How DOOH Can Remain Transparent in the Data Privacy Era
Published: November 1, 2022
Buckle up as we head into the Data Privacy Era.
Everyone in the AdTech industry has heard that Google and Apple are making updates to further protect personal privacy, limiting sharing of user data with third parties and ending cross-app tracking.
The rumors are that Privacy Sandbox, Google’s third-party cookie depreciation on Chrome, will be launched in Q3 2023. Apple has already begun the process, blocking many third-party cookies with its Intelligent Tracking Prevention (ITP) feature.
All of these privacy reforms will become a significant obstacle for brands in gathering consumer data. But how will it affect digital out-of-home (DOOH) advertising? And will the players need to make any big changes?
Luckily, most of the rules regarding data privacy have to do with the online world – for now. As we know, DOOH relies heavily on one-to-many targeting. The customer is given a choice to interact with these strategically-placed outdoor ads. In contrast, online advertisers analyze users’ Internet activity to show each user a specific type of ad based on their browsing behavior and other specific information.
These privacy reforms aim to avoid leaving the consumer in the dark before using their data willy-nilly. According to a KPMG survey, 86% of respondents said they are concerned about data privacy, while 78% expressed fears about the amount of data being collected. And 40% of the consumers surveyed don’t trust companies to use their data ethically. Most consumers are worried about the lack of transparency, and most believe (47%) their information will be in the hands of the wrong party, such as hackers. The consequences of years of consumers’ private information being collected without their consent have made it difficult for consumers to trust companies with their personal information. Advertisers must discontinue this narrative to regain consumer confidence and clarify that safely collecting data can make the advertising experience more convenient.
With growing fears from consumers, it is vital for DOOH media owners to demand transparency from their partners as much as possible. There’s a huge learning curve when shifting from static to digital, particularly in measuring audience awareness and engagement. Additional technologies – mobile location data, cameras, WiFi/Bluetooth sensors, vehicle traffic and people count, POS transactions, etc. – will be required to provide insights and analytics into measuring the effectiveness of each campaign. However, all DOOH players must collaborate in order to provide complete transparency to their consumers.
As for Ad Tech platforms, they must create a transparent marketplace for both the buyers and the owners. Advertisers need to know what they’re buying and how screen locations will benefit them, and sellers have to control their inventory and how much it sells for. In 2020, six prominent Ad Tech leaders, Adomni, Broadsign, Place Exchange, Verizon Media, VIOOH, and Vistar Media, saw a demand to bring standardization to venue data and bring DOOH to the future. This new set of standards guarantees there is an understanding between the buyer and seller throughout the DOOH process, which aims to improve targeting and discoverability within the programmatic DOOH industry.
Advertisers have a tremendous opportunity to gain consumer trust and loyalty with DOOH. They have to work with vendors and DOOH platforms to determine if there have been any changes to targeting, measurement, etc., to ensure it’s up to standards to reach consumers in a privacy-compliant fashion.
The rules around data protection and consumer privacy are changing. Large companies are scrambling to revamp their marketing strategies as they will no longer be relying on third-party cookies to target consumers with ads. Although this doesn’t necessarily affect digital out-of-home advertising, media buyers and owners need to reach people at the right time and place while ensuring fairness, trust, and transparency.