Do consumers really care about online privacy? They sure say they do - but to what extent do their actions reflect those concerns?

1. Do Consumers Really Care About
Online Privacy?
Core Conversation
Saturday, March 8, 2014
#PrivacyNow
@BlairReeves

2. A little about me (and a disclaimer)
• I work for IBM.
• I don’t speak for IBM.
• I live in Durham, North Carolina, and we have
better barbecue than Texas.
• This is Abby!
#PrivacyNow
@BlairReeves

3. Thought prompt:
Is privacy online important to you?
Why?
#PrivacyNow
@BlairReeves

4. Consumers say one thing…
66% of Americans say they
do not want to receive
targeted ads
1
64% of Americans say they are less likely
to vote for a political candidate who buys
information about their online behavior
3
92% of U.S. internet users say they
worry about privacy online
4
… but do another.
Behaviorally-targeted ads
have 240%+ higher
conversion rates
5
80% of internet users do
not “always” read privacy
policies, and only half
bother logging out
6
1, 2, 3 - Turow, King, Hoofnagle, Bleakley, Hennessy, “Americans Reject
Tailored Advertising,” Annenberg School for Communication and Berkeley Law School, September 2009.
http://graphics8.nytimes.com/packages/pdf/business/24adco.pdf
4 – TRUSTe, “TRUSTe Privacy Index.” December 2013. http://www.truste.com/us-consumer-confidenceindex-2014/
5 – Beales, “The Value of Behavioral Targeting,” Network Advertising Initiative, March 2010.
http://www.networkadvertising.org/pdfs/NAI_Beales_Release.pdf
6 – The Internet Society, “Global Internet User Survey, 2012.” 2012.
http://www.internetsociety.org/surveyexplorer/key_findings
53% of Americans want
websites they visit to offer
discounts tailored to their
interests
2
#PrivacyNow
@BlairReeves

5. Online privacy is a constant headline
“Facebook Privacy Change Is Subject of
F.T.C. Inquiry” (9/11/13)
http://www.nytimes.com/2013/09/12/technology/personaltech/ftc-looking-into-facebook-privacy-policy.html
“Some Quitting Facebook As Privacy
Concerns Escalate” (5/13/10)
http://www.cnn.com/2010/TECH/05/13/facebook.delete.privacy/
“Google’s Data-Trove Dance: Internal
Debates Over Protecting Privacy” (6/30/13)
http://online.wsj.com/news/articles/SB10001424127887324170004578635812623154242
“Google Privacy Missteps A Boon For
Rivals” (2/24/12)
http://www.huffingtonpost.com/2012/02/24/google-privacy-policy-private-data_n_1297672.html
#PrivacyNow
@BlairReeves

6. But consumers can’t stay away
#PrivacyNow
@BlairReeves

7. Social networks pale in comparison
• Google records ~1.17bn unique searchers (400%
more than 2nd place)
• 425M Gmail users in 2012, growing ~37.5M per
quarter. Largest in the world.
• 120M active users of Google Drive (Nov 2013)
• … and it’s all free.
#PrivacyNow
@BlairReeves

8. Consumers have conflicting desires
1. High-quality digital services and content –
for free.
Discussion Point:
Agree? Disagree?
Are these inevitably in conflict?
2. No ads. No tracking. Anonymity (except
when I choose).
#PrivacyNow
@BlairReeves

9. Advertising has always been with us
Discussion Point:
Does it always matter what the
consumer wants?
#PrivacyNow
@BlairReeves

10. The world has changed
More and more of our lives are lived
digitally
Discussion Point:
Via systems infinitely more
How has the meaning of “privacy”
measureable than ever before
changed?
The “new normal?”
#PrivacyNow
@BlairReeves

11. A look ahead
#PrivacyNow
@BlairReeves

12. Thank you for coming!
Let me know what you thought!
#PrivacyNow
@BlairReeves
My blog: BullishData.com
#PrivacyNow
@BlairReeves