By Rishi Agrawal

The world of advertisement has evolved over the past decade, driven by the vast digital footprints consumers leave behind. Adtech plays a central role here, using an agglomeration of advanced tools such as demand-side, supply-side and data management platforms to create targeted digital advertising campaigns. By analyzing browsing history and online behavior, advertisers can now predict what consumers are looking for by targeting, profiling and ranking them. Technology has made it possible to identify these factors more precisely than ever before, making advertising campaigns effective based on what to show, who to show it to and when to show it. However, determining consumer needs and behaviors is not a simple task. This requires sophisticated tools and careful analysis to ensure ads resonate without crossing privacy boundaries. While these advances have made advertising budgets efficient, there is also a risk that companies can go too far. Some may misuse the data, raising ethical concerns about consumer privacy. It is in this delicate balance between innovation and responsibility that the future of advertising lies. As digital interactions grow, so does the need to establish clear guidelines that protect consumers while allowing businesses to innovate and effectively reach their audiences.

In Indiaadtech is protected under the provisions of the IT Act, 2000, Advertising Standards Council of India (ASCI) Guidelines, Consumer Protection Act, 2019 and Advertising Regulatory Authority Guidelines. India’s telecommunications juxtaposed with ever-changing regulations around data protection. However, with an emphasis on consent-based practices due to the DPDP law, advertisers are rethinking their approaches as current data hoarding practices will soon become redundant. Focused on privacy marketing is becoming increasingly important as consumers become more aware of how their data is used.

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To illustrate how big tech companies and data fiduciaries extract data, consider how they use cookies and device identifiers. A user can allow a website to track their activity via cookies, knowing that they consent to this. Yet big data-driven technologies can go beyond permissions, collecting behavioral data across devices to generate detailed consumer profiles. In a seemingly innocent conversation with a smart speaker or voice assistant, or generally around our microphone-equipped devices, we might mention a product. Later, we encounter highly relevant advertisements for the same item on social media. This phenomenon, fueled by massive data processing infrastructure, reflects how companies are blurring the line between seeking explicit consent and using implicit data collection mechanisms.

Globally, regulations such as the European Union’s General Data Protection Regulation (GDPR) have already demonstrated the risks and penalties associated with non-compliance. In the Indian context, adtech platforms have relied heavily on this “implied” consent, raising serious questions about consumer rights and privacy. As the DPDP Act takes effect, these practices will come under greater scrutiny. Businesses will be forced to rethink how they collect, store and process data, moving away from the “data hoarding” practices of the past. The consequences of non-compliance are serious, ranging from financial penalties to reputational damage. For example, major tech giants and e-commerce platforms, which rely heavily on personalized advertising, will face the challenge of adapting to this new regulatory landscape. In Europe, one of the biggest social media giants has already been fined for GDPR violations due to mishandling of user data. In India, one might expect similar enforcement, especially if companies fail to comply with new standards that emphasize transparency and consent.

While the focus on data privacy is a positive development, it also presents significant challenges for companies operating in the ad tech space, where it’s about building consumer trust in a privacy-conscious environment. confidentiality. walk becomes absolutely essential. With stricter privacy laws, where ad tech companies face restrictions on personalized ads, retargeting and behavioral tracking, which are key drivers of revenue, companies must be innovative in their approaches by exploring non-intrusive or contextual advertising. Emerging technologies could help achieve this. For example, AI-based algorithms could process data in a way that preserves consumers’ anonymity while still serving relevant ads. By leveraging privacy-focused frameworks, businesses can not only ensure compliance but also foster deeper relationships with their customers. For example, big tech companies are experimenting with privacy-focused technology designed to replace third-party cookies, traditionally used to track users’ browsing behavior for personalized advertising. These work on the principle of assigning users to broader categories or topics based on their recent browsing activity, which could include categories such as fitness, journey or technology rather than tracking users across multiple websites. Such technologies pave the way for balancing targeted advertising with privacy concerns.

Balancing the burden of compliance with the demands of adtech innovation is no easy feat. Adtech companies are under constant pressure to adapt to privacy-focused regulations while continuing to deliver cutting-edge solutions that drive business growth. As companies innovate, regulators are working to create a framework in which data privacy is protected without stifling technological progress. Through a collaborative effort between businesses and regulators, India can pave the way for a regulatory environment that encourages privacy-focused ad tech innovation while enabling businesses to deliver value to consumers.

The author is CEO and co-founder of Teamlease Regtech. (The opinions expressed are those of the author and are not necessarily those of Financialexpress.com)