IAB Europe’s flagship event Interact 2024 is heading to Milan on 21st - 22nd May. In partnership with IAB Italy, the conference promises to deliver an engaging experience with industry leaders gathering to tackle the industry’s most critical challenges and innovative opportunities head-on.
With a central theme of ‘The Big Questions. The Sharp Answers.’ we're putting the interactive back into Interact, with every session revolving around a key question that industry leaders from across Europe will answer live on stage. We will tackle everything from Privacy, Policy, and Digital Ad investment to CTV, Retail Media, Sustainability, and more.
Find out more here. Get your tickets here.
As we get ever closer to the event, we are excited to introduce you to more of our great speakers, who share what they are most looking forward to and give a little insight into what they will be diving into on the day.
We are pleased to introduce:
Paul-Antoine Strullu, Head of EMEA at Scope 3
Q. We’re excited to have you join us on the Interact 2024 stage. Is this your first time at Interact and what are you looking forward to most?
“It is my first time! Although, it's an event I’ve been following for a long time – particularly in regards to the important work IAB Europe has done, and continues to do, around privacy and regulation. But, with sustainability now a core focus across advertising, it was clear Scope3 needed to play a physical role at Interact this year. With announcements regarding sustainability standards and frameworks planned in June, the stage is set for sustainability to be widely discussed at Interact. I’m looking forward to discussing what the industry can expect and how advertisers can best prepare.”
Q. Can you tell us more about your role at Scope3 and what you are prioritising this year?
“I lead the European team at Scope3. My recent priority has been recruiting talent to help us on our journey to decarbonise the advertising industry, looking for people who have experience in the space, but also are determined to make a change in the world. Similarly, I've been recruiting customers who also want to make an impact. It’s been positive to see that more and more companies are looking for solutions and opportunities to decarbonise – or at least gain a better understanding of – their emissions.”
Q. You are taking to the stage with Anna Kechekmadze, Global Digital Media Strategy Lead at Sanofi tackling the question 'Advertising’s first sustainability standards are coming — are you ready?' Can you give us a sneak peek into some of the things you’ll be looking to discuss?
“Anna is an extremely talented marketer who came to us with her initial analysis of the carbon footprint of her ad campaigns. However, she couldn’t reconcile it when examining the actual numbers. We started our journey together by delivering a study for Sanofi’s Consumer Healthcare business across the UK and Spain and have since expanded carbon measurement across all of their markets.
We’re now exploring how we can improve not just the climate impact of ad campaigns, but also how to find the right cost benefit between market outcomes and sustainability outcomes. We'll discuss this at length during the event and I hope it's going to be entertaining for everyone.”
Q. Your session comes right before the panel discussion that asks ‘Are Sustainability Strategies Delivering Across the Value Chain?’ What are your initial thoughts on this?
“The good thing about sustainability is that it doesn’t fall into the issues and complexities we often find in digital advertising, so there are strategies that can be implemented immediately, to great effect.
Issues tend to arise when people consider it the job of others to clean up digital advertising’s value chain. At Scope3, we believe a collective change is required, and that it’s the responsibility not just of marketers, but of all constituents across the supply chain. We have the privilege of working with several of these constituents – be it media agencies, ad tech companies, or publishers – and can see great progress being made.
Everyone must play a role in the sustainability equation; nobody is off the hook when it comes to reducing carbon emissions and making our planet a better place to live.”
Hear from industry-leading speakers including Paul-Antoine and more at Interact 2024 to get the sharp answers you’re looking for.
Get your tickets here.
On April 17, 2024, the EDPB published its Opinion on the “Consent or Pay” model in the context of large online platforms under Art. 64(2) of the GDPR.
Although a consistent EDPB position was desirable to ensure harmonisation across the European Union, IAB Europe has grave reservations the Opinion published last week is at odds with the prevailing jurisprudence of the CJEU and highly mischaracterizes both the ‘consent or pay’ model and personalised advertising.
As a result, the Opinion is likely to create the opposite effect, namely increasing legal uncertainty for many businesses beyond large online platforms and may ultimately undermine the ability for users to access diverse sets of services and content online for free.
First, the EDPB dedicates large parts of the Opinion to make overly abstract assumptions about the underlying functioning of personalised advertising, suggesting that this form of advertising would be inherently irreconcilable with the GDPR principles of data minimisation and fairness.
Those allegations are not demonstrated or substantiated in any way, yet they are used to misrepresent the ‘consent or pay’ model as transforming data protection rights into “a feature that data subjects have to pay to enjoy, or a premium feature reserved for the wealthy or the well-off.” This cannot be followed, as the GDPR precludes unlawful data processing irrespective of the legal basis of processing, including consent, and provides Supervisory Authorities with extensive investigative and corrective powers to supervise the correct application of the GDPR.
Second, the EDPB introduces the provision of a third option, namely a “free alternative without behavioural advertising” as a quasi-mandatory condition for obtaining valid consent without adducing any empirical research or other evidence to justify why companies should develop another version of their service free of charge and funded by a different form of advertising such as contextual.
It must be stressed that contextual advertising is not always a viable monetisation alternative. Yet, no company can be required to provide their product and services at a loss. Moreover such a requirement is not supported by the GDPR which is not intended to interfere with the business models chosen by companies. This approach blankly ignores the required balance between the right to data protection and the freedom to conduct business, neither of which is absolute, as clearly provided by Recital 4 of the GDPR.
