What does CCPA mean for advertisers?

Since the enactment of the California Consumer Privacy Act (CCPA), (and later the California Privacy Rights Act (CPRA)), advertisers face new requirements for data transparency and consumer privacy. The CCPA imposes specific limitations on the data advertisers collect and use, necessitating compliance with privacy rules that prioritize consumer consent and control.

CCPA basics for advertisers

The CCPA is a landmark privacy law designed to protect California residents' personal data by mandating that businesses transparently disclose their data practices. For advertisers, this means adjusting their strategies to remain CCPA-compliant by focusing on legally collected data and new marketing approaches.

The CCPA grants consumers key rights:

• Right to know: Consumers can request details on what personal data is collected, used, and shared.
• Right to delete: Consumers may request the deletion of their data, with limited exceptions.
• Right to opt-out: Consumers can opt out of data sales, and businesses must include a "Do Not Sell My Personal Information" link.
• Right to non-discrimination: Businesses cannot penalize consumers who exercise their privacy rights.

Under CCPA, personal information is broadly defined and includes identifiers like names, financial details, geolocation, biometric data, and online activity.

Read further:

• California Consumer Privacy Act (CCPA)
• ‍Advertising on Google? You must use a Google certified CMP

How CCPA affects advertising

Advertising relies heavily on data to target and engage consumers effectively. Traditionally, advertisers accessed this data through tracking tools like cookies and plug-ins. However, CCPA limits the availability of such data, requiring businesses to secure consumer consent for data sharing and disclose data practices clearly.

CCPA compliance for advertisers means:

1. Focusing on first-party data: Advertisers must shift toward using data they collect directly from consumers (first-party data) rather than relying on third-party tracking.
2. Updating privacy policies: Advertisers must disclose the categories of personal data collected, purposes for collection, and any third parties involved. Privacy policies should also outline consumer rights under CCPA.
3. Offering opt-out mechanisms: Businesses must include a “Do Not Sell My Personal Information” link on their homepage to allow consumers to opt out of data sales.
4. Obtaining consent for minors: For consumers under 16, businesses must secure parental consent before processing data.

What does CCPA mean in marketing?

CCPA in marketing means businesses must prioritize consumer privacy by disclosing data practices, allowing consumers to opt out of data sales, and obtaining consent for data collection. Marketers need to focus on CCPA-compliant strategies, such as using first-party data and contextual targeting, to respect consumer rights and avoid penalties.

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CCPA-compliant advertising strategies

To adapt, advertisers should consider the following CCPA-compliant approaches:

• Leverage first-party data: Use data from customer interactions directly, such as email lists, social media, and website interactions, ensuring all data collection aligns with CCPA guidelines.
• Contextual targeting: Rather than relying on consumer behavior data, contextual targeting involves displaying ads based on the content the user is currently viewing, making it privacy-friendly.
• Focus on consumer consent: Develop clear consent mechanisms to secure data-sharing permissions, especially for ad personalization.

Read more:

• CCPA compliance checklist
• ‍Top tips for CCPA compliance software

Why CCPA compliance matters for advertisers nationwide

Though the CCPA is specific to California, its implications reach national and international businesses that handle California residents' data. Non-compliance can result in significant penalties and reputational damage. Given California’s economic influence, a proactive approach is essential for any business serving a U.S. audience. By adopting CCPA-compliant advertising practices, advertisers can future-proof their strategies and gain consumer trust.

Read more: Who does the CCPA apply to?

Conclusion

The CCPA significantly impacts advertising by restricting data use and emphasizing consumer control. By understanding what CCPA means for advertisers and implementing CCPA-compliant advertising practices, businesses can build trust with their audiences and stay ahead of future privacy regulations.

Book a Demo with Ketch to discover how our platform supports CCPA compliance, helping your advertising efforts stay compliant while driving engagement.

Finally, If you’re looking at doing business in the EU, you may also be interested in learning more about the 7 GDPR principles, so you can have a better understanding of the rules and regulations around data privacy in Europe.

Go further: CCPA vs GDPR compliance: compare GDPR and CCPA side-by-side

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