The implications of the data privacy and regulation revolution are expansive. They impact individuals, technology companies, societies, and governments alike. Despite the many changes that have taken place over the last decade-plus, there is still understandable confusion surrounding efforts by tech giants to give consumers proper notice and choice when it comes to data sharing. It’s hard to completely fault companies like Meta and Google given their business model’s reliance on tracking online activity, and the immense value they ultimately deliver to consumers, often at little or no cost.
From a technical perspective, cookies were never an elegant solution, but they did allow for the meteoric growth of digital ad targeting, measurement, and to some, a better consumer experience through relevant advertising. Next generation ID solutions are a potential bridge towards a more sustainable online ad industry, and data clean rooms seem poised to allow for more resilient data collaboration. What seems to be mostly missing from the public debate is the need for ethical realignment with consumers' best interests that is both aspirational and reasonable for companies to comply with.
In its latest data privacy reversal, Google announced it would no longer deprecate cookies in Chrome, opting instead to give the control to its users. “We are proposing an updated approach that elevates user choice,” the company prefaced when making its official announcement. “Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing.” Many read this decision as Google offloading the responsibility to consumers instead of making the decision themselves. The reality is Google’s decision to keep cookies for the moment is in its best interest, and putting it in the hands of consumers serves as a win-win. The Privacy Sandbox is not ready for primetime, and is facing increased scrutiny from regulators. Regardless of cookies being officially deprecated, the industry overwhelmingly agrees its time to move on.
What would the internet look like if it was rebuilt with consumer privacy at the forefront? Thought experiments such as this can help uncover the initiatives and changes that can really give digital consumers the control they need to manage their data effectively. If an internet browser had consumers’ data privacy top of mind, it would likely allow individuals to completely control what data they share with whom, and perhaps even receive some of the tangible benefits created from that data. If a consumer shares valuable information and if it’s monetized, they get rewarded. However, there have been many attempts by altruistic companies hoping to reinvent the data sharing economy, and ultimately there have been many more failures than successes. Consumers don’t see real value in 50 cents here and there to actively share their data on an ongoing basis. This is why companies like Attain have prioritized offering real value exchanges along with passive data sharing, which is more akin to how data is collected and amassed in Big Tech’s model.
Additionally, study after study continues to show that younger consumers are rather comfortable with data sharing — specifically, cookies. This could be due to many factors, from the simple fact that younger people are digital natives, to pure apathy or a jaded mindset. However, the industry shouldn’t pass up the opportunity to hone consumer trust by offering transparency and a clear value exchange.
The methods of online data collection and usage have landed the industry in a precarious position where the very existence and persistence of this data is tenuous at best. Novel ID and data collaboration options may very well help bridge the gap from archaic practices to a more desirable state, but without a clear set of ethics and standards we risk running into the same issues over and over again. The industry would be well served to commit to data stewardship and a clear code of ethics, instead of data brokership. If we don’t, the future of the internet economy continues to be uncertain.
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