What Effect Will CCPA Have on the Advertising Industry?

This On Privacy series is brought to you by Inscape, the TV data company that brings glass-level insights from 14 million opt-in VIZIO TVs. Learn more about how ACR data is changing TV here.

Before the global pandemic started, privacy was the hot topic for advertising. The European Union's Global Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) made it clear that that some of the previous methods of targeting consumers wouldn't cut it anymore. As a result, everyone from publishers to brands, agencies and tech vendors have had to make adjustments to how they advertise. And despite additional concerns around COVID-19, that privacy focus remains across the industry.

In the video below, Jeff Minsky, lead analyst at MediaVillage and editor of "the Myers Report," explains how CCPA particularly impacts advertising.

CCPA has ramifications for targeting for audience development in programmatic, since it affects the ability to utilize data that you haven't personally collected. Following CCPA guidelines, you have to make sure that if you are asking the consumer for data and they say no, it doesn't impact the level of service they're receiving as a result -- it must be the same experience for those who opt in and those who opt out. You also have to guarantee that if someone says, “I do not want to be included in your database,” they are actually taken out of the database.

It would be manageable if there was a federal privacy law (rather than state-by-state) balanced between the needs of the consumer as well as the needs of the economy and business. However, in our current climate, there's a very low likelihood of a federal privacy law until the elections are over and probably the earliest sometime early to mid-2021. So starting this January and continuing on through 2020, anyone utilizing data has to be familiar with the CCPA, as well as the Nevada law, the Maine law and laws that are popping up statewide everywhere.

Some are more favorable, some are less so, and it becomes an administrative nightmare to a certain extent, as the industry's had to witness so far in 2020 along with the other curveballs introduced since March.