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Decoding the AdTech Privacy Puzzle

Aaron GoodmanSenior Counsel IIPublicis Groupe

Erica WalkerPrivacy Counsel

Viacom

Julie MayerSenior Privacy Manager

Microsoft

Steven WernikoffPartner

Honigman

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Decoding the AdTech Privacy Puzzle

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The Beginning

● Direct deals between Advertisers and Publishers

● No direct connection between Advertiser and Audience

● Use of and access to Audience data is limited:

− Buying inventory as a proxy for Audience

• E.g., magazine publisher tells Advertiser the

demographic of their subscriber base, Advertiser relies

on that to make decisions.

Advertiser

Publisher(print,broadcast, internet /online, etc.)

$ + Ads

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● Ad Exchanges auction off ad impressions in real time (“RTB” = Real Time Bidding)

● DSPs receive and respond to bid requests from the Exchanges

● Data about the ad inventory and the user is provided with the bid request

● Can be supplemented with data from the advertiser or third party data providers

● The data informs the decision to bid and is used to target at the individual level: (User = male, age 25-30, located in Chicago, income range $40-50k; would you like to place a bid?)

● Entire process takes milliseconds from time user goes to website to when ad loads

The Ecosystem Evolves (RTB)

Advertiser /Media Agency

DSP

Ad Exchange 1 Publisher

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Publisher 2

Publisher 1

Ad Exchange 2

AdNetwork

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AdNetwork

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The Ecosystem Evolves (RTB)

Ad Exchanges (Real Time Bidding)

PublisherBuyer

Bidder Exchange

Bid Request (could include: site, content, user, device, location, etc.)

Bid Response (bid amount, creative attributes, ad markup, etc.)

Ad Request

Ad

$$

Ads

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Many Different Players Performing Many Different Functions

provide ad content and sometimes data about their customers (advertiser “First Party Data”)

plan and buy media for client ad campaigns

facilitate access to the ad inventory, have relationships with a number of publishers and allow advertisers to bid on that inventory in an auction: “Someone located in Chicago and using an iPhone is about to view a 30 second video ad on xyzsite.com, how much would you like to bid to place your ad there?”

own and operate the websites and mobile applications the ads eventually appear on

store ad content, respond to calls from publisher sites to serve up ads to users. Collect various pieces of data in logs – e.g., what site the ad was served on, IP address of user, clicks, views, etc.

Companies that take data from advertising campaigns and run some sort of measurement / analytics. Conversion (online to offline)? ROI? Viewability? Fraud?

sell audience segments: “Want to reach women age 25-30 in the midwest who are sports enthusiasts and have a household income of greater than $50,000 – that will cost $0.20 per ad.”

Advertisers Media AgenciesDSPs / Ad Exchanges Publishers Ad Servers

Measurement / Research & Analytics Providers Data Suppliers

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What Is Data Used For

Target the right audience – spend money delivering ads to likely buyers / interested buyers

Limit the amount of times a particular user may see the same ad

Which ad creative leads to most conversions (sales) / which websites lead to the most conversions

Certain times of day better than others? Mobile App better than desktop?

Connect with your current customer base / exclude your current customer base

The list goes on . . .

Data is used to help Advertisers run better / more efficient ad campaigns (some examples):

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Decoding the AdTech Privacy Puzzle

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Cookies

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ICO, CNIL and German DPA cookie guidance

Issue France U.K. Germany

Implied consent or using T&Cs

No No No

Cookie walls No “On the fence” No

Analytic cookiesrequire consent?

Not always Yes, but maybe not No

How prominent? No guidance Should not emphasize “agree”

Banner with “OK” button not sufficient

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Can Programmatic Advertising Survive GDPR?

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Decoding the AdTech Privacy Puzzle

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Do Not Sell Opt-Out

Statutory definition of sale = “selling, renting, releasing, disclosing, transferring, or otherwise communicating for monetary or other valuable consideration.”

• Consumers have the right to opt-out of the “sale” of Personal Information• Right to opt-in to “sale” of Personal information of children between the ages of 13-16

Impacts on AdTech:

• Third Party v. Service Provider• IAB Framework

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Access & Deletion RequestsData Subject Rights

• Right to know how Personal Information is collected, sold, or disclosed• Right to access Personal Information a business has about the individual• Right to request deletion of Personal Information

Impacts on AdTech

• Verification • Data Mapping

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Decoding the AdTech Privacy Puzzle

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Questions?

Aaron Goodmanaaron.goodman@lionresources.com

Erica WalkerErica.Walker@Viacom.com

Julie Mayerjumay@microsoft.com

Steven Wernikoffswernikoff@honigman.com