EU & UK Consumer Views on
         Privacy

         February 2013




                            1
TRUSTe Overview


Global Leader in Data Privacy Management Solutions
• 15 years of privacy experience
• #1 privacy brand & trustmark
• Robust technology infrastructure

Comprehensive Solution Suite
• All online channels
• Global coverage
• Technology + Services + Certifications


Large / Loyal Customer Base
• Over 5,000 clients
• Over 90% renewal rate
• Cross industry solutions
                                                     2
EU: High consumer awareness, concern and
business impact




                                           3
4
5
6
Consumers Believe Multiple Organizations are
    Responsible for Safeguarding Their Privacy

                       Responsibility of Different Groups In Protecting Privacy




                                                                                                                                        77
                                                                                                                                        %

                                                                                                                                        70
                                                                                                                                        %

                                                                                                                                        69
                                                                                                                                        %




  Data from June 2011
    US OBA Study                                                                                                              Wholly Responsible
                                                                                                                              A Lot Responsible
BASE: Total Qualified Respondents (n=1004)
Q836 When thinking about protecting an individual's online privacy, how responsible should each of the following groups be?                        7
Consumers Trust Themselves Most to Protect
     Their Privacy

                            Who Would You Trust Most To Protect Your Privacy?




BASE: Total Qualified Respondents (n=1027)
Q840 Which one would you most trust to protect your privacy?
                                                                                8
Consumers Want to See Ads from Brands They Trust


                                                    “Somewhat or “Strongly” Agree
                                                                          ”




BASE: Total Qualified Respondents (n=1027)
Q751 Please indicate the degree to which you agree or disagree with each of the following statements related to online advertising.
                                                                                                                                      9
79% are Aware of Behavioural Advertising


                                    Awareness of Online Behavioural Advertising




BASE: Total Qualified Respondents (n=1027)
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 Behavioural Advertising.
                                                                                                                                                        10
Over Half Do Not Like Behavioural Advertising


                                                             Favourability Toward OBA




BASE: Total Qualified Respondents (n=1027)
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 Behavioural Advertising.
Q715 How do you feel about Online Behavioural Advertising as described above?


                                                                                                                                                        11
42% Believe Personally Identifiable Info is Attached


                                           Believe PII Is Attached To Tracking Activity




BASE: Total Qualified Respondents (n=1027)
Q720 Do you believe that personally identifiable information (such as your name or email address, etc.) is attached to this tracking activity?
                                                                                                                                                 12
OBA Favourability Almost Doubles when
      Consumers are Assured Pii is Not Used

                                   Favourability Toward Behavioural Advertising




BASE: Total Qualified Respondents (n=1027)
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 Behavioural Advertising.
Q715 How do you feel about Online Behavioural Advertising as described above?
Q720 Do you believe that personally identifiable information (such as your name or email address, etc.) is attached to this tracking activity?
Q725 If the browsing information advertisers track with Online Behavioural Advertising was not linked to your personal information (such as your name or email address, etc.),
      then how would you feel about Online Behavioural Advertising? (n=892)
                                                                                                                                                                                 13
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
                                53% 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 to the creation of the AdChoices
                                OBA self-regulatory program
                                The AdChoices program calls for companies to provide
                                consumers with notice and choice around behavioural
                                advertising.

1: Source: TRUSTe/Harris Survey, 2012   2: Source: Ponemon Institue Reasearch Report, April 2010   14
OBA Self Regulation

 April 2011: “EU OBA Framework published by IAB EU and EASA”
                                                           ”

 June 2011: “The EDAA is incorporated”

      EDAA Principles:
         Notice
         User choice over OBA
         Data security
         Sensitive segmentation
         Education
         Compliance and enforcement programs
         Review




                                                               15
How the AdChoices Solution Works


     Advertisement Solution: In-Ad Consumer Experience




1.   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




                                                                                       16
Awareness of the AdChoices Icon Has Grown
     Significantly in the Past Year in the US


                                            Icon Awareness Among US Consumers




BASE: Total Qualified Respondents (n=1033)
Q910 Have you seen either of the following icons or symbols online?             17
The DAA Program Increases Acceptance of
      Behavioural Advertising and Brand Favourability




BASE: Total Qualified Respondents
Q935/Q950 And, how does having this information available make you feel about the advertiser?
                                                                                                18
Brand Favourability Increases to 50% with
                               “Powered By TRUSTe” DAA Solution
                                                     ”


                                            Impact on
                                        Feelings Towards
                                          the Advertiser




Harris Research, June 2011                                               19
In Ad Solution




                 20
In App Solution




                  21
Challenges in communicating privacy in a mobile
device


                         • Space constraints
                         • Inaccessibility
                         • Poor user experience




                                                  22
TRUSTe Mobile (Go Daddy example)




                                   23
Mobile optimized privacy policies: Podster




                                              24
                                             24
Building trust through certification: NFL




                                             25
                                            25
Questions?

