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How will regulation affect marketing professionals in 2012?
Marketing News |
19/01/2012
Marketers are unlikely to find things easy during 2012. Falling business confidence is likely to have an impact on their budgets for the coming year, meaning they will have to work harder than ever to gain value from their activities. All the talk is of a double-dip recession at present, and with this in mind businesses are looking to cut back across their operations.
Coping with a constrained economy is likely to be tricky enough in 2012, even without factoring in a number of legislative changes scheduled to occur this year. Marketers will not only have to focus on doing more with less, but do so in the context of an uncertain regulatory environment. Industry professionals need to be aware of the changes set to come into force, and of their obligations as they bid to remain compliant.
Scott Logie, chair of the Direct Marketing Association, recently shed light on some of the regulatory changes advertisers need to prepare for in 2012. Each will create its own "specific challenges" for the industry, he suggested. But while the experts disagree about how best to tackle the UK's economic woes, Mr Logie said marketers can be "a little more confident" in their assumptions about how new marketing regulations will affect industry practice.
The first piece of regulation marketers need to consider is the EU Data Protection Directive, Mr Logie said. He explained that the European Commission is scheduled to announce revisions to the directive, and these have the potential to have "a significant impact" on the way businesses can collect and use data.
From this year, marketers operating in the EU will only be able to process data where the subject has given consent, where processing is necessary for entering into a contract or fulfilling a legal obligation, or where it is necessary to protect the interests of the subject. Data collection and use will also be allowed for the performance of a task carried out in the public interest, but this too is subject to the broader explicit and legitimate purpose test.
Mr Logie said the DMA has been actively interested in the directive since its early stages, and been "closely involved" in all stages prior to its publication. He added that the association has taken "every opportunity" to represent the interests of the marketing industry, and will continue to do so. But ultimately, some marketers will need to change the way they approach data collection and manipulation, or face the wrath of the regulators.
The same can be said where internet cookies are concerned. Online advertisers have often used cookies to monitor individual consumers' web-based activity, hoping to gain insight into their likes and interests. Armed with this knowledge, marketers are able to tailor their offering to individual consumers, helping to encourage engagement with their own brands.
But under new laws, all organisations will have to make sure they have consent from users before placing cookies on their devices, such as PCs, tablets and mobiles. The 12-month grace period before the Information Commissioner’s Office (ICO) enforces the cookies law comes to a close on 26 May, Mr Logie explained. The ICO has issued guidance to clarify any confusion surrounding the new rules, which marketers should consult if they are in any doubt about their responsibilities.
Changes are also set to be made to postal regulation, with media regulator Ofcom currently consulting on a number of proposals. Mr Logie said the DMA has raised concerns about the potential threat to competition within the postal sector and the long-term prospects of advertising mail. The organisation believes removing price controls on Royal Mail's commercial bulk mailing services will lead to its exemption from VAT liabilities, leaving companies exposed to further cost increases.
While most businesses can claim back VAT payments, charities and companies working in the financial services cannot. And these are two of the biggest users of advertising mail, the DMA noted. A mandatory 20 per cent increase, coupled with a potential rise in product and service costs, would seriously damage the long-term prospects of advertising mail, the association said.
Finally, marketers will need to be ever-aware of their responsibilities to the environment in 2012 and beyond, the DMA said. The direct marketing industry has signed a deal with the government committing to a number of "tough" green targets to cut physical waste and carbon emissions over the next three years. So advertising professionals will be under pressure to use resources more efficiently.
"The deal provides the perfect answer to criticism of direct marketing by demonstrating that we're a responsible industry that's taking positive action to minimise our environmental impact," Mr Logie stated. "We will be helping our members understand what's required of them and giving them the tools they need to manage their environmental obligations."
Posted by Jon Aspinell
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