What Consumers Believe About Ads: Effectiveness, Creepiness, Transparency
The good news for advertisers is that members of Gen-Z, while finding ads just about as threatening to privacy as respondents of every other age group, appear to see their benefits, too. Forty-six percent of Gen-Zers said personalization can be beneficial, compared to 30-36 percent of older age groups. About three quarters of respondents in all age ranges said personalizations imperils privacy.
Gimbal App Gives Consumers More Choice, Privacy Controls
While the digital marketing industry waits for full enforcement of California’s Consumer Privacy Act (CCPA) to go into effect later this year, the mobile advertising, location solutions, and data company Gimbal is actively working to position itself as a leader in the consumer privacy space. The company recently launched a mobile app called LocationChoices, which gives consumers more control over how their data is used. Gimbal is also building a coalition with other industry players that would give participating vendors a way to systematically honor the requests of individual consumer opt-outs.
Leveraging Consumer Data in the Privacy Era
Industry executives are working overtime to help their clients maintain their current marketing practices without running afoul of the latest privacy regulations. Over at Tealium, a firm that specializes in customer data management and protection, Co-Founder and Chief Technology Officer Mike Anderson is encouraging clients to focus on the customer experience of consent while clearly articulating why they need consumers’ data.
“You can’t build customer profiles if the data isn’t there,” Anderson says. “There’s a level of education needed at the point of consent to show the consumer what value they will get in return when they opt-in.”
How Much Consumers Value Transparent Privacy Practices
Potential legal troubles and CCPA’s enforceability weaknesses aside, the Tealium study suggests a strong record on privacy will be a boon to brands as privacy increasingly takes center stage in the public consciousness. Ninety-seven percent of consumers said they are at least somewhat concerned about data privacy, and 85% said they won’t forgive a company’s misuse of their data.
The California Consumer Privacy Act’s Promise and Limitations
At first glance, the California Consumer Privacy Act marks a major achievement for privacy advocates, the first statewide bill in the US to offer consumers control over how companies handle their personal information. It’s all the more significant that CCPA happened in California, a frequent bellwether for federal legislation and the state where many of the world’s top tech companies are headquartered.
It’s not entirely clear, though, that CCPA will put significant fetters on Silicon Valley’s hitherto unrestrained collection and monetization of user data. Major weaknesses include the law’s enforcement protocol, continued lobbying efforts to defang it, and its opt-out structure.
The Marketing Landscape will Transform in 2020. Are You Ready?
Data privacy laws such as CCPA and GDPR are inevitably going to reshape the practice of marketing. In response, we will need to create new avenues to extract value from omnichannel data sources. We will have to use data in more creative ways for personalization that is sensitive to regulations and consumer demands.
We will refocus on optimizing new channels in the customer journey. Permission-based marketing, cognitive uplift, and transparency will be the buzzwords of the year. In some ways, the marketing industry might look fundamentally different this month than it did only weeks ago.
Here are my top predictions for the ways marketing will transform in 2020.
Tech Vendors See Opportunity in CCPA Compliance
The California Consumer Privacy Act has just recently gone into effect, and full enforcement won’t begin for another six months, but companies are already making big changes as they endeavor to ensure compliance.
Under the new CCPA regulations, companies are required to notify users of the intent to monetize their data and provide users with the ability to easily opt out of data monetization. Many companies are struggling to come into compliance, but for businesses that work with multiple technology vendors, the issue is creating even more headaches.
Where to Go from Here: The Outlook for Programmatic Advertising in 2020
eMarketer recently estimated that U.S. advertisers spent nearly $60 billion on programmatic display in 2019, and over the next two years, continued investment in areas like connected TV and OTT will drive programmatic ad spending to $80 billion.
As the ad industry launches into 2020, the ever-evolving programmatic landscape will introduce a fresh set of opportunities and challenges that will shape strategy in the new year. Here’s what to expect.
January Focus: Pursuing Privacy
As we straddle the precipice of a new year and a new decade, the next milestone in privacy legislation looms: the California Consumer Privacy Act. As California’s version of GDPR, it is the first major US privacy legislation. It will set a precedent and kick-start a domino effect for other states and may even lead to federal data privacy moves.
“Pursuing privacy” will be Street Fight’s editorial focus for the month of January. You may have noticed our monthly themes: December focused on the connected consumer, November’s focused on holiday shopping, October on local commerce verticals, and September on mapping (more on those in a bit).
The Premise for Progress in a CCPA Era: Permission, Protection, and Privacy
In the aftermath of fresh privacy legislation, disruptive technologies are beginning to emerge as a possible salvation to the existential challenge the advertising industry faces today. Blockchain, the distributed ledger technology celebrated for its structural logic of transparency and trust, has the profound potential to move the needle on some of the most opaque segments of the digital media supply chain. Data portability, a fundamental right of any subject under the view of data privacy laws, can facilitate the way individuals regain usage of their personal data without risking exposure to the underlying consumer data set. In another instance, blockchain can efficiently track, manage, and record consent among data subjects, processors, and controllers.
