IAB Data Privacy and Compliance 2 — Questions and Answers
Question 1: What is an identifier in the context of privacy-conscious digital advertising?
- A persistent or non-persistent code used to recognize users across sessions or devices (Correct answer)
- A code that identifies ad creative versions
- A unique number assigned to each ad impression
- A label used to categorize audiences by interest
Correct answer: A persistent or non-persistent code used to recognize users across sessions or devices
An identifier in advertising is a code (like a cookie ID or device ID) used to recognize and track users, which is central to debates about privacy in digital advertising.
Question 2: What is contextual advertising's advantage in a post-cookie world?
- It targets based on page content rather than user behavior, requiring no personal data (Correct answer)
- It provides higher click-through rates than behavioral targeting
- It allows better cross-device tracking without cookies
- It reduces the cost of reaching target audiences
Correct answer: It targets based on page content rather than user behavior, requiring no personal data
Contextual advertising targets ads to relevant content rather than individual user profiles, making it inherently privacy-compliant and effective without relying on third-party cookies.
Question 3: What is data minimization as a privacy principle?
- Only collecting the personal data necessary for the specific purpose for which it will be used (Correct answer)
- Reducing database storage costs by compressing data files
- Limiting the number of third-party vendors with data access
- Minimizing the data shown in analytics dashboards
Correct answer: Only collecting the personal data necessary for the specific purpose for which it will be used
Data minimization is a core privacy principle requiring organizations to collect only the data necessary for their stated purpose, reducing privacy risk by limiting data exposure.
Question 4: What is a 'clean room' in the context of data collaboration for advertising?
- A privacy-safe environment where companies can analyze combined datasets without exposing raw individual-level data (Correct answer)
- A secure facility for storing physical advertising materials
- A controlled environment for testing ad creatives before launch
- A data center meeting strict hygiene standards
Correct answer: A privacy-safe environment where companies can analyze combined datasets without exposing raw individual-level data
A data clean room is a secure, neutral environment where two parties can analyze their combined data to generate insights without either party seeing the other's raw user-level data.
Question 5: What does COPPA regulate in the United States?
- Online collection of personal information from children under 13 (Correct answer)
- Copyright protections for online advertising content
- Consumer protections for pay-per-click advertising
- Commercial email marketing to adult consumers
Correct answer: Online collection of personal information from children under 13
COPPA (Children's Online Privacy Protection Act) regulates the online collection of personal information from children under 13, requiring parental consent and special protections.
Question 6: What is 'purpose limitation' in data privacy for digital advertising?
- Data collected for one purpose cannot be reused for a different, incompatible purpose (Correct answer)
- Restricting the number of advertisers who can use a dataset
- Limiting how long data can be stored in a DMP
- Setting caps on how much data can be processed per campaign
Correct answer: Data collected for one purpose cannot be reused for a different, incompatible purpose
Purpose limitation requires that personal data collected for a specific reason (e.g., ad delivery) cannot later be repurposed for unrelated uses (e.g., credit scoring) without additional consent.
IAB Data Privacy and Compliance 2
What is an identifier in the context of privacy-conscious digital advertising?