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Online Behavioral Advertising From Trus Te

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  • 1. Latest Trends in BehavioralAdvertisingConsumer Insights Your Brand Needs to KnowOctober 12, 2011 1
  • 2. Introductions Matthew Shevach, Head of Ads Product Marketing TRUSTe @TRUSTe @matthewshevach Dave Deasy, Vice President TRUSTe @TRUSTe 2
  • 3. Who is TRUSTe? • Founded in 1997 • Over 4,000 customers • Leading DAA Approved OBA Compliance ProviderOffering privacy solutions for: Website Mobile Cloud Advertising s 3
  • 4. OverviewWhat is OBA and OBA ComplianceConsumer Perceptions of OBA and PrivacyHow to Become Compliant with the DAA ProgramResources 4
  • 5. Introduction Am I doing behavioral advertising? What is the DAA? Do tags work differently for each publisher?Am I going to OBA jail if I don’t do this? How do I ensure my ads continue to run and perform? 5
  • 6. Online Behavioral Advertising - Examples What OBA is… What OBA is not…• Retargeting users across • Run of site advertising unaffiliated websites •Contextual advertising• Tracking users with cookies across •First-party demographic unaffiliated websites targeting on a single site• Demographic targeting • Analytics or Ad across unaffiliated Reporting websites 6
  • 7. Targeted Advertising and Emerging Regulations Targeting can improve ad performance by 2x NAI Study showed a 2X+ increase in conversion rates for behaviorally targeted ads vs. run of network. But, Ad Targeting has Consumers and Regulators Concerned 1 54% of consumers do not like OBA and these concerns have lead to proposed regulations and are limiting spending on OBA by up to 98%2 This lead The Digital Advertising Alliance (DAA) to create an OBA self-regulatory program The DAA program calls for companies to provide consumers with notice and choice around behavioral advertising.1: Source: TRUSTe/Harris Survey, May, 2011 2: Source: Ponemon Institue Reasearch Report, April 2010 7
  • 8. Consumer Perceptions of OBA and Privacy 8
  • 9. Research Methodology1,004 total interviews were conducted from the Harris InteractiveOnline Consumer PanelInterviews conducted May 26 – June 2, 2011Respondents were qualified as: – US residents – Age 18 and over – Not employed in advertising, marketing research, PRWeighted to match the US adult population of computer users 9
  • 10. 70% of consumers are aware of online behavioral advertising Awareness of OBA Concept F DBASE: Total Qualified Respondents (n=1004)Q710 Are you aware that some advertisers and websites track your browsing activities and show you ads deemed relevant based on your browsing history? This is commonly referred to as Online Behavioral Advertising. 10
  • 11. Over half of consumers do not like OBA Favorability Towards OBA Concept E F D D DBASE: Total Qualified Respondents (n=1004)Q715 How do you feel about Online Behavioral Advertising as described above? 11
  • 12. Few consumers would willingly share personal information with advertisers Types of Information Consumers Would Not Share Financial Information 66% 14% Contact Information 49% 22% Health Information 52% 18% Current Location 46% 20% Name 45% 19% Browsing Behavior 34% 21% Profession 32% 19% Demographic information (not PII) 27% 15% Definitely Would Not Consent Hobbies / Interests 26% 14% Probably Would Not ConsentBASE: Total Qualified Respondents (n=1004)Q741 How likely are you to consent to share each of the following types of information with advertisers? 12
  • 13. More than half of consumers incorrectly believe their personal information is tied to OBA Believe PII Is Attached To Tracking Activity F D DBASE: Total Qualified Respondents (n=1004)Q720 Do you believe that personally identifiable information (such as your name or email address, etc.) is attached to this tracking activity? 13
  • 14. Consumers feel ads have become increasingly relevant over time – suggesting OBA works Percentage Of Online Ads That Are Relevant 32% 16% 12%BASE: Total Qualified Respondents (n=1004)Q755 What percentage of ads that you see while browsing online are relevant to your wants and needs?. 14
  • 15. Consumer favorability toward OBA doubles if assured personal information is not attached Favorability Toward OBA 22% 11% Favorability If They Favorability If Believe PII Is Attached Assured PII Not AttachedBASE: Total Qualified Respondents (n=522)Q715 How do you feel about Online Behavioral Advertising as described above?Q725 If the browsing information advertisers track with Online Behavioral Advertising was not linked to your personal information (such as your name or email address, etc.), then how would you feel about Online Behavioral Advertising? 15
  • 16. More than half of consumers are more likely to click and buy if they can control OBA Agreement With Statements Related To Online Advertising 55%BASE: Total Qualified Respondents (n=1004)Q751 Please indicate the degree to which you agree or disagree with each of the following statements related to online advertising. 16
