Here’s today’s AdExchanger.com news round-up… Want it by email? Sign up here.
Europe, You’re Down
Meta may ask for specific consent to use data for advertising purposes in the EU, The Wall Street Journal reports.
After GDPR became law, Facebook began requiring European users to allow the platform to use data for ad purposes by building it into the terms of service. Agree or don’t use the apps.
That policy was knocked down by activist Max Schrems. Meta then rolled out a way to remove yourself from personalized advertising with an unnecessarily lengthy form and process.
Last month, the top European court “unexpectedly weighed in” on the matter, the Journal reports, ruling against Meta’s claim to legitimate interest as grounds for data-driven advertising.
The new reported change would be a full consent update – a simple “Yes” or “No” – to every user in Europe, which is pretty much what Apple’s ATT did on iOS.
Which ad revenue hit is worse: iOS or Europe? Probably iOS. But this will be a meaningful loss to revenue since Europe is about a quarter of the ad business.
CapCut It Out
TikTok critics in the US have bolstered their crusade against the platform and its access to user data.
A lawsuit filed last week in Illinois alleges TikTok’s sister video editing app, CapCut, gathers user data such as face scans, voiceprints and device info without consent, The Record reports.
According to the lawsuit, CapCut’s 200 million active users, many of whom are US-based, are never informed of the data-gathering practices nor asked to consent. The lawsuit also alleges CapCut’s terms of service are riddled with dark patterns and misleading language.
The app’s access to biometric data is under particular scrutiny for allegedly violating Illinois’ Biometric Information Privacy Act.
The lawsuit bodes ill for ByteDance’s efforts to prove it protects kids’ user data. In one case, a seventh-grader was able to use the app without signing up for an account, obtaining parental approval or accepting any terms of use.
The lawsuit will likely fuel further efforts by state and federal lawmakers to ban TikTok and related apps over fears that ByteDance is sharing US user data with the Chinese government.
Shop Till Your Shares Drop
Pinterest has some cause for optimism at last.
The company’s Q2 revenue is up 6% YOY to $708 million, and global monthly active users are up 8% to 465 million.
More people are using Pinterest than at this time last year, when MAUs dropped 5% to 433 million.
Why? For one, the platform has zeroed in on shopping, and it benefits from retail media growth because it partners with retailers for audience extension. (They need inventory; Pinterest needs demand.)
This year, Pinterest launched a clean room for data matching with advertisers that won’t offend Apple’s AppTrackingTransparency framework, and it opened up the platform to third-party ad demand for the first time, starting with Amazon.
The problem? Pinterest spent more than it made this quarter – $73 million in the red.
Ads, Ads, Everywhere
Everything is an advertisement now – including the inside of your fortune cookies.
Say hello to “faux OOH,” the expansion of out-of-home (OOH) ads beyond the billboard and outdoor screen.
Brands are constantly trying to stand out from the crowd, and lately a popular OOH tactic is for advertisers to grab people’s attention with ads that are weird enough to gain organic traction (aka going viral on social media), Digiday reports. Perhaps you saw something about the train with Maybelline eyelashes this summer or the gross-out NYC subway recipes.
And if you thought your Chinese takeout meal would be free of the phenomenon, think again.
The company OpenFortune works with major brands, such as ZipRecruiter and Chime, for ad placements with QR codes on the backs of fortune cookies and claims success in brand awareness campaigns.
Companies are getting tactical and finding old-school ways to get attention. For instance, period care brand August drove a branded truck around several US cities to promote its retail distribution with Target.
Television’s dying, streaming’s impossible, Facebook’s expensive. Why not try to crack the real world?
But Wait, There’s More!
Disney wants to partner with a tech company – potentially Apple, Amazon or Google – to expand ESPN distribution. [New York Post]
Meta to stop publishing Canadian news after Canada passes a law mandating social media platforms must pay to promote news content. [Bloomberg]
Amazon employees leak secret info that marketplace sellers can buy on Telegram. [CNBC]
You’re Hired!
Stagwell adds Lauren Dean from Adobe as VP, Strategic Growth. [release]
