The ad industry still has a long way to go to appease regulators and consumers about privacy

The majority of advertisers have not prioritized privacy initiatives. Uncertainty around privacy laws is leading to procrastination, avoidance, and, in some cases, denial, per Doug Miller, senior fellow at the Future of Privacy Forum. “If you're the marketing team, you're not being evaluated on whether you're figuring this stuff [privacy] out. You're being evaluated on whether you’re selling products. It really makes it hard for this work to be done within organizations.”

Over three-quarters (76%) of US advertising professionals said data privacy laws have had minimal to no impact on their digital ad strategy, according to July 2024 research from Proximic.

But there has been a noticeable shift toward cookie banners since the EU’s General Data Protection Regulation (GDPR) went into effect in 2018. Most marketers plan on using third-party cookies as long as they’re available, per October 2024 data from Lotame. In most cases, opt-in consent is not required by US state laws. But cookie banners provide a convenient and familiar way to give consumers a chance to opt out, which is more commonly required. They can also act as a clear and conspicuous link to a company’s privacy policy, which can be a helpful defense in lawsuits.

And the advertising market is reconfiguring around first-party data. First-party consumer data was the most popular strategy US advertisers plan to take when targeting audiences in regions with restrictive data privacy laws, per Proximic.

First-party data is not foolproof. There are a few potential legal pitfalls to be aware of.

Regulators can force companies to purge noncompliant first-party data. Advertisers that spend time building robust first-party data collection mechanisms better make sure there are proper disclosures in place. Otherwise, they could find themselves with nothing to show for the time and money they spent to insulate themselves from the loss of third-party signals.

Design patterns that manipulate a user’s decision to opt in or out of sharing their data are prohibited under several state laws. So-called “dark patterns” are easy for regulators to see and could attract unwanted scrutiny into advertisers’ data practices.

Read the full report, US Privacy Trends 2024.