How To Implement Retargeting Without Violating New Privacy Regulations

Retargeting is a powerful strategy that allows businesses to re-engage potential customers who have already shown interest in their products or services. However, with online advertising privacy laws expanding, marketers must adapt their strategies to remain effective while staying fully compliant with evolving data laws.

Data privacy laws and platform restrictions have tightened around the world, changing the way businesses collect and use data for retargeting. Alongside regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), Google Chrome’s ongoing deprecation of third-party cookies and Meta/Google’s privacy updates are reshaping every aspect of digital advertising.

This shift presents a real challenge for businesses looking to reach out to their target market. How can you continue to run effective retargeting campaigns without crossing legal boundaries?

In this guide, we’ll answer essential questions such as:

• What is retargeting?
• How do new privacy laws impact this marketing strategy?
• Who is protected by privacy regulations?
• What retargeting marketing strategies can be implemented to ensure compliance?
• How to use consent management platforms for retargeting advertising?
• What technical measures can be implemented in the backend to ensure compliance with new privacy regulations?

As you go over the discussion below, you will learn practical, proven and legally sound ad retargeting strategies.

Included in this blog:

• What Is Retargeting Marketing?
• The Shift in Online Advertising Privacy Regulations
• 6 Strategies for Compliant Ad Retargeting
• 2 Technical Measures to Ensure Compliance

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What Is Retargeting Marketing?

One of the most effective outreach strategies is to reconnect and target users who have previously interacted with your website or content but did not complete a desired action. That includes users who have engaged with your social media content, users who abandoned their shopping carts and those who booked a consultation but didn’t follow through.

By tracking user behavior through retargeting marketing, businesses can display tailored ads to re-engage these potential customers as they browse other sites.

Retargeting advertising keeps the brand top-of-mind and encourages users to return and convert. Notably, retargeted ads have a click-through rate (CTR) of 0.7%, significantly higher than the 0.07% CTR for standard display ads (Replug).

Additionally, retargeting can increase ad engagement rates by up to 400%, underscoring its effectiveness in driving conversions.

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The Shift in Online Advertising Privacy Regulations

The American Data Privacy and Protection Act (ADPPA) and the American Privacy Rights Act (APRA) were proposed federal laws aimed at establishing a unified U.S. data privacy framework.

However, they failed to pass due to disagreements over preemption (whether federal law should override stricter state laws) and private right of action (whether individuals should have the right to sue for privacy violations).

Since ADPPA and APRA failed to pass at the federal level, there’s no single national standard for data privacy. This has led individual U.S. states to create their own privacy laws, resulting in a patchwork of regulations. Each state is responsible for determining who is protected by the privacy regulations it has established.

Without federal preemption, businesses must now navigate different rules depending on the states where they operate.

In addition, the rise of stricter online advertising privacy laws is making it harder to track users and collect data for retargeting. Marketers need to adapt their strategies while staying compliant. Here’s what you should know about the upcoming changes.

New Privacy Laws on the Horizon

Several U.S. states have now fully implemented comprehensive privacy laws, adding another layer of complexity to compliance efforts. States like Texas, Oregon, Montana and Florida are implementing data privacy regulations similar to CCPA, with some variations in user rights and data processing rules.

For example:

• The Texas Data Privacy and Security Act (TDPSA) now requires businesses to get explicit user consent before collecting sensitive personal data.

• The Oregon Consumer Privacy Act (OCPA) is now in effect and grants users broad rights to opt out of targeted advertising and data sharing.

• Florida’s Digital Bill of Rights has taken effect, imposing stricter rules on businesses with large data collection operations.

With the implementation of these laws, businesses must rethink how they collect and use data for retargeting marketing. Non-compliance can lead to hefty fines and legal consequences.

4 Key Changes Impacting Retargeting Ads

As privacy laws expand, businesses face increasing restrictions on the following actions that impact retargeting advertising:

• Data Collection: Businesses must obtain explicit user consent before gathering personal data.

