There is much to consider for publishers in the throes of readying themselves for the GDPR and the ePrivacy Directive and, amidst everything, transparency will be absolutely key. Speaking with ExchangeWire, Ben Barokas, CEO and co-founder, Sourcepoint, explains that publishers will need to rely on more than third-party data and should be having direct conversations with their customers about privacy and compensation choices.

ExchangeWire: What considerations must publishers have in preparation for the Global Data Protection Regulation? How will its enforcement change how they interact with their audience?

Ben Barokas: These are challenging times for publishers as they begin to assess their current data-handling processes in advance of the upcoming changes. The GDPR will mean stricter requirements, as publishers and vendors will need to provide clear notifications about how and why they are collecting data, who will have access to it, as well as allow consumers to access, amend or even delete their details at any time.

The key to adhering to the regulation, once clarified, is transparency. By publishers communicating intentions about data usage in an open and honest way, users will be much more responsive, engaged, and, ultimately, more willing to share their data. Therefore, the new regulation should be seen as an opportunity to demonstrate compassion and compliance, and win back consumer trust.

The GDPR also presents an opportunity for publishers to initiate direct conversations with their audience on compensation preferences – at a time when over a fifth of British consumers are currently using some form of ad-blocking software. By engaging with users on alternative compensation options – including, but also going beyond, ad-funded content – publishers can work to change consumer perceptions towards the digital industry for the better, reconnecting to restore audience confidence and loyalty.

Privacy compliance, transparency, and the provision of content compensation choice will be top priorities for publishers this year.

Could the required transparency around data usage cause problems for publishers maintaining their audience volumes?

Although the prospect of implementing ‘Privacy by Design’ data-handling processes may seem a daunting task, conscientious organisations should remember that the GDPR will affect every organisation that collects user data. Establishing a robust data governance policy now will stand publishers in good stead before it becomes a universal standard.

Admittedly, publishers who currently rely on the use of third-party data – which will be restricted under the GDPR – will struggle to build a complete profile of their audience and should start to think about shifting their focus towards first-party data to enable them to better understand their customers’ preferences firsthand.

What can they do to mitigate this risk?

Ben Barokas, CEO & Co-founder, Sourcepoint

Now is the time for publishers to engage in a direct conversation with readers – about privacy options and compensation choices – and the response to the latter may well be surprising. During our recent partnership with Dennis, we found that up to 57% of readers who used ad-blocking software agreed to receive ads when educated about the need for content compensation. In addition, up to 38% of users opted to whitelist publisher sites – agreeing to exclude said publication from their ad blocking software – demonstrating the positive value exchange that can take place between publishers and users who are sufficiently engaged.

By initiating those all-important conversations before the changes come into effect, publishers will be able to differentiate themselves from other brands, not only maintaining audience volumes, but also enticing new readers with the prospect of more relevant brand experiences.

By understanding the impact of direct messages around content compensation, and testing alternative messaging dependent on audience segments, publishers can help revolutionise content consumption and protect the future of the publishing and advertising industries.

A great deal of work has also been undertaken by certification companies, such as ePrivacy GmbH, to review and acknowledge organisations that are working to protect consumer data and demonstrate customer concentricity.

What would a compensation choice for a reader look like and how does it uphold the value exchange between publisher and reader?

When a reader arrives at a publisher’s site, they could be presented with one of a range of compensation choices in exchange for viewing premium content. For example, they could choose to enable ads, make use of a one-click opt-in solution, whitelist publisher sites, purchase a subscription, or perhaps watch a video before viewing ad-free content. To support this – as our work with Dennis highlights – showing messages that feature multiple compensation options often leads to increased engagement rates. Options can also be tailored depending on whether a user has arrived directly or via another site such as a social media platform.

In an industry that has battled against growing consumer frustration, engaging users in an open conversation is a proactive step in helping set the foundation for a more transparent and sustainable ecosystem.

If the need is for publishers to further diversify, at least to maintain yield going forward, how would compensation packages achieve this?

As the Dennis results show, educating readers about the value exchange conveys a distinct message that, although content cannot be delivered for free, publishers do care about the user experience and user privacy. By providing content compensation choices, publishers are allowing consumers to opt-in to their chosen experience, rather than having unwanted ads forced upon them.

The current advertising ecosystem holds no favour with today’s consumers and it is time to pursue alternative strategies to uphold privacy and offer choice. Add to this the fact that premium publishers are increasingly focusing on building subscription-based modules and it’s clear to see there is untapped potential. Preparing for GDPR places publishers in a strong position to embrace these opportunities.