Why Streaming Companies Are Embracing Ads

Why Streaming Companies Are Embracing Ads

Advertising

Amazon got all the headlines with the news of its $8.45 billion acquisition of MGM on May 26. But days earlier, HBO Max made an announcement with equally big ramifications for streaming companies and advertisers: the launched of a tiered version in which consumers will pay less for a subscription that includes advertising. The news raised eyebrows. After all, HBO has essentially been known as something of a “walled-off garden”: freedom from advertising has been practically a calling card for the television network since its origination. The new offering is the latest example of a streaming company introducing ads — and a sign that HBO is paying attention to trends and consumer behavior. Let’s take a closer look at the news.

Ad-Supported Streaming Is Gaining Ground

HBO is clearly aware of a shift to more ad-supported services in the streaming realm. And as noted by CNBC, Nielsen data supports the uptick: “In January 2021, 34% of U.S. households that had video streaming capability used ad-supported streaming services, up 6 percentage points from January 2020 . . . That applies both to ad-supported on-demand video platforms and linear streaming.”

The advent of ad-supported services is just the latest chapter in the so-called streaming wars, which have been raging over the last year and a half as media and tech giants rolled out their versions of competitors to Netflix and Amazon Prime. Ad-supported tiers have become part of that contest, as streamers gauge what balance of ads consumers will tolerate — for a lesser fee.

HBO Max’s bid to navigate that balance is HBO Max With Ads, which at $10 a month represents a $5 discount to HBO Max’s ad-free subscription. Even with the discount, HBO Max is still one of the pricier alternatives out there. As CNET observes, “HBO Max’s $15-a-month ad-free pricing goes up against Disney Plus at $8 and Netflix’s cheapest plan at $9. Even among the services with discounted advertising-supported tiers, Hulu and Paramount Plus both charge only $6.”

But Julian Franco, vice president of product management at HBO Max, is confident that consumers will appreciate the dynamic their ad-supported platform creates (if at a higher price point): in Franco’s estimation, viewers won’t be bothered by the ads at all.

In some cases, that’s because even on HBO Max with Ads, there may not always be any. Franco explained that the amount of video advertising one sees — that is, the ad load — may vary depending on what one watches. Programs licensed to HBO Max, like Big Bang Theory, will have ad breaks. But programs that originated on HBO’s regular network won’t feature bumpers or spots during playback. Bottom line: HBO Max estimates that typical ad load for an ad-supported subscriber will clock in at just under four minutes per hour. If this projection holds true, HBO Max will be honoring its vow that it will have the lightest ad load in the streaming industry (NBCUniversal’s Peacock currently holds that crown, with an ad load of five minutes per hour).

Why Are Streaming Companies Introducing Ad-Supported Options?

In part, it all goes back to the streaming wars referenced earlier. More people are online watching content, a phenomenon that really picked up during the online surge of 2020. Streaming companies are competing for those eyeballs — and trying to entice viewers by offering ways those consumers can pay less.

Another factor: it costs a lot of money to operate a streaming service, whether you are producing original shows and movies (like Amazon’s new Lord of the Ring series) or buying rights to someone else’s content. Ads help defray those costs.

What’s Next: A Prediction

Will more streaming companies adopt advertising? Possibly so. But Netflix may not be able to pull it off. Netflix is spending billions to create new content, and the company has gradually increased subscription prices to recoup some of the costs. Netflix does not dare introduce advertising to its 200 million subscribers who are already paying a premium. But offering a lower-priced subscription with advertising may not attract enough subscribers at a time when its customer base is plateauing. I predict that Netflix will be sold to Apple. That’s because Apple has deep pockets and is eager to achieve brand cachet, which it lacks right now.  But Netflix has plenty of brand cachet. I could see Apple buying Netflix but allowing the company to keep its own name. Time will tell. But the day is coming.

What Advertisers Should Do

How should brands respond in this evolving environment? We suggest:

  • Consider the different options available. According to CNET, HBO Max intends to embrace some unconventional ad formats, including “pause ads,” which come up only after viewers have paused playback for at least 10 seconds, or a “branded discovery” option that places a sponsor’s banner at the top of a page of recommendations. Think about what format best serves your brand.
  • Use analytics to monitor the reaction to ads. The industry is still learning how receptive people will be to ads — and if different approaches, such as HBO’s effort to provide a more “high end” ad experience, engender a more positive response.

Contact True Interactive

Eager to learn more about this new world of advertising in the streaming world? Contact us. We can help.

