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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.

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