Online behavioral advertising (OBA) tracks users' browsing activities across websites to show relevant ads. While OBA can improve ad performance, many consumers are unaware or dislike OBA due to privacy concerns. A survey found that over half of consumers incorrectly believe their personal information is tied to OBA tracking. However, favorability toward OBA doubles if consumers are assured their personal information is not attached to tracking. More than half of consumers are more likely to accept relevant ads if they have notice and choice about how their data is collected and used.

1. Latest Trends in Behavioral
Advertising
Consumer Insights Your Brand Needs to Know
October 12, 2011
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2. Introductions
Matthew Shevach, Head of Ads Product Marketing
TRUSTe
@TRUSTe @matthewshevach
Dave Deasy, Vice President
TRUSTe
@TRUSTe
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3. Who is TRUSTe?
• Founded in 1997
• Over 4,000 customers
• Leading DAA Approved OBA
Compliance Provider
Offering privacy solutions for:
Website Mobile Cloud Advertising
s
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4. Overview
What is OBA and OBA Compliance
Consumer Perceptions of OBA and Privacy
How to Become Compliant with the DAA Program
Resources
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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?
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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
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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
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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
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9. Research Methodology
1,004 total interviews were conducted from the Harris Interactive
Online Consumer Panel
Interviews conducted May 26 – June 2, 2011
Respondents were qualified as:
– US residents
– Age 18 and over
– Not employed in advertising, marketing research, PR
Weighted to match the US adult population of computer users
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10. 70% of consumers are aware of online
behavioral advertising
Awareness of OBA Concept
F
D
BASE: 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 D
BASE: 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 Consent
BASE: 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 D
BASE: 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 Attached
BASE: 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?
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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” Agree
BASE: 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
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19. 43% of consumers are more favorable about
advertisers if presented with the DAA program
Impact on
Feelings Towards
the Advertiser
BASE: Total Qualified Respondents
Q935/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 Advertiser
BASE: Total Qualified Respondents
Q935/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 Awareness
BASE: 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 Summary
1. 70% of consumers are aware of OBA – and more than half do not
like it
2. Most consumers do not want to share personal information with
advertisers – but more than half incorrectly believe their personal
information is attached
3. 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 purchase
4. Notice and Choice via the DAA self-regulation program significantly
increases consumer favorability towards OBA and brands
5. TRUSTe has the highest brand recognition of the 3 DAA-approved
solutions and significantly increases consumer favorability
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24. How to Become Compliant with the
DAA Program
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25. What are your DAA Compliance Options?
• Expose your company to possible lawsuits and
Do Nothing regulatory intervention.
• Risk losing business to compliant competitors.
• Invest significant capital and resources to build
Build Your custom compliance technology.
Own Solution • Run the risk of not meeting DAA requirements.
Buy Only on • Vendor(s) in control of notice/message
DAA Compliant • Vendor(s) may place icon incorrectly
Ad Inventory • Little or no reporting
• Cost effective
Partner with a
• Simple, scalable and flexible
DAA-approved
• Full customer support & guidance
solution provider
• Benefit from other customer learning’s
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26. TRUSTed Ads DAA Solution
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
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27. TRUSTed Ads DAA Solution
Website 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
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28. TRUSTe’s DAA Compliance Solution
TRUSTed Ads
In-ad Page-based
Two
Integration
Points
Ad Tag
HTML
Icon Notice Preference
Serving Presentation Management
Consumer
Experience
Trafficking Operational Compliance OBA
Console Reporting Reporting Database
Platform
Tools
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29. Online Privacy Risks Are Evolvingving
Browsers
Consumers
Government
Press
Industry
Self-Reg
Today Future
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30. Over 4,000 satisfied clients
Ad Providers / Agencies Media / Entertainment Consumer Products
Technology / Telecom Financial / Insurance Health / Medical
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31. Summary
1. Notice and Choice via the DAA self-regulation program
significantly increases consumer favorability toward
brands
2. TRUSTe has the highest brand recognition of the 3 DAA-
approved solutions and significantly increases consumer
favorability
3. TRUSTed Ads Integration is Simple and Easy
4. TRUSTe can help ensure there are no surprises for you
or your clients, from Icon serving to 3rd party data
collection
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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
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