If you are a seasoned marketer, you probably use Facebook Ads to grow your business. However, in order to advertise safely on Facebook, you need to know all about Facebook Lead Ads and GDPR.
- What is GDPR?
- Why is GDPR important?
- Types of data protected by GDPR
- How does GDPR affect advertising in the EU?
- How do Facebook Lead Ads and GDPR affect your company?
- Facebook Lead Ads complying with GDPR best practices do not limit or hinder advertisers
- How has GDPR affected marketing?
- GDPR and social media marketing
- Facebook Lead Ads and GDPR
- GDPR and Facebook products that the law affects
- What are the risks of non-compliance between Facebook Lead Ads and GDPR?
- Final thoughts
You might be wondering what GDPR and Facebook have in common. Well, in this article, we are going to dive into the meaning of GDPR and how it has affected social media marketing and lead generation strategies. Besides, we’ll introduce automation integrations that help you get the best out of your Facebook Ads campaign, such as:
What is GDPR?
GDPR (General Data Protection Regulation) is a European law that stipulates businesses should protect the personal data and privacy of the EU audience for transactions that take place within the EU member states. It implements the rules for companies that collect, store, or process data on EU residents. That includes Facebook, Google, and other companies that use large amounts of data. It also involves companies that have a digital presence in the EU and companies worldwide that use people’s data in the European Union.
In 2022, 45% of Europeans still worry about their privacy, even after GDPR was officially adopted in 2018. This concerns many advertisers. They continue to view these regulations as an obstacle to their ability to leverage user data. However, what is most concerning is that 41% of marketers admit to not fully understanding both the law and best practices that regulate the use of consumers’ data.
On the other hand, a Consumer Privacy study led by TRUSTe/NCSA found that 92% of online customers mention data security and privacy as a concern. And according to a report, 57% of consumers don’t trust brands to use their data responsibly.
According to research published by Oxford Economics in 2019, the main reason for mistrust in the tech industry for 64% of people is the misuse of their personal data. Additionally, a survey conducted by The Harris Poll found that 75% of people that don’t trust a company with their data wouldn’t buy from that company, no matter how great its products and services were.
It’s clear there is still a significant disconnection between consumers, their personal data, and how the companies that collect it should use it.
The issue of privacy is a serious one. If you want to know more about GDPR, in general, don’t miss out on our “all-inclusive guide” on this topic.
Why is GDPR important?
GDPR helps to protect people’s privacy. Many people are concerned about their privacy and losing important information. A research carried out on 7,500 consumers in France, Germany, Italy, the UK and the US by RSA Data Privacy & Security Report revealed that 80% of consumers said that unprotected banking and financial data is their top concern, while lost security information such as passwords and identity information like passports or driving license was said to be a concern for 75% of the respondents.
From these numbers, we can understand that people are concerned about their data being stolen on multiple levels and throughout multiple industries. The GDPR aims to protect that data, no matter what it is.
Types of data protected by GDPR
In order to successfully comply with the GDPR law, you need to know the type of data affected. Below are seven specific data that need protection:
- Identity information such as Name, Address, ID numbers
- Web data such as Location, IP address, Cookie data, and RFID tags
- Health and genetic data
- Racial or ethnic data
- Political opinions
- Sexual orientation
How does GDPR affect advertising in the EU?
The EU General Data Protection Regulation covers a broad spectrum of marketing practices, both offline and online. As a result, almost every company which is actively trading in the EU needs to consider how the GDPR will affect its marketing activities.
However, complying with the GDPR regulations is a demanding task, especially when it comes to digital advertising.
In addition to basic requirements such as using an EU national language and EU currency_to stay compliant with the EU trade regulations_you need to find out whether you are:
- Subjected to the GDPR (for non-EU companies).
- Up to date with consent-based marketing systems. This includes cookies, IP addresses, cookies, web beacons, tracking pixels, GPS data, etc.
- In need of requesting “new” consent from all or some of existing customers.
- In need of a new system to streamline the right to request consent and store and transfer data.
