Marketers should keep their eyes on privacy as signal loss, privacy laws mount

Google may have reversed its decision to deprecate third-party cookies, but providing individual consumers with the ability to opt-out is still likely to increase signal loss, according to our analyst Evelyn Mitchell-Wolf. In addition, increased legislation and consumer concerns around privacy will require marketers to invest in privacy-safe ways to collect and activate data.

“Signal loss is real, and preparation is key,” said Mitchell-Wolf. “If an advertiser hasn’t put any effort into a signal-agnostic targeting and measurement strategy, they will struggle with reach and visibility into performance. And it’s not just about achieving legal compliance or avoiding enforcement action. Advertisers must treat consumer data with the utmost respect and care or risk their relationship with customers.”

The eyes of the law: 89% of US brand and agency buyers reported that personalization tactics have been somewhat or significantly impacted by privacy legislation/signal loss, per February 2024 data from the Interactive Advertising Bureau (IAB) and BWG Strategy.

• As of July 2024, 20 states have passed comprehensive privacy laws, per White & Case LLP.
• This number includes Florida’s Digital Bill of Rights, which the International Association of Privacy Professionals (IAPP) does not consider comprehensive.
• Four additional states have privacy bills being actively considered, per the IAPP.
• A drafted federal privacy measure, the American Privacy Rights Act (APRA), was introduced in April 2024, but its future is uncertain.

Privacy, please: Consumers are apprehensive about how marketers handle their data.

• A majority (84.1%) of US consumers are concerned about data privacy when interacting with brands online, according to a December 2023 survey by Attest.
• Older consumers tend to be more cautious, with 87.8% of consumers ages 55 to 64 reporting concern, per Attest. But 82.7% of 18- to 24-year olds are also concerned, showing privacy is a universal issue.

Looking ahead: Here are three steps marketers can take to ensure they’re privacy-focused.

1. Work closely with legal teams to ensure compliance across states

Marketers should develop a comprehensive compliance program alongside internal—and if necessary—external legal expertise, according to our What Advertisers Can Learn From Privacy Industry Events 2024 report.

• Although many state privacy laws share similarities, some have small, but important distinctions. For example, Oregon requires data owners to disclose how individual third parties may process the data shared with them.
• “We put [that provision] in [the statute] for a reason and we will be monitoring that,” said Kristen Hilton, senior assistant attorney general for consumer privacy and data security at the Oregon Department of Justice.

2. Be proactive and communicative with data partners

Marketers should set clear expectations of their data partners, ensuring everyone is aligned in protecting consumer privacy.

• Identifying use cases upfront can help minimize the amount of data collected and mitigate risk of noncompliance, according to our report, The Privacy-First Programmatic Opportunity.
• Marketers may also consider reducing the number of data partners they work with, focusing on the ones that provide the most value.

3. Prioritize the consumer

Marketers should keep consumers at the core of their privacy strategies.

• Data collection and activation efforts must be transparent and easy for consumers to understand.
• Consent management tools help collect and manage user consent.
• Marketers can incentivize consumers to share their data with exclusive offers or personalized recommendations.

Educating consumers on how their data will be used will become crucial once Google gives users choices over whether or not to accept cookies—50.6% of US consumers say that they don’t understand how platforms use their information once they accept cookies, according to a May 2024 EMARKETER survey.

This was originally featured in the EMARKETER Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.