META SOCIAL MEDIA MARKETING PROFESSIONAL CERTIFICATE

Course 3 – Fundamentals of Social Media Advertising

Week 3: Data, Privacy and Policies of Social Media

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TABLE OF CONTENT

This week you will learn what data-based advertising is, common data formats, and how data is collected. You will also learn about user privacy, how it is protected, and rules advertisers must adhere to.

Learning Objectives

  • Know why and how companies implement data policies
  • Learn how the digital advertising industry regulates data usage
  • Get a basic understanding for data protection laws (GDPR, CCPA, COPPA)
  • Know who and how data is collected and stored online
  • Get an overview of data-based advertising and how and what types of data is collected online

PRACTICE QUIZ: THE ROLE OF DATA IN SOCIAL MEDIA ADVERTISING

1. An ad for luxury bathrobes appears next to an article about how to create an at-home spa experience. Is this an example of contextual or data-based advertising?

  • Data-based
  • Contextual (CORRECT)

Correct! In contextual advertising, advertisers try to place their ads next to content that is related to it.

2. You just purchased a new activity tracker and are now seeing ads for running shoes and workout gear. Is this an example of contextual or data-based advertising?

  • Data-based (CORRECT)
  • Contextual

Correct! Data-based advertising can use the data gathered from past behaviors such as purchases to display ads that could be of interest specifically to you.

3. If a company that has no clear relationship with the company you are currently interacting with is tracking your data using browser cookies, what type of data are they collecting?

  • Second-party data
  • Third party data (CORRECT)
  • First-party data

Correct! These browser cookies are called “third-party cookies”.

4. This can be created on websites where people have to log in. It is a unique number assigned to someone’s account and is associated with all their interactions and behavior on that website. What is this called?

  • UID (CORRECT)
  • IP Address
  • Hashtag
  • Cookie

Correct! UIDs or User Identifiers use number or text files but don’t store personally identifiable information. Oftentimes it is even encrypted (hashed) for greater user privacy.

5. True or False: Cookies can work across multiple devices and browsers.

  • False (CORRECT)
  • True

Correct! This is one of the challenges of cookies for data storage.

6. True or false? Putting an ad for Dom Perignon champagne in an expensive magazine is an example of data-based advertising.

  • True
  • False (CORRECT)

Correct!  It’s an example of contextual advertising—hoping that rich magazine readership will see the champagne ad and buy it.

7. Which of the following statements about Content Management Systems (CMS) are true?

  • CMS store the ad creatives advertisers want to show to consumers
  • CMS are used to design ads for consumers
  • CMS are u​sed to store, create and manage content on websites (CORRECT)
  • CMS store and utilize user data to bring the right content to each user (CORRECT)

Correct!

8. Cookies are able to:

  • Store a text file in your browser after you visit a page (CORRECT)
  • Work across multiple device
  • Function as a record of actions you took on a page while using one device (CORRECT)
  • Work on mobile apps

Correct!

9. Let’s say you buy a smartphone capable dog-caller from the website of a startup partnered with Facebook. The startup then shares your purchase data with only Facebook as part of its funding arrangement. This is an example of:

  • First-party data
  • Second-party data (CORRECT)
  • Third-party data

Correct!

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QUIZ: DATA, PRIVACY AND POLICIES ON SOCIAL MEDIA

1. True or false? Companies that violate the GDPR can be fined up to 4% of the annual revenue of a company. 

  • True (CORRECT)
  • False

Correct! For example, British Airways was issued a $230 million dollar GDPR fine in July of 2019 after the personal details of around 500,000 customers were stolen in cyberattacks.

2. True or false? COPPA is an extension law to CCPA?

  • True
  • False (CORRECT)

Correct! The Children’s Online Privacy Protection Act is a US law that took effect in 2000. It limits the collection and use of personal information of people under the age of 13 and, though enforced in California, does not only concern California state residents.

3. Which of the following data categories are companies allowed to collect under the GDPR?

  • Age (CORRECT)
  • Location (CORRECT)
  • Ethnicity
  • Sexual orientation

Correct! The GDPR says that companies are able to collect data related to age. However, certain data categories are prohibited (for instance ethnicity and sexual orientation).

Correct! The GDPR says that companies are able to collect data related to location. However, certain data categories are prohibited (for instance ethnicity and sexual orientation).

4. What’s the acronym for the US law that took effect in 2000 and limits the collection and use of personal information of people under the age of 13?

  • COPPA (CORRECT)
  • GDPR
  • CCPA

Correct! COPPA stands for the Children’s Online Privacy Protection Act.

5. True or false? The main goal of industry self-regulatory organizations is to enforce data protection laws.

  • True (CORRECT)
  • False

Correct!