Jeff Glueck Passes the Torch as David Shim Steps up to Foursquare CEO
Shim now faces the challenge of steering a fast-growing tech business through uncertain times for data-driven companies. While location tech is a lucrative business that provides crucial insights for brick-and-mortar companies and has yet to hit peak productivity, the industry is also facing concerns of an unprecedented scale about how much it knows about the people who power its insights.
Heard on the Street, Episode 40: Building Location Intelligence, with GroundTruth
The location intelligence sector has gotten crowded in the past five years, making it harder and harder to stand out from the crowd. Making matters more difficult, there are looming restrictions such as location tracking in iOS13 and the California Consumer Privacy Act (CCPA). These factors could raise barriers to entry and cause an industry shakeout where only the strongest survive.
On the list of longstanding industry players with extensive networks and location intelligence chops is GroundTruth. As we discuss with CEO Sunil Kumar on the latest episode of Heard on the Street, succeeding in location requires concrete and verifiable data for foot traffic.
Believe the Hype: The Pragmatic Value of Location-Based Analytics, Audiences, and Attribution
After 25 years of framing technologies by level of maturity and adoption, the Gartner Hype Cycle has finally placed location intelligence for marketing where it belongs — in the trough of disillusionment. Sounds like a lousy place to be, but it’s actually the opposite. Why? The trough of disillusionment is the stage right before the slope of enlightenment. Let me back up and explain.
Get Ready for America’s GDPR: CCPA
With regulation comes the emergence of new opportunities. The same logic that brought on GDPR will be stateside on January 1, 2020, when the California Consumer Privacy Act (CCPA) is put into effect. This legislation will allow California residents more control over their personal data. The objective is simple: provide better consumer protections and enhance the respect of privacy by improving transparency regarding the way companies are using their users’ data.
Jean-Noël Barneron of Herow provides one of the clearest breakdowns of CCPA, going into effect Jan 1, you’ll read.
The Privacy Movement Is Not (Just) About Privacy
Privacy has been slipping away from us since before then-CEO of Sun Microsystems Scott McNealy said we had none of it in January 1999. Americans still do not understand how companies use their data. While that is a transparency issue incumbent upon businesses to fix — and legislation will to some degree remedy it — I think it more likely than not that Americans will continue to hand over their data to Amazon for two-day delivery and Google for the sleekness of search. What we typically conceive of as privacy itself — concern about how much of our information companies possess — is not the factor that will turn the tides on company practices and legal standards.
How Technology Companies Can Establish and Benefit from a User-First Culture
As more and more states pass separate privacy regulations into law, we will likely see an increase of noncompliance and fines across the board. Subsequently, we might see more companies begin advocating for the US to develop its own version of GDPR at the federal level in an effort to simplify compliance for companies nationwide.
To stay ahead of the imminent data privacy regulations, companies need to establish a culture of transparency and compliance. Consumers will be more confident in businesses that offer a clear value exchange when asked to share their data, and marketers and publishers will build stronger relationships with users.
12 Years After the iPhone, Marketers Need to Lean Into Digital Wellness
Once upon a time, “getting a Starbucks coupon as you walk by a Starbucks” was the Holy Grail example of the potential power of mobile marketing. With the iPhone turning 12 years old this week, it’s a great time to observe how drastically more sophisticated digital relationships between consumers and brands have gotten thanks to the supercomputers in our pockets.
Mobile is now about building a customer journey and taking patrons to the next level rather than a single, location-based transaction. You hear it a lot: the customer journey reigns supreme, but there’s a good reason for “customer journey” becoming like the Greek chorus in marketing. Consumers are inundated with messages from brands, so marketers need to be judicious about how, when, where, and why they reach out to customers.
Vendors Rush to Bring Privacy Verification Solutions to Market
The demand for data privacy is at an all-time high, just as consumer trust in the technology space is at an all-time low. Advertisers are grappling with wasted ad spend and uncertainty over ad verification. The market is in disarray, and technology vendors are hoping they have a solution to the problem.
Just this month, the offline consumer intelligence and measurement company Cuebiq launched a new verification solution for third-party data. The solution gives advertisers verifiable proof of compliance with the European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).
2020’s Location-Privacy Winter: The iOS Edition
CCPA isn’t the only factor that will impact privacy and data collection. There are less-discussed and potentially more significant variables like the death of browser cookies and other tech-centric measures. Especially for location tracking, private sector influences and accelerants loom.