Asterisk Issue: 003
Asterisk: Issue 003
Welcome to the third issue of Asterisk, your weekly dose of news and insights for advertisers. This week, we dive into some privacy-related headlines and explore the growing political ad spend as the 2024 elections approach.
Eavesdropping for Ads? Cox Media Group’s Privacy Controversy
A recently leaked pitch from Cox Media Group (CMG) reveals that the company is using software to listen in on user phone calls. This “active listening” data is then applied to target consumers with highly personalized ads on major platforms like Facebook and Google. Understandably, this has sparked significant privacy concerns, with users potentially unaware that their conversations are being monitored.
Both Meta and Google have launched investigations to see if CMG’s tactics violate any existing partnership agreements, which could lead to major consequences if found guilty. This story highlights the growing tension between ad targeting and privacy rights—a challenge all advertisers must be aware of.
California’s Browser-Based Opt-Out Bill Sparks Debate
The ad industry is pushing back against a California bill that would require browser-based opt-out signals for online behavioral advertising. If passed, this bill mandates that browsers include an easy-to-configure mechanism, like the Global Privacy Control, allowing users to opt out of data tracking across websites.
Industry leaders argue that the bill is redundant, could create market confusion, and may harm competition by introducing compliance complexities. Privacy advocates, however, support the legislation, seeing it as a win for consumer data control. With growing pressure on businesses to ensure transparency, this could be a major shakeup for the way online advertising functions in California and potentially beyond.
Political Ad Spend Grows as CTV Faces Challenges
The U.S. political ad spend is set to surpass $12 billion in 2024, reflecting a 29% increase from the last presidential election in 2020. But despite the overall growth, Connected TV (CTV) ad spend remains relatively flat, as political advertisers express concerns about its ability to consistently reach audiences.
CTV’s programmatic targeting tools, such as geo-targeting and Automated Content Recognition (ACR), are still attractive for political campaigns looking to engage specific voter demographics. Rising costs, however, are a concern, especially in swing states where CTV CPMs are skyrocketing by up to 50% in the weeks leading up to the election.
What Advertisers Should Watch
Privacy concerns are only growing in the industry. Advertisers must be cautious and transparent in how they handle user data, especially with companies like Meta and Google stepping up investigations. As for California’s new opt-out bill, whether it passes or not, it’s a signal that consumer data protection is gaining more ground.
For political advertisers, CTV presents opportunities, but with its rising costs and inconsistent reach, it’s important to leverage programmatic tools effectively to optimize both spend and targeting. Geo-targeting and ACR can help you get the most out of your CTV investment.
That’s it for this week’s roundup. Stay tuned for next week’s issue of Asterisk, where we’ll continue to explore the top stories and insights shaping the advertising world!tuned for next week’s roundup, and don’t hesitate to explore these new technologies to find innovative ways to grow your brand!