Walgreens Doubles Down on Its Advertising Business

Walgreens Doubles Down on Its Advertising Business

Advertising

In December 2020, Walgreens launched its own advertising business, Walgreens Advertising Group, wag.  Now Walgreens is doubling down on advertising by expanding wag’s capabilities into over-the-top (OTT) services, connected TV (CTV) and traditional linear TV across 100 apps and 10 supply-side platforms, with an inventory of 2.5 billion daily impressions. This development demonstrates a growing trend of retailers using their customer data to provide advertising services.

What Walgreens Announced

Walgreens has touted wag as an effective way to leverage insights from 100+ million Walgreens loyalty members and one billion daily digital touchpoints with customers to create personalized advertising. wag provides businesses access to advertising platforms on Walgreens-owned and third-party channels, with the potential of achieving higher match rates versus the industry standard method of digital media buying. wag provides the ability to reach shoppers across digital display, video, social, streaming audio, email as well as Walgreens digital platforms and stores. On May 17, Walgreens announced that wag will extend its reach into television. According to Walgreens, the new capability consists of:

  • The addition of OTT & CTV inventory accessible via the wagDSP — a proprietary programmatic buying technology that integrates Walgreens customer and transaction data with dynamic creative capabilities and real-time optimization.
  • A first-to-market collaboration with OpenAP, and integration with the OpenID that enables brands to reach audiences powered by Walgreens first-party data as part of their television buys. Brands will be able to collaborate with Walgreens to execute against deterministic audiences now, and closed loop measurement will be in place by the start of the broadcast year.

Inventory is sourced through 100+ apps and 10 supply-side platforms with 2.5 billion+ available impressions daily, including access to inventory from key platforms.

Brands activating against this inventory can do so with all of the same functionality, optimization, and measurement capability as in digital video and display executed through the wagDSP. This enables people based media targeting, with measurement and real-time optimization.

Why the Expansion of Walgreens Advertising Group Matters

This news matters for two reasons:

  • wag’s expansion is part of a broader effort by retailers to capitalize on their own-first party data to provide advertising services. Retailers such as AmazonDollar TreeKrogerMacy’sTarget, and Walmart are all monetizing their first-party customer data by building ad businesses. Each retailer can give advertisers access to different types of consumers. For instance, wag gives advertisers access to consumers in the health and wellness space, and Macy’s is geared toward businesses wanting to reach fashion-conscious shoppers. We expect more of these platforms to emerge as businesses seek alternative ways to reach consumers amid the demise of third-party cookies, which are crucial for third-party ad targeting. With third-party ad targeting across the web threatened, platforms that give advertisers entree to shoppers within retailers’ walled gardens are more appealing.

What Advertisers Should Do

We suggest that advertisers:

  • Consider retailer-based ad networks as a complement to your existing digital ad strategy, not as a replacement. If your strategy focuses on Facebook and Google, for instance, don’t move your ad dollars over to a retailer network. Remember that Facebook and Google also already offer proven advertising products that capitalize on their vast user base. For example, location-based digital advertising tools help strengthen Google’s advertising services at the local level.
  • Do, however, monitor the effectiveness of your advertising on Facebook and Google amid the demise of third-party cookies and the onset of Apple’s App Tracking Transparency, which includes more privacy controls that may make Facebook ads less effective (which remains to be seen).
  • Learn more about the ad products that might apply to you – and those products are evolving, as the expansion of wag demonstrates. In addition, we recently blogged about how Amazon is creating more ad units. The time may come soon when advertising on the web means constantly capitalizing on walled gardens’ offerings.
  • Work with an agency partner that knows the terrain. For instance, at True Interactive, we help businesses advertise through connected TV, complementing our deep expertise with online advertising on Google, social media, and the retailer networks such as Amazon and Walmart.

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

Why the Google Ad Juggernaut Is Back

Why the Google Ad Juggernaut Is Back

Google

Google’s advertising business has come roaring back. In 2020, Google found itself to be in the unusual position of seeing a downturn in its advertising revenue for the first time in 29 years. That’s because a pullback in ad spending among Google’s clients, many of whom come from a travel/hospitality industry ravaged by the COVID-19 pandemic, hurt Google even as ad competitors Amazon and Facebook were reaping a windfall. But Google’s recent financial results show that the downturn was temporary, and Google will continue to exert an enormous influence on the advertising world.

