The Federal Trade Commission has proposed new rules to strengthen the Children’s Online Privacy Protection Act (COPPA), further limiting the collection of children’s data, particularly those who seek to monetize the information through targeted advertising. FTC Chair Lina Khan says the proposed changes aim to prevent tech firms “from outsourcing their responsibilities to parents” when it comes to ensuring privacy for children’s data. The FTC says it has issued fines totaling hundreds of millions of dollars to Google’s YouTube, and to a lesser extent, ByteDance’s TikTok, for mishandling the data of children 13-years-old and younger. Continue reading FTC Seeks to Bolster COPPA So Firms Can’t Surveil Children

Meta Platforms’ workaround to European privacy laws regarding ad-targeting has run afoul of watchdog agencies, resulting in two complaints filed with the EU’s network of consumer protection authorities against the U.S. tech giant. Meta contends its so-called “pay-or-consent model” — requiring users of its social platforms to choose between agreeing to be tracked for ad-targeting purposes or pay a monthly subscription fee for ad-free service — falls within permissible parameters set by EU authorities. The more than 20 groups that have jointly filed suit say the strategy is illegal under EU law, describing it as “unfair, deceptive and aggressive.” Continue reading Meta’s EU Social Media Subscription Plan Draws Complaints

Yahoo is spinning out its Vespa platform, which leverages AI and data online at scale. The move is being positioned as an effort to make Vespa more widely available to third parties. After supporting Yahoo’s needs for 16 years, the unit in 2021 began serving external customers including Spotify, Wix and OkCupid for needs such as “searching millions of documents within a global organization, serving better data-driven online ads, or allowing AI-based language apps the ability to scale.” Yahoo says it will continue to invest in Vespa and remain its largest customer even after the split. Continue reading Yahoo Spins Out Big Data Unit Vespa AI as Independent Firm

Marching toward its goal of eliminating third-party cookies from its Chrome browser by the close of December 2024, Google has generally released its APIs for Privacy Sandbox, its privacy-oriented solution to cross-site consumer tracking cookies. The new system has begun shipping with the latest version of Chrome. The Privacy Sandbox tracks topics of interest based on browsing patterns and lets advertisers use that data to serve relevant ads. While clicking “got it” to close your first Sandbox pop-up activates the new system by default, it can be turned off by visiting the privacy settings. Continue reading Google Is Replacing Cookies with Privacy Sandbox in Chrome

The European Union’s Digital Markets Act, applicable as of May 1, finds tech giants scrambling to anticipate regional compliance. The regulatory framework aims to ensure tech giants don’t abuse their clout by taking advantage of consumers and smaller companies. Within two months, companies providing core platform services will have to notify the European Commission and provide all relevant information. The Commission will then have two months to identify companies that fit the DMA definition of “gatekeeper.” Those that do will be subject to DMA rules and have six months to conform. Continue reading Big Tech Braces for Potential Impact of EU Digital Markets Act

Utah has become the first state to pass laws requiring social media platforms to obtain age verification before users can register. The law is designed to force social networks to enforce parental consent provisions. As of March 2024, companies including Facebook, Instagram, Snap, TikTok and Twitter will be required to secure proof of age for Utah users via a valid ID instead of just letting people type in their birth date at sign-up. While Utah is out front on the issue, nine other states have proposed legislation that includes age checks, most recently Arkansas. Continue reading Utah’s Social Media Law Requires Age Verification for Minors

Disney touted its capabilities this week at the company’s Tech & Data Showcase for advertisers, part of the company’s Road to the Upfront. Among the disclosures, Disney in April will begin adding some Hulu ad-targeting capabilities to Disney+, with Hulu’s “full suite of ad products and services” available throughout the entire Disney streaming portfolio by July. Since last year Hulu has been deploying a proprietary ad server Disney is said to have built from the ground up, putting it to work on the ad-supported Disney+ Basic tier launched in December. Continue reading Disney Announces Plans for Its Proprietary Ad Delivery Stack

Even as linear broadcasters seek to find their place in the on-demand world, streamers are taking a page from their traditional playbook and embracing appointment TV strategies, according to a new forecast from Kantar Media. “Winners in the platform wars will deploy hybrid strategies balancing VOD and linear content,” Kantar says, predicting streamers will be forced to “shift away from all-at-once release strategies and box-set bingeing for new content in order to maximize revenues.” As global cost-of-living price increases impact consumer discretionary spending, improved campaign planning could make budgets go further, the report says. Continue reading Kantar Media Forecasts Streamers to Pursue Appointment TV

