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Weekly Roundup: CCPA, IAB’s Cookie Alternative: Project Rearc, and More.

Adtech Weekly
“The current third-party cookie setup has created a messy and frightening marketplace built on the collection and use of personal data.” 

More clarity over CCPA

The office of California Attorney General has released the second draft of CCPA. The draft is based on the feedback received from the industry in the past 45 days. As you may be aware of the fact that the enforcement of the law will begin after the 1st of July, the motive behind the draft is to bring more clarity in the current state of confusion. Here are the highlights:

What should be considered Personal Information?

The draft says: 

“Whether information is “personal information,” as that term is defined in Civil Code section 1798.140, subdivision (o), depends on whether the business maintains information in a manner that “identifies, relates to, describes, is reasonably capable of being associated with, or could be reasonably linked, directly or indirectly, with a particular consumer or household.” 

For example,

“If a business collects the IP addresses of visitors to its website but does not link the IP address to any particular consumer or household, and could not reasonably link the IP address with a particular consumer or household, then the IP address would not be “personal information.”

How should the button look like?

The following opt-out button may be used in addition to posting the notice of right to opt-out, but not in lieu of any posting of the notice of right to opt-out.

It is optional to use the button, but the notice about the consumer’s right to opt-out of the sale of information is mandatory. If you are using the button then it has to be roughly of the same size as the other buttons on the website.

What about the apps?

When an app is collecting information that cannot be expected by the user (for example, a calculator app collecting location info), then it is required for the app to notify the user with a summary of categories of personal information it is collecting. At the same time, a link to the full privacy notice should also be provided.

What about service providers?

A service provider can use a business’s personal information for the improvement of services but it cannot use the info for personal profiling. 

What if you do not sell personal data?

Such businesses are exempt from providing the notice of the right to opt-out. But, the personal data collected without providing the notice cannot be sold without obtaining the consumer’s authorization.

Takeaway: 

Now that the rules and regulations are more specific than earlier, publishers should make sure that all the boxes are checked and they are not violating any guidelines.

Finding the Cookie Alternative

As the third-party cooky is reaching towards its final days, the industry is struggling to come up with a true alternative. There have been many thoughts and suggestions floating around but no definitive solution is visible so far. There is a strong need for different methods to measure user behavior online, and to target the right ads.

The trend of creating own identifiers to work in the cookieless environment is picking up, LiveRamp, BritePool, etc are some of the many players working in the field. Many more players are expected to follow the lead but experts believe that the increased number of such solutions will ultimately bring complications in the system.

Contextual or content-based advertising is also being seen as a replacement for cookie-based advertising. But this move cannot be considered as a progressive measure because it is an old school method. It was replaced by the cookie in the past. Therefore it will bring back the same problems it had earlier, like the inability of frequency capping and attribution, etc.

A closer partnership between the agencies and publishers, for first-party data, is also being seen in the industry. The data collected by publishers can be leveraged by the agencies for audience segmentation and PMP deals. In the future, the same data can also help in probabilistic matching for ad targeting.

Takeaway: 

More and more potential solutions are cropping up as the cookie is fading away from the scene. With the passage of time, it will be easier to comprehend what is right and what is not right. With the industry collectively working on the same goal, we will slowly reach the answer to cookie problem. As always, we will keep you updated.

IAB Introduces Project Rearc to Replace Third-party Cookies

As we just saw, the entire industry is trying to come up with standards to retain ‘addressability’ in open web advertising. In its annual leadership summit, IAB discussed what the industry will need to have in place — when there are no third-party cookies to personalize, target, measure, and attribute. 

“The current third-party cookie setup has created a messy and frightening marketplace built on the collection and use of personal data.” 

– Randall Rothenberg, CEO, IAB.

While Google’s Privacy Sandbox is in development, we knew that the industry needs more than one standard. So, IAB proposed a new framework dubbed as ‘Project Rearc’. To put it simply, ‘Project Rearc’ (Rearc for re-architecture) is a new ID solution that will help both the sell-side and buy-side to run personalized ads.

How?

That’s where things get complicated. 

Similar to Privacy Sandbox, Project Rearc is still in its initial phase. In fact, the consortium hasn’t decided what the identifier will be based on. Hashed or encrypted email address or phone number is being considered. The idea is to hash/encrypt a consumer ID (like email address) and pass it along the programmatic chain. 

We know what your next question is — Many ID providers in the market are already using email addresses along with cookies (think, LiveRamp); how is this different? 

IAB says that the project expects publishers and brands to get consent from the consumers to show them ads. Consumers will provide the ID, consent, and only the trusted third-parties will be allowed to access the ID and deliver targeted ads.

In other words, here’s what we know:

Project Rearc will 

  • Rely on trusted relationships b/w consumers and first-parties (publishers and brands).
  • Use consumer provided information (maybe email/phone number) to create an ID that will have the preferences attached to it. 
  • Ensure only trusted third-parties will be part of ad delivery/transactions. 

“The new identifier will work across different browsers and privacy standards and won’t rely on third-party cookies. Privacy will be at the forefront of this new identity solution.” 

AdExchanger

Will Project Rearc Work?

We have several questions and so do you. Both AdExchanger and Digiday highlighted a few interesting takes that we will share below. 

Privacy:

Should the industry use permanent information like an email address to create an identifier? IAB answered the question later in the blog post

“We are not advocating for the broad collection, use or sharing of email addresses or phone numbers as IDs across the ecosystem. We specifically proposed this should NOT happen.” 

Data:

If we are using the consumer provided information (let’s assume email address), then will the parties holding user information tied to the email address be able to gain an advantage over others? Or will they be allowed to utilize what they have [data] to build better profiles? The answer is no. 

Industry reactions:

“When I talk to everyone here, their heads are spinning. They don’t know what to do”

– Beeswax CEO Ari Paparo.

Open web:

Most importantly, many are concerned about what will happen to the mid-sized and long-tail publishers on the web. If you aren’t a big publisher or well-known publisher in your niche, then it is going to be difficult to get the consumer information and consent to take part in programmatic transactions. 

And, this also means millions of publishers will have to put up some sort of registration wall and lose traffic. Doesn’t it make us question the feasibility of the solution in the first place? In addition, we aren’t sure how to run personalized ads without linking user events on the open web. 

So, at the moment, there are more questions and doubts. It is supposed to be this way. After all, we are looking to re-architect the whole ecosystem. 

Moments that Matter

Mobile Device IDs Will Be The Next Ad Tracker To Bite The Dust – AdExchanger.

Ad-Tech Deals Rose 72% In 2019 – MediaPost.

Amazon Advertising Drives Higher Returns For Retail Brands Than Facebook Or Google – Forbes.

Automatad Team

At Automatad, we help publishers to monetize better without hampering the user experience. Our products are live across hundreds of publishers, earning them incremental ad revenue with every passing second. You can request a free audit to get an estimated revenue uplift today.

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