Recently, Google’s parent firm Alphabet announced quarterly earnings that exceeded investors’ expectations. Although the growth of Google’s cloud computing business had a lot to do with Alphabet’s success, the rebound of Google advertising played a big role, too. Google’s advertising revenue rose to $44.68 billion for the first quarter of 2021, up from $33.76 billion the year before, prompting CNBC to note that the ad revenue spike was the fastest annualized growth rate in at least four years. So, what can we conclude form the turnaround?:

  • Google is benefitting from the popularity of video. YouTube earned $6 billion in revenue for the quarter, increasing 49 percent from a year earlier. Earlier in 2021, we predicted a surge in online video consumption, a reality that has been borne out during the pandemic. To be sure, online video is much bigger than YouTube, as the success of TikTok demonstrates. But as Google reported later in 2020, during the pandemic, people were turning to video more as a learning tool when in-person learning options were shut down, which benefits YouTube given the amount of instructional content that exists there. The only question that remains now is whether the popularity of online video, and, by extension, YouTube, will remain as strong in a post-pandemic world.
  • Google’s Knowledge Graph is becoming more powerful. The Google Knowledge Graph consists of all the sources of information that Google draws upon to provide search results to queries. It’s a wonky concept that people in the search engine optimization (SEO) industry follow closely. But the Knowledge Graph applies to advertising, too. When Google provides answers to searches such as “Where can I find a plumber near me?” or “Where can I find Anime T shirts?” Google draws upon sources such as Google Maps, Snippets, and a company’s Google My Business (GMB) listings (among other sources) to share information about relevant businesses. Well, guess what? Google is doing such an effective job tapping into its Knowledge Graph to serve up answers on search engine results pages (SERPs) that people are finding answers to what they need on Google without needing to click anywhere else. More eyeballs on Google SERPs means that Google can deliver a larger audience to advertisers through Google Search. As Google becomes an even stronger all-purpose search tool (hard to believe given Google’s dominance in search already), the company becomes even more valuable to advertisers.
  • Google is creating its own future. As widely reported, Google has intensified its war against third-party cookies that are essential for businesses to deliver ads based on a person’s browsing behavior across the web. As Google forces the demise of third-party cookies, advertisers will need to tap into businesses that possesses first-party data (such as Amazon) in order to continue to deliver effective personalized ads. And as it turns out, Google is sitting on a lot of first-party data through that Knowledge Graph I mentioned. When people use Google Maps, YouTube, and other Google properties, they give Google a ton of information about their search and purchase habits, which Google uses to create better ad products. According to Brendan Eich, cofounder and CEO of the privacy-focused browser company Brave, “The reality is that Google already has first-party access to nearly every site—via Google Analytics, ad words, Google Tag Manager, Google Maps, etc.—and that its users are being data mined for profit.”

All of this is not to say that businesses need to dial up their advertising on Google. We’ve always recommended that advertisers go where their audience is, period. At the same time, Google has demonstrated the wisdom of businesses taking the long view with their advertising. The Big Tech ad platforms – Amazon, Facebook, Google, and Microsoft – have carved out a powerful space in the advertising world. Those companies are all big targets for critics, which has resulted in antitrust action and negative PR. But the negative PR can lead a business around by the nose, too, resulting in short-sighted thinking. The ad giants are not going away. If they’re important to your business – and I suspect they are if you’ve read this far into my post – don’t pump on the brakes in 2021.

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

Photo by Brett Jordan on Unsplash

Why the Rise in Zero-Click Searches Matters – to You and Google

Why the Rise in Zero-Click Searches Matters – to You and Google

Google Search

Google has become so powerful that it’s the subject of anti-trust lawsuits at the federal and state levels. That’s probably one reason why Google is feeling a bit touchy about a recent SparkToro report that 65 percent of all Google searches don’t click through to a website. Instead, people are finding answers to what they need on Google’s search engine results pages (SERPs) without needing to click anywhere else. Let’s take a closer look.

What Exactly Is a Zero-Click Search, and Why Does It Matter?

A zero-click search happens when someone searches for answers to a question – say, “Where is the closest car rental?” or “When is Earth Day 2021?” – and then finds the answer to their question on a SERP without clicking on a website for further information. For example, let’s say I find an answer to “Where is the closest car rental?” with the following local pack search result:

Google Local Pack

If I don’t bother clicking through to a website in the above local pack, and instead find what I need from the local pack itself, I have performed a zero-click search. And a SERP may display answers in many other ways, such as a featured snippet, image carousel, Google Ad, Google News, featured video, and more.

