Balancing Privacy & Personalization for Consumers

February 28, 2025

Consumers want privacy. But they also want a seamless, personalized experience online. The latest IAB Consumer Privacy Report confirms this: people value a free and open internet, understand the role of advertising in keeping it free, and prefer relevant, personalized ads. At the same time, they want more transparency, control, and security over their data.

For advertisers and brands, this presents both a challenge and an opportunity. The key to success lies in first-party data and alternative identifiers, which allow advertisers to deliver personalization in a way that builds trust and respects privacy.

Consumers Understand the Value of Ads—but Want More Control

The IAB study found that 80% of U.S. consumers prefer free internet access supported by ads, and over 70% are willing to share data in exchange for a better online experience. However, consumers are concerned about how their data is collected, stored, and shared. They worry about fraud, identity theft, and data breaches much more than they worry about personalized advertising. In fact, only 2% of respondents listed targeted ads as a top concern, while 80% worry about criminal activity and data misuse.

This means that privacy-first advertising isn’t about eliminating data-driven targeting—it’s about shifting toward responsible data practices that respect consumer preferences while still enabling relevant advertising. Consumers understand that data helps deliver better experiences. They just want to feel confident that their information is being used responsibly.

First-Party Data: The Foundation of Trust and Relevance

With third-party cookies disappearing, advertisers must shift toward first-party data strategies—data collected directly from consumers who have given their consent. This ensures both compliance with privacy laws and accurate personalization.

Why First-Party Data Matters:

  • More Control, More Trust – Consumers feel safer sharing data with brands they trust.
  • Better Personalization – First-party data is based on real customer interactions, making targeting more accurate and meaningful.
  • Compliance-Ready – As privacy laws evolve, relying on your data reduces the risk of non-compliance and builds consumer confidence.

Alternative IDs: The Future of Addressability

First-party data is critical and alternative identifiers are essential to ensure advertising continues to perform in a privacy-driven ecosystem. The IAB report highlights that consumers prefer personalized ads, and brands that tailor their ads to individual preferences see stronger engagement and trust.

By using alternative ID solutions, advertisers can:

  • Reach their audience across cookieless environments while maintaining privacy.
  • Deliver relevant ads without invasive tracking.
  • Ensure ad performance remains strong.

The Bottom Line for Advertisers

Consumers don’t want to choose between privacy and convenience—they want both. The IAB study reinforces that they support data-driven advertising when it is done transparently and responsibly.

To succeed, advertisers should:

  1. Invest in first-party data to build direct relationships with consumers.
  2. Adopt alternative ID solutions to maintain audience targeting in a cookieless world.
  3. Prioritize transparency and security to build consumer trust.

Privacy-first advertising isn’t about using less data—it’s about using better data, in a better way. The brands that get this right will deliver what consumers want: personalized, seamless, and secure digital experiences.

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