Regulation looms: The industry is grossly unprepared for a regulatory crackdown, and it’s coming. The Federal Trade Commission, the White House, and Congress have all been united in taking action against advertising’s existing standards around data privacy.
- Last month, the FTC sued adtech firm Kochava for (among other allegations) organizing and selling customer data to “assist in advertising and analyzing foot traffic at stores or other locations.”
- Shortly after, the White House laid out a list of standards for bipartisan Big Tech and privacy reform, also highlighting protecting users who visit “sensitive” locations like abortion clinics.
- The accusations levied against Kochava (which is now counter suing) sounded a lot like business as usual to many advertising firms, sending pangs of worry through an industry already dealing with upended norms.
The big takeaway: Sporting events in the fall and winter will give ad spending a boost, but it won’t do away with the industry’s long-standing problems. There’s no running from regulatory scrutiny or from the addressability crisis, and firms will have to adapt their business to changing standards or get left behind.
This article originally appeared in Insider Intelligence's Marketing & Advertising Briefing—a daily recap of top stories reshaping the advertising industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.