AANA: Proposed privacy restrictions on advertising could be harmful

By AdNews | 6 April 2023
 
Credit: Mikael Seegen via Unsplash
The Australian Association of National Advertisers (AANA) has defended the use of targeted advertising, highlighting concerns over potential wide-sweeping proposals by the federal government.
 
Advertisers say the proposals by the government, in response to the Privacy Review, that restrict targeted marketing, especially to children, may have the unintended consequence of putting potentially harmful ads in front of children and vulnerable groups.
 
The advertisers argue that without targeted marketing, advertising for categories such as alcohol, gambling, credit cards and occasional food or drinks may be viewed and cause harm to inappropriate audiences.
 
AANA considers that using data to target advertising to exclude children and vulnerable groups from seeing inappropriate advertising is both fair and reasonable, and in the best interests of Australians.
 
The new rules proposed by the government eliminate the use of targeting tools, having a significant impact on the advertising industry and the Australian economy.
 
Megan McEwin, director of policy and regulatory affairs at AANA sayd the industry agrees with many aspects of the proposals contained in the government’s response to the privacy review.
 
"The big concern for the industry is the potential unintended consequences of proposals to restrict targeted marketing," says McEwin.
 
"Removing this tool will undermine responsible advertising efforts and potentially result in children and vulnerable groups being exposed to inappropriate advertising.
 
"The Privacy by Default proposal may also deprive advertising platforms of the relevant data necessary to exclude certain groups from seeing inappropriate advertising.’
 
The AANA is also concerned about the proposal to effectively ban behavioural or relevant advertising.
 
Josh Faulks, CEO of AANA, says that effectively banning behavioural or relevant advertising would not be a good result for advertisers or consumers.
 
"Many consumers welcome being served relevant advertising as they consume content," he says.
 
"They understand that advertising is necessary to fund so much of the content – including sport and journalism, and services – such as Google Maps, that we enjoy every single day.
 
"We believe that a balanced approach is necessary to protect privacy, while also enabling responsible advertising to continue. The question needs to be asked, what harm does relevant advertising cause to the consumer?" 

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