The Crucial Role Security Plays in the Advancement of Ad-tech

In the rapidly evolving AdTech landscape, data privacy and security are paramount. Discover how agencies are leveraging first-party data and robust security measures to protect user information, comply with regulations, and optimize advertising strategies
The Crucial Role Security Plays in the Advancement of Ad-tech

“One of the methods for remaining at top tier is being able to recognize a problem before it becomes an emergency” -Unknown

Overview

Ad-tech, or advertising technology, is a software tool to help you implement, manage, and track digital advertising campaigns. Ad-tech helps you save time and enable more effective advertisements that drive sales.

What makes Ad-tech so influential in today’s world?

Today, ad-tech methods supported by data allow agencies to make wiser placements that effectively position advertisements when and where they are needed most. This helps reduce wasted efforts and gets ads to users at critical touchpoints, providing value for both brands and consumers.

Instead of the standard placement buys, ad agencies can integrate their ads using high-level data and technology. It's a logical next step toward seamless integration and high-impact, value-added placements and it's redefining how agency planning and strategy teams look at the media. 

Circular diagram illustrating the AdTech landscape, featuring segments for advertisers, DSPs, SSPs, and other essential components.

The Importance of Security in Ad-tech

Security in Ad-tech is crucial when it comes to sensitive data & potential for misuse. The following dives deeper into key security considerations in Ad-tech.

  1. User Privacy
    Advertising platforms collect huge amounts of personal data to target audiences accordingly. Protection of this data is crucial to maintain user trust & comply with privacy regulations. For example: Laws such as the GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act) mandate strict data protection measures & non-compliance to these can result in heavy fines and legal repercussions.
  2. Maintaining Data Integrity from data breaches
    Advertisers rely on accurate data to make informed decisions. Ensuring the integrity of the data from collection to reporting is critical for effective campaign management.
  3. Ensuring system availability with protection from possible cyber attacks
    Securing the infrastructure against cyber threats ensures continuous operation, preventing interruptions that can affect ad delivery and in turn, revenue. For example: Distributed Denial of Service (DDoS) attacks can disrupt ad-tech services, leading to downtime, inaccuracy, and financial losses. Due to this, robust security measures are necessary to ensure maximum availability and reliability at all times. 

Examples of Recent Security Challenges in Ad-tech

An article from Medianama highlights in 2020, that Google faced a lawsuit from 10 U.S. states, accusing the company of monopolistic practices in its ad tech business. The lawsuit highlighted concerns over data privacy and the manipulation of ad auctions to favour its own services.

  • Twingate also dives deeper into how Facebook (Meta), has been embroiled in several lawsuits concerning data privacy. In 2021, the company agreed to pay $650 million to settle a lawsuit alleging it violated Illinois’ biometric privacy law by using facial recognition technology without user consent.

Techrader highlights the impact of data security breaches in Ad-tech

  • EquiLend: This securities lending infrastructure platform experienced a ransomware attack in January 2024, resulting in some services being taken offline. The investigation confirmed unauthorized access, but the full extent of data compromised has not been detailed publicly​.
  • Tangerine Telecom: On February 18, 2024, the Australian ISP was breached, exposing over 200,000 records containing full personal information such as names, dates of birth, phone numbers, and email addresses. The breach was traced back to the ,login credentials of a single contractor.

As ad-tech continues to evolve, so does the landscape of cybersecurity threats and it brings us to our next concern; How do we ensure avoiding these challenges and give our advertisers the best experience possible?

In the current digital landscape, data protection and the strategic use of first-party data have become increasingly important for businesses and consumers alike.

In June 2021, Google confirmed that it will no longer track individuals online via cookies - however there are already debates about how Google will collect and use data thereafter.

To avoid similar lawsuits to the one Google faced, this first-party data allows businesses to create ultra-personalized content, advertising, and experiences that cater to individual users. It gives you:

  1. Direct Control:
    First-party data is collected directly from users by the organization itself, giving the organization full ownership and control over the data. Organizations can implement their own security measures, such as encryption and access controls, to protect this data. 
  2. Data Accuracy & Integrity 
    First-party data tends to be more accurate and relevant because it comes directly from the company’s interactions with customers. This reduces the risk of errors that can occur when data is obtained from third parties.
  3. Enhanced Trust with Customers
    Demonstrating a commitment to data security can increase customer loyalty, as users feel more confident that their personal information is being protected. Customers are more likely to share their data when they believe it will be handled securely and responsibly.
  4. Limited Data Sharing
    First-party data does not need to be shared with third parties to reduce the number of potential vulnerabilities. Organizations can limit access to first-party data within their own systems, ensuring that only authorized personnel have access and that data is not exposed to unnecessary risks or external sources.

The Road Ahead 

Security is paramount in ad-tech due to the sensitive nature of data involved, and protecting this data from breaches and unauthorized access is crucial to maintain user trust, comply with privacy regulations, and safeguard against financial and reputational damages.

Utilizing first-party data allows companies to have greater control over data management, ensuring that the information is collected, stored, and used in compliance with privacy laws and best practices, thereby reducing the risk of data leaks and misuse.

With Carter’s sophisticated privacy-first AI powered platform, we aim to help your business recognize the power of the data you have, while reaching your customers and tackle the ever-evolving advertising landscape with AI driven innovative solutions while keeping your customer data secure.

To know more, Try Carter 

📩-  talk@trycarter.com

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Carter

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