Privacy Debate: Urgent Issue or Industry Hype?

Getting Better all the time Can’t get no worseBridging the gap @Chapell68

Alan Chapell

Privacy is about trust

Traditional Privacy-speak…

Privacy is building brand equity

Traditional Privacy-speak…

Privacy doing the right thing

Traditional Privacy-speak…

Privacy strategy is changing

Privacy is about control

Privacy is about market share

Privacy is gerrymandering rules

DNT = Control, Market share + privacy (maybe)

Mozilla Video

Satirical

Consumer Education?

Independent contest?

The Problems with DNT

DNT gives browsers (and others) more power

How will power be used?

First Parties are virtually immune from the DNT signal

First party immunity to DNT is important

Who does DNT negatively impact?

Networks, platforms, exchanges

Mid and long-tail publishers

Ad Agencies

Consumers

Networks, platforms, exchanges

Mid and long-tail publishers

Ad Agencies

Consumers

Networks, platforms, exchanges

Mid and long-tail publishers

Ad agencies

Consumers

• Not as reliant upon third-party tracking for revenues• Replace some non-PII tracking info with PII• User registration in exchange for content• Would benefit from demise of long-tail

Premium Publishers

• Lower CPMs / ad revenues• Some (many?) will stop publishing

Tracking is CRITICAL to the mid and long-tail

Networks, platforms, exchanges

Mid and long-tail publishers

Ad agencies

Consumers

Do consumers understand

the tradeoffs of DNT?

Do consumers understand

what DNT means?

Usually, message clarity is paramount

“Ask websites not to track me”

• No definition of tracking– Could include frequency capping, analytics,and other ad serving functions

• Its not the websites who are doing the tracking• No mention of advertising supported content

Is information collection only by the large and powerful good for privacy?

Let’s recap

Do Not Track• Few (if any) restrictions on first party tracking• Additional power in hands of browsers and user agents• No requirement that browsers and user agents clearly

communicate DNT functionality• Little agency or mid to long-tail publisher involvement• No interest in understanding economic impact

Further consolidation of digital media, few privacy gains

about do not track

Regulators and privacy advocates are supposed to

care about competition

But few are openly talking about consolidation in the context of privacy

Why is that?

WHY?• Defining or quantifying tracking harms is difficult• Half-truth - brand risk already regulates first parties• Go after small and then focus on large (eventually)– Gives the impression that you’re ‘doing’ something– What problem are we solving?

Cynical Explanation

Fewer Marketplace participants means fewer companies to enforce

Big fines make headlines

…. And sometimes, make political careers

Why should agencies care?

Are you running a trading desk?

Are you interested in ad metrics?

Are you frequency capping?

Fewer media buying options+

Programmatic buying+

diff rule set for larger entities=

???????

What can YOU do?• Evaluate whether this will impact your business• Innovate – or at least support those who are• Self-police via the DAA / NAI Programs• Engage in the DNT discussions

Develop your own privacy resources… and “no,” having a single privacy person in huge agency holding company probably ain’t enough

Panel Questions

Why can't the industry associations just provide a one size fits all privacy policy for the agencies so we can move beyond all this stuff?

We're erring on the side of caution so are requiring all of our vendors to be DNT compliant by the end of

the year? Good idea?

What do we say when our largest client doesn't want us to

participate in the self-reg program (or privacy standards in general)?

Privacy Debate: Audience Questions?

Marc GromanNetwork Advertising Initiativemgroman@networkadvertising.org

Omar TowakalBlueKaiomart@bluekai.com@otawakol

Alan ChapellChapell & Associatesalan@chapellassociates.com@chapell68