At ID5, we believe that respecting consumer privacy isn’t just a regulatory requirement – it’s the essential foundation of a sustainable, thriving digital advertising ecosystem. The recent AdExchanger article, “Why Data Minimization Is a Very Big Deal for Ad Tech” underscores a guiding principle we’ve embraced since day one: less is more when it comes to data collection and retention.

Data minimization is now firmly in the spotlight for everyone across the ad tech spectrum. In short, data minimization means that the data controller collects and uses the data necessary for processing and stores this information for the shortest relevant period. At ID5 this also means never handing non-pseudonymous personally identifiable information (PII).

The Perks of Data Minimalism

1. Regulatory Alignment & Risk Reduction
Privacy regulations like GDPR and CCPA/CPRA emphasize that data should only be collected and retained when necessary. Minimizing data helps companies stay compliant, reducing legal risks, potential fines, and the burden of regulatory audits. In the event of a security incident, a limited data footprint means fewer exposed records and lower overall liability.

2. Consumer Trust & Transparency
Consumers are more privacy-conscious than ever: they care about who has access to their data, how it’s used, and how long it’s stored. Brands and publishers that rely on broad, invasive data collection risk losing consumer confidence—often permanently. By embracing data minimization, companies demonstrate transparency and responsibility, fostering stronger relationships with users.

3. Operational Efficiency & Competitive Edge
Collecting less but more relevant data leads to more efficient workflows and faster insights, serving as a competitive advantage. Streamlining identity resolution through data minimization eliminates unnecessary complexity, reducing costs while improving accuracy. Companies that prioritize privacy-conscious data strategies can position themselves as leaders in a rapidly evolving landscape.

4. Reducing Privacy & Security Risks
The broader the scope of data collected, the greater the risk in the event of a breach. Research consistently shows that data breaches cost companies millions, with each compromised record adding to the financial and reputational damage. Limiting data collection and retention not only reduces exposure but also ensures that any leaked information is less harmful due to pseudonymization or restricted use.

5. Future-Proofing Digital Advertising
The industry is shifting—cookies are disappearing, browsers are prioritizing privacy, and consumers expect more control over their data. Data minimization is at the core of sustainable, privacy-first advertising strategies. Companies that adapt now will be best positioned to thrive amid ongoing regulatory changes and shifting consumer expectations.

But what does that look like in practice? Here’s a closer look at our approach at ID5.

ID5’s Lean Data Strategy: Less Data, More Privacy

1. Double Pseudonymization
ID5’s solutions are based on double pseudonymization. First, ID5 relies on pseudonymous data (e.g., hashed emails, browser signals, or device identifiers) that would not, on its own, directly identify an individual. Second, ID5 applies encryption to that pseudonymous data. Through double pseudonymization, we significantly reduce compliance risk and complexity for our partners while still enabling a robust, privacy-focused identity infrastructure across the open web.

2. Purpose-Built, Short-Term Data Retention
Data that isn’t required shouldn’t be kept. Period. We only use our data to maintain and improve our identity services—and do not store it for no longer than 90 days. Storing data indefinitely presents not only a risk to user privacy but also an unnecessary operational burden. Our focus on short-term retention helps us adhere to data minimization principles and build trust with our partners and their users while keeping our ID5 IDs fresh.

3. Strictly Defined Use Cases
Collecting less data doesn’t mean sacrificing effectiveness. To the contrary, it means we’re intentional about why and how we use information. By collecting only the data that’s strictly needed for identity resolution, we reduce exposure to unnecessary or irrelevant data, which helps keep our processes efficient, transparent, and in line with privacy standards.

Looking Ahead: Sustainability Through Privacy

From government mandates to browser-led changes, the digital advertising world is in a state of flux. But one reality is clear: identity solutions must earn trust and show genuine respect for consumer privacy to remain viable. One way we can do this by being fierce data protection advocates and putting the privacy principles into action.

At ID5, our mission is to power the open web with a reliable, privacy-first identity layer. Data minimization is an integral piece of that vision—and it’s why we design our solutions to limit data collection, avoid handling raw PII, and regularly cleanse our data to uphold user privacy expectations. It’s how we’ve built a more efficient, compliant, and future-proof identity infrastructure that benefits publishers, advertisers, and, most importantly, consumers.

As the AdExchanger article rightly points out, data minimization has never been more critical. By committing to these principles now, our industry can confidently move forward in a way that respects user privacy while sustaining the ad-supported internet we rely on. Interested in learning more about how ID5 helps you navigate a data-minimized, privacy-first future? Reach out to learn more about ID5’s identity solutions, developed responsibly, sustainably, and with consumer trust at the center.

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