By Edik Mitelman, General Manager, AppsFlyer
When Eric Seufert coined the term “everything is an ad network” in 2021, it felt provocative. At that point, most of the ad networks in practice were retailers, and filled more with the likes of Walmart and Amazon than specialty retailers we’ve seen launch their ad networks in recent years. Today, it seems prescient. Companies across industries are transforming into ad networks, leveraging consumer data not just to sell products but to create entirely new revenue streams.
Beneath each ad network lies an implicit contract: a value exchange where consumers agree to share their data in return for tangible benefits. This value exchange hinges on privacy and personalization, both of which depend on secure data collaboration.
Everything Is an Ad Network
The rise of retail media networks, commerce media, and ad-supported ecosystems is reshaping industries. Retail giants like Walmart and Amazon led the initial charge, creating valuable advertising ecosystems powered by first-party data.
But in recent years, this trend has spread across sectors. Today, companies like retailers, grocers, fitness companies, and airlines are becoming ad networks, monetizing consumer data to unlock new revenue streams. Beyond those familiar faces, are the finance media networks which have rapidly become a major player with PayPal, Chase, Revolut, Mastercard and others all having launched successful media networks in the past 18 months. These transformations create enormous financial potential for these media networks, and a huge opportunity for building data sets for traditionally data-poor companies like consumer packaged goods (CPG) brands.
The Value Exchange: Privacy, Personalization, and Consent
In this new ecosystem, realizing the opportunities of data monetization is no longer as simple as gathering data. Consumers must now consent to share their data, and that consent alone is not enough. They expect a tangible benefit in return. Consumers aren’t opposed to personalized advertising; they are opposed to bad ads that feel “off” and don’t connect.
Ad networks like United Airlines and PayPal aren’t just using data to drive revenue; they’re enhancing consumer experiences by using data within set boundaries. In-app advertisements that send you “on-brand” suggestions for stores or restaurants in the city you’re visiting are a significant improvement over random ads.
That benefit is personalization. Whether it’s tailored ads in an ad-supported publishing model or improved services, personalization is the cornerstone of the new value exchange. Personalization builds trust by showing that consumer data is being used thoughtfully, demonstrating respect for privacy while enhancing the consumer experience.
Delivering Personalization Through Collaboration
Achieving meaningful personalization often requires secure data collaboration. No single company has access to all the data needed to meet consumer expectations. Partnerships between traditionally data-poor industries and data-rich networks, like retail media platforms, have made themselves essential.
These data collaboration partnerships allow companies to enhance consumer experiences without crossing privacy boundaries. For example, banks could analyze consumer shopping habits to deliver tailored credit card offers, while airlines might recommend dining options or events based on travel data. Rather than relying solely on broad-market advertising, CPG brands can engage in strategic data collaboration partnerships that allow them to reach consumers when they’re most likely to act.
This collaborative model benefits everyone involved. Consumers receive personalized value, brands unlock new revenue opportunities, and data-rich networks further monetize their assets.
Brands may have different objectives, but most often they are aiming for a few different things. The access to stronger data helps to unlock better targeting and expand their reach to more precise audiences, enabling them to tailor their value proposition and campaigns much better to consumers. This helps better inform brands’ strategies to be able to meet their consumers in the right place and the right time. With these improvements in place, they can almost certainly improve their revenue metrics, too.
Collaboration is the engine driving this new ecosystem forward.
Improved Privacy Technology and Standards are Essential for Collaboration
For collaboration to succeed, it must be supported by robust privacy technologies and transparent standards. As the FTC outlined in November, these technologies have definitions and the ecosystem suffers when there are flawed and misleading products claiming to be privacy-first technology when they are anything but.
Solutions like clean rooms, differential privacy, and secure multi-party computation make it possible for companies to collaborate to match and analyze data without exposing consumer identities. They also bring together advertising partnerships that might otherwise have felt unimaginable. Major competitors could collaborate in a privacy-first way; cross-industry collaborations could take form from unexpected partnerships.
These technologies ensure that data collaboration can take place securely, respecting consumer trust while unlocking actionable insights. However, not all privacy solutions are created equal. Transparent, enforceable standards are essential to avoid misleading practices and to build confidence among consumers and partners alike.
As the ad network model expands, the next generation of ad networks will be defined not just by how well they monetize data but by how well they uphold consumer trust. Companies that embrace privacy-forward data collaboration will gain a competitive edge, while consumers will be more inclined to share data with brands they trust.
