN CONSENT: The law is already implemented!Shared Responsibility (PR & Legal)MAXIMUM penalty is £500,000• information notice informant notice• EDUCATE ALL: esp. front line staff• COOKIE STATEMENT ON WEBSITE• CONDUCT A COOKIE AUDIT• EDUCATE WEBSITE USERS: BROWSER• LIST ALL COOKIES• TEST COMMON LANUAGE
    15. 15. Conclusion• Ignorance in technology breeds mis-trust.• Holistic & Transparency• May achieve competitive advantage• Moving prospects up the ladder of loyalty.• Maximize transactions• Loyalty and trust.
    16. 16. References surveyDMA website
    17. 17. QUIZ: QUESTIONS• What is a cookie?• When do you need to become cookie compliant?
    18. 18. QUIZ: ANSWERS• What is a cookie? Small text file dropped on to device• When do you need to become cookie compliant? May 25th 2011