If you are a seasoned marketer, there is a high probability you use Facebook Ads to grow your business. To keep advertising safely on Facebook, you need to know all about GDPR and Facebook.
Sure you are wondering what GDPR and Facebook have in common. Before we delve into that, let’s look at the meaning of GDPR.
GDPR (General Data Protection Regulation) is a European law that stipulates businesses should protect the personal data and privacy of EU audience for transactions that take place within the EU member states.
This concerns many advertisers, with as much as 52.8% of Digital Marketers considering government regulation or the threat of regulation as an obstacle in their ability to leverage user data.
It goes without saying that businesses of all sizes need to be ever more careful in handling data security and customers’ privacy. According to research from Oxford Economics, the main reason for mistrust in the tech industry for 64% of people is the misuse of their personal data, and a survey conducted by The Harris Poll found out 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.
Source: Dentsu Aegis Network Digital Society Index Survey 2018
The issue of privacy is a serious one. If you want to know more about GDPR, in general, don’t miss out on our “dummy guide” on this topic, here.
So, to go back to GDPR and Facebook, what changes exactly?
It changes 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 around the world that use people’s personal data in the European Union.
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 U.S by RSA Data Privacy & Security Report revealed that 80% of consumers said lost banking and financial data is a top concern while lost security information such as passwords and identity information like passports or driving license was cited as a concern for 75 percent of the respondents.
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 needs 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
So, how does this affect your company?
As a marketer, if you use, store, manage or analyze data of any kind, it means GDPR affects your company.
- Complying 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 with GDPR on Facebook 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 information they want
- Complying with GDPR on Facebook made it mandatory that users can delete their information whenever they want.
However, it’s important to understand that complying with the GDPR best practices does not limit or hinder advertisers.
It simply means that users must give permission for their information to be used and that advertisers must be transparent about how they are going to use them.
This is not bad news for businesses. If anything, it means that business will collect only the personal information of the people who are really interested in a specific product or service – which most likely will drive better results.
Amy Manus, vice president of the southeast region at Goodway Group, a programmatic partner agency, believes that GDPR will be beneficial for advertisers also in another way. In fact, the new GDPR regulation will force companies to rethink and refine their strategy around what data matters, how to collect it, and how to implement it – while at the same time letting go of all the data not needed and potentially dangerous in terms of law violation. She believes 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, therefore, 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”.
Let’s take a look at 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 to know the people that 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 consent notification for users to accept or reject on your webpage.
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 they collected, whilst it is a ‘data processor’ when it processes the data on behalf of the data controller (like Facebook does, in most situations).
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. 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. You cannot market to them according to the GDPR law. 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 too, such as Facebook, for example, verifying that it is GDPR compliant.
Also, on the path of 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 go about 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 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 the personal data in HASHED keys in real-time (in VCPU memory) without storing any sensitive data in any place.
Using LeadsBridge helps companies to safely and automatically sync their Custom Audiences, making sure they are always updated with people who gave permission to be targeted.
The third thing to consider is the GDP 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 with GDPR and Facebook Ads?
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. Companies that violate GDPR best practices may be fined up to €20 million, or up to 4% of the annual worldwide turnover of the preceding financial year, whichever is greater.
In its first preliminary report the European Data Protection Board stated that only 52% of the 206,326 cases reported have been resolved, so many more are to be expected. So far the average GDPR fine has been roughly €66,000 if we exclude the 50 million€ fine received by Google from the French data protection agency.
The advertising world has entered a new era concerning data privacy and digital customer interactions. Making sure you comply with GDPR when using Facebook 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 make a recap about 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. Facebook Lookalike Audiences, on the other hand, do not need the same requirements, so they can be adopted as usual.
What is your experience with GDPR and Facebook Ads? Let us know in the comments.