ISPs Better Positioned for Targeted Advertising Under New Data Privacy Rules
12th May 2017
At the end of last month, the FCC’s tough data privacy rulings made last year under the Obama presidency, were overturned, which could lead to an increase in aggressive pushing of video streaming in order to produce greater opportunities for targeted video advertising.
Last year, the FCC rulings planned to require ISPs to obtain consumer permissions before data collection regarding browsing and app usage.
Experts have conceded that the repeal of the Internet Privacy Order will be ‘a positive move for wireless ISPs, a modestly positive move for cable companies, and a neutral move for Google and Facebook.’ ISPs will now be able to target more effectively, allowing greater opportunity for content monetisation, but will still not come close to the capability of signed in experiences, such as those of Google and Facebook, for example, to capture personal profiling data.
Opportunities for growth and ISP mergers
Security analysts believe that the opportunities for growth and the mergers of ISPs and dedicated streaming services providers will indeed increase, for example, ISPs will require content, and AT&T last year proposed the acquisition of Time Warner for $85billion (the deal is currently awaiting approval from the Trump administration).
The largest ISPs have significant content assets, yet the new rules could give way to an increase in the acquisition of content, particularly video, digital content, which contains an increased likelihood of being the most immediately useful for advertising targeting.
Already, ISPs are getting ready to launch new video streaming services. According to Bloomberg, some of the largest providers are working towards the acquisition of nationwide rights for distribution, with some already in operation since before Christmas 2016.
Still classed as ‘industry outsiders’, Apple has had a tougher time obtaining streaming rights than Pay TV providers, while mainstream providers, such as collaborative partnerships between major companies (Hulu Disney, Fox and Comcast) are planning to launch more live streaming services this year.
It has also been announced that YouTube TV will launch in spring 2017, managed by Google parent Alphabet. The paid subscription service will cost approximately $35 per month.