Depending on how your company functions and the nature of your products, you need to create processes whereby your user can see and interact with your consent request. This way, you can obtain their personal data consensually and automatically.
How do Facebook Lead Ads and GDPR affect your company?
As a marketer, if you use, store, manage or analyze data of any kind, it means GDPR influences your company.
- Complying with GDPR on Facebook Ads means you have to inform your subscribers how you will use their data;
- Complying with GDPR on Facebook means that people must give their consent before you use their data. They are also free to withdraw their consent whenever they want;
- Complying Facebook Lead Ads with GDPR means it is mandatory for you to show your customers their information whenever they demand to see it;
- Complying with GDPR on Facebook means it is required that users must be able to edit any piece of information they want;
- Complying with GDPR on Facebook made it mandatory that users can delete their information whenever they want.
Facebook Lead Ads complying with GDPR best practices do not limit or hinder advertisers
Facebook Lead Ads’ compliance with GDPR simply means that users must give permission for their information to be used. On the other hand, it requires advertisers to be transparent about how they are going to use it.
This is not all bad news for businesses. If anything, it means that businesses will collect only the personal information of the people interested in a specific product or service, which will most likely drive better results.
Amy Manus, vice president of the southeast region at Goodway Group, a programmatic partner agency, mentioned that GDPR would be beneficial for advertisers also in another way. And that GDPR regulation forces companies to rethink and refine their strategy around which data matters, how to collect it, and how to implement it — while at the same time letting go of all the unnecessary and potentially dangerous data in terms of violating the law. She also mentioned that “streamlining their approach and strategy for how and what data they use is a necessary exercise many marketers have been putting off for some time.”
GDPR is an opportunity for companies to improve their business practices and strategies. In a report by the IBM Institute for Business Value published in May 2018, 59% of surveyed executives said that GDPR is “an occasion for transformation or a spark for new data-led business models”.
How has GDPR affected marketing?
GDPR has affected marketing and how to do it properly mostly from 2 main standpoints: data permissions and data access.
According to GDPR regulations, you can’t just assume that leads want to receive your promotional content and be contacted by you with offers and deals. Instead, you have to give them the option to make a deliberate choice to be contacted. How? By expressly asking for their consent.
This is easily made by adding a checkbox inside your web form (for example) that your potential customers have to actively click on in order to give consent to be contacted. Also, you need to explain clearly what exactly you’re asking permission for and with what purpose you’re going to use the data shared with you.
You understand how this has also affected how businesses conduct lead generation. GDPR compliance automatically makes it “harder” for you to reach a larger audience since they need to actively give their consent. However, those who do give out consent are necessarily interested in what you have to offer – and, therefore, more likely to convert. So, while you might collect fewer lead data, there’s a chance that data is of a higher quality and generates a higher conversion rate.
We could say lead generation and GDPR actually go hand in hand: quality over quantity and a win-win for both parties. If you’d like to dig deeper into this topic, we suggest you read our article about consent and permission-based marketing.
Take a look at the example below for a visual representation of what to do and not do, to clearly understand how GDPR has affected marketing.
Given that people in the EU have the right to be forgotten – therefore, the right to have outdated or inaccurate personal data removed – GDPR also gives people the chance to have more control over their shared personal info: they can not only decide whether or not to share it, but also to access it and revoke permission at any time.
Therefore, you have to ensure that your users can easily access their data and revoke permission to use it. How? That’s actually pretty easy. Inside your promotional emails, add a clearly visible “Unsubscribe” button linking to their customer profile, where they can manage their email preferences.
Take a look at the example below for another practical representation of how GDPR has affected marketing.
GDPR and social media marketing
The connection between GDPR and social media marketing might seem a little blurry on the surface, but they are in fact strictly related. Here’s how!
Social media ads and remarketing campaigns
Ever since GDPR came into the picture, running remarketing ads to EU users requires such users to have already agreed to have their data processed, either through a previous, already existing sign-up or by creating an opt-in disclaimer about data usage within the ad.
