The world of digital marketing is in constant flux, and as we look ahead to 2025, the landscape promises to be shaped by significant changes in privacy regulations. Considering that 9 out of 10 Americans consider online privacy a critical issue, we can expect plenty of changes in the coming months.
U.S. firms that rely on digital marketing to reach their audiences must navigate a complex web of laws, data management practices, and evolving consumer expectations. As privacy concerns grow, regulations tighten, forcing companies to rethink their marketing strategies and adopt new data collection and usage approaches.
In this blog, we’ll explore the critical privacy regulations U.S. firms need to consider in 2025, how these changes will affect digital marketing strategies, and what businesses can do to stay compliant while continuing to deliver effective marketing campaigns.
Although the U.S. lacks a comprehensive federal privacy law, individual states have been at the forefront of enacting data privacy legislation. Some of the most significant changes for 2025 include the further expansion of existing laws and the potential introduction of a national privacy framework.
California has led the charge in data privacy with the California Consumer Privacy Act (CCPA), which became enforceable in 2020. The law gives consumers the right to know what data is being collected about them, request deletion of their data, and opt out of data sales. In 2023, the California Privacy Rights Act (CPRA) enhanced the CCPA by introducing stricter regulations and new consumer rights, such as the right to correct inaccurate data and limit the use of sensitive personal information.
Looking to 2025, we expect California to continue refining its privacy laws to close loopholes and further protect consumer rights. U.S. firms that conduct business in California or collect data from California residents must stay up-to-date with these changes to avoid non-compliance penalties.
Other states have followed California’s lead, introducing data privacy laws. Virginia’s Consumer Data Protection Act (CDPA) and Colorado’s Privacy Act (CPA) offer similar protections, including consumer rights to access, correct, delete, and opt out of the sale of their data.
In 2025, we anticipate that more states will enact privacy laws, leading to a nationwide patchwork of regulations. U.S. firms must monitor these developments closely and prepare to comply with different state-specific privacy requirements, which can add complexity to their marketing strategies.
Although the General Data Protection Regulation (GDPR) is a European Union (EU) law, it has had a significant global impact, influencing data privacy practices far beyond Europe’s borders. Since its enforcement in 2018, GDPR has set the gold standard for data protection laws worldwide, and U.S. firms that handle data from EU citizens must ensure compliance.
One of the most significant aspects of GDPR is its extraterritorial scope. This means that U.S. firms collecting, storing, or processing personal data from EU residents must comply with GDPR, even if they do not have a physical presence in Europe. GDPR also emphasizes the principles of consent, transparency, and data subject rights, all aligning closely with emerging U.S. privacy regulations. The law requires companies to obtain informed consent from EU residents before collecting or using their data.
There has been ongoing discussion about enacting a similar federal privacy law in the U.S., creating a unified framework for data privacy nationwide. Although no comprehensive federal law has been enacted yet, growing bipartisan support could lead to new legislation by 2025. If a federal privacy law is passed, it will profoundly impact digital marketing, as businesses would need to adapt their strategies to a single, overarching regulatory standard.
One of the most significant shifts in digital marketing leading into 2025 is the decline of third-party cookies. Browsers such as Google Chrome, which commands a substantial market share, have announced plans to phase out third-party cookies by the end of 2024. This means marketers will no longer be able to rely on third-party cookies to track users across websites for personalized advertising.
As third-party cookies disappear, marketers must focus on collecting and using first-party data — data collected directly from customers with their consent. First-party data, such as website interactions, purchase history, and email engagement, will become increasingly valuable for personalizing marketing efforts.
At the forefront of this change is Google, which recently pivoted from allowing third-party cookies to restricting data access to first-party ones. Google's latest move marks a significant shift in its privacy policy. This decision favors user privacy and redefines the roles of third-party cookies. Users get more control over their online presence, shedding light on first-party vs. third-party cookies. Offering transparency, Google allows users to selectively manage and enable cookies in Chrome.
Businesses should prepare to follow suit and prioritize strategies to build customer trust and encourage data sharing, such as offering value in exchange for information (e.g., personalized content, exclusive offers). Additionally, brands should invest in robust customer relationship management (CRM) systems to better organize and utilize this data for marketing.
The end of third-party cookies will also lead to the rise of contextual advertising, where ads are served based on the content's viewing context rather than individual user behavior. This method respects user privacy while still allowing for relevant, targeted advertising.
U.S. firms should explore contextual targeting as part of their marketing strategy, leveraging AI-driven technologies to ensure ads are shown to the right audiences based on content rather than cookies. Our recent blog delved into several tools and tactics to leverage AI for your sales and marketing efforts.
As privacy regulations evolve, the importance of gaining explicit consent from customers and being transparent about data usage has never been greater. By 2025, companies must adopt a customer-centric approach to data privacy that goes beyond mere compliance.
Regulations like the CPRA and emerging state laws require companies to obtain clear, affirmative consent from consumers before collecting, using, or sharing their data. Regulators are increasingly scrutinizing dark patterns—deceptive user interface designs that trick consumers into giving consent.
To remain compliant in 2025, U.S. firms must implement clear and straightforward consent mechanisms, such as opt-in checkboxes and simplified privacy notices. Consent management platforms (CMPs) can help businesses manage user consent and ensure they honor consumer preferences.
Data minimization—collecting only the data necessary for a specific purpose—will become a key focus for privacy regulations. In 2025, U.S. firms must carefully assess the data they collect and store, ensuring it aligns with legitimate business purposes and privacy laws.
Implementing data minimization practices can also foster trust with consumers, who are becoming increasingly cautious about how much personal information they share with businesses.
Privacy regulation enforcement is expected to ramp up by 2025, with regulators imposing more fines on companies failing to comply with data protection laws. Companies must focus on implementing compliant processes and prepare for potential audits and regulatory inquiries.
Conducting regular privacy audits will become essential for businesses to ensure ongoing compliance. These audits will help identify potential risk areas, such as no longer compliant data collection practices or security vulnerabilities in data storage.
By 2025, many U.S. firms may need to designate a privacy officer or hire external consultants to manage privacy compliance. Privacy officers will oversee data protection efforts, conduct audits, and serve as a point of contact for regulators.
As digital marketing and privacy regulations evolve in 2025, U.S. firms must remain agile and proactive. Compliance with state laws like the CPRA, CDPA, and CPA and potential federal privacy regulations similar to GDPR will require businesses to adopt more transparent, consent-based data practices. The shift to first-party data and contextual advertising will reshape marketing strategies.
By embracing these changes, companies can avoid costly penalties and build stronger customer relationships based on trust and transparency. Marketers who stay ahead of privacy trends and leverage data ethically will be well-positioned for success in the rapidly changing digital landscape in 2025.