Need for Adtech Industry to Prioritize Privacy-Compliant Personalization

In the recent past, there have been many fines implied on digital platforms for misuse of consumer consented data. With the GDPR taking effect in May 2018, there have been more than 900 fines issued across the European Economic Area (EEA).

This is because many data owners and processors have made significant investments in technologies that help them get data. But very little is being done by them today that mitigates risks while using it.

The main reason why platforms need consumer data is to gain better insights so that they can nurture and grow their user base. And while doing so, grow the economic value of the relationship by offering personalized experiences.

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Obtaining data is only the beginning. It is the user’s responsibility to be safe, secure, and transparent. It is crucial to remember that the majority of recent GDPR and FTC fines have been issued for abusing data rather than obtaining it.

If we closely examine the nature of the fines and how they may have been avoided, we can divide them into two categories:

Get Data: If you can accept the consent in one click, ensure that you can also refuse consent in one click—not once, but session-based with real-time control.

Use Data: Commit to good data protection, specify the goal of use, and be open about it. Above all, never process sensitive information such as health or religious beliefs.

There are some questions that cross the mind of advertisers since they need to focus on the privacy of users and personalization was the only way to differentiate one platform from the other. 

How can we personalize content for our customers if we don’t have their data? 

How can we get them to return to our platform time and time again? Will they pay for our information?

Should we seek sponsors to oversee this value exchange until a critical mass is reached? 

What can we Give Our Sponsors in Exchange for Their Help? 

All this resulted in an unseen contract between brands, platforms, and consumers to exchange value.

• Give me high-quality stuff at a discount or for free in exchange for exploiting my data.
• Give me high-quality exposure for my products in exchange for supporting this value exchange.
• Give me a high yield per customer in exchange for producing high-quality content.

The most important aspect of digital marketing today is the three-way connection between businesses, platforms, and customers. Personalization that respects privacy must realize this three-way interaction, regularly update the purpose of utilizing customer data, and be open about it.

This means that not only the platform but also the brand trading value with the platform must collaborate in controlling consent and permissions. To be able to do so, engagement systems must re-architect their technology. While data encryption is currently standard practice, advertising systems will need to ensure that customization attempts do not directly link back to the customer throughout the encounter.