PerDM Claim More Business Going ‘Back to Basics’ Following Blow to Online Behavioural Advertising

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New rules that came into effect this February restricting advertisers’ use of Online Behavioural Advertising will create more demand for traditional field marketing services, PerDM predicts.

PerDM Group

I wouldn't say the bubble has burst for digital marketing, but the OBA ruling has certainly restricted its reach.

Online Behavioural Advertising (OBA) involves the use of cookies to track a web user’s online behaviour, for example their browsing history, search terms and the adverts and links they click on. PerDM explain this information is then used to create targeted adverts which are tailored to that person’s browsing data. The OBA ruling adds to existing legislation from 2012 stating that consumers have to be informed of the use of cookies and consent to their use. The new regulations now mean adverts using OBA will need to disclose the use of data tracking, and crucially individuals will be able to opt-out of their information being collected.

About PerDM: http://www.pdmcontact.com/

Research compiled by the Internet Advertising Bureau and digital marketing company ValueClick reveals that 55% of UK consumers preferred targeted advertisements to non-specific adverts. However, the cost of OBA opt-out to UK businesses could be huge. Online data platform QuBit reports that behavioural advertising can generate 2.7 times more revenue per advert than un targeted advertising, and restrictions on the use of cookies and OBA could cost businesses up £648 million annually in lost sales.

“The new OBA regulations could be a real blow for businesses, as many people are likely to ‘opt-out’ of OBA because of privacy concerns. The popularity of OBA amongst advertisers shows that customer-targeted marketing is more valuable than the ‘scatter gun’ approach of traditional indirect advertising. Marketers are being further restricted by legislation like the Telephone Preference Service; with reduced options for targeted marketing, more firms will look to field marketing as an alternative,” states Ian Attwood, Director at PerDM.

PerDM provides outsourced field sales and marketing for clients in the telecommunications, entertainment, cosmetics, home security, insulation and charity industries. The firm was established in 2007 to meet a growing need for cost-effective, results-based strategies and to date is the fastest-grown sales and marketing company in the UK and Ireland. PerDM Director Ian Attwood predicts a ‘back to basics’ approach to marketing following the latest legislation: “Whilst I wouldn't say the bubble has burst for digital marketing, the OBA ruling has certainly restricted its reach. Field marketing has proven to be a successful industry for decades, simply because it is cost-effective and provides a service that is tailored to every customer's needs.”

PerDM provides business to business, in-home and events marketing for blue-chip clients in the UK and Ireland. The firm aims to expand into further European and US markets by the end of 2013.

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Contact Information:
Bretton House
Bell Meadow Business Park
Park Lane
Pulford, Chester
CH4 9EP
Tel: +44 (0) 1244 573150
Fax: +44 (0) 1244 571276
sales(at)pdmcontact(dot)com

Sources:

http://www.guardian.co.uk/media-network/media-network-blog/2013/mar/20/online-behavioural-advertising-rules?INTCMP=SRCH

http://www.bbc.co.uk/news/technology-17842925

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Ian Attwood
PerDM
+44 (0) 1244 573150
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