You may have had the experience of visiting a website like TripAdvisor to compare hotel rates, only to be flooded by Internet ads from hotels in your favorite vacation city for weeks thereafter. This experience demonstrates the power of Internet advertising in that it can accurately target buyers of goods or services. However, the distress many of us feel is a loss of personal privacy from simply using our computers in daily life. One practical response has been the enactment of laws to protect everyone’s privacy. In the United States, privacy protections are found in laws like the California Consumer Privacy Act (the CCPA). In the European Union, even stricter rules are set out in the General Data Protection Regulation (the GDPR). An overriding goal of laws like the CCPA and the GDPR is to give the individual control over their personal data.

This increasingly strict regulatory environment has prevented advertisers from just purchasing large quantities of user data and simply flooding their markets with Internet solicitations. In response to the regulatory constraints, some of the Internet’s largest companies have created large aggregations of user data into “Walled Gardens” and data “Clean Rooms” where advertisers can test and target their messaging without violating the privacy of the data subjects. This article will explain how these large pools of data further the goals of the advertising industry without violating the increasingly strict national privacy regimes.

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