New Research Shows Overregulating Data Will Severely Harm Georgia Small Businesses

WASHINGTON (Sept. 27, 2024) — As the House Energy and Commerce Committee last week considered passing the American Privacy Rights Act (APRA), legislation that would restrict the collection and use of data used to power digital ads, a recent study by the Connected Commerce Council (3C), Advertiser Perceptions and Google found a direct correlation between the success of Georgia small and medium-sized businesses (SMBs) and the use of personalized digital advertising. Personalized digital ads use basic data such as consumers’ interests, demographics or online behavior to serve the right ads to the right audiences. 

The study found that 93 percent of Georgia SMBs attribute 2023 revenue growth to personalized digital ads, and 74 percent use the ads to find new customers and market to their community. 

“I use personalized digital ads to drive sales and find customers for my unique business, so data plays a key role in my business’s success,” said Elizabeth Raley, owner of Elope to Savannah in Savannah, Ga. “Overregulating basic data would make advertising online much more expensive and complex for small business owners and publishers, both in Georgia and nationwide.”

The study showed that personalized digital ads play a critical role in Georgia SMBs’ financial health and sustainability. It found that nearly two in five Georgia SMBs would be forced to lay off staff or close if they could no longer use personalized digital ads.  

“Georgia small businesses lean heavily on digital advertising,” said Lauren Fisher, general manager of business intelligence for Advertiser Perceptions. “Specifically, they rely on personalized digital ads to reach customers, grow their revenue and compete with bigger players in a cost-efficient way.” 

The study also showed that overregulating data would negatively impact consumers. In the absence of personalized ads, more than half of Georgia SMBs would have to raise prices to make up for reduced sales and cost efficiencies.

“Small businesses in Georgia leverage digital advertising to stand out against competitors and get ahead in today’s economy,” said Rob Retzlaff, 3C’s executive director. “If the digital advertising landscape changes, small business owners will face tough decisions, like laying off staff, raising prices or even shutting down.”

Methodology:

Advertiser Perceptions surveyed 1,200 U.S. small and medium-size businesses (SMBs) in March-April 2024 to understand the value of personalized advertising to their organization. SMBs included businesses with fewer than 500 employees. All respondents were involved in decision-making about digital ads and used personalized advertising. National-level results are weighted to be geographically representative using 2021 U.S. Census data as a baseline for business distribution in each state.

Sources for All Content and Claims:

Google/Advertiser Perceptions, Ads Impact Study, US, April 2024, 

n=100 Georgia small and medium businesses who use digital ads