The tightening of Australia’s privacy laws to align more closely with the EU's GDPR will have profound repercussions for the advertising industry, with the explicit permission from users to collect and use their data drastically reducing the amount of data available, Australian academics in marketing and law told AdNews.
Specific implications of these laws for advertising and marketing professionals will require technological adaptation, empowerment of consumers, innovation in their data and usage approaches, and an investment in advanced consent management systems and robust data security measures won’t be optional— it’ll be critical, these academics say.
“Stricter consent requirements will necessitate greater transparency in data collection and usage, potentially reducing the volume of data available as users become more discerning about opting in,” Flinders University senior lecturer in marketing, college of business, government and law, Naser Pourazad says.
“This could lead to a decreased ability to perform highly targeted advertising, compelling a shift towards broader strategies and more general audience segments. Compliance costs will rise as firms invest in new data management technologies, legal consultations, and possibly recruiting data protection experts, which will be costly and burdensome for small to mid-sized ad agencies.
“Companies that rely heavily on third-party data will need to re-evaluate their strategies, focusing instead on building robust first-party data frameworks and direct consumer relationships to mitigate the impact of reduced third-party data availability.”
For advertising and marketing professionals, these legislative changes present both challenges and opportunities, Pourazad says.
“On one hand, enhanced user trust can be achieved through increased transparency and prioritisation of user consent, which can strengthen brand reputation and establish long-term customer loyalty.”
Marketers will need to innovate in their data collection and usage approaches, exploring creative and ethical methods such as loyalty programmes, surveys, and interactive digital content to encourage voluntary data sharing, he says.
“With potentially less data available for hyper-targeted campaigns, the emphasis will likely shift towards producing high-quality, engaging content that appeals to broader audiences, leveraging storytelling, brand values, and emotional connections.
“Ongoing education and training will be essential to stay updated with evolving regulations and best practices, ensuring marketing strategies remain compliant. This will also necessitate greater collaboration with legal teams, integrating compliance checks into marketing workflows to navigate the complex legal landscape effectively and ethically.”
These laws aren’t just about compliance, they’re about rethinking our approach to digital marketing, UNSW professor of practice in the School of Marketing Nicolas Chu says.
“But this isn’t necessarily a bad thing. It forces us to be more creative and genuinely engage with our audience rather than relying on vast, impersonal data pools. This could lead to more meaningful interactions and higher-quality engagements.”
When GDPR was introduced in Europe, it wasn’t just a matter of tweaking data collection practices; it was a complete overhaul, Chu says. Australian companies will face similar challenges but with the advantage of hindsight.
“We’ve seen the pitfalls and successes in Europe, so we can navigate these changes more strategically. The expanded definition of personal info means that even the smallest data points, like cookies and device IDs, will need to be handled with a lot of care. This attention to detail could actually foster more trust with consumers, who will appreciate the high level of protection and transparency.”
Compliance costs will indeed rise, he says. Companies will need to pour resources into new technologies, extensive training, and legal consultations.
Chu however sees this as an investment in future-proofing businesses. The risk of hefty fines and operational disruptions will make compliance a top priority, but it also presents an opportunity to lead by example in ethical advertising practices, he says.
“We’re likely to see a shift towards privacy-first advertising methods. This isn't just a trend; it’s a necessary evolution and has already started. Contextual advertising, which doesn’t rely on personal data, will become more sophisticated and prevalent.
“There will also be a heavier reliance on first-party data. Collecting data directly from users, with their explicit consent, will not only ensure compliance but also strengthen the relationship between brands and their audiences.”
In the industry, professionals will need to immerse themselves in the nuances of these regulations, Chu says.
“It’s not just about ticking compliance boxes; it’s about understanding the spirit of these laws. Continuous education and training will be essential, but more importantly, there’s a need for a cultural shift within organisations to prioritise privacy as a core value,” he says.
“The requirement for explicit consent means we can no longer rely on passive data collection methods. This will push us towards more transparent and honest communication with our audience. Marketers will need to develop skills in crafting clear and compelling consent requests that don’t just comply with the law but also resonate with consumers.”
According to Chu, technological adaptation is another major implication, with a vital need to invest in advanced consent management systems and robust data security measures, he says.
“We’ll need to get comfortable with new tools and platforms designed to ensure compliance while still allowing us to be effective in our campaigns. This will also mean collaborating closely with IT and legal teams, forging stronger interdepartmental bonds than ever before.
“Strategically, we’ll need to become more innovative. With less data available, the focus will shift to creativity and quality over quantity. This is where storytelling and brand authenticity will come in. Marketers will need to find new ways to engage with their audience, leveraging first-party data effectively and ethically.”
Empowering consumers is another key aspect. Chu says industry professionals will need to ensure that users feel in control of their data, which means prioritising transparency and respect in all our interactions.
“This is a unique opportunity to build deeper trust and loyalty, which can be a significant competitive advantage,” he says.
“These laws will push us to become more ethical, transparent, and innovative. It’s a big change, but it’s also an opportunity to rebuild the advertising industry on a foundation of trust and respect. This could lead to more meaningful and lasting connections with our audiences.”
Swinburne University of Technology major discipline coordinator - advertising, Anne Morton, says before the introduction of the GDPR in Europe, many pundits were predicting a noticeable drop in advertising performance and revenue leading to the demise of a free internet supported by advertising revenue.
“One article quoted a study by Deloitte which estimated around a 17% drop in yearly ad revenue in Europe, however post GDPR research indicated a reduction of only 5.7%. This figure was based on analysis of publishers using pay-per-click models with high consent rate among consumers. As with many changes, predictions are often overstated with the actual results being considerably less,” she says.
Morton says legislative control over privacy reduces advertisers access to user data which is used for ‘behavioural targeting’.
“However this has led to an increase in ‘content-based targeting’ which uses the webpage content to determine the likely audience. This approach is similar to buying advertising in traditional media where the publications’ content or programme is what attracts the consumer and determines the audience and provides the advertiser with clues as to their interests.
“A US-based study suggested that content-based targeting works better in industries with specific appeal, for example financial services and travel but less effective for low involvement broad appeal industries such as retail and consumer packaged goods. Having advertising appear within relevant content has been a mainstay of media buying for decades.”
Marketers and advertisers have always relied on building trust with their consumers so new privacy legislation will not affect this, Morton says.
“Consumers prefer to be asked for their consent and the majority are willing to buy-in from brands they trust. Being open and transparent is the basis of any relationship so applies equally to one between businesses and consumers.”
Bond University professor at the Faculty of Law, Dan Svantesson, who specialises in internet law and data privacy law believes the current Australian Privacy Principles are very generous to advertisers.
“Australians deserve a better level of protection and it seems we are finally getting that. The exemption for small businesses is no longer sustainable if it ever was. Also small businesses can now be 'data intensive,” he says.
"The law reform cannot come as a surprise for anyone, and the Australian advertising industry has the advantage of being able to learn from earlier overseas developments."
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