  Danilo Labovic –
dlabovic@truste.com




                      26

EU & UK Consumer Views on Privacy

  • 1.
    EU & UKConsumer Views on Privacy February 2013 1
  • 2.
    TRUSTe Overview Global Leaderin Data Privacy Management Solutions • 15 years of privacy experience • #1 privacy brand & trustmark • Robust technology infrastructure Comprehensive Solution Suite • All online channels • Global coverage • Technology + Services + Certifications Large / Loyal Customer Base • Over 5,000 clients • Over 90% renewal rate • Cross industry solutions 2
  • 3.
    EU: High consumerawareness, concern and business impact 3
  • 4.
  • 5.
  • 6.
  • 7.
    Consumers Believe MultipleOrganizations are Responsible for Safeguarding Their Privacy Responsibility of Different Groups In Protecting Privacy 77 % 70 % 69 % Data from June 2011 US OBA Study Wholly Responsible A Lot Responsible BASE: Total Qualified Respondents (n=1004) Q836 When thinking about protecting an individual's online privacy, how responsible should each of the following groups be? 7
  • 8.
    Consumers Trust ThemselvesMost to Protect Their Privacy Who Would You Trust Most To Protect Your Privacy? BASE: Total Qualified Respondents (n=1027) Q840 Which one would you most trust to protect your privacy? 8
  • 9.
    Consumers Want toSee Ads from Brands They Trust “Somewhat or “Strongly” Agree ” BASE: Total Qualified Respondents (n=1027) Q751 Please indicate the degree to which you agree or disagree with each of the following statements related to online advertising. 9
  • 10.
    79% are Awareof Behavioural Advertising Awareness of Online Behavioural Advertising BASE: Total Qualified Respondents (n=1027) 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 Behavioural Advertising. 10
  • 11.
    Over Half DoNot Like Behavioural Advertising Favourability Toward OBA BASE: Total Qualified Respondents (n=1027) 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 Behavioural Advertising. Q715 How do you feel about Online Behavioural Advertising as described above? 11
  • 12.
    42% Believe PersonallyIdentifiable Info is Attached Believe PII Is Attached To Tracking Activity BASE: Total Qualified Respondents (n=1027) Q720 Do you believe that personally identifiable information (such as your name or email address, etc.) is attached to this tracking activity? 12
  • 13.
    OBA Favourability AlmostDoubles when Consumers are Assured Pii is Not Used Favourability Toward Behavioural Advertising BASE: Total Qualified Respondents (n=1027) 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 Behavioural Advertising. Q715 How do you feel about Online Behavioural Advertising as described above? Q720 Do you believe that personally identifiable information (such as your name or email address, etc.) is attached to this tracking activity? Q725 If the browsing information advertisers track with Online Behavioural Advertising was not linked to your personal information (such as your name or email address, etc.), then how would you feel about Online Behavioural Advertising? (n=892) 13
  • 14.
    Targeted Advertising andEmerging 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 53% 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 to the creation of the AdChoices OBA self-regulatory program The AdChoices program calls for companies to provide consumers with notice and choice around behavioural advertising. 1: Source: TRUSTe/Harris Survey, 2012 2: Source: Ponemon Institue Reasearch Report, April 2010 14
  • 15.
    OBA Self Regulation April 2011: “EU OBA Framework published by IAB EU and EASA” ” June 2011: “The EDAA is incorporated” EDAA Principles: Notice User choice over OBA Data security Sensitive segmentation Education Compliance and enforcement programs Review 15
  • 16.
    How the AdChoicesSolution Works Advertisement Solution: In-Ad Consumer Experience 1. 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 16
  • 17.
    Awareness of theAdChoices Icon Has Grown Significantly in the Past Year in the US Icon Awareness Among US Consumers BASE: Total Qualified Respondents (n=1033) Q910 Have you seen either of the following icons or symbols online? 17
  • 18.
    The DAA ProgramIncreases Acceptance of Behavioural Advertising and Brand Favourability BASE: Total Qualified Respondents Q935/Q950 And, how does having this information available make you feel about the advertiser? 18
  • 19.
    Brand Favourability Increasesto 50% with “Powered By TRUSTe” DAA Solution ” Impact on Feelings Towards the Advertiser Harris Research, June 2011 19
  • 20.
  • 21.
  • 22.
    Challenges in communicatingprivacy in a mobile device • Space constraints • Inaccessibility • Poor user experience 22
  • 23.
    TRUSTe Mobile (GoDaddy example) 23
  • 24.
    Mobile optimized privacypolicies: Podster 24 24
  • 25.
    Building trust throughcertification: NFL 25 25
  • 26.
    Questions? DaniloLabovic – dlabovic@truste.com 26