• User Tracking: Google is actively deprecating third-party cookies, eliminating traditional cross-site tracking and requiring advertisers to adopt new privacy-preserving methods.

• Personalized Advertising: Retargeting efforts must be transparent and allow users to opt out easily.

• Platform Restrictions: Meta, Google, TikTok and Pinterest now rely on server-side conversion APIs, aggregated reporting and limited-data-use frameworks to maintain ad performance without exposing personal identifiers.

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6 Strategies for Compliant Ad Retargeting

With each state implementing various laws on data privacy, expect things to get a bit messy. That’s why so many businesses are scrambling to adjust their data privacy practices. Without a single federal law, companies have to comply with multiple state regulations, which can be complex and costly.

However, you don’t have to abandon retargeting altogether. By shifting to privacy-first strategies on your site or on social media platforms such as Instagram and Facebook, businesses can continue to reach potential customers while staying compliant and updated with new local legislation being passed in the territories where your business operates.

Here are several strategies to implement:

Image Source: JackMorton

1. Prioritize First-Party Data

With third-party cookies on the decline and slowly being phased out, first-party data is becoming the most valuable resource for retargeting. First-party data includes the following:

• Customer emails collected through newsletter sign-ups
• Purchase history from your website
• On-site behavior tracking through privacy-compliant tools

To encourage users to share their data, you can offer recurring site visitors certain valuable incentives, such as:

• Exclusive discounts for email subscribers
• Early access to new products or content
• Personalized recommendations based on past behavior

2. Implement Contextual Ad Retargeting

Contextual targeting allows you to show ads based on page content rather than user behavior. It is an advertising method that eliminates the need for cookies or personal data tracking, making it fully compliant with existing privacy laws.

Here are a few examples of how a business can use this approach:

• A fitness brand can display ads on its health blogs and other key pages.
• If your business is a tech company, you can place ads on gadget review sites.
• A home improvement store can have its staff participate in social media or user forums and use the products as examples, along with the company’s logo and other branding elements as their signature.

By aligning ads with relevant content, businesses can still engage potential customers without violating privacy rules.

For example, an organic gardening and pest control supplier implemented segmented shopping and retargeting campaigns, which resulted in +279% conversions and a +118% increase in paid traffic without violating any established regulations.

Here are the results of that retargeting campaign:

10.41X ROAS for Paid Social Retargeting Campaigns	+52M Paid Social Ad Impressions	+254% Conversion Value

You may also use cookieless audience signals. Emerging technologies like Google’s Topics API and the Chrome Privacy Sandbox allow advertisers to reach interest-based audiences without relying on personal identifiers. These solutions make contextual and interest targeting effective even in a cookieless environment.

3. Leverage Consent Management Platforms (CMPs)

A CMP is a tool that helps businesses collect, store and manage user consent for data collection in compliance with data privacy regulations. CMPs ensure that users can easily opt in or out of tracking while providing businesses with a structured way to document and enforce consent preferences.

Using a CMP is essential for staying compliant with privacy laws like GDPR, CCPA and upcoming state-specific regulations. It also builds trust with consumers by offering transparency about how their data is collected and used.

CMPs also enable Google Consent Mode v2, which became mandatory in 2024 for advertisers serving users in the European Economic Area (EEA) and is now recommended globally. Consent Mode adjusts how Google tags behave based on user permissions and provides modeled conversions when users decline tracking.

Top Consent Management Platforms (CMPs) and Their Merits

Several CMPs offer reliable solutions for businesses navigating privacy compliance. Here’s a look at three of the most popular options:

• OneTrust: OneTrust is widely recognized for its scalability and enterprise-grade compliance tools. It provides businesses with automated consent management, data mapping and regulatory updates to keep up with changing laws. It is large organizations that need comprehensive privacy governance and AI-powered risk assessment tools.

Image: OneTrust Dashboard

• TrustArc: TrustArc offers an easy-to-use and flexible CMP that integrates with various marketing and analytics platforms. IIt features granular consent settings, allowing businesses to customize consent collection according to regional requirements. This platform is highly recommended for businesses that need a user-friendly solution with strong integration options and automated compliance updates.

