🌯 CTV’s CCPA Compliance Issues; The IAB’s Diligence Platform; TechCrunch Discontinues TC+; Hulu Airs AI-Generated Hamas Ad

AdMonsters Wrapper: The weekly ad tech news wrap up
This Week
February 05, 2024
Streaming Companies CCPA Compliance Issues
The IAB's Diligence Platform
TechCrunch Discontinues TC+ Subscription
Hulu Airs AI-Generated Hamas Ad
Streamers in California Attorney General's Crosshairs
Image sourced from Shutterstock
According to some projections, CTV advertising is on the rise, and it is projected to reach nearly $30 billion this year and almost $38 billion by 2026. That uptick in spending is primarily due to data that allows marketers to target the right household at the right time. But are streaming providers complying with the California Consumer Privacy Act (CCPA)? Specifically, are they making it easy for consumers to opt out of selling their data?

On January 26, California Attorney General Rob Bonta promised an "investigative sweep" of the industry.

Under the CCPA's right to opt-out, businesses that sell personal data or share personal information for targeted advertising must permit consumers to exercise this right. Exercising this right should be easy and involve minimal steps.

The Attorney General states in his announcement, "Consumers using a SmartTV should be able to navigate to the settings menu in a streaming service's mobile app and enable the service's "Do Not Sell My Personal Information" setting.

According to a Cybernews story from November last year, most streaming companies sell user behavior data on and off their apps (although the article cites a Common Sense Media report from 2021).

A key question will be the ease with which consumers can opt-out. Take Netflix, which tells its users that they can "opt out by selecting the appropriate profile and changing the "Matched Identifier Communications" setting in the "Privacy and Data" or "Privacy and data settings" menu of the "Account" section of our website." Let's see Grandma make sense out of that! Bonta may have a point. — SS
Speaking of Privacy, IAB Introduces the IAB Diligence Platform
At its Annual Leadership Meeting last week, David Cohen announced the IAB Diligence Platform, a new privacy platform designed to help publishers (and other companies) assess their compliance with the myriad of privacy regulations. The platform also considers vendors' compliance levels via a vendor compliance hub tool.

"Users will be able to complete the diligence questionnaire once and share it with the partners on the platform as they engage in digital ad transactions. By moving the industry towards the Platform, there will be a strong network effect to drive efficiency and improve deal speed," the IAB writes in a blog.

Built on SafeGuard Privacy, a company co-founded by industry veteran Richy Glassberg, the platform promises to save publishers and AdOps teams countless hours of headaches. "IAB members that are already on the SafeGuard Privacy privacy platform are seeing 80%+ efficiency gains by managing multiple laws concurrently and automating vendor compliance." — SS
Amidst Layoffs, TechCrunch to Discontinue TC+ Subscription
TechCrunch announced that it will discontinue its subscription product, TC+, following the recent layoff of eight staffers. The decision, outlined in an internal memo reported by Adweek, is part of the site's strategic efforts to refocus coverage on Silicon Valley investors, founders, and startups.

"We are making strategic changes at TechCrunch to strengthen our core product and set up the business for the long term, including leaning more heavily into original reporting and content as well as sunsetting TechCrunch+ in the coming weeks," said a TechCrunch spokesperson.

The industry is witnessing a trend of dying subscription programs, with Time and Quartz terminating digital subscriptions in recent years and Business Insider and Gannet reducing their paywalls. Trevor Abbott, Director Of Business Development at AdMiral, the Visitor Relationship Management Company, believes this is not a question of whether paywalls work. He asserts that "the better question is what is the value exchange being created and conveyed and does the price point match up with the perceived or actual value being offered."

Furthermore, Abbott suggests reconsidering paywalls as a universal solution or using "meter-stop-rate" as the standard metric is flawed and outdated. Better indicators exist to grasp the relationship between a publication and a visitor, yielding superior and more enduring results. Only some content readers will become subscribers, and that's acceptable; engage with visitors on their terms instead of forcing a mismatched solution. — AB
Hulu Aired AI-Generated Anti Hamas Ad
The generative AI misuse trend reared its ugly head again in the form of a tone-deaf ad. Hulu aired an AI-generated anti-Hamas ad portraying an idealized Gaza, suggesting it could be a paradise without Hamas. The 30-second spot starts as a tourism ad with palm trees and coastlines, showcasing five-star hotels and happy children. Suddenly, it shifts, showing fighters, weapons, and children with guns, claiming this is what Gaza could have been without Hamas.

Hulu isn’t the first brand to use generative AI to create an ad; they won’t be the last, but companies must be careful how they use the tech. While not a deepfake, this ad illustrates how swift progress in generative AI enables the creation of convincing and emotionally manipulative propaganda. Even when individuals know its artificial nature, the content can still influence them. We’ve seen it in action when Sen. Richard Blumenthal played an AI-generated recording of himself to start a hearing about AI regulation. It is easy for Gen AI to mimic reality despite its propensity to spread misinformation. — AB
One X Post
Why Is CTV So Complex?
CTV is overly complex because everyone thinks they have a differentiated offering and unique audience trying to maintain themselves as walled gardens. An interoperable framework based on open standards to support addressability and reconciliation across CTV (and linear) would create a rising tide for everyone. This was satisfied in linear decades ago because the industry agreed on standards.
Worth a Listen
The AdTechForum Series 1: Episode 2 (Creative)
The AdTechForum is back with Episode 2 of their 5-part video series on creative ad tech, sponsored by Flashtalking. In a dynamic rapid-fire discussion Matt Yager, Performance Creative Lead, shares amazing insights on the future of creative testing and advertising optimization.
Upcoming AdMonsters Events

Facebook   Twitter   LinkedIn