This can be a double-edged weapon: on the one hand, this adds a few extra steps to your campaign, which provides users with more opportunities to drop out of your funnel; on the other hand, users who do go through with the process of giving consent are actually interested in your offer, and therefore more likely to convert.
To respect GDPR and social media marketing restrictions, just make sure you’ve thoroughly reviewed where and how you use lead data in your social media marketing strategy and clearly state that to the user, in order to gather consent.
Before interacting with your ad and opting into whatever your offer is, GDPR and social media marketing restrictions require users to accept your privacy terms. This apparently insignificant action is actually pretty important, especially if users are required to take additional actions afterward – like filling out a form – once they’re on your ad.
Facebook Lead Ads and GDPR
Since the GDPR has officially become effective on May 25th, 2018, Facebook has done everything in its power to make sure they abide by the GDPR regulations and protect data according to the new law.
In fact, Facebook stated:
“Data protection is central to the Facebook Companies (Facebook and Messenger, Instagram, Oculus, and WhatsApp). We comply with current EU data protection law, which includes the GDPR. Our GDPR preparations were led by our Dublin-based data protection team and supported by the largest cross-functional team in Facebook’s history.”
Facebook provides plenty of information on the regulations and exceptions of Facebook Lead Ads and the GDPR. Under the GDPR, a company can legally process a person’s data if the following requirements are met:
- The data being processed must be necessary for the service provided to the individual, and outlined thoroughly in the contract between Facebook and the mentioned individual.
- The data being processed must be accompanied by freely given and specific consent by affirmative action.
- Under that same exception, people have the uninfringeable right to withdraw consent at any time.
- The person giving the consent must be at or over the age of consent. Otherwise, given by or authorized by a guardian or parent.
- This is to protect kids on the internet from having their data used.
- Explicit consent must be given for some processing, for example, in special categories of personal data.
- Data may be processed if a business or third party has a legitimate interest that is not overridden by the individuals’ rights or interests.
- Processing must be halted if the individual objects to it.
With LeadsBridge’s integrations, you can easily and automatically connect Facebook Lead Ads to all your favorite marketing & advertising tools, for GDPR-compliant & real-time data syncing. To learn more about Facebook Lead Ads and GDPR, a step-by-step guide will show you everything you need to know about this tool.
Below are a few examples of Facebook Lead Ads integrations by LeadsBridge.
Facebook Lead Ads integration with Zoho CRM
Facebook Lead Ads integration with Klaviyo
Facebook Lead Ads integration with bitrix24 Webhook
GDPR and Facebook products that the law affects
1. GDPR and Facebook Pixel
As an advertiser on Facebook, you probably use Facebook Pixels on your website to give your users a better experience and know the people who use your services or products to show them relevant ads on Facebook.
The thing is, GDPR affects the use of Facebook Pixel. If you are using Facebook Pixel on your website, you are liable to comply with GDPR. Some examples of cases where you will need to get the prospects’ consent include:
- A Facebook advertiser who installs the Facebook or Atlas pixel on its website to measure ad conversions or retarget advertisements on Facebook.
If you fall into any of the four categories above, you will need to obtain consent from your users. You can do this by showing a message when the page loads for the first time. This is referred to as a “cookie banner” to tell users how to give their consent.
Secondly, you can also obtain consent when they are signing up for your offer. A free tool you can use is cookie consent notification. It will display a consent notification for users to accept or reject on your webpage.
Or, you could install a server-based solution that allows you to track users’ behavior without relying on cookies: Facebook Conversions API. This tool performs as a top cookie-less tracking solution that marketers can use in addition to Facebook pixel. Here you can find all the possible integrations for Facebook Conversions API developed by LeadsBridge.
If you’d like to learn more about this tool, you can take a look at this example on how to connect your CRM to Facebook Conversions API, and also read the complete guide about it.
Below, you can find a few examples of the integrations available for Facebook Conversions API.