The term “zero click” was coined by SparkToro’s Rand Fishkin after SparkToro reported in 2019 that half of searches on Google do not result in a click on a website. Two years later, that number has climbed to 65 percent. Here’s what SparkToro said:

From January to December, 2020, 64.82% of searches on Google (desktop and mobile combined) ended in the search results without clicking to another web property. That number is likely undercounting some mobile and nearly all voice searches, and thus it’s probable that more than 2/3rds of all Google searches are what I’ve been calling “zero-click searches.”

This chart illustrates the findings:

SparkToro Zero Click chart

Industry watchers follow the zero-click phenomenon because it underscores the importance of complementing your website content with Google Ads, featured snippets, and many other types of search results that make your brand more visible on Google Search, Google Maps, and other elements of the Google universe.

Why Do Zero-Click Searches Matter to Google?

The rise of zero-click searches is a two-edged sword for Google. On the one hand, the SparkToro report shows why businesses need to choose Google as their home base for creating paid and organic content. More eyeballs on Google SERPs means a bigger audience for advertisers.

But the downside is that Google looks too powerful. This kind of attention does not serve Google well at a time when the company is fighting anti-trust lawsuits. In fact, Google has voiced opposition to the research. In a recent blog post, Google said,

This week, we saw some discussion about a claim that the majority of searches on Google end without someone clicking off to a website — or what some have called “zero-click” searches. As practitioners across the search industry have noted, this claim relies on flawed methodology that misunderstands how people use Search. In reality, Google Search sends billions of clicks to websites every day, and we’ve sent more traffic to the open web every year since Google was first created. And beyond just traffic, we also connect people with businesses in a wide variety of ways through Search, such as enabling a phone call to a business.

Google went on to knock the research SparkToro used. Among other things, Google said that SparkToro did not properly account for people navigating directly to apps or refining their queries after what appears initially to be a zero-click search.

In addition, as we have blogged, Google is trying to encourage businesses to adopt Google’s tools (under development) to maximize the value of their first-party data on their websites. If 65 percent of searches are not resulting in clicks on websites, the value of first-party data may get called into question.

What Should Brands Do?

It’s always been a good idea to balance the content you publish on your website with content across the digital world ranging from your Google My Business (GMB) listing to social media. That principle does not change in a zero-click world. We suggest:

  • Keep close tabs on your website data. Are you satisfied with visits, views, and click-through rates on your website? Are they staying at a level you want, going up, or going down? If your site is not performing where it should, first examine what needs to be fixed using tools such as website audits. You may need a tune-up, anyway.
  • Do build up your GMB listing. Why? Because according to Moz, your GMB listing is the biggest local search ranking signal (followed by reviews and proximity). If organic queries are increasingly going to your GMB and staying there, then make sure you’ve optimized your GMB content – including images, customer ratings/reviews, and location data – to be found.
  • Link your GMB account to your Google Ads account. Linking your GMB account to your Google Ads account makes it possible for your ads to appear with location extensions, which encourage customers to visit your storefront. Through location extensions, customers can see your ads with location information such as your address. And then they can get more information about your location by clicking on location extensions.
  • Make sure you’re capitalizing on Google ad products throughout the Google ecosystem. With Google keeping more searchers on Google and its properties, it behooves advertisers to capitalize on where that search activity is occurring.

Finally, it’s always a good idea to watch how Google develops its tools for maximizing the value of paid and organic content. Don’t be surprised if Google doubles down on the importance of personalizing content with first-party data.

Contact True Interactive

At True Interactive, we know how to help businesses navigate the complex waters of online advertising, including advertising on Google. Contact us. Learn more about our work here.

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Why Macy’s Launched an Online Advertising Platform

Why Macy’s Launched an Online Advertising Platform

Advertising

Macy’s is capitalizing on a big-time trend in online advertising. The retailer recently discussed with investors the growth of an in-house online media network that sells ads to brands. The Macy’s Media Network, launched in August 2020, has already generated $35 million in revenue. The growth of the network underscores how big retailers are becoming advertising partners.

The Macy’s Media Network

Here’s how the network works:

  • An in-house Macy’s team offers advertisers digital formats like sponsored product, website display, and physical media ads.
  • Macy’s draws on all the data it has accumulated about Macy’s customers (including customer behavior data from the Macy’s website – known as first-party data) to ensure that the above ad formats target customers based on their shopping habits. As Macy’s says on its website, “We connect our shoppers to your brands through a wide range of advertising services. And it’s all driven by data . . . First-party data helps us find your perfect audience, whether it be on or off our site.”
  • The above ads appear on the Macy’s website or off it.
  • Macy’s describes its audience as “Fashion-focused customers who LOVE to shop.”

