While the EU’s General Data Protection Regulation (GDPR) has led several marketing tech firms to pivot their business modelsand pull out of Europe, it has been helpful for others in the crowded industry landscape.
The GDPR, which became enforceable on May 25 this year, states that a company cannot use someone’s personal data unless they give explicit permission. Companies that violate the GDPR face a fine of €20 million ($22.1 million) or 4% of global revenues, whichever is greater. As the need to gather user consent became imperative for marketers, the synonymous buzzwords “consent management platform” and “consent management provider” gained popularity. Because this is ad tech where everything must be labeled as an acronym, these products are referred to as CMPs.