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Facebook ban third-party data providers: Advertisers reaction



Uploading third-party data is not available for all markets provided by Facebook – US, Brazil, France, Germany, UK, Australia, and Japan only.

But Europe is becoming much stricter. The General Data Protection Regulation (DSGVO), which will come into effect in May, requires users to register before their behavioral data can be used to advertise for them. So Facebook would have had to make major changes to the data policy in many countries anyway.

Still, this ban could encourage agencies and advertisers to move further away from these third-party data companies.

A media buyer who wished to remain anonymous said Facebook's decision was not a complete surprise for the ad campaign, given how cautious consumers have become about ad targeting on the platform. However, this person has characterized it as a conservative movement, bearing in mind that many of the third-party data providers Facebook allows are established companies.

Regardless, over the next six months, advertisers must find new ways to reach customers. Using Facebook with other targeting methods offers even more benefits. The company already has a wealth of personal information about users who are made directly available when they update their accounts.

More and more advertisers are also using their own (first-party) data that can be obtained when registering customers directly for an email newsletter or shop directly.

The use of first-party data is generally cheaper because third-party data providers charge a premium for their services, the media buyer noted. But it could mean that advertisers need to reach a wider audience because they do not know exactly who on Facebook are loyal customers.

All this could give Google a chance to generate more advertising revenue, Horn and Kargman said, as the company still allows third party data providers. But as the public becomes more and more concerned that personal information is being shared, Google may also focus on the Facebook guidelines. Agencies are waiting to see what their next step will be.


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