Brave CEO Brendan Eich on a Privacy-by-Default Future for Digital Advertising
In light of last week’s enactment of the California Consumer Privacy Act and our monthly theme, Pursuing Privacy, Street Fight posed questions on surveillance capitalism, privacy, Big Tech, and the future of digital advertising to Brendan Eich, CEO of Brave, one of the leading companies championing privacy-first solutions in the tech industry.
“The entire industry is in need of a fundamental shift from tracking to privacy by default and by design,” Eich said. “To truly preserve consumer privacy, Big Tech needs to switch to a privacy-by-default approach. Nothing will change otherwise. Until then, consumers will remain confused about where their data is being used, and tracking and data monetization will remain pervasive on the web.”
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.
This Year, Brands Will Seek Out Incrementality
As networks, publishers, and agencies continue to shift to guarantee business outcomes in ad deals (a trend that began earlier in 2019), the concept of “incrementality” will emerge as a key issue for marketers in 2020.
Advertisers today have an incredibly difficult time distinguishing between those exposed to ads who were already going to visit the store (the natural effect, driven by intent and brand identity) vs. those who visited because of that exposure (the incremental effect, driven by ad sensitivity). Quite understandably, we want to know if our advertising campaigns actually work in changing consumer behavior in our favor.
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.
3 Data Trends to Watch in 2020
Data-driven marketing investments are growing rapidly. In the US, data spend grew almost $3 billion in the last year. Not surprisingly, the number of data-related challenges has increased as well. 2019 saw privacy regulations usher in broad changes across the ecosystem, causing widespread concerns around the future of data-driven targeting.
Ahead of the new year, we identified three key trends to look out for. These trends — as well as some proactive steps companies can take today — will set up data partners for success in 2020 and beyond.
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.
Carriers, It’s Time to Weld the Lid Shut on Customers’ Data
Personalization and privacy seem inherently at odds. After all, media companies such as Facebook act like vacuum hoses for data – collecting much more than they need. That’s problematic in a world where data breaches dominate headlines nearly every week. However, where Facebook and others go low, mobile carriers can go high. In fact, mobile carriers that aim to be media companies have a huge opportunity to respect privacy while providing great personalization in their original content.
So, how can carriers take this high road — that is, deliver personalized content experiences without storing consumers’ personal information? By focusing on the device itself – leveraging local storage and client-side execution (rather than requiring server interaction) to help carriers deliver a personalized experience that is incredibly safe. This allows carriers to implement the industry-changing trend of device-centric discovery (DCD), which makes it easy for subscribers to find news/sports/entertainment/games without having to wade through multiple apps and searches. With DCD, carriers can create personalized content experiences that don’t expose subscribers’ personal data to external privacy risks, and in the process, become mobile media leaders.
The Rise of First-Party Data: Why Quality Matters Over Quantity
For years, digital marketers have paid hand over fist in the digital gold rush for data. Instead of a tangible product, tech companies earn millions in revenue from the data they collect on previous, current, and future digital consumers. But digital marketers seeking to gobble up as much data as they can for their campaigns — while not stopping to consider the source of or methods used to collect it — are taking the wrong approach. The age-old mantra of “quality over quantity” has never been more relevant in online advertising, and marketers must quickly and fully embrace first-party data or risk their digital campaigns (and bottom lines) falling flat.
GDPR Implementation Spurs New Industry Offering Compliance Services
A year and a half after GDPR (General Data Protection Regulation) was passed into EU law, Kantar has found there is a vibrant industry in the United States dedicated to helping US companies comply with the new rules, as evidenced by paid search advertising activity throughout 2019.
Kantar analyzed US Google desktop and mobile text ad clicks on ads displaying for 10 GDPR-related keywords from January through September 2019, including gdpr, gdpr compliance, gdpr requirements, and what is gdpr. During the nine-month period, we found 283 advertisers in a wide range of industries sponsoring GDPR keywords, including IT companies, online security firms, software manufacturers, and business consultancies.
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.
The Trust Crash: How Our Platforms Are Failing Us At Every Level and What We Can Do About It
It doesn’t have to be this way. There are the seeds of a new generation of open platforms and technologies aimed at evolving the platform paradigm to one of transparency, value share, and universal governance representation. Sharing value with users via data revenue share; allowing users access to insights generated about them and their peers and help to understand who is trying to engage with them and why; rev share and benefits for service providers; collaborative governance; and abolition of unilateral platform expulsion or rule changes are just several of the major changes on the table. A whole host of new open platform operating protocols is emerging.
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.
Employees Are Connecting On Facebook: Here’s Why They Shouldn’t
When they aren’t connecting in the office, 87% of employees are connecting on Facebook. With more than 1.5 billion daily active users, it’s no surprise that employees flock to the platform to connect with colleagues. Facebook is easy and familiar, and many employees have used it for years. When employees want to connect personally with someone they know professionally, Facebook is the natural first step.
But Facebook isn’t the best place for making personal connections with coworkers, mainly because of the amount of personal content employees post. They express their political opinions and might post jokes and language that could easily offend in a professional setting. When you introduce professional contacts to a personal platform, the lines of what’s appropriate are blurred. People might begin to censor themselves, which isn’t always healthy. Or employees might feel uncomfortable with a coworker based on something they’ve seen online.
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.
Making Human Connections in the Age of Automation
The end of the decade marks a challenging time for marketers as they attempt to envision the next 10 years. At the turn of the 2010s, no one could have envisioned the advanced AI-powered marketing and campaign automation tools that are available today.
Despite access to smart technology, modern marketers still must balance multiple factors to create business value for all stakeholders, including eliminating boring, ineffective ads, grappling with the automation myth, embracing the data privacy age, and maintaining ethical AI practices.