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Advertisers Have A Lot Of Explaining To Do In 2025

Jan 02, 2025 - mediapost.com
The article discusses the growing importance of trust in developing responsible AI products and educating consumers about data usage, particularly in advertising and ecommerce. Jacqueline Karlin from PayPal highlights how AI is transforming the financial industry, especially in payment transactions, privacy, and operational efficiency. She emphasizes the need for companies to offer utility in exchange for personal data, likening data to a new currency. Karlin identifies four consumer types by 2025, each representing about 20% of the market, stressing the importance of transparency in data usage to maintain consumer trust and market share.

Additionally, the article notes a tax-reporting change for freelancers using payment apps like PayPal, Venmo, and Cash App. A new tax form (1099-K) will be issued to those earning self-employment income exceeding a certain threshold, aimed at improving income reporting to the IRS. This change affects individuals who earned $5,000 or more through these apps in the previous year, ensuring better tracking of potentially unreported income.

Key takeaways:

  • Trust in developing responsible AI products and educating consumers about data usage is becoming a major focus for companies in advertising and ecommerce.
  • Jacqueline Karlin from PayPal emphasizes the importance of utility in exchange for personal data, likening it to a new currency.
  • Four types of consumers in 2025 are identified, each representing about 20% of the market, with varying levels of data sharing willingness based on trust and perceived value.
  • Freelancers using payment apps like PayPal, Venmo, and Cash App may receive a new tax form (1099-K) for self-employment income exceeding a certain amount, reflecting changes in tax-reporting requirements.
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