US adtech companies will fall behind European counterparts over privacy

In an op-ed for AdExchanger, Lauren Wetzel, CEO at InfoSum, argues that the European approach to data-driven advertising, particularly through the EU General Data Protection Regulation (GDPR), offers a superior model for privacy. The American ad tech CEO based in the UK contrasts the European "privacy-by-default" approach with the inconsistent and often lax data practices prevalent in the US.

The article highlights Europe's more consistent regulatory environment compared to the fragmented US regulatory landscape, which creates confusion and inconsistency. This lack of uniformity has business implications, as brands and agencies, especially outside the US, increasingly prioritise privacy and are reluctant to partner with advertising companies that don't.

In addition, the article criticises the practice of "privacy washing" in the US ad tech industry, where companies claim to prioritise privacy while still engaging in invasive data practices. Wetzel also challenges the idea that privacy hinders advertising performance, pointing to successful European companies that have embraced strong data management practices. Furthermore, Wetzel stresses that as consumer awareness of data protection grows, they will increasingly reject companies that don't prioritise privacy. It's only natural that brands will favour solutions that offer both privacy and performance. As such, Wetzel urges US ad tech vendors to adopt a European mindset, highlighting that US-built solutions can succeed with privacy as a default.