As an American ad tech CEO working for a UK-founded company, I’ve heard countless stories from peers about the challenges of cracking the European market.
But is the way we approach data-driven advertising in the US really better for anyone?
There’s plenty about my hometown of Baltimore that I hold dear: “Hairspray,” “The Wire” and the greatest football team of all time: Go Ravens!
But these days, I spend much of my time on the other side of the Atlantic. And when it comes to my privacy principles and ethics, I look to Europe for inspiration.
GDPR may not be perfect, but it forced European companies to adopt a privacy-by-default position. For US companies, this is a clear signal: Change is inevitable, and staying lax isn’t sustainable.
Europe’s tough stance on privacy
Digital advertising has long been built around terrible, invasive practices. The transition away from trackers that follow unwitting consumers around the web and across devices is still ongoing.
However, Europe has made more progress when it comes to privacy protection.
Ad tech companies in Europe have had to adapt to some of the toughest privacy legislation in the world. And the regulators have teeth – the Irish Data Protection Commission (DPC) imposed a whopping fine of €1.2 billion on Meta in 2023 for GDPR breaches.
Meanwhile, the regulatory environment in the US lags behind that of Europe and can best be described as a slowly spreading patchwork of privacy legislation.
Some states, like my native Maryland, have taken a harder line than others – especially around protections for children. But a lack of uniformity across states means understanding and navigating this legislative landscape is a tough ask.
US ad tech vendors are falling behind
This lack of uniform privacy protection has real business implications.
Ad tech solutions coming out of the US often take liberties with consumer data. And brands and agencies – particularly those outside of the US – are growing more reluctant to partner with organizations that don’t prioritize privacy.
Why are some American ad tech vendors so resistant to embracing true privacy? Many recognize the importance of privacy to consumers and partners, which is why we so often hear terms like “privacy-first,” “privacy-safe” and “privacy-centric” used with little substance to back up these claims.
I see companies built on outdated technology and practices making such declarations while centralizing and commingling vast amounts of customer data. This privacy washing is now infiltrating data collaboration and the much-discussed data clean room space.
If your collaboration technology partner makes most of their revenue from combining and selling data, you are not serious about privacy.
Any data clean room that doesn’t have privacy as its default setting is not worthy of the name. Privacy isn’t something that can be added later; it has to be at the core of the technology from the very start.
Privacy is not an obstacle to performance
When I talk to my American ad tech counterparts, I still detect a fairly widespread assumption that privacy is at odds with effective advertising. But this simply isn’t the case.
Companies in Europe have adopted and embraced better customer data management practices and have still managed to build performant advertising solutions.
Seeing privacy as a blocker is putting restrictions on innovation. Instead of thinking about what they can’t do, US ad tech vendors should be thinking about what they can do and use that as their starting point. Embrace principles, embrace ethics, embrace privacy and work from there.
It isn’t just regulators who will punish organizations that don’t take privacy seriously. Consumers are more savvy than ever before when it comes to data protection legislation. They’ll also turn their back on companies they don’t trust with their data.
Brands won’t risk the wrath of regulators and customers by working with vendors with shoddy data practices. They’ll gravitate toward the solutions that offer them both privacy and performance.
Think like a European, but be proud of where you come from
US-based ad tech vendors must quickly adopt a European mindset to survive in the privacy-first era. There’s no reason why ad tech solutions built in the US can’t succeed with privacy as the default.
It’s a long way from Baltimore to Basingstoke*. But, hopefully in the near future, there won’t be as much distance between our privacy policies.
*If you’ve never been, Basingstoke is located in the beautiful English county of Hampshire, close to London and even closer to Highclere Castle, where upstairs and downstairs drama reigns supreme. IYKYK.
“Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.
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