Staying ahead of privacy regulations is crucial for both compliance and revenue. As we mark one year since the implementation of IAB Europe’s Transparency and Consent Framework v2.2 (TCF v2.2), it’s essential to understand its impact on connected television (CTV) monetization.
From January 2024, publishers and developers serving ads in the EU and UK must use a certified consent management platform (CMP) aligned with TCF v2.2. This requirement, enforced on Google’s platform starting July 2024, affects all publishers using major ad technologies. Non-compliance can lead to restricted ad eligibility and lost revenue opportunities.
To explore this further, we spoke with Achraff-Nour Meski, Senior Technical Account Manager at Sourcepoint, about the challenges, best practices, and strategies for implementing privacy compliance while maintaining user experience and revenue generation in CTV advertising.
How does consent management work in CTV advertising?
In our experience helping publishers navigate this space, we’ve seen different strategies, like consent sharing, where consent is collected on more user-friendly devices. Then, these preferences are shared with the CTV apps. Another option involves offering users a slightly customizable template or a fully customizable solution with a two-screen approach. In the latter method, a QR code is displayed on the TV screen, allowing users to continue the consent process on their mobile devices seamlessly.
It’s worth noting that compliance with standards like the TCF v2.2 is essential in this context. This framework dictates that if users provide consent, personalized ads can be displayed, while declining consent may result in non-personalized ads being shown.
In your opinion, how does TCF v2.2 impact the user experience on CTV?
The latest version of the IAB’s TCF has the potential to both improve and hinder user experience on CTV.
Positive impacts are twofold. First, greater transparency. TCF v2.2 offers more granular control over data collection. This can give users a clearer understanding of how their data is used, leading to a more transparent CTV experience.
Second, the framework offers standardized controls. With TCF v2.2, users might experience a more consistent approach to consent management across different CTV platforms. This can reduce confusion and streamline the process.
A potential downside could be that the increased granularity of TCF v2.2 may inconvenience users who have to complete lengthy consent forms, which could disrupt their experience, especially when watching CTV. However, in our experience the benefits usually outweigh this.
What are the challenges and strategies for implementing privacy compliance in the CTV context?
The diverse range of operating systems and lack of standardized protocols in CTV present unique challenges for privacy compliance. However, solutions tailored to CTV environments are emerging. For instance, customizable CMP solutions for CTV allow publishers to inform users of data collection practices and obtain consent. By leveraging such solutions, publishers can ensure compliance with privacy regulations while delivering personalized experiences to users.
How does TCF v2.2 compliance in CTV environments impact monetization strategies for publishers? Can you elaborate on any best practices?
With increased transparency about data collection, some users might opt out, reducing the pool of users available for targeted advertising. However, this can be balanced out by increased advertising sources and higher eCPMs, as consented ad requests usually hold higher LTV.
Additionally, Google will soon require publishers to collect user consent via a Google-certified CMP that is TCF v2.2 compliant. Failure to comply with these requirements could negatively impact eCPM, as Google will limit ad serving to non-compliant publishers.
What tip would you offer to publishers navigating privacy compliance in general?
Outsourcing compliance tasks to specialized experts can alleviate the complexities associated with navigating regulatory frameworks. Additionally, maintaining awareness of industry developments and leveraging solutions tailored to specific inventory types, such as CTV can streamline the compliance process.
Can you discuss any upcoming features or enhancements planned for your CMP that specifically address privacy management in CTV?
At Sourcepoint, we are committed to making consent management straightforward for both the user and the publisher. This can only be achieved by finding the right balance between enabling the publisher to display customized consent messages and ensuring the user experience is fluid and consistent.
Recently, we released a new message type that uses OS-native built-in components and steers away from the traditional messages served in a web view. This latest message type guarantees better UX, brand safety, and compatibility with most CTV devices and models (including hybrid broadcast broadband TV, a.k.a. HbbTV).
Additionally, as we grow conscious of the consent management platform’s critical role, we have released a new version of our solution with improved performance and robustness. This latest release also allows our partners an uninterrupted consent management experience even when our services are down.
What does the future of CTV privacy hold ? Any predictions you would like to share?
With platform endorsements, we predict more CTV apps will launch with consent messages. This might initially generate a slight dip in advertising revenues, with user opt-outs directly impacting monetization. However, this will be rapidly counterbalanced with the arrival of new advertisers, as more transparency usually builds advertiser confidence, attracting more advertising and higher eCPMs.
Additionally, introducing the new Amazon OS will mean your current CMP provider should have a plan to support this new environment that is predicted to have a high adoption rate thanks to Amazon’s commitment to ditch Android-based FireTV for this new OS across all their devices.
Takeaways and action items for CTV publishers
- Implement a compliant CMP. If you haven’t already, make sure to use a TCF v2.2-compliant consent management platform (CMP) to gather explicit user consent for targeted advertising and content personalization on CTV apps.
- Enhance transparency. Disclose all ad tech vendors, data processing purposes, legal bases, data retention periods, and data categories collected to users.
- Upgrade your legal basis from “legitimate interest” to explicit consent. For targeted advertising and content personalization, rely on user consent rather than legitimate interest to align with TCF v2.2 requirements.
- Prioritize user-friendly experiences. Ensure your CMP interface allows users to easily modify or withdraw their consent preferences at any time.
- Collaborate with compliant vendors. Partner with ad tech vendors listed on IAB Europe’s Global TCF Vendor List to mitigate compliance risks.
- Update technical systems. Adapt your systems to accommodate TCF v2.2 technical changes. For example, you’ll need to replace getTCData commands with addEventListener.
As regulations and consumer expectations evolve in Europe and beyond, publishers and advertisers need to fully understand the impact of guidelines such as TCF v2.2 for stakeholders across the programmatic value chain. Subscribe to our blog digest to stay in the know about the new privacy paradigms for CTV, mobile, and more.
