Digital Privacy Reimagined: How PETs Can Unlock the Next Phase of Growth in Brazil and Mexico

Privacy-enhancing technologies in Brazil and Mexico

Latin America is undergoing rapid digital transformation, underpinned by growing internet access, smartphone usage, and booming e-commerce activity. Lying at the heart of this shift is digital advertising, which has become a crucial tool for businesses across the region. From 2022 to 2024, digital ad spend in Latin America grew by 19%, as more companies moved their marketing efforts online to engage customers through scalable, cost-effective, and data-driven strategies.^[1] This has been particularly beneficial for small and medium-sized businesses (SMBs), who are now better equipped with the tools to compete on a level playing field. For instance, in 2023, the use of Google products such as Search, Ads, AdSense, Play, YouTube, and Cloud generated USD 37 billion of impact for businesses in Brazil and USD 15 billion in Mexico, of which a sizeable portion accrued to advertisers.^[2]

As data becomes central to customer outreach, growing concerns over privacy are also reshaping the ecosystem. Consumers across Brazil and Mexico have become increasingly aware of their data rights, with 96% and 85% respectively having some form of familiarity with their country’s privacy laws.^[3] Against the backdrop of rising cyber threats and high-profile data breaches, users are demanding more control and knowledge over how their personal data is used.

In response, businesses are turning to privacy-first approaches such as first-party data strategies and contextual advertising. However, these strategies alone are not sufficient to address the growing tension between data-driven marketing and the push for greater privacy demanded by users. This is where privacy-enhancing technologies (PETs) can come into play.

Bridging privacy and performance

PETs refer to tools and methodologies that enable data to be processed, shared, and analysed without compromising individual privacy, allowing data to be used in a way that protects sensitive information while still generating valuable insights. Technologies such as differential privacy, trusted execution environments (TEEs), and secure multi-computation allow advertisers to maintain marketing performance without exposing their personal data. This can help drive value for advertisers by enabling accurate measurement of campaign effectiveness, facilitating audience segmentation, and delivering relevant content, all while maintaining user trust and complying with data protection regulations.

Unlocking broader adoption

Despite their promise, PET adoption in Latin America still remains relatively nascent. Interviews with privacy leaders across various industries have revealed that key barriers such as cost, technological complexity, and lack of standardisation continue to hamper adoption. Many organisations still perceive PETs as a regulatory burden rather than a strategic opportunity.

Moving forward, stronger government support, greater collaboration among stakeholders such as advertisers, regulators, and industry players will be crucial. For instance, data protection agencies can help by offering incentives for anonymisation and data minimisation and supporting innovation through regulatory sandboxes and research funding. Coupled with greater clarity on frameworks and regulations, these efforts can help lower barriers to adoption, foster trust in PETs, and encourage their proactive integration into business strategies. Ultimately, scaling PET adoption will be key to ensuring that Latin America’s digital ecosystem can set a global standard for privacy-forward advertising.

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Tags

Brazil

Data

Data privacy

economics strategy

Latin America

Mexico

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