New Research Shows Overregulating Data Will Severely Harm New York Small Businesses

WASHINGTON (Sept. 30, 2024) — As the House Energy and Commerce Committee recently 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 New York 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 75 percent of New York SMBs leverage personalized digital ads to compete with larger brands and foster business growth, and 80 percent use the ads to find new local customers. 

“I use personalized digital ads to find new customers and drive sales, so data plays a key role in my business’s success,” said Dawn Kelly, founder of The Nourish Spot in Jamaica, N.Y. “Overregulating basic data would make advertising online much more expensive and complex for small business owners and publishers, both in New York and nationwide.”

The study showed that personalized digital ads play a critical role in New York SMBs’ financial health and sustainability. Without them, more than three in four New York SMBs would need to adjust their sales strategies. 

“New York 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 personalized digital ads are more effective than traditional advertising methods, as 59 percent of New York SMBs say digital ads perform better than TV, radio, print and out-of-home ads.

“Small businesses in New York 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.