It is concerning to see the EDPB prescribing, by means of a soft-law instrument, an unprecedented interpretation that is neither enshrined by the law nor supported by the established position of the CJEU, based on fundamentally flawed assumptions of the digital advertising industry and simply overlooking stakeholders’ commercial realities.
As the EDPB intends to subsequently develop Guidelines pertaining to the ‘Consent or Pay’ model with a broader scope, IAB Europe reiterates its earlier statement and emphasises the importance to initiate a public consultation to ensure the development of sound policy guidance that takes account of all pertinent stakeholders’ concerns and interests.
On 7 March 2024, the Court of Justice of the European Union (CJEU or Court) rendered its judgement in case C-604/22, which concerned two sets of questions on the interpretation of the General Data Protection Regulation (GDPR) that had been raised by the Belgian Market Court in a case between IAB Europe and the Belgian Data Protection Authority (APD).
This article aims to provide the context in which the CJEU rendered its judgement, practical explanations of the answers the CJEU provided, and clarifications regarding the next steps for the rest of the appeal proceedings.
2 February 2022: APD hands down its decision
Following a coordinated set of complaints with different data protection authorities, the APD, as lead authority over the Belgium-established IAB Europe, conducted an investigation into IAB Europe’s transparency and consent framework (TCF). In its decision, adopted under the GDPR coordination procedure, the APD arrived at three main “findings”:
As a result of those “findings”, the APD considered that IAB Europe had committed various GDPR violations, in particular that:
(i) IAB Europe did not have a legal basis for the processing of TC String; and
(ii) IAB Europe did not have a valid legal basis for the subsequent processing of personal data carried out on the basis of preferences recorded in a TC string, such as personalised advertising.
The decision can be found here.
4 March 2022: IAB Europe appeals APD decision
IAB Europe filed an appeal against the APD decision before the Market Court (Court of Appeal of Brussels).
IAB Europe challenged the APD’s legal analysis and assessment of the facts supporting their findings that IAB Europe acts as a joint controller for both the processing of TC Strings and the subsequent processing of personal data carried out by TCF participants on the basis of those preferences, such as personalised advertising.
7 September 2022: Belgian Market Court confirms procedural irregularities by the APD and refers questions to the CJEU
The Market Court rendered an interim ruling on IAB Europe’s appeal, in which it confirmed - in line with IAB Europe’s procedural arguments - that the APD decision was insufficiently substantiated and failed to meet the relevant standards for proper investigation and fact-finding.
The Market Court also decided to refer two preliminary questions to the CJEU prior to resuming its examination of the merits of the case, namely (i) whether the TC String constitutes personal data under the GDPR and (ii) whether IAB Europe should be considered to be a joint controller for the processing of TC Strings and for further processing of data for subsequent purposes such as digital advertising.
The precise questions that were referred to the CJEU can be found here. The interim ruling of the Market Court setting out the procedural irregularities with the APD’s investigation can be found here (only available in Dutch).
7 March 2024: CJEU renders its judgement
In its response to the questions referred by the Market Court, the CJEU highlights general principles and the various facts and circumstances that the Market Court needs to take into account and verify in order to apply the GDPR appropriately to the case at hand.
The appeal proceedings will now resume before the Belgium Market Court, which will have to carry out the various factual verifications required by the CJEU and pursue its examination of IAB Europe’s substantive arguments.
The judgement of the CJEU can be found here.
Is the TC String personal data for IAB Europe? Yes, if certain circumstances are met.
The CJEU establishes that a TC String “relates to a natural person” because it contains “the individual preferences of a specific user regarding his or her consent to the processing of personal data concerning him or her”, and provides two cumulative criteria which must be met for a TC String to be considered personal data from the perspective of IAB Europe.
First, the TC String has to be associated with other data points “such as, inter alia, the IP address of the device of such a user”, since that information “may make it possible to [...] identify the person specifically concerned by” the TC String. Although the CJEU suggests that the combination of a TC String with additional data may make it “identifiable”, the Court does not appear to consider that the TC String in isolation should be considered personal data.
Second, IAB Europe has to have “reasonable means allowing it to identify a particular natural person from a TC String”. The fact that IAB Europe cannot on its own and without enlisting other actors combine the TC String with other data points is not relevant, as long as IAB Europe can theoretically access such data “on the basis of the information which its members and other organisations participating in the TCF are required to provide to it”. The CJEU drew upon the APD decision’s erroneous assumption that IAB Europe may require access to such data, which will now be subject to verification by the Market Court.
| What does it mean for TCF participants? The reasoning from the CJEU over the TC String is a useful reminder of the Breyer judgement of 19 October 2016 [case C-582/14] and of the practical application of Recital 26 of the GDPR. The CJEU’s ruling further reinforces the notion that the concept of “personal data” is relative to a particular organisation or person’s ability to link that information to a natural person (directly or through additional information held by a third party and that can be demanded by the organisation or person). Put differently, data can be personal data from one company’s perspective but not from another company’s perspective. The same reasoning can therefore be applied by TCF participants when assessing the nature of the information they collect and process, in particular to assess whether the TC String as well as other data points could be considered personal data from their perspective when associated with identifiable information. Anticipating the answer provided by the CJEU, the TCF working groups developed a comprehensive data category taxonomy as part of TCF v2.2 that enables TCF participants to provide end-users with enhanced transparency over the processing of TC Strings. The TCF working groups will continue improving the Framework to accommodate further the clarity provided by the CJEU in their ruling. |
Is IAB Europe a joint data controller for the processing of TC String? Yes, if certain circumstances are met.