If the above approach already sounds familiar to you — well, it should. Macy’s is following a model that Amazon has already mastered via Amazon Advertising and that Walmart is developing with Walmart Connect. In addition, retailers ranging from Kroger to Target are building their own networks in an attempt to put their own first-party data to work and generate more revenue streams in a digital-first world. The two clear leaders are:

  • Walmart Connect. Walmart is just beginning to flex its muscle to provide advertising products that are similar to Amazon’s. What makes Walmart Connect stand apart is the way Walmart can also tap into shopping purchase behavior inside Walmart stores.

Why would Macy’s enter a market that is already becoming crowded? Because Macy’s, like any retailer with an ad platform, has something no one else has: its own first-party data. The data that Macy’s collects about its own customers gives potential insights into a targeted audience consisting of shoppers who are especially interested in beauty and fashion.

Here is what we believe will happen with retailer-based ad networks:

  • They will proliferate. Retailers are under tremendous pressure to improve their margins. As more shopping behavior shifts online, it makes sense to wrest more value from their customer data.
  • They will become more specialized. Macy’s, for instance, is focused on fashion and beauty customers. Consider how many other retailers could build up ad networks. Best Buy could offer services for advertisers wanting to reach consumers of high-tech consumer products, for example.

What Advertisers Should Do

We suggest that advertisers:

  • Consider retailer-based ad networks as a complement to your existing digital ad strategy, not as a replacement. If your strategy focuses on Facebook and Google, for instance, don’t move your ad dollars over to a retailer network. Remember that Facebook and Google also already offer proven advertising products that capitalize on their vast user base. For example, location-based digital advertising tools help strengthen Google’s advertising services at the local level.
  • Learn more about the ad products that might apply to you – and those products are evolving. For instance, Amazon recently launched Amazon Live, which makes it possible for retailers to use livestreams to sell products – part of the live commerce trend we blogged about recently. But if live commerce is not your cup of tea, ad products such as Display and Sponsored Brands may be more appealing.

Meanwhile, Macy’s expects more growth for its own ad platform. In a recent call with investors, Jeff Gennette, Macy’s chair and chief executive officer, told investors, “Looking ahead, we see a lot of promise in our ability to expand our monetization engine, while cultivating greater customer engagement with more relevant and personalized content and offers.”

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

Walmart Asserts Its Leadership in Advertising

Walmart Asserts Its Leadership in Advertising

Walmart

Walmart is thinking big.

After a year during which the world’s largest retailer doubled ad revenue, Walmart is partnering with advertising technology company The Trade Desk to build a new advertising platform. The goal? To make Walmart an even bigger player in the advertising landscape than it is today, and take on rival Amazon as an advertising leader. Read on to learn more.

What’s In A Name?

The initiative begins with a name change. Janey Whiteside, chief consumer officer at Walmart, has announced that the retailer is rebranding its media business. Goodbye Walmart Media Group. Hello Walmart Connect. The new name hints at the sea changes in Walmart’s approach to advertising, including an expansion that links the retailer’s advertising business to in-store media.

Walmart Connect

It’s a canny move. While many retailers ignore their physical properties by conflating digital with online-only, Walmart is integrating digital with brick-and-mortar, in the process competing with Amazon’s muscular online presence. According to Reuters, the retailer will sell ads on more than 170,000 screens—including televisions and self-checkout kiosk screens—located inside more than 4,500 U.S. stores. Mark Boidman, managing director and head of media and tech services at the independent investment bank and financial services company PJ Solomon, believes the plan has promise. He notes:

The ability to use on-premise media, and in particular digital signage and digital out-of-home media, allows brands and retailers to be reactive and provide contextually relevant content and advertising, Think coffee promotions in the morning or marketing hot chocolate or snow shovels ahead of a big snow storm.

That means the messaging can’t — and won’t — be one-size fits all. After all, shoppers in Florida are unlikely to relate to snow shovel ads at any time. Walmart understands this; as reported in Ad Age, brand messages will be delivered specific to date, time, and geography.

Part of Walmart’s initiative also capitalizes on the company’s access to in-store and online shopper data. As the Wall Street Journal reports, this trove of data may well give Walmart’s demand-side platform an advantage over that of rival ad sellers, and help the company effectively compete for a bigger share of marketer dollars.

