It is the era of meticulous information gathering, but also enhanced privacy. People are more aware of the dangers of providing too much information to anyone, whether on the internet or physically.
Digital mediums have made our private lives and data more susceptible to attack. Therefore, companies marketing their products and compiling information about their customers also need to be more mindful of protecting the privacy and personal data of their clientele.
This is where Privacy-enhancing technologies or PETs come in. Gartner Inc., a premier global technological research and consulting firm, details that PETs are a principal technology for the future and sees as much as 60% of large companies using privacy-enhancing computation techniques by 2025 to improve the safeguarding of privacy in unreliable environments.
New technologies
Artificial Intelligence (AI) has now seeped into almost every aspect of business, and privacy-enhancing technologies are no different. AI has now been merged with machine learning or ML to form Privacy-Preserving Machine Learning to enable businesses to obtain the information and data they need without compromising the data of customers, IPs (Intellectual Property) and other legal frameworks.
With customers increasingly worrying about the safety of their data, technology platforms have initiated policy changes like third-party cookie rejection. Privacy regulations have also been drawn up and are being updated to protect customers in the marketing process.
Privacy-enhancing Technologies consist of techniques and technologies, such as software, cryptographic tools, and hardware features when processing information.
Why?
PETs are instrumental in protecting data which also has a bearing on return on spending. When customers know that their information is safe, they are more forthcoming with sharing such data that will ultimately establish market segmentation and content accuracy.
PETs are now being utilised by digital advertisers who are focusing on audiences based on their behaviours, habits and preferences so that they can target the right advertisements to the right people.
How to get started
One must be educated to understand.
All stakeholders of an organisation, both internal and external must be aware of the organisation’s strategies to protect data and information. When everyone connected with the organisation understands what is being done, there is more room for brand positioning and improving market usefulness.
Using Privacy-enhancing technologies also enables businesses to understand how much data they currently hold, which has not been used to its full potential. Such systems cover all the gaps that hinder a better marketing strategy. In addition, sharing this data across departments should be overseen by the IT and legal departments, with a proper sharing strategy in place.
This points to the fact that companies need to have the correct data governance frameworks in place before they begin rolling out PETs. Furthermore, staying abreast of the latest shifts in data and privacy protection in the market is vital for continued success in this endeavour.
How do privacy-enhancing technologies work?
Sensitive data is encrypted into a code that only the permitted users can interpret. The data is cocooned in a certain randomness that provides anonymity to personal information, which in turn, protects customers from being approached by individuals and organisations.
Further adding to this, there is what is called the ‘homomorphic encryption process’ where sensitive data is entered into a digital box that is locked and can be used by others without unlocking or compromising the privacy of the data.
Augmenting this is synthetic data, which is essentially a digital double of the existing data that can be handled without anyone knowing the person behind the actual data.
Learning from the best
All the main market players, like Apple, Google and Meta use PETs in their privacy technology solutions.
Some market players have also adopted Data Cleaning Rooms or DCRs, which are safe, controlled digital environments where various stakeholders can share data while maintaining the privacy of their sources.
The European Union’s General Data Protection Regulation (GDPR) and the California Privacy Rights Act (CPRA) establish the importance of safeguarding customers has resulted in the use of DCRs on a larger scale. Gartner approximates that 80% of marketers with media budgets that surpass $1 billion will be using DCRs this year.
The need for PETs now!
Not only are consumers protected from the malicious use of their data through PETs, but when financial transactions are carried out online, PETs also ensure that they are secure. In a day and age when we carry out many transactions online and a great part of our lives are digitised, one cannot underestimate the risk that is posed by having so much of our personal information online.
Moreover, healthcare services also compile digital files of patients’ data, and we believe that when we share this information with healthcare providers, our personal information is safe. PETs guarantee this.
There are also studies being done on how PETs can facilitate greener machine learning in addition to resolving various other problems related to information protection in the marketplace.
So, if your organisation hasn’t already considered employing PET technologies, now is the time to study their feasibility and get on board. When customers are guaranteed safety with your organisation, business operations will become that much easier.
(Anouk De Silva)