Developing Technology Standards to Support Privacy Regulations of the Future

Advertising has played a vital role in the Internet’s mass adoption. But, as the industry evolved, consumer privacy took a back seat. Today’s technologies provide an opportunity to rebuild the digital advertising infrastructure to benefit publishers, brands, and consumers — and build in privacy, from the ground up.

Advertising has played a vital role in the internet’s mass adoption, but as the industry evolved, consumer privacy took a back seat.

Consumer privacy became a national conversation after Cambridge Analytica, a political consulting firm used by the Trump campaign, was able to obtain raw data harvested from up to 87 million Facebook profiles and use it to segment and target users in ways that critics argue amounts to voter manipulation.

Since then, congressional committees and governmental agencies have expanded investigations into Facebook, Google, and other ad tech industry players. GDPR came to the US in the form of CCPA, the California Consumer Privacy Act, a law designed to give consumers similar power over the data they generate online.

Our industry is now struggling to prove to both consumers and regulators that we can be trusted with their data, but there’s hope. Cutting-edge technologies provide an opportunity to rebuild the digital advertising infrastructure to benefit publishers, brands, and consumers — and build in privacy, from the ground up.

The First Step: Joining Forces

Cryptography and blockchain have already emerged as solutions for adding verification and validation layers that ensure accountability and efficiency in the media supply chain. But the only way to drive adoption of these forward-thinking solutions and solve for consumer privacy is by bringing together key stakeholders in the industry, educating them on the benefits and developing the technical standards that will create the change the industry needs.

“I knew blockchain paired with cryptography could deliver significant change to the advertising industry,” says Adam Helfgott, CEO of MadHive and founding member of AdLedger. “I also knew it would take a concerted effort to drive adoption across such a broad landscape of stakeholders.”

Uniting brands, agencies, publishers, and technology vendors provides an open forum for collaboration, allowing the industry to express their concerns and tackle the issues head on. Advertising industry leaders like Meredith, Hershey, IPG, Publicis, and GroupM are forming working groups that release findings for broader industry education, while companies like Omnicom, MadHive, and Beachfront are already engaging in proof-of-concept projects to tackle issues like fraud, brand safety, and transparency.

So, it begs the question: Why not leverage these technologies for privacy as well?

The Privacy Solution = Privacy-by-Design

Cryptography is already being used to keep consumer data safe, at-scale, in an industry adjacent to advertising: e-commerce. Every time you buy something on your favorite website and the little green lock pops up in your browser as you type in your credit card information, cryptography is being used to protect that sensitive information.

But cryptography’s potential runs much deeper than this single application. It can provide mathematical proof for things like data provenance, while simultaneously ensuring regulatory compliance. This gives publishers the ability to secure their first-party data and thereby control access to their most precious resource – their audience. For advertisers, this immutable chain of custody and identity validation of supply-chain participants creates a brand-safe environment in which customers are reached with the right message at the right time.

The best part? Cryptography and blockchain can be baked into the underlying digital advertising infrastructure, which will automate this entire process and create a system with privacy-by-design. But the only way to integrate these technologies and drive mainstream adoption is through the unification, education, and collaboration of key industry stakeholders.

Long-term fixes take time, but the value prop for publishers and advertisers is evident. And maybe the GDPR and CCPA regulations are the push the industry needs to join forces and work toward a long-term solution.

Author: Christiana Cacciapuoti

Christiana Cacciapuoti is Executive Director of AdLedger, the nonprofit research and development consortium implementing global technical standards and solutions for the digital media and blockchain industries.

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