By Lou Mastria
Big Idea: Establishing consistent privacy practices and transparent data use is essential for fostering user trust and maintaining relevance in the rapidly growing streaming industry.
Sheila Colclasure, global chief data integrity & public policy, Interpublic Group moderates a DAA Summit 24 panel centered around connected devices and privacy.
Brands and consumers are engaging more and more in streaming media. As responsible digital advertisers, this new/emerging part of our ecosystem is finding ways to balance innovation with privacy best practices to build a sustainable future.
In a DAA Summit 24 panel discussion titled, “Following the Spend: Why We Must Get Privacy Right in CTV,” led by Interpublic Group’s Sheila Colclasure; with panelists Ashok Chandra, associate general counsel at Attain; Jessica Luther, program manager at FreeWheel; and Tim Nagle, associate general counsel at Dentsu; they highlighted privacy concerns, regulatory compliance, privacy best practices and challenges in the streaming and connected television (CTV) environments.
New Guidance for Inserting ‘AdChoices’ Notices and Controls in Streaming Environments
In 2023, the Digital Advertising Alliance (DAA) announced best practices for extending notice, enhanced notice and consumer control over data collection for interest-based advertising in such streaming environments. Creative guidance for implementing these best practices is expected to be announced by DAA later this year. (A preview was provided by DAA CEO Lou Mastria and DAA Counsel Robert Hartwell of Venable LLP the previous day of the Summit’s Workshop Sessions.) The DAA’s forthcoming Creative Ad Specification for CTV aims to promote a consistent consumer experience with the AdChoices Icon to make access to privacy information and control settings more intuitive and accessible for responsible companies, enhancing user trust.
“The key innovation in the best practices is how do we get enhanced transparency to someone in various different contexts,” Hartwell said during his session. “So what we did when trying to put together these best practices was to think through, how can we make this work for consumers in the way that the icon has worked on the web, in mobile, in various different arenas.”
The DAA’s guidance has come at a very timely moment in the evolution of the CTV ecosystem.
“Hopefully we’ll arrive at some sort of industry standard so that your experience in the privacy space is going to be the same regardless of which channel you’re on,” Nagle said, reflecting on the complexity of data flows and the technologies deployed in streaming – one reason why DAA guidance is needed to help drive the market toward existing and well-understood best practices for responsible consumer engagement.
Tim Nagle, Associate General Counsel (Privacy), Americas, Dentsu
The speakers stressed the need for adapting privacy notices for streaming, addressing regulatory uncertainty, and maintaining advertising relevance. They also pointed out the unique relationship that TV has with its audience, necessitating a tailored privacy approach, not unlike browser-based display ad notices in its reliance on the AdChoices icon, but distinctly and uniquely applied to streaming interfaces with the viewer.
Streaming Growth, Privacy, and Curation
Colclasure highlighted the explosive growth of streaming, noting that it has grown almost 300 percent in the past four years and is expected to grow between 15 and 20 percent annually through 2027, surpassing $40 billion.
“Advertising is the voice of commerce,” Colclasure said. “It’s where people are, it’s where eyes are. It’s the way that people are, in fact, turning on and taking in content. And the work that we do enables all of that content – enables the access.”
The discussion pivoted to the potential for privacy to enhance the streaming experience. Attain’s Ashok Chandra discussed the importance of educating consumers on how responsible data collection benefits the entire ecosystem as part of privacy communications, where and when consumers are asked to make choices.
Consistent Viewer Experiences
Luther highlighted the need for creating consistent viewer experiences across various CTV platforms. Consistency not only enhances user satisfaction, but also helps maintain user trust. The panelists discussed the tension between providing relevant ads and respecting user privacy, particularly in the context of a connected TV in a living room. The goal is to present ads that are useful and relevant without disrupting the viewing experience – particularly as ad-subsidized (and often free-to-the-user) video streaming grows in popularity.
Jessica Luther, Program Manager - Trust and Standards, FreeWheel
Nagle pointed out that unlike web pages, where users can easily navigate away, TV shows often have a more captive audience. Therefore, advertisers must balance delivering engaging content with respecting the viewer’s privacy preferences where such content is presented.
Robust Privacy Safeguards Pay Dividends beyond Consumer Trust
The panel also discussed the evolving regulatory landscape, particularly the implications of the Video Privacy Protection Act (1988), a federal law that governs the sharing of video viewing data. With the rise of video-related class actions, with or without merit, it is crucial for AVOD (ad-supported video on demand) and SVOD (subscription video on demand) providers to implement robust safeguards, even as court decisions have appeared to limit the plaintiff bar in such matters.
Ashok Chandra, Associate General Counsel, Attain
Chandra stressed the importance of transparent information sharing and obtaining explicit consent from users. Panelists unanimously supported consistent privacy practices across all CTV platforms, so viewers increasingly recognized their choices. Leveraging the highly recognized AdChoices icon is part of this enhanced transparency.
“It’s incredibly important to just make sure the consumers feel that they’re safe. Having consistent frameworks in place makes sure that consumer data is protected,” Chandra said. “That is the duty of any company that is responsibly collecting and using data – I think it’s one of the most important things that we can do both as an individual company and as an ecosystem.”
DAA would like to acknowledge the editorial assistance of our summer associate Ellana Robinson in the research and preparation of this post.
