As programmatic ads grow, GDPR could pose a problem: expert

Automatic, data-based advertising has grown significantly over the years and now it’s even making the move to billboards — but it’s a trend that could, in some cases, face challenges due the European Union’s General Data Protection Regulation (GDPR), especially should the Canadian government change its privacy laws in response to that legislation. In a December press release, BCE Inc.’s Astral announced it will begin using large scale digital out-of-home signage to serve relevant ads to audience “segments” of its clients based on the proximity Canadians’ mobile devices. Programmatic ads, or ads that are automatically purchased, displayed on various internet-connected devices and determined by algorithms might be new to physical billboards, but they already dominate Canadian display advertising. Bell isn’t the only on expanding the technology to billboards, as Edith Gagné, a representative of digital-out-of-home company Campsite Global Inc. told The Wire Report in a phone interview they will also begin offering programmatic billboards in 2018. The programmatic technologies behind the new billboard are fuelled by data collected from free phone applications, according to the companies which process the data. Developers and publishers of these phone apps, while providing their stated services, will use features built in to smartphones today to track and collect data. In a simplified example, smartphones' location data is part of what's used to inform advertisers about what demographics are located where their signage is found. The use of programmatic out-of-home advertising highlights other ways a person’s data and smartphone could be leveraged. Not only will the new connected billboards be serving up ads that have a better chance to resonate with the audience nearby at the time, Bell Media’s vice-president of sales, Debbie Drutz, explained potential next steps. In a phone interview, she laid out how, because of Astral working with Bell Media’s digital advertising group, the data could go even further. According to Drutz, having driven past one of these programmatic billboards in their car, a customer could see a related advertisement on an ad-enabled phone app a couple days later. In turn, “ I'm going to serve you that call to action message, and I might optimize and retarget you throughout the course of the month,” she said. “I'm , let’s say, and I'm going to know that you've walked into my Shoppers. I'm going to further send you another message at point of purchase,” Drutz added. Ann Cavoukian, senior fellow at the Ted Rogers Senior Leadership Centre, said in an interview with The Wire Report that programmatic ads that use location data without explicit permission run afoul of the European Union’s GDPR. Cavoukian developed the “privacy by design” principles incorporated into GDPR which include requiring explicit consent by the user for each separate use of personal data. Under the GDPR, that includes location data used by programmatic ads on billboards. Programmatic advertising generally does not rely on explicit consent. Instead data collectors use terms and conditions documents to outline how user data is being used by their service. The GDPR, which comes into effect on May 25, could cause problems for some Canadian companies directly, because its jurisdiction is not limited to companies based in Europe. Canadian organizations either need to comply with the laws or restrict the use and collection of EU citizens’ data. Some plan to just avoid EU data. For instance, Saad Uddin, founder and CEO of Toronto-based company Native Touch Inc., which collates location data collected from apps for Campsite’s programmatic technology indicated his company did not need to change its data collection policies, as its data sources had made efforts to avoid collecting or keeping European info. “We don't use European data at all,” said Uddin. “All of our partners who have a footprint in Europe, everyone I've spoken with, isn't even collecting data in those environments. If they are, they're just completely discarding it.” But the bigger problem for programmatic ads could be if Canada changes its privacy rules to reflect the GDPR, as Cavoukian she expects it will. It would be under the mandate of the ministry of Innovation, Science and Economic Development (ISED) to proceed with that move, according to the Office of the Privacy Commissioner of Canada. When reached for comment, ISED spokesman Derek Mellon pointed to the current review of PIPEDA and the Privacy Act and said any changes will be based on the findings of the House of Commons standing committee on Access to Information, Privacy and Ethics. That committee heard last year from witnesses about how Canada will need to ensure its privacy rules comply with the GDPR in order to maintain “adequacy status.” Former interim privacy commissioner of Canada Chantal Bernier told the committee that status “allows Canadian companies to receive European data without any specific further authorization. It’s a competitive advantage that is critical.” Citing efforts to maintain the current level of privacy protection “adequacy” with the EU, current privacy commissioner Daniel Therrien has also implored the federal government to discuss bringing Canadian privacy laws in line with the EU in his witness testimonies at House committee meetings and talks, including the IAPP Privacy Symposium in May 2017. — With reporting by Bryson Masse at bmasse@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

As programmatic ads grow, GDPR could pose a problem: expert

News | January 4, 2018

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As programmatic ads grow, GDPR could pose a problem: expert

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