The evolution of ad targeting from contextual methods to AI-driven personalization has transformed how marketers reach consumers, now tailoring ads based on detailed data analysis. While personalized advertising boosts engagement and performance, it also raises significant privacy issues as individuals may be unaware of how much data is collected and used. Legislative responses such as the E.U.'s GDPR and California's CCPA aim to regulate these practices, emphasizing the need for a balance between effective targeting and consumer privacy.
A golf shop once advertised putters in golf magazines, targeting golfers generally. Now, an ad platform might scan a specific article on a golf site about, say, 10.
Personalized ads typically produce better results and are preferred by consumers, who now see promos that interest them.
Regulators responded with legislation such as the E.U.'s General Data Protection Regulation and the California Consumer Privacy Act (CCPA).
Two recent lawsuits against The Trade Desk claim the company's universal identification technology (UID2) is an invasion of personal privacy.
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