NMA: QuBit Research shows ePrivacy Directive could cost UK economy £10bn if not implemented correctly

A combination of lost sales and damage to the ad and technology business in the UK due to the ePrivacy Directive could cost the UK £10bn, according to an analysis by QuBit.

The analysis predicts the loss to the UK economy in a “worst case” scenario, where businesses fail to interpret the law in the best way, opting for the strictest implementation of the directive.

According to Qubit, the loss of visitors caused by regular messaging about cookie content will cost £2.6bn. It also believes that losing implicit personalisation will lead to forced registration, costing a potential loss of £2.37bn. Similarly, the loss of personalisation on retail sites could cost £1.389bn.

The impact to the UK web analytics business could be £21m, significantly denting the market, which is estimated to be worth £104m in the UK. Likewise, the behavioural targeting industry could be hit by a £648m loss from lost sales and the affiliate industry hit by a £80m loss.

QuBit CEO Graham Cooke presented the research at a roundtable event yesterday. He also told of how the Information Commissioners Office (ICO), which will enforce the directive in the UK, had set its option to the strictest setting and saw only 10% of people opt in.

“When it took that option, only 10% opted in to accepting cookies,” he said.

QuBit has launched a cookie consent solution (nma.co.uk 4 April 2012) and IMRG CEO Jame Roper said the ecommerce trade organisation would be recommending it to its 1,300 members.

Tue, 24 Apr 2012 | By Charlotte McEleny. Read the original article