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The Discourse around Privacy

Why we exist

Where do we stand on privacy?

The existing landscape is marked with permanently vested interests with numerous stakeholders blurring the privacy line. I will be focusing on the stakeholders I deem to hold the greatest power in the debate; tech companies, advertisers, and consumers. Within the world of digital ads, we have reached a complicated space with privacy, explained only as dialectical. To address the cookie crisis and ascertain a replacement that mutually benefits the positions of tech companies, advertisers, and consumers, we must understand their framing of privacy. This section maps the discourse surrounding privacy for each of the mentioned stakeholders.

Tech
Companies

A realisation 

Beginning with tech companies. As found in the contextual chapter, Google's FLoC replacement for cookies is making the loudest noise in the business press, understandably with their 86 per cent market share held in the UK[1]. As their June 2021 decision to postpone the death of the cookie until 2023 suggests, Google's process of finding a suitable replacement that ticks all boxes for all stakeholders is undoubtedly complex[2]. "The main issue with third-party ads is privacy", explains Michael Kleber, Google's Privacy Sandbox software engineer, who points out Google's current technologies have given 52 ads and analytics companies "at least 91% of an average users' browsing history"[3].

Kleber's transparency suggests Google have acknowledged how intrusive their existing cookies are. As a result, they are approaching replacements with privacy framed as a social issue. Perhaps a civic rather than legal right. This discourse is evident in the language used during Google's Chrome November 2021 summit, phrasing new developments as protecting and "privacy-preserving" rather than previous "mechanisms that weren't designed with privacy in mind"
[4]

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Privacy: a civic right

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"We don't believe these [user identity for ad tracking] solutions will meet rising consumer expectations for privacy"

David Temkin, 
Google Director of Project Management for ads privacy and trust

David Temkin, Google Director in ads privacy and trust, explicitly reassured consumers that despite competitor moves, they would refrain from using user identity in ad tracking to help "meet rising consumer expectations for privacy"[5]. Privacy-preserving commitments risk compromising relations with publishers and advertisers; however are necessary, according to Google, to "sustain a healthy, ad-supported web" for the consumers whom they pledge to serve[6]. Building a culture of respect and mutual benefit supports this shifting discourse which seeks to protect consumer civic rights rather than “[feeling] like [they are] being tracked or even stalked”[7].

However, it could be argued Google's virtuous revelation to so strongly couple privacy with consumer protection is a competitive response to the likes of Apple. "Privacy. That's iPhone" - part of Apple's PR push, including the ATT API, to help solidify their brand position that views "privacy [as] a fundamental human right"
[8]. Privacy framed as a social issue helps Google position itself ethically as the search brand for the consumer, keeping a competitive stance against Apple et al positioning consumer privacy at the centre of the advertising equation.

Advertisers

Apple-ad-iPhone-privacy-image-001.jpeg

A valuable commodity

The second interest group is advertisers. The advertising industry, unlike tech companies, appears to view privacy with less of a consumer-centric approach. Within the tensions of privacy and personalisation, advertisers believe that "the more data you collect, the more effectively [a technology company] can personalise a service”[9]. Private data to advertisers has become a valuable commodity, that when leveraged effectively, ultimately helps them to make money. Therefore, private data equates to effectiveness. A persuasion toward data-driven marketing has instilled a fear in those not aiming for pinpoint accuracy that they "will be left by the wayside"[10]. For example, trade publicity claiming that 90 per cent of marketing executives report measurable benefits for using social technology in their data-full approach, instils a 'no excuse' anxiety that their strategy has to capture consumer data to succeed[11].

Self-preservation concerns have created a discourse that converges privacy and effectiveness, ultimately concerning the bottom line. Concern for first-party data optimisation and developing a granular strategy to improve performance efficiencies is what David Denny of OpenX deems important to brands today[12]. The position, therefore, is more self-interested rather than consumer centric. In many cases, advertisers will see how far they can push privacy compliance to personalise advertising to drive better performative results. To advertisers, privacy, or lack of privacy, is a blurred space of opportunity[13]

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Privacy regulation kills profit 

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GET COMFORTABLE BEING UNCOMFORTABLE

McCarthy cited the dissolution of third-party cookies as a core disruption to digital ad spends previously steady growth that slowed by 5% in 2020[14]. Whilst the global pandemic amongst other factors would have influenced this figure, prior academic research supports McCarthy's claim. Goldfarb and Tucker found that after the implementation of privacy laws in Europe, banner ads suffered a 65% drop in effectiveness in terms of stated purchase intent, concluding "privacy regulation can reduce the effectiveness of advertising"[15]. Given the barrage of regulations applied since the 2011 research, it is unsurprising that advertisers foresee reduced online surveillance as a threat to their perception of privacy tied to effectiveness.