  • 17. 57% of consumers would choose to only see online ads from brands they know and trust “Somewhat” or “Strongly” AgreeBASE: Total Qualified Respondents (n=1004)Q706 What type of connotation or meaning do these terms hold for you personally? 17
  • 18. What does DAA self-regulation require?DAA Compliance Requirements: Must use the Ad Choices icon Icon should be given “meaningful and prominent notice” Consumers provided with a “choice mechanism”DAA Options – Can be Customized for Your Needs Look and feel of notice Content and copy How and what opt-out list to provide Links to external content Operational requirements Learn more at www.aboutads.info 18
  • 19. 43% of consumers are more favorable about advertisers if presented with the DAA program Impact on Feelings Towards the AdvertiserBASE: Total Qualified RespondentsQ935/Q950 And, how does having this information available make you feel about the advertiser? 19
  • 20. Consumer favorability increases to 50% when “Powered By TRUSTe” branding is added Impact on Feelings Towards the AdvertiserBASE: Total Qualified RespondentsQ935/Q950 And, how does having this information available make you feel about the advertiser? 20
  • 21. TRUSTe has the highest brand awareness of the 3 DAA-approved solutions – 3 to 5x other options Consumers AwarenessBASE: Total Qualified Respondents (n=1004)Q706 What type of connotation or meaning do these terms hold for you personally? 21
  • 22. Consumer’s trust the “Powered By TRUSTe” branded DAA solution 10x the Evidon solution Which Version Offers The Most Trust? Reasons TRUSTe Preferred • More familiar with name – 47% • Better name; implies “trust”, “security” – 25%BASE: Those Exposed To Unbranded Concept (n=502)Q940 Below are two additional sample ads – one “Powered by TRUSTe” and one “Powered by Evidon”. Which one would you have greater trust or confidence in? 22
  • 23. Research Summary1. 70% of consumers are aware of OBA – and more than half do not like it2. Most consumers do not want to share personal information with advertisers – but more than half incorrectly believe their personal information is attached3. Consumers favorability to OBA is twice as high if they are assured personal information is not attached – this makes consumers 50% more likely to click on ads and make a purchase4. Notice and Choice via the DAA self-regulation program significantly increases consumer favorability towards OBA and brands5. TRUSTe has the highest brand recognition of the 3 DAA-approved solutions and significantly increases consumer favorability 23
  • 24. How to Become Compliant with the DAA Program 24
  • 25. What are your DAA Compliance Options? • Expose your company to possible lawsuits andDo Nothing regulatory intervention. • Risk losing business to compliant competitors. • Invest significant capital and resources to buildBuild Your custom compliance technology.Own Solution • Run the risk of not meeting DAA requirements.Buy Only on • Vendor(s) in control of notice/messageDAA Compliant • Vendor(s) may place icon incorrectlyAd Inventory • Little or no reporting • Cost effectivePartner with a • Simple, scalable and flexibleDAA-approved • Full customer support & guidancesolution provider • Benefit from other customer learning’s 25
  • 26. TRUSTed Ads DAA Solution Advertisement Solution: In-Ad Consumer Experience1. A simple ad tag 2. If clicked the icon 3. Consumers have option to inserts the DAA icon launches privacy click to Preference Manager notice inside the ad and opt out of selected tracking networks 26
  • 27. TRUSTed Ads DAA SolutionWebsite Solution: In-Page Consumer Experience 1. Publishers implement 2. Consumers have option to in-page, typically in click to Preference Manager footer to learn more about and opt out of selected tracking networks 27
  • 28. TRUSTe’s DAA Compliance Solution TRUSTed Ads In-ad Page-based Two Integration Points Ad Tag HTML Icon Notice PreferenceServing Presentation Management Consumer Experience Trafficking Operational Compliance OBA Console Reporting Reporting Database Platform Tools 28
  • 29. Online Privacy Risks Are Evolvingving Browsers Consumers Government Press Industry Self-Reg Today Future 29
  • 30. Over 4,000 satisfied clientsAd Providers / Agencies Media / Entertainment Consumer Products Technology / Telecom Financial / Insurance Health / Medical 30
  • 31. Summary1. Notice and Choice via the DAA self-regulation program significantly increases consumer favorability toward brands2. TRUSTe has the highest brand recognition of the 3 DAA- approved solutions and significantly increases consumer favorability3. TRUSTed Ads Integration is Simple and Easy4. TRUSTe can help ensure there are no surprises for you or your clients, from Icon serving to 3rd party data collection 31
  • 32. Thank You!Resources DAA: www.aboutads.info TRUSTe: www.truste.com/ads sales@truste.com @TRUSTe Matthew Shevach Dave Deasy mshevach@truste.com ddeasy@truste.com @matthewshevach @TRUSTe 32

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