The CJEU considers that IAB Europe can be viewed as a joint controller for the creation and use of TC Strings by publishers and vendors because it jointly determines the purpose and means of the processing.
First, IAB Europe should be regarded, according to the CJEU and subject to verification by the Market Court, as ”exerting influence over the personal data processing operations at issue in the main proceedings, for its own purposes”, namely the processing of TC Strings. The CJEU found that IAB Europe had an interest in facilitating the selling and buying of ad placements over the Internet in compliance with the EU data protection framework. As a result, the Court establishes that IAB Europe jointly determines the purpose of processing the TC String.
Second, the Court considered that IAB Europe provides binding rules and specifications for its processing, and that this is to be viewed as jointly determining the means of processing the TC String. The Court notably drew upon the assumption that “the TCF constitutes a framework of rules which the members of IAB Europe are supposed to accept in order to join that association” to come to this conclusion. However, it is incorrect that IAB Europe’s membership is conditional to participation in the TCF, and several members of IAB Europe do not implement the TCF in any capacity. The Court’s assumption will therefore need to be subject to further verification by the Market Court.
The Court also confirms that the fact that IAB Europe may not have access to the personal data processed (the TC String) does not prevent it from qualifying as a joint controller, in line with previous case law.
| What does it mean for TCF participants? IAB Europe’s qualification as a joint controller for the processing of TC Strings is subject to a number of factual verifications to be carried out by the Market Court as part of the ongoing appeal. IAB Europe also challenged the fact that the APD failed to clearly delineate its responsibilities over the processing. As a consequence, TCF participants should not expect related changes to the TCF in the short-term. However, this broad interpretation of the concept of controllership is likely to have a negative impact on the ability for organisations to develop standards, norms and best practices for the European market in the future. Indeed in practice, all standard-setting bodies – just like IAB Europe – have an interest in developing solutions that provide utility to the market(s) they intend to serve. |
Is IAB Europe a joint data controller for subsequent processing performed on the basis of the preferences recorded in TC Strings? No, it is not.
When examining the issue of IAB Europe’s possible role as “joint controller”, the CJEU made a very clear distinction between two scenarios:
(i) the creation and use of TC Strings by TCF participants,
(ii) the subsequent processing of personal data carried out by TCF participants on the basis of the preferences recorded by TC Strings, such as personalised advertising.
In relation to that second scenario, the CJEU stressed that “a natural or legal person cannot be regarded as a controller […] in respect of [processing] operations that precede or are subsequent in the overall chain of processing for which that person does not determine either the purposes or the means”.
This clarifies that even if there is joint controllership for one processing operation, such joint controllership does not necessarily extend to preceding or subsequent processing operations. Instead, the assessment of joint controllership must be carried out separately for each processing operation. The CJEU makes an analogy here with its Fashion ID ruling of 29 July 2019 (case C‑40/17), where a website operator and a social media service provider were deemed to be joint controllers for only a limited part of the broader chain of processing operations.
In IAB Europe’s case, the CJEU stated that “it can be ruled out that any joint controllership of that sectoral organisation extends automatically to the subsequent processing of personal data carried out by third parties”, indicating in particular that the “subsequent processing of personal data carried out by [website/app] operators and by third parties on the basis of” the preferences recorded in a TC String “does not appear to involve the participation of IAB Europe”.
Although this part is also “subject to the verifications which are for the referring court to carry out”, the CJEU emphasised clearly that the facts do not suggest that there is any “influence” by IAB Europe over the determination of the purposes and means of such subsequent processing.
| What does it mean for TCF participants? The CJEU conclusion on this last point is particularly important, as the APD’s erroneous qualification of IAB Europe as a controller over subsequent processing served as a basis for the authority’s assessments of the validity of legal bases established through the TCF and corresponding sanctions imposed on IAB Europe. Notwithstanding the misguided qualification of IAB Europe as a joint data controller for such processing, the TCF working group already made several iterations to the TCF that were released as part TCF v2.2 in order to increase the compliance utility of the TCF for its participants. These evolutions were intended to address the concerns that a number of Data Protection Authorities have expressed in relation to such subsequent processing, some of them based on the action plan that IAB Europe submitted to and validated by the APD in the context of their February 2022 decision (for example in respect to the reliance on legitimate interest as a GDPR legal basis for advertising & content personalisation). |
On the 21st and 22nd of May, IAB Europe will host our flagship event Interact 2024 in Milan. In partnership with IAB Italy, Interact 2024 promises to deliver an engaging experience with industry leaders gathering to tackle the industry’s most critical challenges and innovative opportunities head-on.
With a central theme of ‘The Big Questions. The Sharp Answers.’ we're putting the interactive back into Interact, with every session revolving around a key question that our expert speakers will answer live on stage. We will tackle everything from Privacy, Policy, and Digital Ad investment to CTV, Retail Media, Sustainability, and more.
Find out more here. Get your tickets here.
In the lead-up to the event, we introduce you to some of our great speakers who will take to the stage to answer our industry’s biggest questions of today.
We are pleased to introduce:
Tiernan O’Morain, Digital Transformation Director at Diageo.
