In this digital marketing news roundup, we cover British Airways facing a record penalty of £184m for last year’s breach of its booking system, a call for a social media strike and forecasts on online advertising.
“Marketers need to build digital relationships and reputation before closing a sale.” – Chris Brogan
In this article, we’ll cover the most recent digital marketing news:
- ICO issues a notice of intention to fine BA a record fine due to a data breach
- Wikipedia’s co-founder calling for a social media strike
- Zenith report over 50% of advertising spend to be digital by 2021
Let’s dig in.
ICO Could Fine British Airways £184million!
Following an extensive investigation, the ICO has issued a notice of its intention to fine British Airways (BA) £183.39 million ($228.63m) for infringement of GDPR. Initially, I thought the decimal point was in the wrong place? After all, the proposed penalty is 367 times higher than the previously imposed one, involving Facebook and the Cambridge Analytica data scandal (pre-GDPR). However, there’s no mistake. The amount of the proposed fine is correct.
The ICO has issued a notice of its intention to fine
British Airways £183.39M for infringements of the General Data Protection
— ICO (@ICOnews) 8 July 2019
The fine relates to a cyber incident notified to the ICO by BA in September 2018. Part of the incident involved user traffic to the BA website being diverted to a fraudulent site. Through this false site, customer details were harvested by the cyber-attackers. The personal data of approximately 500,000 customers were compromised in the incident, which – according to the ICO – is believed to have begun in June 2018. The ICO’s investigation found that a variety of personal information was compromised by poor security arrangements at the company, including login, payment cards and travel booking details as well as name and address info.
Fine Comparisons For Data Breaches
The proposed penalty to be imposed on BA is the first one to be made public since GDPR was introduced, which make it mandatory to report data security breaches to the information commissioner. The new rules also increased the maximum penalty to 4% of turnover. The BA penalty amounts to 1.5% of its worldwide turnover in 2017, less than the possible maximum. Until BA ‘s fine, the biggest penalty was £500k, imposed on Facebook for its role in the Cambridge Analytica data scandal. That was the maximum allowed under the old data protection rules that applied prior to GDPR. What’s the take home from this story? You now have 184 million reasons to check and double check your digital security.
Wikipedia Founder Calls for Social Media Strike
In a post on his blog titled ‘Declaration of Digital Independence’, one of Wikipedia co-founders – Larry Sanger – urged people to stop using social media for 2 days. The call to strike is an effort to pressure the networks into restoring control of personal data to users.
Sign the Declaration of Digital Independence: https://t.co/uboOyEeRQB Take back control over our data! Decentralize social media! Plan for a social media strike July 4-5: https://t.co/mGFSKD79q6 RT/share/copy widely. Also sign on https://t.co/JVA7meUhdd: https://t.co/tLuKNHt7gc — Larry Sanger (@lsanger) June 26, 2019
The Declaration calls for social networks to be decentralised and turned into systems that respect the rights of free speech, privacy and security.
In his call to action, Sanger said the strike – from 4 to 5 July – would show ‘massive demand’ for change. He called for users to not post on social media unless it was to post notices of being on strike. So, did anyone notice a social media strike on those dates?
Wait a minute. Didn’t almost all major social media platforms go down around the strike dates? Coincidence or conspiracy? Tell me what your thoughts are in the comments.
Online Advertising Will Exceed Half of Global Ad Spend 2021
According to Zenith’s Advertising Expenditure Forecasts, online advertising will account for 52% of global advertising expenditure in 2021, which exceeds the 50% mark for the first time. That’s up from 47% this year and 44% in 2018.
However, the growth rate is falling rapidly as the internet ad market matures. Online ad spend grew 17% in 2018, but based on activity in the first half of 2019, the company said it’s expecting only 12% growth for the year – as a whole. By 2021, Zenith expects internet ad spend growth to have fallen to 9% year-on-year.
The advertising game is again led by online video and social media which are predicted to enjoy double-digit rates of 18 and 17% through to 2021. With both sectors benefiting tremendously by the emergence of 5G mobile technology.
You can purchase Zenith’s comprehensive forecasts here. It’ll only cost you a small amount of £495. But hey, you can file this as a forecasted ad expenditure, right?
Do you have any suggestions or ideas what digital marketing news topics you’d like us to look out for in the future? Write your requests below. We’ll keep an eye out (or two) so you don’t have to – and all for FREE, of course.
In the meantime, you can take a look at our email marketing blog for useful advice, tips and tricks. We will also keep you up-to-date with the most recent email news, social media news, search engine news as well as PPC & Ads news.