By Kanika Mathur
As we continue to witness an explosion of internet users and mobile-first adoption, AdTech is becoming increasingly vital in moulding advertising strategies and facilitating business expansion. This surge has not just positioned digital advertising as the leading medium within the Indian Adex landscape but positioned AdTech as the cornerstone of every digital strategy.
AdTech encompasses a range of tools and platforms designed to optimise the delivery and performance of digital advertising. From programmatic advertising and real-time bidding to data analytics and artificial intelligence, AdTech has revolutionised the way businesses connect with their target audience. The ability to use data-driven insights and deliver personalised content at scale has significantly contributed to the success of advertising campaigns.
Here are examples of some common AdTech tools used by the digital industry (not a comprehensive list):
Programmatic advertising: It refers to the automation of the buying and selling of digital ads. This automated, data-driven process allows advertisers to reach the right audience in real time, improving efficiency and targeting precision.
Data management platforms (DMPs): DMPs help advertisers collect, manage, and analyse large volumes of audience data. These platforms enable advertisers to create comprehensive user profiles, enhancing the effectiveness of targeted advertising.
Measurement and analytics tools: Advertisers can track key performance indicators (KPIs) through tools that analyse campaign effectiveness, and make data-driven decisions to optimise their advertising strategies.
Despite this promising growth trajectory, the Indian AdTech industry faces its own set of challenges. Ad fraud, viewability issues, and consumer data privacy concerns stand as significant hurdles that advertisers and AdTech entities need to address to uphold credibility and consumer trust.
In early August 2023, the Indian Parliament passed the Digital Personal Data Protection (DPDP) Act, 2023. This new law introduces a comprehensive data protection framework, including provisions for consent management.
Managing data privacy and consent management
Being transparent with users about how their personal data is being used is crucial to earn their trust. Therefore, advertisers must communicate how user data is collected, used, and shared on their websites.
Transparent practices build credibility and reassure users that privacy is a top priority. Today, we see several companies that have started offering granular consent options, allowing users to choose the specific types of data they are comfortable sharing. This approach provides users with more control over their personal information.
The collection of data also means that businesses must implement robust security measures to safeguard user information. This includes encryption, access controls, and regular security audits to safeguard user information from unauthorised access or breaches.
Getting proper user consent is extremely important before a company collects and processes their personal data, it is one of the fundamental aspects of data privacy. AdTech platforms must prioritise obtaining informed and explicit consent from users clearly explaining the purpose of data collection and how it will be used.
The next step is user control. This emphasises that giving users control over their data is essential. AdTech platforms should provide users with options to manage their preferences, including the ability to opt out of targeted advertising or adjust privacy settings. Empowering users with control fosters a sense of autonomy and respect for their choices.
An ideal situation is when an individual, from whom the data is being collected, is completely aware and understands what is being collected and how it is being used. AdTech companies should start to consider using granular consent. This will allow users to choose specific data collection purposes rather than providing blanket approval. This approach ensures that users have a more nuanced understanding of how their data will be utilised, fostering trust and compliance.
As consent and privacy become crucial, consent managers will soon play a pivotal role in the data privacy ecosystem by enabling individuals, companies and brands to provide, manage, and withdraw their consent for the processing of personal data. They act as intermediaries between data controllers (organisations that collect and process personal data) and data subjects (individuals whose personal data is being processed). A consent manager will soon manage a consent management platform (CMP) that allows data subjects to easily access and manage their consent preferences. Under the DPDPA, consent managers will have several critical responsibilities:
● Registration and compliance: Consent managers must register with the Data Protection Authority of India (DPA) and adhere to the data protection principles outlined in the DPDPA.
● Consent collection and management: Consent managers must enable data subjects to provide granular and informed consent for the processing of their personal data. This includes providing clear and easily understandable information about the purpose of data collection, the types of data being collected, and the parties involved in the data processing.
● Transparency and accountability: Consent managers must maintain transparency regarding their data processing practices and provide data subjects with access to their consent records. They must also implement robust security measures to protect personal data from unauthorised access or misuse.
● Grievance redressal: Consent managers must establish effective grievance redressal mechanisms to address any concerns raised by data subjects regarding their consent or data processing practices.
As businesses continue to harness the power of AdTech, a harmonious balance between growth and privacy will be key to long-term success in the evolving digital landscape.
The author is senior partner at BOD Consulting and go-to-market strategy expert