Q. We’re excited to have you join us for Interact 2024. Apart from your session, what are you most looking forward to at Interact this year?
“The conference comes at a pivotal time in the industry, as we are seeing retail media grow at an exponential rate, sustainability strategies come to the fore and advertisers asking for more rigour and transparency across their programmatic supply chain than ever. I'm really looking forward to hearing from other industry leaders about how they're tackling these, and other, challenges. Interact 2024 promises to be a great opportunity to learn from others and share best practices. And all of this in one of the best cities in the world, Milan!”
Q. Can you tell us more about your role and main focus areas for this year?
“As Digital Transformation Director at Diageo, my primary focus is on driving innovation across our digital marketing, analytics, and e-commerce initiatives. I believe innovation and creativity are core to my role! This year, we're particularly focused on leveraging data-driven insights and signals within our media to improve consumer engagement, which in turn drives sales growth across our brands.”
Q. You will join the session that asks ‘What do buyers really want from digital advertising?’ What do you think will be the biggest priorities for brands this year?
“Buyers are demanding more from digital and its supply chain, as are consumers. A great consumer experience online is great for consumers, great for business, and great for the ongoing growth of our industry. With that in mind, I see that the biggest priorities for brands in digital advertising this year will be around getting even more relevant (and less wasteful), often improving personalisation of ads to create better consumer experiences, supporting commercial measurement, while also ensuring ads are delivered with transparency and respect for consumer privacy preferences. I also see a shift with more brands supporting media and publishers who are more inclusive and reflective of the diverse societies in which we all live.”
Q. Can you tell us about anything exciting Diageo is working on in the digital advertising space at the moment?
“I am really proud that Diageo has committed to a multi-million-pound global investment to media platforms and publishers who are working to make mainstream media more diverse and inclusive. We know that we can help shift the media landscape to be more representative of all of society if we are intentional in where we invest. There’s still so much more progress to make and we need to work together with other brands, media owners, and agencies to drive industry-wide change.”
Hear from industry-leading speakers, including Tiernan O’Morain and more at Interact 2024, and get the sharp answers you’re looking for.
Get your tickets here.
As we celebrate Earth Day, a momentous occasion dedicated to raising awareness about environmental issues and advocating for the protection of our planet, we wanted to take a moment to recognise the collective efforts being made across our industry to achieve sustainability and remind you of the resources that are available to help us all play our part.
To help mark the occasion, we proudly showcase some of the impactful work of our Sustainability Standards Committee, a multi-stakeholder group that aims to share expertise, resources, and guidance to help reduce the emissions produced by digital advertising. Through its collaborative efforts, the committee addresses key environmental, social, and governance (ESG) challenges and aims to integrate sustainability principles into the fabric of our industry.
Here are just a few of the great resources the committee has produced to help educate and encourage the reduction of GHG emissions in digital advertising that you can find in IAB Europe’s Sustainability Hub:
As we commemorate Earth Day, it's inspiring to see so many organisations in our industry taking active steps and meaningful action to support our planet - not just today but every day. We look forward to continuing the great work with our members across the ecosystem and to collectively achieving sustainability in our industry.
To learn more about IAB Europe's sustainability initiatives, the work of the Sustainability Standards Committee, and how you can get involved, visit the Sustainability Hub here or contact the team at communication@iabeurope.eu.
Still thinking about attending IAB Europe's flagship Digital Advertising and Marketing Conference in Milan? With just over a month to go, here are four reasons why you should join us from 21st - 22nd May for Interact 2024.
With a central theme of ‘The Big Questions. The Sharp Answers.’ our agenda will dive deep into, address, and provide answers to our industry’s most pressing questions, including:
Across the two days, our stellar line-up of speakers will share their expertise, live on stage, to answer the industry’s biggest questions. Putting the ‘interactive’ back into Interact they will share their diverse thoughts, leaving you with the answers you need to drive your digital advertising strategy forward.
Hear from the following speakers and more:
Anna Kechekmadze, Global Digital Media Strategy Lead at Sanofi Consumer Healthcare
Alessandra Marinacci, Head of Brand at Telecom Italia Mobile (TIM)
Steve Lockwood, Head of Client Measurement at TikTok
Michelle Perelman, Standards and Partnerships Director at Publicis Media Global
Martin Hoberg, Chief Adtech Officer at RTL Group
Nick Reid, SVP & Managing Director, EMEA at DoubleVerify
With sessions featuring live polls and audience Q&As, there will be plenty of opportunities to join in on the action, share your thoughts, and get your questions answered live. We want to hear from you too.
Interact isn’t just about hearing from European experts. It’s about meeting, getting inspired, and sharing best practices with those in the know. Don’t miss this opportunity to expand your network and discuss the sharp answers with industry peers.
Full conference details including the agenda, confirmed list of speakers, and ticket information can be found on the event page here.
Secure your spot at Interact 2024 below and be part of Europe's must-attend digital advertising conference. Register Now
Spring has sprung and we're delighted to share a round-up of some of the great work we have achieved in our wonderful committees so far this year. We also share upcoming committee work and the opportunities available for our National IABs and Corporate members to get involved in.
A huge thank you to everyone involved, for your hard work, support, and continued commitment to sharing your expertise.
If you are a member of IAB Europe and would like to join any of our committees, or are interested in membership, please reach out to the team - communication@iabeurope.eu
Brand Advertising Committee
The main objective of this committee is to help drive investment in Digital Advertising by producing guides, events and best practices on established and emerging channels and formats.
