New Research Shows Overregulating Data Will Severely Harm Ohio 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 Ohio 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 98 percent of Ohio SMBs say personalized digital ads contributed to their 2023 sales, and 80 percent use the ads to find new local customers. 

“I use personalized digital advertising to find new customers and drive sales, so data plays a key role in the success of my family business,” said Frankie DiCarlantonio, CEO of Scaffidi Restaurant Group in Steubenville, Ohio. “Overregulating basic data would make advertising online much more expensive and complex for small business owners and publishers, both in Ohio and nationwide.”

The study showed that personalized digital ads play a critical role in Ohio SMBs’ financial health and sustainability. It found that without personalized digital ads, 33 percent of Ohio SMBs would need to lay off staff or close down.

“Ohio 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 hurt Ohio SMBs’ bottom line, as more than one in four say revenue and sales would drop without the use of personalized digital ads.

“Small businesses in Ohio 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 Ohio small and medium businesses who use digital ads