The business and marketing landscapes are rapidly transforming, as data privacy concerns rise alongside expectations for personalization. A recent report from the fifth edition of the Braze Customer Engagement Review (CER), which surveyed 2,300 senior marketing executives across 18 countries, highlights significant unease among marketers, particularly within the Middle East.
According to the report, 48% of Middle Eastern marketers express apprehension about personal data use and consumer consent, indicating the tightening grip of privacy regulations on personal interactions. This reflects broader trends across the globe as enterprises balance the dual demands of data personalization and the imperative for transparent customer consent.
“The key to navigate this challenge is hitting the right balance between personalization and transparency. Customers desire relevant experiences but also crave control over their data,” explained Sharif Kotb, GCC Area VP at Braze. This cautious approach from marketers is primarily influenced by factors such as customer consent worries (48%), team internal concerns (37.8%), and compliance issues (33%).
Despite the hesitations, innovations are taking shape as 45% of marketing teams reported using AI-informed data collection tools to identify user behavior patterns aiding personalization. These advancements are driven by marketers' priority to boost customer retention, with nearly 95% allocating between 26% and 75% of their budgets toward this goal.
Yet, as the focus sharpens on retention, many marketers find themselves grappling with another challenge: crafting emotionally engaging messages. An overwhelming 97% report difficulties, which has led to the implementation of varied strategies. Some of the top approaches being utilized include humor and pop culture references (41%) and AI-driven adjustments to tailor tone for each customer (41%). Such tactics not only aim to nurture customer relationships but also risk straying from privacy regulations.
Further complicity arises as the digital advertising sector faces the pressure of newfound state privacy laws. Currently, there are 19 comprehensive state privacy laws either enacted or on the horizon. The IAB Legal Affairs Council conducted a survey highlighting stakeholder concerns past compliance challenges and industry standards, emphasizing the preference for unified compliance strategies.
Interestingly, the survey revealed persistent ambiguity around defining sensitive personal information, especially concerning health data and minors. Nearly all stakeholders recognize current practices are inadequate, as data 'clean rooms'—which aim to anonymize user data—cannot completely de-identify information, leading to persistent accountability concerns across the sector.
On January 13, 2025, Prime Minister Keir Starmer unfolded the UK government’s approach toward data protection aligned with the rise of artificial intelligence. Signals from the government demonstrate sympathy for innovative technology. The ICO’s guidance on consent or pay-for-data models aims to balance power disparities between companies and users, emphasizing how these frameworks are tied to marketing strategies.
Regulators have ramped up efforts against digital privacy violations throughout 2024, with the FTC intensifying scrutiny on data practices. Challenges remain as the distinction over what constitutes lawful data sharing continues to perplex stakeholders. High-profile settlements have been made with enterprises failing to protect consumer data adequately, reinforcing the importance of proactive compliance.
While advanced technologies evolve, Amazon’s low-cost unit, Amazon Haul, remains out of reach as evidenced by findings showing 76% of shoppers have yet to engage with it. Privacy remains central to consumer decision-making; as highlighted by another survey, 61.7% refrained from using restaurant apps due to privacy anxiety. It proves consumers are becoming increasingly discerning with their data.
Going forward, analysts predict heightened legal scrutiny on both regulatory frameworks and privacy policies, as companies navigate the shifting regulatory environment to avoid liabilities. Expect 2025 to be another defining year for these dynamics with increasing consumer demands for transparency and rigorous enforcement from regulators.
Overall, as the world shifts control to the consumer when it relates to data, organizations must innovate and empathize. Those who adapt successfully to the quest of maintaining privacy will emerge as reliable partners with their customers, fostering not only trust but financial success, as engagement relies on transparency.