Q1 Highlights include:
Upcoming opportunities include:
If you are interested in finding out more and/or would like to join the Committee please reach out to Helen - mussard@iabeurope.eu
Programmatic Trading Committee
This committee is all about increasing understanding of the programmatic ecosystem and the impact it has on digital advertising.
Q1 Highlights include:
Coming up you can get involved in:
If you are interested in finding out more and/or would like to join the Committee please reach out to Helen - mussard@iabeurope.eu
Retail Media Committee
Our Retail Media Committee has been busy working on a number of initiatives to help educate and advance the Retail Media landscape. The development of Retail Media Standards has been a priority. Following the end of the public comment period, V1 of the Retail Media Measurement Standards will be published next week. The team is also working in collaboration with IAB US on the development of creative ad format standards for Retail Media.
Other Q1 Highlights (all can be found in our Retail Media Hub here alongside many more resources):
What’s coming up:
Retail Media Committee Lead and contact: Marie-Clare - puffett@iabeurope.eu
Sustainability Standards Committee
The committee continues to drive its efforts in educating and helping the industry reduce the greenhouse gas emissions produced by the delivery of digital advertising.
Q1 Highlights (which can also be found on our Sustainability Hub) include:
What’s coming up in Q2:
If you are interested in finding out more and/or would like to join the committee please reach out to Lauren - wakefield@iabeurope.eu
TCF & Privacy
The TCF instances focus on developing and revising the Transparency & Consent Framework in line with the most recent case law, EU-level guidance and national level DPA guidance to provide improved legal certainty to its implementers while preserving flexibility. Below are the main developments relating to TCF since January 2024:
If you are interested in finding out more and/or would like to join the TCF working groups please reach out to Ninon - vagner@iabeurope.eu
Policy Committee
The Policy Committee continues to engage with members on the policy and regulatory landscape, acting as the liaison with policymakers in Q1 2024 regarding various files, including the DSA, the Cookie Pledge initiative, GDPR procedural regulation, and EDPB soft law.
The Q1 Highlights include:
If you are interested in finding out more and/or would like to join the Policy Committee, please contact Ines at talavera@iabeurope.eu
In the context of the EDPB’s upcoming Opinion and subsequent Guidelines on the ‘Consent-or-Pay’ model, a number of statements and reports have crystallised why the debate around the ‘Consent-or-Pay’ model rests on postulates that are factually wrong:
This is misleading, since end-users that choose to consent do not on the same occasion waive their fundamental rights over the processing of their personal data. The GDPR precludes unlawful data processing and provides users with the highest level of protection irrespective of the legal basis of the processing, including consent. This means that users that choose to consent do not as a result allow the online content or service provider to ignore the GDPR, since the GDPR and its principles must be complied with at all times.
The “Consent or Pay” model essentially allows end-users to choose freely between two services that are equivalent in terms of content or service provided: one that is funded at least in part by third parties by way of personalised advertising and another that is funded by the end-user directly. The conditions for “freely given” consent under the GDPR continue to be met, as this equivalence ensures that there is no detriment to consenting, not consenting or withdrawing consent: end-users that do not wish to pay or to allow funding through personalised advertising cannot expect to benefit from the online content or service entirely for free.
In other words, there is no “paying” for data protection rights - data protection rights are guaranteed in any event. Conversely the ability to provide end-users with a service free of charge or at a lower cost, due to that service being (partially or fully) funded by advertising, is precisely a circumstance that guarantees the availability of greater choices for end-users irrespective of their financial means.
First, neither the GDPR nor the ePrivacy directive is intended to interfere or influence the business models chosen by companies or to promote particular business models. This is supported by the established positions issued by the CJEU, local regulators, national courts and appeal bodies that do not opine on the type of business models companies must use.
Second, it must be stressed that contextual advertising is not a realistic alternative for many market players. As referenced in IAB Europe’s letter to the EDPB on the ‘Consent-or-Pay’ model, the fundamental right to data protection cannot negate the freedom to conduct business. Not only does it not create the obligation for businesses to provide their services for free, it does not create either the obligation for businesses to provide their services at a loss.
Contextual advertising can arguably work for eCommerce platforms, search engines, single-topic or ‘niche’ services or services that have the financial muscle to produce lifestyle features or other consumer-focused content that lends itself to such advertising. However, other types of services such as serious news content cannot be assigned to commercially interesting topics and are therefore not adequate for contextual advertising.
At the very least, contextual advertising requires the use of information originating from users’ devices which in most cases makes it subject to Article 5(3) of ePrivacy directive and/or the GDPR. For example, ensuring that the same ad does not get shown too often and too many times to the same user (frequency capping) requires storage of information on the user’s device that is generally not considered as strictly necessary by Data Protection Authorities. This is further attested by the EDPB's strict position in its draft guidelines on Article 5(3) of the ePrivacy Directive suggests that the EDPB would require consent for the mere delivery of contextual advertising.
This means that even on digital content or services that may be well-suited for contextual, the selling of non-personalised ad placements especially in the absence of users’ consent cannot generate comparable revenue to personalised advertising, as evidenced by several studies. In environments where the possibility to personalise advertisement is mechanically blocked (e.g. in the absence of cookies or advertising identifiers), ad placements are sold at a significantly lower price, leading to important revenue losses for digital advertising players:
Notwithstanding the fact that neither the ePrivacy directive nor the GDPR forbid or dictate how companies should determine and structure their business models, a correct understanding of how online advertising works and can be viable is an important prior step in order to protect the ability for businesses to maintain a free (or lower-priced) and ad-funded access option to their online content and services - which would otherwise leave end-users with only paid access options.