6. Which of the following are European self-regulatory principles for Data-Driven Advertising?

  • Education (CORRECT)
  • Parental access to children’s data
  • User choice (CORRECT)
  • Sensitive segmentation (CORRECT)

Correct! This includes both education for consumers and businesses about behavioral advertising and self-regulation.

Correct! Publishers give greater consumer control over behavioral advertising.

Correct! Publishers put limitations in place when it comes to targeting children or using sensitive personal data for behavioral advertising.

7. True or false? Ideally, the cookie would function as the memory of the interactions between a website and a person. However, a person may use different computers, different browsers and mobile devices, and cookies don’t work across devices.

  • True (CORRECT)
  • False

Correct! This is the challenge with using cookies. With that memory intact, navigation would be smoother for the person. The website would know what actions they took, or it might remember settings they like or pages and ads they saw. But people don’t use just one browser for all their interactions with a website.

8. True or False? Facebook users can choose to opt out of seeing ads from specific advertisers on Facebook.

  • True (CORRECT)
  • False

Correct! When you use “Why You’re Seeing This Ad”, you can choose to opt-out of their ads. Facebook also provides its users with educational resources and tools to control how their personal information is shared with other users and influences the ads they see.

9. Which of the following are GDPR citizen rights? (Select all that apply)

  • Citizens have the right to access family members’ data
  • Citizens have the right to correct their information (CORRECT)
  • Citizens have the right to have all the information that was collected and saved about them erased (CORRECT)
  • Citizens have the right to access the personal information received about them (CORRECT)

Correct! The GDPR protects data and online privacy in the European Union, as well as allows citizens to correct their personal information that has been collected and saved.

Correct! Citizens have the right to have all the information that was collected and saved about them erased under the GDPR.

Correct! GDPR was developed and is managed by the European Union. Citizens in the EU have the right to access the personal information received about them.

10. True or false? Any business that collects and controls the personal information of California residents should comply with the CCPA. 

  • True (CORRECT)
  • False

Correct! The law went into effect in January 2020 and is the strictest of any consumer privacy laws in the US, aiming to give residents of California more privacy and protection.

11. What’s the acronym for the law that protects data and online privacy in the European Union?

  • GDPR (CORRECT)
  • COPPA
  • CCPA

Correct! GDPR stands for the General Data Protection Regulation.

12. True or false? The DAA’s YourAdChoices program performs the same role in the US that the GDPR does in the European Union.

  • True
  • False (CORRECT)

Correct! The DAA is an alliance of different industry bodies that came together to establish and enforce responsible privacy practices in digital advertising. It also encourages advertisers to use data-based advertising to clearly inform people about the data that lead them to see a particular ad.

13. Which of the following are NOT European self-regulatory principles for Data-Driven Advertising?

  • Full transparency (CORRECT)
  • Sensitive segmentation
  • Education
  • User choice

Correct! As a means to establish trust with consumers and advertisers, websites and publishers can apply to become certified and receive a trust seal for compliance with the European Self-Regulatory Program. Full transparency is not one of the principles of the program.

14. Facebook’s Data Policy clearly outlines which of the following information? (Select all that apply)

  • How information is used (CORRECT)
  • What information is received from users (CORRECT)
  • How users can manage and delete their data (CORRECT)
  • Contact information for people who have questions (CORRECT)

Correct! Facebook openly shares with users the ways in which the information they collect is used for advertising purposes. Facebook also provides its users with educational resources and tools to control how their personal information is shared with other users and influences the ads they see.

Correct! Facebook allows users to see what information Facebook has collected from them. Facebook also provides its users with educational resources and tools to control how their personal information is shared with other users and influences the ads they see.

Correct! Facebook also provides its users with educational resources and tools to control how their personal information is shared with other users and influences the ads they see.

Correct! For users looking for more information about data collection practices, Facebook’s policy provides contact information to contact them directly about its data.

15. True or false? Most large online platforms and websites have a data policy, in which they explain what data they receive, what they use it for, and how people can control what they share.

  • False
  • True (CORRECT)

In its Data Policy, Facebook clearly states what information is received, how that information is used, and how people can manage and delete their data. It also provides contact information for people who have questions.

16. True or false? The GDPR is an international agreement that applies to both companies in the United States and the European Union, independent of where their customers or users are based.

  • True
  • False (CORRECT)

Correct! The GDPR was developed and is managed by the European Union, and it only applies to companies and customers in the European Union.

17. Which of the following data categories are companies prohibited to collect under the GDPR?

  • Age
  • Location
  • Ethnicity (CORRECT)
  • Sexual orientation (CORRECT)

Correct! Some data is prohibited from being collected, and before receiving any data companies are required to ask for consent.

