Monday, 05 August 2019 03:02

Facebook, Google, Amazon at risk of 'regulatory crackdown' in advertising sector: report Featured

Facebook, Google, Amazon at risk of 'regulatory crackdown' in advertising sector: report Image Stuart Miles,

Facebook, Amazon, Google are the companies most at risk from regulatory crackdown in the advertising sector, according to the latest Thematic Scorecard for the sector from analyst firm GlobalData.

All three companies gained the lowest score (1 out of 5) in GlobalData’s Thematic Scorecard for the regulation theme in the advertising sector, which the analyst firm said was “reflecting their vulnerability to future regulatory action” – with a Thematic score of 1 indicating that this theme will be “highly detrimental to their future performance”.

GlobalData notes that there are 10 key areas for regulation - tax avoidance, data privacy, data security, antitrust, tax avoidance, misinformation, online harm, copyright, net neutrality and obstruction of justice.

And companies who gained a score of 2 out of 5 and who GlobalData says are also at risk from regulation are Alibaba, Comscore, Vivendi, Channel Advisor, Angie’s List, Criteo, Rubicon Project, Hub Spot and Marchex.

GlobalData’s Thematic Scorecard ranks companies within a sector on the basis of overall leadership in the 10 themes that matter most to their industry, generating a leading indicator of future performance.

And in a separate report Facebook, Google and Amazon are among the companies which GlobalData also says are most at risk in the data privacy theme for the advertising sector.

Data privacy is one area of regulation dealing with the protection of individuals’ personal data, and GlobalData says the legislation around data privacy is aimed at ensuring transparent collection and usage of people’s personal data.

And also identified as at risk in the data privacy theme by GlobalData are Baidu, Verizon, Trade Desk, Alliance Data Systems, Channel Advisor, Angie’s List, Criteo, Rubicon Project, Hub Spot, and Marchex.

According to GlobalData data privacy regulation is the "biggest threat to big tech”, and “at stake is the very future of the ad-funded business model that supports Facebook, Google, and many others".

"Data privacy legislation is aimed at Internet advertisers that sell people’s personal digital information for a profit,” GlobalData concludes.


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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).



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