On July 1, Facebook automatically decided advertisers in its new limited knowledge usage settings to comply with the California Consumer Privacy Act (CCPA). When Limited Data Usage (LDU) is enabled, Facebook restricts how user knowledge detected as California can be stored and processed. The feature is already having a significant effect on advertisers.
CCAC gives California citizens the right to know how their knowledge is used, what categories of knowledge are collected and sold (e.g. name, IP address), and the ability to refuse to allow corporations to do so. This does not apply only to corporations in California. Like the EU GDPR, the CCAC applies to all affected corporations that obtain non-public data from California citizens.
If you’re not already familiar with limited use of Facebook knowledge, see Contributor Simon Poulton’s detailed presentation on how Facebook’s control over California user knowledge can be just your business. And read this on our MarTech Today spouse site if you’re not sure the CCPA applies to your business.
For reference, one or more of the following situations should request that the CCPA apply to an undertaking:
In The Facebook Ads Manager Event Manager, there is an option to extend the transition era and limited use of default knowledge until October 20, 2020.
If you want more time to put limited knowledge usage into effect for your Facebook events, you want to check this option.
Limited knowledge usage can be applied for the FB pixel, conversion API, app event API, and offline conversions. Refer to the developer documentation to take effect of LDU.
“Facebook’s knowledge use policy has increased functionality in California for all brands.” said Joe Yakuel, ceo of advertising firm WITHIN, which manages the e-commerce advertising budgets of Nike, Hugo Boss and Shake Shack.
Yakuel said that in the first six days of July, the CPA (cost consistent with the acquisition) in California was 500% higher than that of other states and conversion rates fell to 84%. As a percentage of total advertising investment in the United States, California increased from 10% to 5.5%.
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