 

This discourse highlights counterintuitive best-case scenarios for Google's new privacy-preserving technologies purposing to create a mutually beneficial solution. With many reluctant toward regulation changes deemed a threat to profit margins, the advice from Axiom is to "get comfortable being uncomfortable"[16]. For advertisers, privacy may appear more sinister in comparison to tech companies' ethical facade. As Permutive recommends, "[collecting] data in areas of weakness", we can see how the advertisers' stance toward privacy pushes against consumer boundaries to protect profitable data collection[17]

McCarthy cited the dissolution of third-party cookies as a core disruption to digital ad spends previously steady growth that slowed by 5% in 2020[14]. Whilst the global pandemic amongst other factors would have influenced this figure, prior academic research supports McCarthy's claim. Goldfarb and Tucker found that after the implementation of privacy laws in Europe, banner ads suffered a 65% drop in effectiveness in terms of stated purchase intent, concluding "privacy regulation can reduce the effectiveness of advertising"[15]. Given the barrage of regulations applied since the 2011 research, it is unsurprising that advertisers foresee reduced online surveillance as a threat to their perception of privacy tied to effectiveness.

 

This discourse highlights counterintuitive best-case scenarios for Google's new privacy-preserving technologies purposing to create a mutually beneficial solution. With many reluctant toward regulation changes deemed a threat to profit margins, the advice from Axiom is to "get comfortable being uncomfortable"[16]. For advertisers, privacy may appear more sinister in comparison to tech companies' ethical facade. As Permutive recommends, "[collecting] data in areas of weakness", we can see how the advertisers' stance toward privacy pushes against consumer boundaries to protect profitable data collection[17]

Consumers

Sisters of struggle

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Now for the last group, the consumer. While experiences across the spectrum differ, research suggests consumers are sisters of struggle grouped by the mentality of data privacy requiring trust[18]. More broadly, the UK consumer's position towards privacy has become subversive to data tracking, particularly third-party cookies akin to being spoken about behind one's back. More specifically, on the one side, we see those proactively rising against digital surveillance, to those alternatively seemingly oblivious to data tracking.

 

The tensions experienced across the spectrum of the public are not identical. However, they are bound by a degree of concern over the quantity, intrusiveness, and nature of data mysteriously collected[19]. With 86% of the UK population experiencing a growing concern for data privacy[20], it is no wonder that 64% of 20 advertisers' tracking cookies are being either blocked or deleted by web browsers[21]. As advertisers define private data as a financial commodity and the consumer press surrounding privacy breaches continues to make noise, consumers have demonstrated increasing scepticism toward trusting private data collection. 

86%

of the UK population are experiencing growing concern for data privacy 

Now for the last group, the consumer. While experiences across the spectrum differ, research suggests consumers are sisters of struggle grouped by the mentality of data privacy requiring trust[18]. More broadly, the UK consumer's position towards privacy has become subversive to data tracking, particularly third-party cookies akin to being spoken about behind one's back. More specifically, on the one side, we see those proactively rising against digital surveillance, to those alternatively seemingly oblivious to data tracking.

 

The tensions experienced across the spectrum of the public are not identical. However, they are bound by a degree of concern over the quantity, intrusiveness, and nature of data mysteriously collected[19]. With 86% of the UK population experiencing a growing concern for data privacy[20], it is no wonder that 64% of 20 advertisers' tracking cookies are being either blocked or deleted by web browsers[21]. As advertisers define private data as a financial commodity and the consumer press surrounding privacy breaches continues to make noise, consumers have demonstrated increasing scepticism toward trusting private data collection. 

Privacy requires defense

As a result, this awareness has created a discourse where private data equals defensiveness, and now a desire for protection over this new capital considered my data[22]. With the shifting discourse, the language around my data has evolved to imply ownership and self-determination[23]. Therefore, the perceived intrusion of this valuable consumer capital which appears to be controlled and manipulated by wealthy corporations, shifts privacy and the retention of private data into the realm of protection against untrusted sources[24]. If you search data on Google, the most popular results to follow include “data breach”, “data security”, “data mining” and “data protection”. The twinning of data with connotatively negative words implies the consumers' defensive stance. Edelman's 2019 Trust Barometer indicated "55% of people worry about how brands use their data, track them and reach them"[25]. Arguably, this privacy concern should be extrapolated, since it is unlikely that all of Edleman's survey respondents were fully aware of the extent to which companies collect and use their data.

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55%

of people worry about how brands use their data, track them and reach them

Cull the cookies

The 2011 UK government’s research into consumer understanding and management of internet cookies indicated that just 13 per cent of the population fully understood how cookies work[26]. With ten years of education and normalisation since the research, this figure should be taken with a pinch of salt. However, its essence still reflects the uncertainty that the general public feels toward the tracking technology. Permutive's research reasserts this sentiment, finding "while 60% are aware that companies are buying and selling data, less than 20% of people are comfortable with this"[27]. Arguably consumers are experiencing feelings of being left in the dark while profit-hungry actors monetise their uninformed submission.

