Several pivotal announcements impacted the measurement landscape. In September 2018, Apple’s bold move to remove third-party cookies from browsers shook up the industry. In October 2021, Facebook introduced new requirements for conversion lift studies, further reshaping the digital advertising landscape. And with Google’s recent declaration that Chrome will stop supporting third party cookies next year, the writing is on the wall – the era of unrestricted data tracking is coming to an end.

Global, local reforms incoming

Privacy concerns have triggered cascading implications for digital advertising. Widespread data breaches in the mid-2010s forced governments to act and introduce new data regulations. Notable examples include the implementation of the General Data Protection Regulation (GDPR) in May 2018, which mandates stringent data regulation for any organisations interacting with EU citizens. The Australian Federal Government also responded to the Australian Competition and Consumer Commission’s (ACCC) Digital Platform Services Inquiry 2020-25 by reviewing the Privacy Act 1988 in late 2019, underscoring the global nature of these regulatory shifts.

Australia’s privacy proposals, published in February, have far reaching implications. But changes in consumer tracking practices by platforms, most notably Apple, with broader knock-on effects, have profoundly impacted various aspects of the digital economy. Data partnerships, data matching and consent management practices have all been impacted.

But these shifts also present a meaningful opportunity for media owners to rebuild trust and establish clear value exchanges with platform users and brands alike.

Balance required

The core challenge lies in striking the right balance between protecting individuals’ privacy and ensuring the smooth functioning of the digital economy.

At Paramount ANZ we are aligned with the Interactive Advertising Bureau’s (IAB) submission to the Privacy Act review, supporting a privacy framework that meets consumers’ expectations while enabling their participation in the digital realm. The regulatory framework should prioritise privacy by design processes and technologies, that achieve both privacy and data protections and support a thriving digital economy.

Traditionally, government regulations have struggled to keep pace with the rapid innovation and adoption in the digital, technology and media spheres, so it is vital to rectify this discrepancy. Recent events serve as reminders of why data governance and regulation are vital. The recent collapse of the third largest cryptocurrency exchange FTX, showed bad actors and the lack of governance and regulation can cause serious harm to investors and the community.

To prevent such catastrophes, we must heed the words of industry leaders like Sam Altman, CEO of OpenAI, who told a US government inquiry: “My worst fears are that we—the field, the technology, the industry—cause significant harm to the world. I think that can happen in a lot of different ways’.

Altman advocates for governments to grant licenses for AI models, establish safety standards, and mandate independent audits to ensure we learn from the past mistakes of data privacy breaches and misinformation seen on social networks like Facebook and Twitter. The IAB’s Data Collaboration Platforms Explainer, does a great job in describing a robust governance framework.

“A good governance framework should establish the processes needed to dictate how the data is collected, stored and used. This will help ensure that any data being assessed is accurate, relevant, and compliant with privacy laws and regulations.

Thereafter this will allow a business to start identifying which data is sensitive, establishing controls to prevent unauthorised access and creating controls to audit those who have access and building systems to enforce governance rules and protocols.”

Trust equals growth

The legal landscape around licensing data from data brokers and partners is uncertain and in flux. There are several risks, all of which have recently become heightened with the increase in penalties and the prevalence of consumer class actions.

At Paramount ANZ, we have embraced proactive measures to remain compliant with evolving regulations. Partnering with privacy-by-design vendors like LiveRamp empowers us to enhance our commercial propositions while safeguarding user anonymity and privacy. Media owners prioritising data governance and consumer consent, fostering clear value exchanges, will earn the trust of consumers and drive logged-in users.

We also use OneTrust, a trust intelligence platform that meets increased internet privacy laws and unifies consent across advertising, marketing and analytics. Locally, we have begun leveraging OneTrust with initiatives like AppTracking Transparency that provides an opt-in prompt for platform users, giving users the choice to manage their preferences.

Organisations that lean into prioritising training and developing robust processes and procedures will drive cross-functional consistency. This consistency will protect users from the risk of bad actors and practices and maintain the smooth functioning of the digital economy.

A better future

The future of digital advertising hinges on robust data governance and effective regulation. Privacy concerns, driven by data breaches and evolving societal expectations demand a proactive and modernised approach. Striking the right balance between privacy and the digital economy is incredibly important, with privacy-by-design and responsible data practices at the core of our industry’s success.

As an industry we must embrace and define these imperatives, fostering a culture of trust as organisations, both between platform users and brands. This is how we can forge a sustainable and thriving digital economy now and into the future.