According to experts, the Banning Surveillance Advertising Act, which was introduced this week, may have a significant influence on the ad industry as well as damage small companies.
The proposed legislation aims to prevent advertisers and developers from using consumers’ personal data to deliver tailored advertisements, with specific exemptions for broad-based geographic targeting.
The bill also expressly bans advertisers from using demographic data such as race, gender, or religious beliefs to target ads. However, it allows for contextual advertising, which is the practice of displaying advertising based on the content of a website or setting.
Impact on small businesses
According to those opposed, the bill’s consequences will be significant — not just in the advertising sector, but also across 17 million US internet-related occupations. It will also make it more difficult for small firms to reach important clients, according to opponents.
The Drum got the reaction from industry leaders including Michael Neveu, who is Namer at Media.Monks’ director of data:
“Limiting targeting to contextual and broad geography removes audience engagement tactics used by many local businesses, and will create upward cost pressure, and benefits businesses with direct relationships to publishers, all further favoring large businesses.”
Less Targeted and More Expensive?
It’s worth noting, however, that while ATT prevents the “co-mingling of first- and third-party data,” it does not impose any additional restrictions or outright bans on ad targeting. The Banning Surveillance Advertising Act would “dismantle the advertising industry” by restricting targeting and personalization entirely, leaving only contextual advertisements permissible.
The bill would empower the FTC and state attorneys general to enforce violations, with fines of up to $5,000 per incident for knowing violations.