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We have entered a new era of marketing where data privacy takes absolute priority.
Consumers are taking control of their data in greater numbers, and marketers are acutely aware of this; 94% recognize customers won't buy from them if data is not properly protected.
While some marketers may think of privacy as a blocker, how it is approached will be critical to their brand's performance in 2025 and beyond. Those who can build marketing processes around privacy in an effective and future-proof way will be in the best position to succeed.
Increased regulatory complexity sets the tone for privacy
In the U.S., new privacy laws came into effect in Delaware, Iowa, Nebraska, New Hampshire and New Jersey in January alone. Further laws will become effective in Tennessee, Minnesota and Maryland in the second half of 2025. These changes only add more complexity to the already confusing state-by-state patchwork of privacy laws in the U.S.
While there is a certain amount of overlap between each state's laws, there are also key differences. For example, the Maryland Online Data Protection Act — due to come into effect in October — is one of the toughest yet, going far beyond that of other states with its high financial penalties for offenders. It also completely prohibits the sale of personal data — no matter whether a consumer opts in or not.
It's not just the U.S. where the sands are shifting. Marketers need to keep an eye on the development of the U.K.'s Data Use and Access Bill, while regulators in the EU are showing an increasing willingness to crack down on Big Tech companies transgressing the EU General Data Protection Regulation, and have even forced Meta to change its targeted advertising strategies.
Avoiding the attention of regulators should be a key priority for all advertisers in 2025. The best way to do that is to ensure they meet the requirements of the strictest privacy laws within the territories where they operate and apply them across the board.
Privacy must be built into new marketing processes
Marketers must ensure they have a firm grasp on privacy issues and how they affect consumers in all the jurisdictions they work in. They also need to maintain close and regular contact with those within their organization responsible for compliance and legal matters as they design new marketing processes.
Data collaboration is one of the most effective methods of advertising within the current landscape. For example, organizations use their own first-party customer data to partner directly with media owners, enabling them to target consumers with relevant advertising.
In principle, no data is shared between the organizations. However, the security and privacy of these collaborations depend entirely on the technology used to facilitate them. It's vital, then, that marketers properly scrutinize the tech providers they engage.
Building for the new infrastructure of the advertising ecosystem — where privacy enhancing technologies play a key role — is essential, and marketers need to invest in methods that deliver a return on investment. While driven by chief marketing officers, these investments must be overseen by privacy professionals to ensure the solutions are fit for purpose and adhere to relevant legislation.
Consumers are increasingly aware of privacy issues
The key reason marketers should keep privacy at the forefront of their minds, though, is consumers now have much more power in the advertising equation. Go back a decade and the consumer was almost an afterthought in the ecosystem, with their data being shared and sold among a network of organizations.
Consumers today are making clear choices about their own privacy in greater numbers, whether by deciding against opting into Apple's App Tracking Transparency, educating themselves about their country's data protection laws or exercising their data subject access rights.
With third-party cookies set to diminish even further, thanks to Google's plans to give users more informed choices about consent, consumers are taking back control. It's clear they value their privacy and want the brands they buy from to do the same, and marketers must respect this.
Privacy is the must-have item for 2025
Consumers want it. Regulators require it. Prospective advertising partners will also demand it.
Privacy will be the key issue for the advertising industry this year. Only brands that can develop a strategic focus on first-party data and clear consent will be best placed to ensure compliance in every jurisdiction.
High standards of privacy protection will be demanded by partners and customers. Businesses that don't meet these standards will find themselves facing trouble not just from regulators but reputational damage too.
As consumers take control of their data, marketers must quickly adapt to the new realities of the advertising ecosystem.
Lauren Wetzel is the CEO of InfoSum.