In 2020, Google began the practice of “data minimization,” or automatically deleting user data including location history and web activity after 18 months, in a bid to improve user privacy.

Such privacy-preserving policies by Google and other tech giants, especially those that reduce the retention period of consumer behavioral data, result in unintended consequences for advertisers, according to a new study from the University of Notre Dame.

The policies may limit ad variety, impacting both ad performance and revenue, according to lead author Shijie Lu, the Howard J. and Geraldine F. Korth, Associate Professor of Marketing at Notre Dame’s Mendoza College of Business. Lu’s research, “Within-Category Satiation and Cross-Category Spillover in Multi-Product Advertising,” is published in the Journal of Marketing.

Along with Sha Yang from the University of Southern California and Yao (Alex) Yao from San Diego State University, Lu examined how policies designed to enhance consumer privacy affect advertising effectiveness, consumer behavior, advertiser profits and platform revenues.

The team focused on multi-product ads (MPAs), where multiple product advertisements are displayed within a single ad space.

“We found that while these privacy measures protect consumer data, they can inadvertently decrease consumer engagement and satisfaction with ads, ultimately resulting in fewer clicks and reduced ad performance,” said Lu, who specializes in online advertising and user-generated content.

“This decline is largely driven by the reduction in ad variety leading to less diverse and less relevant ads displayed in MPAs due to the shorter periods of consumer data used for targeting.”

According to the study, when a platform’s privacy policy uses fewer days’ worth of behavioral history data to match users with advertisers, the result is that fewer categories such as men’s clothes, hiking equipment, basketball t-shirts and men’s shoes will appear, reducing the diversity of the ads.

Therefore, if a consumer has clicked all four of those product categories over the past 14 days, but only one of them in the past day, a policy that uses data from the past 14 days will have a greater variety of ads for them than a policy using only data from the past 24 hours. In that case, only one ad category would qualify, significantly reducing the variety of ads.

The team found the decrease in ad variety intensifies “within-category satiation,” causing consumers to lose interest in ads for similar products within the same category after repeated exposure. At the same time, it diminishes “cross-category complementarity” where exposure to ads from different product categories enhances consumer interest in both.

“These insights are critical for platforms as they strive to balance consumer privacy concerns with the need to sustain effective advertising strategies,” Lu said.

The study explored two additional policy scenarios related to ad variety.

First, it analyzed the economic impact of adjusting ad-serving policies by incorporating predicted clicks and bids (the amount of money an advertiser is willing to pay for an ad).

Predicted clicks, which reflect consumer behavior influenced by ad variety, proved more advantageous than relying solely on bids in assigning ad slots. By incorporating both factors, platforms can improve ad effectiveness and increase revenue without compromising advertiser profits or consumer engagement.

Next, the researchers investigated how modifying the reservation price (minimum bid) in ad auctions influences ad variety and consumer behavior. They found that higher reservation prices reduce the number of product categories in MPAs, leading to a decrease in ad variety.

“While this approach may boost platform revenue in the short term, it has a negative impact on consumer satisfaction and advertiser profits,” Lu said. “As a result, platforms must carefully calibrate reservation prices to balance their revenue objectives with the potential effects on consumer experience and advertiser returns.”

For practitioners and stakeholders in the advertising industry, the research underscores the importance of understanding the trade-offs between privacy policies and ad effectiveness. Platforms should consider the implications of their privacy-preserving measures on ad variety and consumer engagement. While protecting consumer data is essential, it is equally important to ensure the measures don’t undermine the effectiveness of advertising strategies.

“We encourage ad platforms to use our insights to refine their ad-serving policies,” Lu said.

“By finding a balance between data privacy and ad effectiveness, they can better meet consumer needs and maintain robust revenue streams. Advertisers should also be aware of how changes in data usage and ad variety can affect their bidding strategies and overall campaign performance.”

The team hopes their findings will inspire more nuanced approaches to ad-targeting policies and foster a more effective and consumer-friendly advertising environment.

With overtourism in the spotlight as the travel industry continues to rebound after the pandemic, popular destinations around the world are feeling the strain.