Implications of Walmart Connect for Brands

Walmart wants to share its data riches — with brands. By doing so, Walmart creates a win-win situation in which consumer needs are anticipated and marketers can remain agile in the face of changing need. “Walmart is pioneering a new frontier in digital advertising, providing marketers with access to shopper data for the first time, in a way that both protects consumer privacy and improves the consumer experience, Jeff Green, CEO and co-founder of The Trade Desk, noted in a statement. “In doing so, marketers will be able to create much more refined, relevant and measurable advertising campaigns, which can be adapted on the fly.”

What would that adaptation look like? For starters, marketers can target ads to audiences based on data about shopping behavior. In addition, advertisers can monitor sales in brick-and-mortar Walmart stores in real time, subsequently tweaking marketing campaigns as needed.

“We have this unparalleled source of data that we can bring to bear,” Whiteside says. “Who else can actually tell you if a customer saw something online and then a week later, physically bought it in the store?”

Smarter Advertising across the Web

Walmart isn’t just sharing data with brands available in Walmart stores. The company’s demand-side platform will allow brands not even sold at Walmart to use the trove of data — for a price — to better understand consumer habits, and subsequently craft messaging appropriate to those shoppers. In the past, most advertisers used the company’s data to expose shoppers to ads on Walmart properties — Walmart’s website and app, for example. The retailer means to expand that reach across the entire Web.

Contact True Interactive

In-store digital advertising. Capitalizing on consumer data so that both brands and shoppers benefit. In its aspirations to be a media powerhouse, Walmart is thinking outside the box to bring digital advertising to the next level.

Learn more about our expertise with Walmart Connect here.

The Consumer Privacy Rights Act: Advertiser Q&A

The Consumer Privacy Rights Act: Advertiser Q&A

Advertising

The state of California has passed the Consumer Privacy Rights Act. This legislation allows consumers to prevent businesses from sharing personal information and limits businesses’ use of personal information including precise geolocation, race, ethnicity, and health information.

It’s important to understand the Consumer Privacy Rights Act. California is a bellwether state. What happens in California may influence how other states enact consumer privacy laws. With that in mind, I have provided answers to some commonly asked questions.

What is the Consumer Privacy Rights Act?

The Consumer Privacy Rights Act (CPRA), also known as Proposition 24, is an update to the California Consumer Privacy Act (CCPA). The CPRA provides more safeguards and protections to consumer privacy.

What was the original California Consumer Privacy Act supposed to do?

The CCPA, which became law on January 2020, granted new rights to California consumers. The CCPA imposed requirements on how businesses collect, use, and disclose information about California residents. For instance, businesses subject to the CCPA must provide notice to consumers at or before data collection. Read more about the CCPA on our blog.

What does the Consumer Privacy Rights Act do?

The CPRA makes the CCPA stronger. Here are some specific features:

  • Greater protection of California residents’ personal information, ranging from their location to their ethnicity.
  • Tougher safeguards to protect minors’ information. For instance, the law requires businesses to include an opt-in requirement to sell the data of consumers under age 16.
  • The establishment of a California Privacy Protection Agency to enforce the above requirements, which will be funded by up to $10 million per year.

Having an agency dedicated to CCPA will likely lead to more businesses in compliance and enforcement of penalties.

Does the Consumer Privacy Rights Act apply only to businesses in California?

The CPRA may apply to you no matter where you are located. If a California resident can access your website, compliance is required. This was true with the original CCPA as we blogged. Those requirements remain very much in force.

When does the Consumer Privacy Rights Act go into effect?

Most of its provisions will go into effect on January 1, 2023. Meanwhile, the CCPA remains in effect.

What should I do about this?

Do your homework now. Remember, the CCPA is the law – so it’s important to ensure compliance on an ongoing basis. At the same time, make sure you understand the additional provisions of the CPRA.

Understand the tightened requirements. For starters, double check the strength of your opt-ins and opt-outs. Do you have a process in place to quickly address privacy requests? Err on the side of being more conservative in consent for data capture.

Take a closer look at how the law defines personally identifiable information (PII). The definition is becoming more complex as privacy law evolves. Now is a good time to examine how you are using PII.

Make sure you have a clear snapshot of how you are doing business with California residents.

Consult with your advertising partners, including any ad tech firms you work with, to ensure they are compliant with the privacy law.

How do I ensure I am compliant?

A number of security firms provide compliance services. Unless you have a strong in-house security team, your best bet is to look for compliance help from a specialist. Also, here is a resource for additional insight:

The CPRA Will Bring New Rights, Responsibilities and Regulators to California Data Privacy Law,” the National Law Review.

Contact True Interactive

To manage advertising online effectively, contact True Interactive. We’re here to help!