Report: Privacy laws erode effectiveness of online ads

A study of banner ad performance in Europe, where privacy laws deter some targeting measures, found ad effectiveness was reduced by more than 65% when compared with nonrestricted markets. The effect was especially strong among ads on general interest news sites, rather than niche sites that already encourage self-selection. “The empirical findings of this paper suggest that even moderate privacy regulation does reduce the effectiveness of online advertising,” the paper reads.  MediaPost Communications/Online Media Daily


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