What are the pros and cons to using a Consent Management Platform? How do they work? Which CMPs should you choose for your website? This guide will show you how to choose a Consent Management Platform that is up-to-date with industry standards.
Why are publishers using CMPs?
A CMP helps website owners comply with data privacy laws by collecting user consent. By gathering consent, website owners are able to serve personalized ads based on the user’s data and cookies.
When a user visits a website a CMP popup or modal will ask the user to select:
- How they would like their data to be used
- Which organizations can use their data
What is a Consent Management Platform?
When the user submits the form a consent string is created. This informs the publisher and third party vendors what the user’s choices were and enables these organizations to configure their services correctly. The consent string also allows SSPs and ad demand partners to serve targeted ads based on the user’s interests.
What happens when you use a CMP?
First, you’ll be compliant, so you can forget about those big fines. But that’s not the end of it. There are many pros and cons to using a CMP. Let’s cover the bad stuff first.
Enabling a CMP is going to increase your bounce rate. Publishers can expect a 10%-20% bounce rate depending on how strong the user’s intent is when visiting the site. In addition, some users will not provide consent for their data to be used. Publishers can expect an opt out rate of approximately 5-10%, however certain niche content may see higher opt-out rates. This has a negative impact on revenue but it’s not all bad news.
Publishers that collect consent with a CMP will be cleared to show personalized ads. Advertisers pay a higher price for these ads because of their enhanced targeting. This increases revenue.
Overall, publishers should expect a small decline in revenue when switching to a CMP.
What happens if you don’t use a CMP?
Besides the risk of large fines, publishers without a CMP will likely see a decline in ad demand going forward. Demand partners like Google are increasingly requesting consent strings before filling ad requests. If a publisher fails to capture user consent they should expect:
- Significantly reduced fill rate from advertising demand partners – applicable to both personalized and non-personalized ads.
- The non-delivery of ads from certain demand partners – Google has flagged that, “if you do not have consent for Purpose 1, Google will attempt to deliver a Limited ad if you have legitimate interest or consent for Purposes 2, 7, 9, and 10."
Moreover, Google has introduced new consent management requirements for publishers serving ads in the EEA and the UK.
Does a CMP only show up for EU users?
CMPs can be configured to only pop up for users in relevant countries. For example, a CMP can be set to cover users in Geos affected by the EU’s GDPR.
Should you use a Consent Management Platform?
We’ve outlined the positives and negatives. Our recommendation to publishers is to become compliant and adopt a CMP.
How to choose the right CMP for your site
The compliance landscape is evolving rapidly. To ensure your site stays up to date with the latest changes it’s best to find an experienced CMP provider that issues regular updates. It’s also best to work with a provider that creates CMPs specifically for websites that rely on advertising revenue. Many large CMP providers instead focus on building CMP’s for the corporate market or a wide range of website owners. We’ll cover the differences below.
The interactive advertising bureau (IAB) is the authoritative body for setting online advertising standards in the US and Europe. You can find the list of approved CMP providers here. By selecting an IAB approved CMP you can be sure you are correctly gathering user consent.
Google Certified CMP
As part of its commitment to support industry efforts to manage user transparency and consent through a standardized framework, Google released some important updates for publishers using Google’s publishing products.
Beginning on January 16, 2024, Google will require all publishers using Google AdSense, Ad Manager, or AdMob to use a Google certified CMP that has integrated with IAB Europe’s TCF when serving ads in the EEA (European Economic Area) or the UK. You can read more about the new IAB TCF requirement here.
Publishers are highly encouraged to adopt a Google-certified CMP that meets TCF standards by January 16, 2024 to guarantee ads will be eligible to serve on EEA and UK traffic.
Next Steps to Take
To guarantee your compliance with Google’s new compliance requirements and avoid incurring fines, make sure you’re using a Google-certified CMP like Snigel’s AdConsent.
If you’re currently using a CMP that is not Google certified: Speak with your provider about completing the certification process or find a new CMP partner. Google has a regularly updated list of certified CMPs to choose from. By using this list, publishers can find CMP partners that have received Google’s certification and thus comply with the necessary standards set by Google and the IAB’s Transparency and Consent Framework. In addition to the names of Google certified CMPs, you can also see their TCF CMP ID and the platforms in which their CMPs offer support.
Snigel’s AdConsent was one of the first CMPs to be Google-certified, and you can find it on Google’s list under TCF CMP ID 229.
If you’re a publisher that has developed their own CMP: Register your interest in certification here.
From May 2023 onwards- Google has begun the process of certifying CMPs that work with their publishing partners.
Starting on January 14 2024 - In addition to complying with EU user consent policy, publishers using Google AdSense, Ad Manager, or AdMob will be required to use a Google certified CMP that complies with the IAB Europe TCF.
The IAB has limited the CMP’s customization options to avoid confusing users. It is therefore vital that publishers use the customization options available to personalize the CMP with their logo and color scheme. This helps reassure users that they are on the desired site. Many CMP providers offer free generic CMPs that can’t be customized. Using a generic CMP without any level of customization will likely lead to an increase in your bounce rate.
As mentioned above, publishers should expect a 10%-20% bounce rate when using a CMP. Therefore, it is best to show the CMP as infrequently as possible.
Consent can legally be stored for up to 13-months. However, consent needs to be re-obtained when the publisher starts using a new vendor from the IAB’s Global Vendor List (GVL). Most CMPs re-request consent from users every time any changes are made to the GVL. This leads to needless lost revenue.
Snigel’s AdConsent CMP only re-requests consent if a publisher is affected by the GVL update. By doing this, we’re able to minimize the number of times the CMP is shown to users and the subsequent bounce rate.
Filling impressions without consent for Purpose 1
Google has stated it will not fill the ad request if a user rejects consent for Purpose 1. See “Requirements: Personalized & Non-Personalized Ads”.
If you’re only using Google demand you can expect these impressions to go unfilled. However, if you’re using header bidding or if you switch header bidding there is a solution to this problem. By connecting your website to other ad exchanges and SSPs that don’t require consent for Purpose 1, you can still fill the impression. Contact us to find out how Snigel’s AdEngine header bidding solution can do this for your site.
Consent Management Platform popup size
The IAB requires CMPs to take over a significant portion of the user’s screen when they pop up. It is essential that the website is still visible underneath the CMP. Otherwise, users will not be drawn towards the page they tried to access. Failure to correctly configure this will lead to an increase in your bounce rate.
Consent Management Platform loading speed
A fast CMP provides a smooth user experience and makes gathering consent more frictionless. Snigel’s AdConsent CMP is localized server-side and delivered on-demand, leading to minimal requests and payload.
Digital privacy will continue to be a prime concern for lawmakers going forward. Publishers should expect increased security as a result. Our recommendation is to adopt a Google certified and TCF compliant CMP in order to avoid fines and reduced fill rates from major demand partners like Google.
How Snigel can ensure publishers meet requirements
As a Google Certified Publishing Partner, Snigel has an in-depth understanding of Google's policies and regulations. Dedicated to remaining up-to-date with the dynamic realm of user consent and transparency, Snigel’s AdConsent CMP is purpose-built for publishers that rely on ad revenue - it’s Google certified, IAB approved, and TCF v2.2 compatible. If you’d like to find out more about how we can minimize your bounce rate and lost revenue get in touch with us.