The advertising industry is pushing back against the Federal Trade Commission’s exploration of rulemaking as relates to collecting personal data to serve ads, which the FTC is calling a crackdown on “commercial surveillance.” The Interactive Advertising Bureau (IAB) says the FTC’s definition of that loaded term is “so broad” that any resultant rulemaking “could criminalize the Internet itself” as well as potentially reduce digital ad spending by billions of dollars. FTC chair Lina Khan says “potentially unlawful practices may be prevalent” in the “endless hoovering up of sensitive user data” that has become common practice in ad targeting. Continue reading IAB Says FTC Digital Ad Inquiry May End Up Costing Billions

Snap Inc. reported its slowest-ever quarterly growth, with revenue up 6 percent to $1.13 billion year-over-year in Q3. Due in part to a 25 percent spending increase, Snapchat’s parent logged a net loss of $359 million, far exceeding the $72 million loss a year prior. Interestingly, Snap increased daily active users by 19 percent, to 363 million (surpassing analyst predictions of 358 million). Snap, like virtually every social media platform, has struggled to maintain revenue growth since Apple’s 2021 privacy changes made it harder to target ads. Continue reading Snap Adds Users but Experiences Its Slowest Revenue Growth

Netflix has reportedly moved the timeline for launching its ad-supported subscription tier to November 1 in an effort to get to market before the December 8 debut of the Disney+ tier with advertising. Over the summer, Netflix told investors it planned to launch the lower-priced alternative tier “around the early part of 2023,” a strategy that appears to have shifted, with a Q4 rollout that is expected to include the U.S., Canada, Germany, France and the UK. The streamer is also said to be discussing a pricey $65 CPM rate per thousand impressions. Netflix characterized the conjecture as “speculation.” Continue reading Netflix Reportedly Bumping Up Ad-Tier Launch to November

A first of its kind U.S. proposal to protect children online cleared the California Legislature Tuesday and was sent to the desk of Governor Gavin Newsom. The California Age-Appropriate Design Code Act will require social media platforms to implement guardrails for users under 18. The new rules will curb risks — such as allowing strangers to message children — and require changes to recommendation algorithms and ad targeting where minors are concerned. The bill was drafted following Facebook whistleblower Frances Haugen’s 2021 congressional testimony about the negative effects of social media on children’s mental health. Continue reading California’s Online Child Safety Bill Could Set New Standards

Tech companies are giving consumers more control over the type of advertising they see online, a feature that customers frequently request. Meta Platforms, Mozilla, Google and the Digital Advertising Alliance (DAA) have been actively exploring ad-blocking options. Now ByteDance’s TikTok and others are joining in. While the increased control may make some consumers happy, the effect it will have on Big Tech’s already ailing ad sector is as yet undetermined. While the various techniques let consumers limit exposure to ads, proponents argue the ultimate effect will be positive, ensuring ads are served to an interested audience. Continue reading Technology Firms Offer Users More Control Over Advertising

Meta Platforms is expanding its Meta Advantage advertising automation program, an effort to mitigate fallout from Apple’s consumer privacy measures, which have substantially constrained its ability to target and personalize ads. Launched in March, Meta Advantage bundles AI and ad automation tools to simplify the process for advertisers. This week the company added Advantage+ Shopping, assisting in campaign creation, simultaneously offering up to 150 automated creative combinations. The update offers more options to e-commerce brands and is geared toward optimizing the presence of Facebook or Instagram storefronts. Continue reading Meta Expands Advantage Program with AI-Powered Ad Tools

Netflix is “relieved” over a loss of nearly one million subscribers, according to The New York Times, which proclaims “disaster has been averted” in time for Q2 reporting. Despite the largest subscriber losses in the company’s 25-year history, defections fell short of the two million Netflix had projected in its Q1 guidance. Netflix, now standing at about 220.7 million subscribers globally, told investors it hopes during Q3 to reengage as many as one million of the lost, a bullish outlook considering austerity measures that included layoffs during the first half of the year. Continue reading Netflix ‘Better Than Expected’ Q2 Results Include $6B Profit