Home PublicationsCommentary The Value of Personalized Advertising in Europe

The Value of Personalized Advertising in Europe

by Benjamin Mueller
by and
Value of targeted ads

Online advertising, particularly targeted advertising, is a fundamental enabler of the Internet economy. Not only do targeted ads allow marketers efficient access to specific audiences, but the higher revenue from these ads helps pay for the vast array of apps, content, and services that consumers access for free online. Some European lawmakers are pushing to ban personalized online ads, claiming that they harm consumer privacy. Given the EU’s extensive existing data privacy framework, consumer privacy is not at risk. However, banning targeted ads would hurt advertisers, app developers, media companies, content creators, and consumers by making online advertising less effective. A ban on targeted ads would reduce the €16 billion of spending on data-driven ads in the EU, threatening about €6 billion of advertising income for app developers. As a result, European consumers would face the prospect of a radically different Internet: more ads that are less relevant, lower quality online content and services, and more paywalls.

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