On the 21st and 22nd of May, IAB Europe will host our flagship event Interact 2024 in Milan. In partnership with IAB Italy, Interact 2024 promises to deliver an engaging experience with industry leaders gathering to tackle the industry’s most critical challenges and innovative opportunities head-on.
With a central theme of ‘The Big Questions. The Sharp Answers.’ we're putting the interactive back into Interact, with every session revolving around a key question that our expert speakers will answer live on stage. We will tackle everything from Privacy, Policy, and Digital Ad investment to CTV, Retail Media, Sustainability, and more.
Find out more here. Get your tickets here.
In the lead-up to the event, we will be introducing you to some of our great speakers who will take to the stage to answer our industry’s biggest questions of today.
We are pleased to introduce:
Alessandra Marinacci, Head of Brand at Telecom Italia Mobile (TIM)
Q. Firstly, thank you for joining us at Interact 2024. Apart from your session, what excites you most about Interact this year?
“The smart and sharp answers to some of the industry’s biggest questions of course!
I’m thrilled to be part of such a conference, connecting with leaders across Europe with different backgrounds and discussing common challenges. I’m curious to explore the latest trends in digital advertising and exchange insights on how they're shaping the industry's future.”
Q. Can you tell us more about your role and your main priorities for this year?
“I oversee the brand strategy & management for TIM Group. This entails not only defining and implementing policies and guidelines to maintain a consistent and engaging brand experience across all platforms and initiatives but also heading the development of brand design and experiences. I lead also the creation of advertising campaigns to reinforce our brand positioning. Last but not least I'm in charge of the brand heritage, which includes managing one of Europe's largest archives!
Our main challenge this year is to drive meaningful brand growth and resonance in the market, promoting responsible leadership. We have been working to enhance the perception of TIM as a trailblazer in innovation but also a force for good, that can accelerate the transition towards gender equality, which we believe is a fundamental requirement for the growth of our country, to which our group has been dedicated for over 100 years.”
Q. You will join the session that asks ‘What do buyers really want from digital advertising?’ Any initial thoughts you’d like to share on this question?
“Brands are looking for more than just visibility today, especially for established ones it is more about fostering deeper connections with the audience driving tangible business outcomes. Digital advertising is a key opportunity in fact to reinforce our brand identity and values, ensuring that every interaction with our audience reinforces trust.”
Q. What do you think is driving digital growth in Europe this year?
“I believe digital growth in Europe is being propelled by a combination of factors. Rapid post-pandemic digital adoption across industries is leading the game, driven by the imperative for businesses to adapt to rapidly evolving consumer behaviors and expectations, but it is also fueled by advancements in technology: particularly in areas such as artificial intelligence, machine learning, and data analytics that are unlocking new possibilities for growth. Organisations are also harnessing the power of data-driven insights to personalise customer interactions, optimise marketing campaigns, and drive predictive analytics-driven decision-making which makes digital advertising the one that companies like the most.”
Hear from industry-leading speakers including Alessandra Marinacci and more at Interact 2024 and get the sharp answers you’re looking for.
Get your tickets here.
IAB Europe is soliciting candidacies for a new, senior position of Chief Operating Officer (COO) to enable the Association’s growing team to develop and leverage new opportunities across the full range of its policy- and non-policy-related work.
Description
The COO will ensure operational efficiency, transparency, and accountability across all of IAB Europe’s work-streams and instances. He/she will own process development for annual planning and accountability, HR, finance, rhythm of the business of the Board, ExCo, and Industry Leadership Council, as well as oversight of the process for member retention and recruitment. He/she will build a strong team with the CEO to ensure the organisation’s structure, operations, and business processes support and enable the delivery of a broad and diverse agenda of member- and industry-facing services and that there is good alignment at all times with the Association’s strategic priorities. The COO will report to the CEO but work in partnership with the CEO to enable IAB Europe to identify and realise new opportunities to deliver value to members and the industry.
Key responsibilities
Requirements
Compensation
The role is Brussels-based; compensation would be competitive, with annual bonus based on achievement of team and individual KPIs.
Contact
Please send CV and expression of interest to jobs@iabeurope.eu, mentioning “COO role” in the email header.
Sponsored Product Ads are a fundamental part of the Retail Media advertising ecosystem. They can be described as keyword-or product-targeted ads that promote individual listings and appear in shopping results and product detail pages on the retailer's site.
In the following blog, experts from IAB Europe’s Retail Media Committee dive into what good Sponsored Product Ads look like, how they can be bought and measured and how they can support the full-funnel marketing mix.
