By Dr. Emilie Kuijt – Data Protection Officer of AppsFlyer
Retail Media Networks (RMNs) are reshaping the way businesses approach digital advertising. Historically, advertisers have relied on third-party cookies and cross-platform tracking to reach consumers. However, evolving privacy regulations and platform policies have led to a significant shift. RMNs provide an alternative framework, utilizing first-party data within a privacy-conscious environment to refine audience engagement.
Retailers have long held valuable insights into consumer purchasing patterns. With the rise of RMNs, these organizations can facilitate advertising partnerships that leverage their first-party data while maintaining user trust. This model is gaining traction across various industries, extending beyond traditional retail to sectors such as banking, travel, and mobility. The evolution necessitates a reassessment of data collaboration—one that prioritizes privacy as a foundational principle rather than an afterthought.
The Business Case for Privacy by Design
Privacy isn’t just a regulatory requirement—it can also be a strategic advantage. Implementing Privacy by Design principles allows organizations to:
- Lower compliance costs as regulations evolve
- Strengthen consumer trust and confidence
- Reduce risks associated with data protection issues
When data protection is integrated with business objectives, it shifts from being a cost center to a strategic investment. This is particularly important for RMNs, as privacy-first approaches can drive both revenue and brand loyalty. Companies that proactively adopt privacy-enhancing technologies (PETs) and align their data strategies with user expectations will gain a competitive edge in the evolving digital landscape.
Privacy as a Competitive Advantage
The shift toward privacy-first advertising is not merely about avoiding regulatory penalties—it is about maintaining relevance in an industry that is rapidly evolving. The industry is undergoing a paradigm shift, one in which privacy is becoming an integral part of what people expect from their online experiences. This shift didn’t happen overnight; privacy-centricity in the industry began more than 20 years ago with regulations like COPPA and has evolved through GDPR, CCPA, the EU AI Act, and DORA. The growing complexity of global, national, and state-level privacy regulations means that compliance alone is no longer enough. Brands must move beyond compliance to adopt proactive, privacy-first strategies that serve both their customers and their bottom line.
Privacy compliant data needs independent and unbiased insights, ensuring that all solutions remain flexible, configurable, and subject to proper regulation and auditing. Privacy should not be fought—it should be recognized as a defining standard for responsible advertising.
Privacy-First Strategies for Advertisers
To remain competitive in this new era, advertisers must proactively implement privacy-first strategies rather than wait for regulations to dictate their actions. Here’s how they can adapt:
- Invest in Privacy-Enhancing Technologies (PETs): Leverage tools such as data clean rooms, federated learning, and contextual targeting to enable data collaboration while maintaining user privacy.
- Stay Ahead of Regulatory Changes: Regularly monitor evolving privacy laws and platform policies to ensure compliance and future-proof advertising strategies.
- Prioritize User Consent: Adopt solutions that ensure that data collection aligns with user preferences and privacy expectations.
- Strengthen First-Party Data Strategies: Build direct consumer relationships through loyalty programs, personalized experiences, and transparent data collection methods.
- Partner with Privacy-First Platforms: Work with technology providers that enable privacy-centric measurement and attribution solutions.
The Future of Advertising: Collaboration Over Competition
For too long, advertisers have resisted privacy regulations, viewing them as obstacles to performance marketing. However, the reality is that these regulations reflect shifting consumer expectations. People rightly demand transparency, control, and security when it comes to their data. Advertisers who accept this new reality will build stronger customer relationships and achieve long-term success.
Rather than seeing privacy as a restriction, the industry must view it as an opportunity to innovate. The transition from third-party data dependency to privacy-first collaboration is already underway, with RMNs leading the charge. Brands that adapt to this shift and invest in privacy-first solutions will not only maintain their competitive edge but also future-proof their businesses in an ecosystem that is increasingly built on trust.
The great data reset is here. The only question is: Will advertisers fight it, or will they rethink their approach and establish privacy as the foundation for sustainable growth?
