The Benefits of Privacy-Enhancing Technologies (PETs) In AdTech (2024)

In this blog post, we’ll explore the benefits of PETs in AdTech and the challenges that come with implementing them.

This is our second article on the topic of privacy-enhancing technologies in AdTech. If you want to learn what PETs are, what examples of PETs exist in AdTech, why and how they are used, and what the future holds for them, then read our blog post: What Are Privacy-Enhancing Technologies (PET) In AdTech? And if you want to know why companies should be looking at implementing privacy-enhancing technologies (PETs) into their businesses, read Clearcode’s piece in Exchange Wire’s Industry Review 2023.

One of the main benefits of PETs in AdTech is securing personal information. PETs ensure that user data is collected, processed, and stored securely, reducing the risk of data breaches and unauthorized access. This not only protects the privacy of individuals but also helps companies avoid costly lawsuits and reputational damage.

Examples of PETs that protect personal information include:

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PETs can help companies build and maintain user trust by providing transparent data collection and processing practices. By being transparent about how data is collected and used, companies can show that they respect user privacy and are committed to protecting their data.

Things that help maintain user trust in the context of privacy-enhancing technologies include:

PETs can help companies comply with privacy regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). These regulations require companies to implement specific privacy protections and disclose how user data is collected and used.

PETs can help companies meet these requirements and avoid fines and legal penalties.

Companies can use differential privacy algorithms in their data analysis to extract valuable insights while preserving individual privacy. By aggregating and anonymizing sensitive data, these algorithms prevent the identification of individual users. This approach helps companies meet privacy law requirements like GDPR and CCPA, reducing the risk of fines and legal consequences while safeguarding user privacy.

Examples of laws that regulate the collection, storage and use of data:

Data validation is the process of ensuring that data is accurate and complete. For example, one privacy-enhancing technology that can be used for data validation is hom*omorphic encryption.

hom*omorphic encryption is a type of encryption that allows computations to be performed on encrypted data without decrypting it first. AdTech companies can use hom*omorphic encryption to validate their data without exposing it to third parties or risking a data breach.

Data enrichment is the process of enhancing existing data with additional information. PETs can help AdTech companies to perform data enrichment in several ways.

For example, they can use anonymization techniques to remove personally identifiable information (PII) from user data before enriching it with additional information. This ensures that the privacy of users is protected while their data is being enhanced.

PETs can be used to enable secure data sharing and collaboration between different AdTech companies while preserving user privacy.

This can be achieved by using techniques such as secure multi-party computation (MPC) or hom*omorphic encryption, which allow multiple parties to perform computations on encrypted data without revealing the underlying data.

PETs can help companies reduce costs by minimizing the risk of data breaches and reducing the costs associated with maintaining a large and complex tech stack.

By reducing the need for data storage and processing, advertisers, publishers, and AdTech companies can save money on infrastructure and maintenance costs.

The absence of standardized PETs can make it hard for companies to choose the best solutions for their requirements.

Nevertheless, the Interactive Advertising Bureau (IAB) has formed a dedicated group to develop standards for PETs in AdTech.

This group consists of advertisers, publishers, technology providers, and privacy advocates. They aim to create a set of standardized protocols for PETs that will be accepted by the industry.

The standardization of PETs will ensure that they are effective and consistent across the industry.

Despite the challenges, PETs also offer significant opportunities for publishers and advertisers, including improved cybersecurity and new innovations.

As we mentioned earlier, PETs can reduce the risk of data breaches and leaks, which can help companies avoid costly legal and reputational damage.

PETs are a way to enhance the privacy and security of users, which can be a selling point for companies. By demonstrating a commitment to user privacy, companies can build trust and loyalty among their customers.

Privacy-enhancing technologies offer many benefits to the AdTech industry, including improved data protection, regulatory compliance, and user trust.

However, the adoption of PETs also comes with challenges, including complexity, compatibility with existing systems, and cost considerations. AdTech companies must be aware of these challenges and develop strategies to overcome them effectively.

Overall, the development and adoption of PETs is critical to ensure the protection of user privacy in a constantly evolving digital landscape.

By investing in PETs and working together to establish standards and best practices, AdTech companies can prioritize user privacy while continuing to provide effective programmatic advertising processes.

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Our AdTech development teams can work with you to design, build, and maintain a custom-built AdTech platform for any programmatic advertising channel.