The California Consumer Privacy Act (CCPA), which was announced in 2018, has finally rolled out. Unfortunately, it has caused confusion among Facebook ad buyers. They are scrambling to grapple with the vaporizing of data and targeting for California audiences, while at the same time scratching their heads over what compliance actually mean.
CCPA is a state-level privacy enactment, which is somewhat in the spirit of GDPR, which is “opt in”, but regarding information sharing, CCPA is “opt out.”
Right now, it only applies to California, although there are expectations that there will be other states that will adopt some type of privacy measure into law at some point in the future.
Some of the basic rules are:
- information being collected must be transparent about what data they collect, the purpose for it, and any third parties it may be shared with
- a business must delete the data if it’s requested by the user
- consumers can opt out of their data being sold
- CA authorities can fine for violations, though it’s unclear how it applies to out-of-state companies since it’s only a CA law
- businesses are allowed to offer financial incentives for being allowed to collect data
CCPA will only apply to businesses with gross annual revenue over $25 million, those that have over 50,000 users’ worth of personal information, and/or those who earn over half that annual revenue from selling this information.
Regarding Facebook and Instagram ads, Facebook has announced a feature called Limited Data Use, which automatically applies to all Facebook business accounts, and specifically to users in California that ads are targeting. Ultimately, it puts the onus on the advertiser to be in compliance with CCPA. Although limiting “personal personal information,” there’s still confusion as to what exactly this means.
Programmers are gong to eventually have to apply a “LDU flag” to the Facebook pixel to address specific events. But for now, California will automatically limited data on California users.
Information on the data processing options can be found here
These updates must be made by August 1.
Advertisers can toggle the ennoblement of customer data if they have implemented the LDU flag.
Enterprise -level Facebook Ads expert for the direct-to-consumer (DTC) space, David Hermann, shared the plans for his clients as the reality of this hits in July
“For us, in the month of July we’re splitting out CA into its own campaigns for any that have over 10% of conversions coming from CA,” he said. “Due to the limited use feature, especially on FB, we want to make sure we’re tracking things correctly regarding ROAS. With CA conversions apparently not being properly attributed, we want to keep that in mind.”
The impact became apparent late last week, as the main fear for advertiser s was the lack of data on California users will impact targeting and optimization on the platform. This would mean Facebook would have less data, and ultimately would lead to lower results.