A big thank you to the following contributors for sharing their thoughts:
Maria Kristalinskaya, Head of Retail Media at Kleinanzeigen at Adevinta
Nesma Abdel-Hamid, Team Lead Digital Activation at Douglas
Lena Schütze, Team Lead Client Services & Consulting at Douglas
Mark James, Senior Director EMEA at Flywheel
Kına Demirel, Chair of the IAB Turkey Retail Media Group and Managing Director at Mimeda
Nico Batista, Director, Expert Services at Skai
Q. What makes a great Sponsored Product Ad (SPA)?
Nico:
"We can define a great sponsored product ad as the right amount and type of ingredients and flavours combined together in harmony. It must be granular, to allow for one-to-one optimisations, around keywords, targets, categories, audiences (where possible), and individual products. But a great sponsored product ad must also be scalable so it doesn’t become inefficient. When building the perfect sponsored product ad, it’s key to look at individual relevancy and performance between products and targets, as well as placement modifiers that are adjusted based on individual performance as opposed to a group of products that are broadly similar. Finally, the ad should be optimised against product, category, brand, and organisational objectives - not simply ROAS."
Kına:
"For best results, they should be designed in a way that best suits the consumer experience. When the right keywords related to the product are targeted, this can positively impact the user experience and makes the ad a part of the shopping journey. In addition, having a formula of 2 of the first 5 products on the product listing page as sponsored product ads could increase the effectiveness of the ad and help the user to be naturally involved in the shopping journey."
Lena:
"The success of a Sponsored Product Ad depends on the relevance - ensuring that the ad aligns closely with the target audience’s interests and needs. Therefore specific tools can be leveraged to improve the relevance of a sponsored product, such as SKU set-up and targeting optimisation."
Mark:
"Sponsored product ads are opportunities to put your product in front of the eyes of a consumer very close to the point of purchase with the help of a clear indicator of intent; the search term. If the ad, and product in the ad, is highly relevant to that search term, the consumer benefits from seeing a product that is likely to be what they are looking for, and the retailer benefits from satisfying the consumer’s demand efficiently.
The other piece that is critical is the product listing itself. The listing needs to give an accurate account of what is being sold in a way that a consumer can clearly tell them if it is what they are looking for."
Maria:
"Great sponsored products ads are the ones that offer the right balance between user need and advertiser’s pain (irrelevant traffic, high bids, etc.). Making the ads personal and relevant with the targeting and optimisation options offered by the retail media network as well as providing relevant product description and further information (pictures, titles, etc.) increase the engagement and leads to the better results for the campaign."
Q. What type of campaigns are sponsored product ads suitable for and how can they support the full-funnel approach?
Lena:
"First and foremost, Sponsored Product Ads are considered as lower-funnel campaigns as they are placed at the digital shelf and reach customers when they are already browsing on the retailers category pages. However, although SPAs directly impact the sales and conversions of a brand, SPAs also help to keep the brand top of mind and influence a purchase decision (moving up the funnel)."
Nico:
"Most campaigns should be supported by sponsored products to some degree. With today’s digital shelf as competitive as it is, spending brand-marketing budgets on upper-funnel activities without maximising share of voice at the purchase level would be extremely inefficient, not to mention a considerable waste of money. Sponsored product ads are naturally suited to drive highly profitable, bottom-of-the-funnel sales, but can also provide support to omnichannel full-funnel strategies."
Kına:
"Sponsored product ads are usually considered for sales-focused campaigns. However, it supports the full-funnel from Consideration to Purchase therefore they are a great choice when it comes to gaining high visibility."
Mark:
"We observe the highest conversion rates when sponsored product ads are run alongside mid/upper funnel tactics such as sponsored display or programmatic. The mid/upper funnel campaigns are there to create demand, the bottom of funnel campaigns (eg. sponsored products) are there to assist the conversion."
Maria:
"Sponsored product ads catch the user at the stage when they already decided they need a product X and help them make the final decision. Therefore, it’s definitely the way to go to boost conversions and increase sales. With extensive targeting options and variety of placements offered by different networks, we also see that sponsored ads help to increase brand awareness and raise the brand recognition metrics. The extra effect is achieved especially if they’re running alongside other top-funnel formats."
Q. What metrics should brands consider when evaluating sponsored product ads?
Lena:
"As SPAs are lower funnel campaigns focused on driving sales, the key metrics for this campaign type are ROAS, conversions and CVR. Depending on the brand maturity and equity, it also makes sense to consider CPC and CTR as key metrics to evaluate how an audience engages with the products and how efficient the campaign is. Additionally, the share of voice and share of clicks can provide insights into the brand’s visibility, effectiveness and competitiveness within a specific category."
Nico:
"This will depend on the capabilities of the publisher. In most platforms, you will be able to measure against ROAS, CVR, CPCs, and total revenue. However, in the more sophisticated platforms, you can evaluate performance against keyword impression share or ad placement data. For budgeting and forecasting, missed revenue and recommended budget are great metrics to support internal investment discussions. Other valuable metrics are assisted and same SKU campaign sales where buyers can see which SKUs are actually being purchased regardless of standard PPC sale attribution."
Kına:
"Brands should primarily pay attention to conversion rates and ROAS when evaluating sponsored product ads. In addition, click-through rates of ads and their associated cost per click are also important for cost analysis. It is also becoming a common practice where platforms are providing a set of relevant keywords for brands to target for . Another metric that relatively becomes popular is also the new customer generated through sponsored product ads."
Mark:
"Alongside the typical performance metrics such as ROAS, CTR, CVR, brands should pay attention to total sales performance for their products, by also taking into account organic sales to ensure they are not cannibalising sales that would have happened without assistance. Brands should also look at their margins after taking into account advertising costs and COGS. They should also not consider a single purchase in isolation, but the life-time value of customers they acquire through sponsored product ads - for example, is your ROAS low on the first purchase, but they go on to buy your products repeatedly and convert on cheaper search terms (such as branded terms) when they purchase for a second time? If so, the low initial ROAS might make sense. And finally, brands should pay attention to their market share so that they consider their performance trends in relation to the wider market in which they are competing."