 

Consumer reports' director of privacy and technology policy, Justin Brookman, highlighted the continued scepticism toward Google's new privacy sandbox proposals. He explains, "it sounds like they just want to re-create targeted advertising but at the browser level"[28]. Representing the consumer perspective, Brookman's comments on Google's proposals indicate dissatisfaction, likely to affect consumption behaviours. With 1 in 5 not buying from a brand due to data practices and an additional 19 per cent switching for better data policies, it is apparent that consumers are becoming increasingly selective with whom they trust their private data[29]

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Accept

Where do we stand on privacy?

Exploring the discourse of tech companies, advertisers, and consumers has made it apparent that there is not a shared definition of privacy concerning online data. Tech companies are working toward an arguably flawed customer-centric approach to data collection with privacy as a civic right. Advertisers continue to allow their financial self-interest to shape their view of privacy as a tool to manipulate advertising effectiveness. And consumers view privacy as a valuable and intrusive capital requiring defence against the first two actors. This foundation allows us to understand the dynamic between the three stakeholders in a cookie-full world. In relation to the research question, this chapter has shed light on areas where trust is required to be re-built in the wake of a post-cookie and post-privacy world.  

Now for our next theme...

[1] https://www.statista.com/statistics/280269/market-share-held-by-search-engines-in-the-united-kingdom/

[2] https://adage.com/article/digital/google-thinks-it-may-have-found-replacement-third-party-cookies/2308211

[3] https://www.forbes.com/sites/zakdoffman/2021/08/28/stop-using-google-chrome-on-windows-10-android-and-apple-iphones-ipads-and-macs/?sh=109c08ee4a97

[4] https://www.theregister.com/2021/11/08/why_should_anyone_trust_google/

[5] https://www.invoca.com/blog/tracking-cookies-are-dead-what-marketers-can-do-about-it

[6] https://www.wired.co.uk/article/google-cookies-floc

[7] https://www.consumerreports.org/advertising-marketing/internet-advertising-is-about-to-change-third-party-cookies-a6221885875/

[8] https://www.imore.com/apples-new-privacy-page-goes-live-alongside-new-app-store-nutrition-labels

[9] https://www.ft.com/content/e00886f6-ca70-11e9-af46-b09e8bfe60c0

[10] https://marketinginsidergroup.com/content-marketing/marketing-needs-data-driven/

[11] https://marketinginsidergroup.com/content-marketing/marketing-needs-data-driven/

[12] Denny, D., (2021). The future of programmatic advertising. Advertising Week Europe. [panel talk] virtual. 10 May 2021

[13] Andreou, L., Grozalsky, J., Lanzman, D., Keens, D., (2021). The convergence of Martech and Adtech and how to combine them. Advertising Week Europe. [panel talk] virtual. 10 May 2021.

[14] https://www.thedrum.com/news/2021/04/21/digital-ad-spend-growth-slowed-5-2020-says-iab-uk

[15] Goldfarb, A., Tucker, C., (2010). ‘Privacy regulation and online advertising.’ Management Science. 57.1, pp.57-71. Version: Author’s final manuscript

[16] Andreou, L., Grozalsky, J., Lanzman, D., Keens, D., (2021). The convergence of Martech and Adtech and how to combine them. Advertising Week Europe. [panel talk] virtual. 10 May 2021.

[17] Brennan, E., (2021). Identity in advertising: how to future-proof data-driven marketing. Advertising Week Europe. [panel talk] virtual. 10 May 2021

[18] https://hbr.org/2018/01/ads-that-dont-overstep

[19] https://www.techrepublic.com/article/data-privacy-is-a-growing-concern-for-more-consumers/

[20] https://www.techrepublic.com/article/data-privacy-is-a-growing-concern-for-more-consumers/

[21] https://www.invoca.com/blog/tracking-cookies-are-dead-what-marketers-can-do-about-it

[22] https://www.techrepublic.com/article/data-privacy-is-a-growing-concern-for-more-consumers/

[23] https://mydata.org/

[24] https://mydata.org/state-of-mydata-2021/

[25] Andreou, L., Grozalsky, J., Lanzman, D., Keens, D., (2021). The convergence of Martech and Adtech and how to combine them. Advertising Week Europe. [panel talk] virtual. 10 May 2021

[26] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/77641/PwC_Internet_Cookies_final.pdf

[27] Brennan, E., (2021). Identity in advertising: how to future-proof data-driven marketing. Advertising Week Europe. [panel talk] virtual. 10 May 2021

[28] https://www.consumerreports.org/advertising-marketing/internet-advertising-is-about-to-change-third-party-cookies-a6221885875/

[29] Brennan, E., (2021). Identity in advertising: how to future-proof data-driven marketing. Advertising Week Europe. [panel talk] virtual. 10 May 2021

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