Bali is overwhelmed by waste and traffic, Australia’s sacred sites have suffered environmental damage, New York is facing rising rents due to short-term rentals, and Singapore’s scenic spots are becoming clogged with crowds.

Frustrated locals are pushing back—from spraying water at tourists in Barcelona to organizing protests in Venice. As the northern hemisphere high season ends, Aotearoa New Zealand is preparing for an influx of visitors ahead of its summer tourism season.

And much like those other tourist hotspots, the government is looking at how to manage the negative effects of tourism on local communities and the environment. This includes tripling the international tourist tax from NZ$35 to $100.

The aim of the increase is to attract tourists who are more mindful of their impact and willing to contribute to its mitigation, while also reducing visitor numbers to protect the country’s unique landscapes and cultures.

But are there other ways the tourism industry can evolve to ensure benefits for both travelers and the communities they are visiting? So-called “slow travel” could be the answer.

Hunting the perfect photo

Overtourism isn’t just about too many people in one place. It’s also about how people travel.

Instagram-famous landmarks draw massive crowds, disrupting local life and sometimes even leading to closures.

Travelers often pack their itineraries with as many sights as possible, racing from one place to another in a frenzy to capture the perfect photo. This hurried approach not only creates congestion but also limits meaningful engagement with the destination.

And it’s not just a numbers game. The way tourists behave also plays a critical role.

A 2019 report from the United Nations raised concerns about trash from tourists in developing small island states, including the Pacific Islands. According to the report, a tourist visiting these communities produced about 7kg of waste a day, compared to about 2.5kg produced by a local.

The issue is not necessarily about traveling less, but about traveling more responsibly. The tourism industry needs to be encouraging travel habits that allow both visitors and locals to enjoy tourism without compromising the integrity of the destination.

The rise of slow travel

Mindfulness—being fully present in the moment—has gained popularity since the 1970s. The concept has influenced a number of sectors, including slow food, slow fashion, and now slow travel.

It’s about experiencing destinations at a relaxed pace, focusing on deeper connections with local cultures and sustainability. This often means staying longer in fewer places and choosing eco-friendly transport.

Understanding slow travel and mindfulness is important because they create richer, more memorable experiences. Fast, hectic travel often leaves little positive impact. Slow immersive travel, on the other hand, fosters lasting memories and reduces overtourism, pollution and cultural damage.

Research shows when we consciously immerse ourselves in our surroundings we can have more meaningful experiences. Surprisingly, even luxury travel—often dismissed as wasteful—can encourage respect and mindfulness for those who invest financially and mentally in their journey, unlike cheaper, mainstream tourism.

Activities such as “forest bathing,” hiking or engaging with local cultures boost well-being and meaning, going beyond just “taking a photo for likes.”

This mindful approach can change our behavior on a personal level. By focusing attention on fewer experiences, travelers can heighten their sense of awe and appreciation, making the travel more memorable.

This idea is evident in “peak experiences.” Disney, for example, creates emotionally-charged moments that stick in visitors’ minds. Other experiences, such as “digital detoxes” or pilgrimages can leave a contemplative impression.

By concentrating on a single aspect of a visit, it becomes special and memorable. Even in busy places like Disneyland, focusing on one unique element can make the experience feel slower and more meaningful.

The sustainability of tourism

In the Faroe Islands, slow travel helps protect local traditions and landscapes by encouraging thoughtful visitor behavior, such as using local guides to minimize environmental impact.

New Zealand can leverage its natural beauty to offer similar immersive experiences. Tramping (hiking), for example, can promote a mindful connection with the environment.

But even here, there needs to be a focus on balancing tourism with preservation. Popular spots, such as the Department of Conservation huts and the Te Araroa Trail, are already becoming crowded. It is essential to educate visitors on responsible practices—such as cleaning equipment—to ensure they understand their role in protecting nature.

Travel that fosters a deeper appreciation for local cultures and environments benefits both visitors and the destinations they explore. The challenge is finding the right balance—encouraging meaningful travel experiences while still ensuring accessibility for all.

This article is republished from The Conversation under a Creative Commons license. Read the original article.