Maria:
"My colleagues mentioned a lot of performance metrics that are absolutely must-to check when you’re running sponsored product ads campaigns. If your tracking system allows, I would also recommend checking more long-term metrics like CAC and LTV to check the long-term effect of the campaigns (mostly applicable for non-endemic customers and click-out model). Some of our customers also check the % of new users we drive to their pages to see the difference you get with each new channel."
Q. How can buyers access sponsored product ads?
Nico:
"Most key players in 2024 either already have or are developing their own proprietary retail media network, or they have a technology partner that allows them to serve ads on their online store. To begin advertising in your retailers of choice, the first step is bringing it up in conversations with your commercial point of contact at that retailer."
Kına:
"The initial contact should be between brands and retailers' sales teams or retail media companies for sponsored product ads. More and more retailers are either using or creating their own retail media technologies where brands can access inventory for sponsored product ads, set up campaigns, and manage budgets using self-service interfaces developed by retail media networks with their own digital teams."
Maria:
"Working directly with retailers gives you a lot of advantages like early access to the new product features, dedicated account management team with optimisation expertise,etc. All together you get an opportunity to extensively target the target audience of this platform especially if you look for specific very niche segments. But also you need to plan dedicated resources within your team to manage these campaigns and minimal budgets are usually quite strict. Working with technology providers or dedicated agencies, you get access to more players and more thorough allocation of your budget. My recommendation will be to check what you’re looking for and combine both dependending on the retailers you’re looking for to work with."
Q. How can brands evaluate sponsored product ads across retail media networks?
Mark:
"This is generally difficult for brands to evaluate since each retail media network lives in isolation from one another and they have their own ways of measuring and sharing data with brands. The first task at hand is therefore to bring all their retail media data into a single source of truth such as an omni-channel retail media platform. This will allow them to view product level performance across all retail media networks and make it easier to evaluate success. However, the very best way to evaluate sponsored ad performance across retail media networks is to bring media, retail sales and market share data across retailers into a single place. This enables brands to track multiple metrics across multiple retails in one place and allow them to make decisions on where to invest in a retailer-agnostic way."
Nico:
"Different attribution models, windows, metrics, optimization capabilities, and more makes it difficult to compare apples to apples within the retail media space. My suggestion would be to try and set up attribution windows to match your business goals equally across retailers and choose basic performance metrics that are widely available in the channel (i.e. ROAS, CVR, CPA). But while the industry awaits standardisation, brands can leverage tech partners and solutions that integrate all retailers in one place and that allow buyers to make quick cross-retailer budgeting and optimisation decisions with all the relevant information easily accessible in front of them."
Kına:
"Brands generally use the analytical tools provided by retail media networks to evaluate the performance of sponsored product ads. These tools are used to measure the interactions, conversions, and return on investment of ads. By analysing this data, brands can optimise their advertising strategies and run more effective campaigns. When comparing platforms, it is important to consider factors such as inventory size, audience reach, ad formats, analytics and reporting, cost and return on ad spend (ROAS), targeting options, user experience, technical support, and communication. These factors may vary according to the needs and goals of brands, and the preferred platform will depend on specific campaign objectives and strategies."
Find out more
IAB Europe’s Retail Media Committee is at the forefront of the retail media industry. Members are driving retail media growth and shaping the landscape by:
Find out more and get involved by contacting Marie-Clare Puffett - puffett [@] iabeurope.eu
IAB Europe has submitted its annual report for the Code of Practice on Disinformation (CoP).
The report from IAB Europe highlights the Association's dedication to combating disinformation, stressing the vital need for the digital ecosystem to provide reliable information to foster confidence and improve overall digital health. Access to truthful information is pivotal for instilling trust in the digital space, benefiting users and the ecosystem alike.
Since its inception, IAB Europe has recognised the multifaceted challenges of tackling disinformation and its significance for the overall health of the digital landscape. As original signatories of the Code in 2018, both the Association and some of its members have been steadfast advocates for promoting reliable information dissemination and fostering collaboration within the digital ecosystem.
Following the signing of the 2022 CoP, IAB Europe has actively participated in the post-signing activities of the Taskforce Group. The Association's involvement in crucial subgroups such as Ad Scrutiny, Monitoring and Reporting, and Outreach and Integration reflects its dedication to representing the viewpoints of the digital advertising ecosystem.
On October 24, 2023, IAB Europe organised a pivotal event titled ‘IAB Europe’s European Elections: Rights and Risks in the Digital Public Space.’ This event provided a platform for stakeholders to delve into the complexities of the digital public space, with a particular focus on disinformation and media literacy. Distinguished panellists, including representatives from Maldita.es, GroupM, and the EEAS, engaged in insightful discussions on combatting disinformation and supporting quality media.
Within its annual report, IAB Europe reaffirms its commitment to educating the industry on the significance of the Code of Practice and its commitments. The Association continues to advocate for actions that uphold the integrity of digital information and ensure accessibility to accurate viewpoints for all citizens.
For further details on the annual report and IAB Europe's initiatives, you can access the reporting information in the Transparency Centre here and IAB Europe’s report here.