ActiveCampaign integration with Facebook Conversions API
Mailchimp CRM integration with Facebook Conversions API
Zoho CRM integration with Facebook Conversions API
The second thing you need to consider is GDPR and Facebook Custom Audiences.
2. GDPR and Facebook Custom Audiences
Custom Audiences are audiences from your email list. You can upload the audiences to your Facebook Ads to target them directly. GDPR affects Facebook Custom Audiences too.
To understand why we need to introduce the concept of “data controller” and “data processor”. Depending on its role as a data controller or processor, a company has different responsibilities under the GDPR. A company is a “data controller” when they decide the purpose of how to process the data it collected. At the same time, it is a “data processor” when it processes the data on behalf of the data controller (like Facebook does, in most cases).
What exactly is a data controller?
Uploading email lists or contact information into a Facebook Custom Audience makes you a data controller. GDPR stipulates that as a data controller, you must ensure that your subscribers give their consent before you can market to them.
For example, if you have email lists from LinkedIn contact, email addresses from business cards, purchased or scraped email lists, and shared pixel information from other parties without users’ consent, you need to delete the information from your Facebook ad account. According to the GDPR regulation, you cannot market to them. You are only allowed to market to users who have given you their consent.
The data controller also has the responsibility to choose the data processor it submits the data to, such as Facebook, for example, verifying that it is GDPR compliant.
Also, on the path to compliance, you must ensure that your Custom Audience lists are continuously updated so you can weed out those subscribers who have opted out of your list. This means they have withdrawn their consent from your marketing list.
The best way for companies to avoid manual work and the risk of human error is to automatically sync their Custom Audiences through a third-party middleware like LeadsBridge.
LeadsBridge: A Facebook trusted partner
LeadsBridge is a cloud-based integration platform both GDPR and Privacy-Shield compliant with a strong focus on privacy-safe best practices. For example, in the case of Facebook Custom Audiences, LeadsBridge will convert personal data in HASHED keys in real-time (in VCPU memory) without storing any sensitive data in any place.
Using LeadsBridge helps companies safely and automatically sync their Facebook Custom Audiences, ensuring they are always updated with people who gave permission to be targeted. It’s both easy to use and free to try out so that you, too, can create bridges between your favorite marketing tools.
Here are a few examples of integrations with Facebook Custom Audiences by LeadsBridge.
ActiveCampaign integration with Facebook Custom Audiences
Act-On integration with Facebook Custom Audiences
The third thing to consider is the GDPR and Facebook Lookalike Audiences.
3. GDPR and Facebook Lookalike Audiences
Unlike Lead Ads and Custom Audiences, GDPR does not affect Lookalike Audiences.
What are the risks of non-compliance between Facebook Lead Ads and GDPR?
Many people speculate that non-compliance with the GDPR laws will attract heavy fines, especially for big brands. But small businesses can also run into legal issues. For example, companies that violate GDPR best practices may be fined up to 4% of the annual worldwide turnover of the preceding financial year.
In its first preliminary report, the European Data Protection Board stated that only 52% of the 206,326 cases reported had been resolved, so many more are to be expected. So far, the average GDPR fine has been roughly 66,000 euros if we exclude the 50 million euros fine received by Google from the French data protection agency, which is currently the largest GDPR-related fine on record.
The advertising world has entered a new era concerning data privacy and digital customer interactions. Making sure you comply with GDPR when using Facebook Lead Ads will keep you away from potential infringements. You need to ensure that you comply with the law, especially if your business is dealing with EU audiences.
It’s important to stress again that complying with the GDPR best practices is not a limit for advertisers but rather an opportunity to step up their data-led business models while meeting the new law requirements.
To recap the main Facebook advertising features, both the Facebook Pixel and Facebook Custom Audiences require businesses to ask for the user’s consent to collect their personal information and explain clearly how they will be used.
Unlike many other service providers, LeadsBridge doesn’t sell ads or trade user info. Instead, we offer automation to bridge the gap between your apps, in total compliance with GDPR and advertising regulations in the EU.
Think of us both as a data Processor and Controller, which involves managing your data according to our terms of service.