Privacy Issues in AdTech#
Privacy regulations are constantly evolving so this is a moving target.
In order to show ads to the right people, you need to track them. While this is not a good thing, it is a fact of life in AdTech. Responsibly tracking users after ensuring easily-understood consent with no dark patterns is the best way to stay compliant of regulations and ensure transparent tracking.
Tracking Your Location (The Creepiest One)#
Apps on your phone that can see your location keep track of you all the time. Not just “you’re in Seattle,” but exact GPS coordinates that are accurate to within a few feet.
Uses:
Geofencing (show ads when you go into a store)
Attribution of foot traffic (find out if ads led to store visits)
Building an audience (going after people who went to your competitors’ stores)
Abuses:
Following people to abortion clinics and then sending them ads that are against abortion
Following employees around to see if they’re interviewing with competitors
Stalking and harassment (selling location data to third parties)
Government spying (buying location data without a warrant)
Algorithmic Discrimination (Unintentional but Real)#
Ad platforms use machine learning to improve targeting. This can sometimes lead to unfair results:
Some ethnic groups can be blocked from seeing housing ads
Ads for financial services based on estimated income
Insurance policies for drivers based on their estimated risk
These things don’t always happen on purpose; algorithms try to find the best way to do things. But the end result is systematic discrimination that would be against the law if done by hand.
Children’s Data (The Easiest to Get)#
Kids use websites and apps. Those apps and websites keep track of them like adults do. But kids can’t really agree to having their data collected. They are not able to understand the privacy policies and the consequences of their actions.
In the US, the Children’s Online Privacy Protection Act (COPPA) says that parents must give permission before data can be collected on kids under 13. But:
A lot of apps just say they’re “13+”
Kids lie about their age
“I Have Nothing to Hide” Mistake#
People often say, “I don’t mind if they track me.” I don’t have anything to hide.
Why this is wrong:
1. You don’t know what future governments will do with this information - What is legal today may not be legal tomorrow. Political beliefs, religious beliefs, sexual orientation—all tracked. Surveillance data lasts forever.
2. Data breaches put you at risk for fraud and identity theft - Your tracked data is stolen and used for scams, phishing, and harassment.
Very Important#
Privacy is no longer a choice
Laws have teeth (GDPR fines in the hundreds of millions)
Users are more aware and angry - Platforms are responding (Apple’s ATT, cookie deprecation)
“Move fast and break things” doesn’t work. You are dealing with sensitive personal information, and breaches and violations have real consequences. Compliance is now part of the job.
The future is design that puts privacy first.
First-party data is better than third-party tracking - Contextual targeting is better than behavioral surveillance - Transparency is a must, hidden tracking is not allowed.
“Track everything, never ask permission, and deal with the consequences later” can no longer be the way things are done.