Regulation Nation Assignment (1)

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School

Brigham Young University *

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Course

302

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History

Date

Oct 30, 2023

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docx

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Uploaded by skethanjones

Ethan Jones September 8, 2022 Ent 302 - Section 002 Regulation Nation Digital Marketing Regulations While learning more about over-regulation and the impacts it can have on small businesses I began to think more about an issue that I have been involved with recently. Over the last 8 months, I have been working on starting my own digital marketing agency. I have learned about a few regulation policies that have occurred in the past which have affected online advertising and the marketers who work in that space. There is one particular regulation policy that has had a big impact on the way companies are run today. Throughout many years countless companies have used Facebook and its platform to run ads and grow awareness. Apple has just as much importance to provide a way for people to access Facebook as well as be connected to each business through their ads. In April of 2021, Apple released a new IOS update that made a huge impact not only on small businesses but on the consumers who interact with those businesses on their devices. For example, if an individual is on the internet or social media looking at a specific product or a specific business, that product or business can show up later through an ad on social media or the web. It also can work based on your location. If you are in an area where a local business is located you would start to see ads from that business. Social media pages you spend time on, websites you look at, videos you

watch, and everything you do on your devices will share your likes and interests to Facebook marketers. They would then be able to target their online ad to you knowing you’ve had an interest in their product, you’ve visited their website or a different one similar to theirs, or simply seeing you liked a social media page with that product in relation to it. Due to the update from Apple, consumers are benefited with more privacy. Each person with an apple device has the choice to let their phone track activity across other apps or not. If you allow it to, marketers can still target their ads to you based on your likes and interests. If you don’t allow that access, they cannot see if you have visited their website or others like it, as well as all of the other things they would use to target their ad to you. From the point of view of the business, this update has been a big downfall. When consumers are given the choice to track their activities, most have been likely to opt-out. This will cause the company to have online ads that aren't as effective as they used to be. The ads that are being run online will not be able to target or reach the consumers that may have an interest in the product which results in fewer sales made from those ads. To smaller businesses who were putting all of their marketing efforts into online ads, this update was detrimental. Previously, the money spent on online ads was able to bring plenty of sales to support and grow the business. Now, that same amount of money spent for the same ad will reach less of their target market. In order to reach the same amount of people in the target market and make the same amount of sales as before, a business will now need to spend more money to optimize its ad targeting. As a result, some small businesses are not able to afford to spend that extra

cost in optimizing their ad targeting and lose all sales. This is a way where over- regulation has impacted businesses so much that they aren’t able to continue. Some statistics due to this regulation update show that many Facebook marketers have claimed they used to receive 80% of their traffic from Facebook, now only 20%. Due to the lack of accuracy in ad targeting, many big companies have gone from spending hundreds of thousands to now only a few thousand dollars in ad spend. This update from Apple has proven to cut more than 7% of Facebook's Revenue. Many marketers have been searching for alternatives to Facebook to gain back the traffic they have lost. This is not the first and only over-regulation issue that has come about with online advertising. Hundreds of businesses have been impacted by the updates and regulations from Google updates, Facebook updates, and other Apple updates as well. There are hundreds of businesses that would receive 100% of their sales from Google ads, and when Google releases an update because of regulatory means, it affects every aspect of that business. In fact, some businesses were not able to stay afloat after the regulatory updates were put into place due to their reliance on that platform. Just as Apple has shut down businesses because of their updates, the same is with Google, Facebook, and any other major company. Personally, I have mixed opinions on these regulatory updates. As a digital marketer, I am against any regulations that lead to a decrease in my results on a majorly used and valuable platform. I believe the world of digital marketing continues to find ways and improve efforts to gain the same results as was seen in the past. Whether it is from using different resources, better mastering their original advertisements, or

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following different paths, the business can still somehow find a way to make the sales they need to survive. However, as a consumer, I am in support of the regulations that work to protect my privacy. From the consumer's point of view, I hope to continue to see regulations put into effect that protects my privacy. As seen from the Apple IOS update, it seems a good majority of consumers have the same opinion. It is clear that everyone wants to keep their privacy protected. Yet we are unclear about the kind of effect it can have on businesses, such as digital marketing and online advertisers, as we opt for more privacy regulations to be put into place.