18. Which of the following are GDPR data protection obligations for companies who collect data? (Select all that apply)

  • Companies must document their advertising targeting criteria on their website
  • Companies must designate people whose job it is to protect the data they receive (CORRECT)
  • Companies must alert people within 72 hours if their personal data was leaked (CORRECT)
  • Companies are prohibited from collecting certain data categories (like ethnicity or sexual orientation) (CORRECT)

Correct! For the data protection obligations, companies must designate employees to protest collected data.

Correct! For the data protection obligations, the law specifies how companies must protect the information they receive and alert people within 72 hours if their personal data was leaked.

Correct! Some data is prohibited from being collected, and before receiving any data companies are required to ask for consent.

19. What’s the acronym for the law that gives residents of California more insight into what data is collected about them, and was passed in 2020?

  • CCPA (CORRECT)
  • COPPA
  • GDPR

Correct! In 2020, the California Consumer Privacy Act went into effect. It is the strictest of any consumer privacy laws in the US, this law aims to give residents of California more privacy and protection.

20. Which of the following are NOT European self-regulatory principles for Data-Driven Advertising?

  • Optimism (CORRECT)
  • Education
  • User choice
  • Data security

Correct! European self-regulatory principles for Data-Driven Advertising include Notice, User choice, Data security, Sensitive segmentation, and Education. Optimism is not a principle.

21. What is the maximum fine related to GDPR violations?

  • $400,000
  • $4,000,000
  • 4% of the annual revenue of a company (CORRECT)
  • 4% of the annual profit of a company

Correct! Laws like this, and fines of this magnitude have raised attention to data security. In July 2019, British Airways was issued a $230 million dollar GDPR fine after the personal details of around 500,000 customers were stolen in cyberattacks.

22. True or False: Data-based advertising enables advertisers to display ads to people based on their location or previous behaviors.

  • True (CORRECT)
  • False

Correct! Using data, advertisers can display ads to viewers based on their demographics, location, interests or previous behavior (or a combination of these).

23. You are on Facebook and see an ad for a clothing brand that seems very specific to your particular taste. You decide to click the three dots at the top right corner of the post and use Facebook’s ad tool to be informed on who the advertiser is trying to reach based on their audience targeting information. This tool is called:

  •  “Why You’re Seeing This Ad” (CORRECT)
  • “When Will This Ad Disappear”
  •  “Who Is This Ad For”
  •  “What Does This Ad Mean”

Correct! Facebook also provides its users with educational resources and tools to control how their personal information is shared with other users and influences the ads they see.

24. Which EU citizen data right is not included in the General Data Protection Regulation (GDPR)?

  • The right to access the personal information received about them.
  • The right to have all the information that was collected and saved about them erased.
  • The right to data portability.
  • The right to not be discriminated against for exercising their rights. (CORRECT)

Correct! This is a right under the California Consumer Privacy Act (CCPA) and is not included in the GDPR.

25. A very sugary drink company uses childrens’ data to craft advertisements that convince them to drink as much as possible. Which EDAA principle are they breaking?

  • Data security
  • Education
  • User choice
  • Sensitive segmentation (CORRECT)

Correct!

26. What is the purpose of having a data policy?

  • For companies to share the data they receive publicly.
  • For companies to share how people can control their data settings.
  • For companies to explain what data is and how others should manage it.
  • For companies to explain what data they receive, what they use it for, and how people can control what they share. (CORRECT)

Correct! Companies create and share their data policies to explain how data is collected and managed.

27. A website-specific code stored in a person’s browser to ease navigation is called what?

  • Cookie (CORRECT)
  • UID
  • Browser
  • Web server log

Correct: Correct! A cookie is a formatted piece of text stored in a person’s browser that stores information including when the person accessed the website and saw an ad on that person’s browser.

28. True or false? If an advertiser or publisher enrolls in the DAA’s YourAdChoices program they are automatically compliant with GDPR or CCPA.

  • False (CORRECT)
  • True

Correct: Correct! In this program, the DAA encourages advertisers who use data-based advertising to clearly inform people about the data that lead them to see a particular ad.

29. How is data-driven advertising different from other forms of advertising?

  • Advertisers look for content that is typically related to their ads
  • Ads are matched with the audience who sees them, regardless of where the ad appears (CORRECT)
  • Advertisers bid on keywords so that advertisements related to specific keywords are placed at the top of the search engine results page
  • Advertisers make ads match the content that surrounds it in the form of articles and videos with valuable information, making the advertising message less overt

30. You recently signed up for a new account with Facebook. The information that you entered when signing up for your account and your interactions on your account are examples of what type of data?

  • A cookie
  • Second-party data
  • Third-party data
  • First-party data (CORRECT)

Correct: Correct! The information that you provide to a website is considered first-party data, since it came from a direct interaction between you and the company.

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