Image: TrustArc Assessment Manager
Image Source: TrustArc

• Cookiebot: A CPM best suited for small to mid-sized businesses, Cookiebot is a platform that helps businesses ensure compliance with GDPR, CCPA and other global data privacy regulations. Its lightweight design makes it ideal for websites that require minimal impact on performance.

Image: Cookiebot Dashboard
Image Source: Cookiebot

4. Maintain Transparent Privacy Policies

Over 50% of consumers are willing to share personal data in exchange for something of value and other incentives. However, according to the same survey, U.S. consumers tend to be reluctant to share their information if artificial intelligence (AI) is involved.

Given these trends, your brand can maintain trust with your clients by making privacy policies easy to understand, which means avoiding legal jargon. It is also beneficial to explain the advantages of data sharing, including improved product recommendations and the potential for receiving incentives. In addition, you should allow users to manage their preferences with an opt-in/opt-out feature.

5. Focus on Value-Driven Data Collection

As mentioned, instead of forcing users into data sharing, offer value in return to encourage voluntary participation. One way to achieve this is through interactive quizzes that provide personalized recommendations, making the data exchange feel useful and engaging.

Loyalty programs can also be highly effective, rewarding users for their engagement and purchases while simultaneously gathering insights into their preferences. Another approach is offering webinars or gated content that requires sign-ups, giving users access to valuable information in exchange for their data. By framing data collection as a benefit rather than a burden, businesses can build trust and encourage users to share their information willingly.

Image Source: Jack Morton

6. Implement Server-Side Tracking and Conversion APIs

Modern retargeting depends on server-side tracking solutions like Meta’s Conversion API (CAPI), Google Enhanced Conversions, TikTok Events API and Pinterest’s Conversion API. These tools allow accurate attribution even without cookies and ensure signals are collected in a privacy-compliant manner.

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2 Technical Measures to Ensure Compliance

Legal compliance isn’t just about policies and transparent data collection. It also requires technical adjustments to tracking and advertising methods. Here are a couple of ways to ensure the backend of your site complies with current legal requirements:

1. Invest in Anonymized Data Processing Tools

Instead of collecting personally identifiable information (PII), businesses should use anonymized or aggregated data. These tools ensure compliance while still enabling effective retargeting.

To maintain accurate retargeting and attribution under new privacy rules, businesses should implement:

• Server-Side Tagging to reduce reliance on browser cookies
• Conversion APIs (Meta CAPI, Google Enhanced Conversions, TikTok Events API)
• Google Consent Mode v2 for compliant data modeling
• Chrome’s Privacy Sandbox tools, including Protected Audience API and Topics API

These privacy-first technologies allow advertisers to preserve performance without collecting personally identifiable information.

2. Regularly Update Tracking Methods

With tracking restrictions increasing, businesses need to make adjustments. For instance, you need to replace traditional third-party cookies with privacy-first alternatives. Another approach is to use Google’s Topics API, which categorizes users into broad interest groups without collecting personal data.

Further, you may adopt hashed email tracking, which uses encrypted identifiers instead of raw user data. By staying ahead of tracking technology updates, you ensure your retargeting remains compliant.

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Leverage Retargeting With Proven Compliant Solutions

With Chrome removing third-party cookies and state privacy laws expanding, businesses must shift toward privacy-first marketing strategies that respect user rights while maintaining effectiveness — strategies powered by first-party data, server-side tracking, consent management and cookieless audience solutions.

These modern approaches protect user rights while sustaining strong advertising performance across Meta, Google, email, content marketing and PPC.

At Thrive Internet Marketing Agency, we help businesses navigate these changes and implement marketing strategies that are effective and compliant. Our team stays up to date with privacy laws and industry trends to ensure your retargeting campaigns deliver results without the risk.

Contact our team today to learn more about our proven solutions.

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Frequently Asked Questions (FAQs) About Retargeting