It seems like just yesterday data collection was a free-for-all for marketers and advertisers alike. Regulations and boundaries regarding targeting and tracking weren’t strictly reinforced.
That is until the GDPR began to tighten its reins.
From 2018 and on, this self-regulatory solution and the addition of the iOS14 update, altered the way advertisers accessed personal consumer information. As more users opted out of in-app tracking, marketers had fewer key insights to rely on, and with the growing number of state restrictions, it looks like this challenge is staying put. While this red-hot issue runs rampant, here’s what publishers need to know about the obstacles facing data collection and audience monetization.
The latest crackdown plaguing the industry is likely the last thing marketers want to handle. Mitigating the consumer desire for data privacy will become more difficult for companies that misuse personally identifiable information. It isn’t easy to fool consumers now; many are informed of the ways their data can be used without their permission. A recent BCG/Google survey revealed that 60% of consumers think companies are selling their data. A consumer wants boundaries and expects marketers to respect them — even though doing so puts up more privacy walls.
This isn’t the only obstacle publishers are set to encounter. In 2023, five new US state privacy laws will take effect in California, Virginia, Colorado, Utah, and Connecticut. Following the implementation of these regulations, consumers will have a decision on how their “personal information is used commercially.” A majority of these privacy laws have lookalike requirements, many of which require businesses to give notice to consumers before distributing their information. Opt-out requirements are also common among these new laws, creating additional hurdles for marketers. The forthcoming legislation will incentivize publishers to implement user controls to establish trust and a sense of anonymity.
While advertisers prepare to adopt these rules, the ad tech industry is making strides to counteract these privacy measures by utilizing software-as-a-service products to create new revenue opportunities. Using tools to analyze conversion data (like Outbrain does) is possibly the best solution for advertisers seeking a way around the barriers. Another sign that the ad tech industry is moving in a new direction is the recent GumGum $1 million ad spend milestone.
As more states start enacting laws to minimize tracking, and as the cookie deprecation still looms over the industry, these new solutions will play a significant part in helping marketers build the privacy-forward advertising future.