behavioral advertising
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Behavioral AdvertisingPrivacy, Consumer Attitudes and Best Practices
Carolyn Hodge, VP of Communications, TRUSTeDavid W. Stark CIPP, VP & North America Privacy Officer, TNS
The Privacy Symposium • August 20, 2008
Personalization Is Expected
CONFIDENTIAL 2
So What’s the Fuss?
• Privacy Groups Ask for Online 'Do Not Track' List– The interactive online advertising "a virtually invisible, stealth
system."Jeffrey Chester, CDD's executive director. • Blockbuster sued over Facebook ad feature
– April 16th Class Action lawsuit filed against Blockbuster in Dallas• A Push to Limit the Tracking of Web Surfers’ Clicks
– State bills emerging ( New York and Connecticut) to require consent for Web companies to use personal information about consumers for advertising.
• Concerns aired about online ad targeting – Federal Trade Commission reviewing comments on proposed
Guidelines for Behavioral Advertising• Watch Your Back for ISP-Targeted Ads
– UK ‘s Phorm
CONFIDENTIAL 3
SURVEY RESULTS
CONFIDENTIAL 4
Methodology
– Conducted by TNS, the world’s largest custom market research company and a leading provider of social and political polling.
– Nationally representative random sample drawn from TNS’s U.S. Internet access panel
– Conducted February 2008
– 1,105 completed interviews
5
Key Findings
• Consumers express discomfort with tracking and targeting even when anonymous
• They desire the ability to limit and control these activities
• Internet users who describe themselves as “very competent” or “expert” in their online technical expertise are more aware of tracking and targeting than their less experienced counterparts
• Tech-savvy online consumers are more likely to take steps to control or limit targeting (e.g. deleting cookies), but their attitudes towards behavioral targeting are quite similar to self-described “beginners”.
CONFIDENTIAL 6
Relevance of Online Ads
CONFIDENTIAL 7
What percentage of ads that you see while browsing online are relevant to your wants and needs?
CONFIDENTIAL 8
Percentage of ads
% o
f con
sum
ers
I find online advertising intrusive and annoying when the products and services being advertised are not relevant to my wants and needs.
CONFIDENTIAL 9
48%
25%
18%
5%
4%
1%
0% 10% 20% 30% 40% 50% 60%
Don't Know
Strongly Disagree
Disagree Somewhat
Neither Agree nor Disagree
Agree Somewhat
Strongly Agree
72%
9%
I like seeing ads for coupons or promotions from online stores and brands that I have purchased from before.
CONFIDENTIAL 10
14%
32%
26%
11%
14%
2%
0% 5% 10% 15% 20% 25% 30% 35%
Don't Know
Strongly Disagree
Disagree Somewhat
Neither Agree nor Disagree
Agree Somewhat
Strongly Agree 46%
26%
The Disconnect: More Relevance, Less Tracking?
• Consumers say that only a few of the online ads that they see are relevant and most consider irrelevant ads annoying
• A benefit of behavioral targeting is supposedly more relevant ads being served to online consumers
• But only one-quarter are comfortable with tracking, provided that it is conducted anonymously
CONFIDENTIAL 11
Awareness of Behavioral Targeting
CONFIDENTIAL 12
When I am online, I am aware that my browsing information may be collected by a third party for advertising purposes.
CONFIDENTIAL 13
Are you familiar with the term Behavioral Targeting?
CONFIDENTIAL 14
Attitudes Towards Behavioral Targeting
CONFIDENTIAL 15
I am comfortable with advertisers using my browsing history to serve me relevant ads, as long as that information cannot be tied to my name or any other personal information.
CONFIDENTIAL 16
6%
18%
15%
18%
39%
4%
0% 10% 20% 30% 40% 50%
Don't Know
Strongly Disagree
Disagree Somewhat
Neither Agree nor Disagree
Agree Somewhat
Strongly Agree 24%
57%
If given the option, I would choose to see online ads from online stores and brands that I know and trust.
CONFIDENTIAL 17
31%
33%
23%
5%
6%
2%
0% 5% 10% 15% 20% 25% 30% 35%
Don't Know
Strongly Disagree
Disagree Somewhat
Neither Agree nor Disagree
Agree Somewhat
Strongly Agree
64%
11%
42% would sign up for an online registry
CONFIDENTIAL 18
21%
21%
26%
15%
14%
4%
0% 5% 10% 15% 20% 25% 30%
Don't Know
Strongly Disagree
Disagree Somewhat
Neither Agree nor Disagree
Agree Somewhat
Strongly Agree42%
29%
I would sign up for an online registry to ensure that advertisers are not able to track my browsing behaviors, even if it meant that I would receive more ads that are less relevant to my interests.
If I saw a button or icon on a display ad on a site that said “Click here to reduce unwanted ads” I would click it.
CONFIDENTIAL 19
23%
21%
20%
10%
22%
4%
0% 5% 10% 15% 20% 25%
Don't Know
Strongly Disagree
Disagree Somewhat
Neither Agree nor Disagree
Agree Somewhat
Strongly Agree
44%
32%
Personal actions taken by consumers
CONFIDENTIAL 20
How often do you delete cookies stored on your computer?
CONFIDENTIAL 21
Every day14%
2 to 3 times a month
13%
Once a month or less30%
Never15%
At least oncea week
14%
2 to 3 timesa week
14%
How often do you delete Internet files stored on your computer?
CONFIDENTIAL 22
15% 14%14%13%
31%
15%14%14%
33%
11%
0%
5%
10%
15%
20%
25%
30%
35%
Never Once amonth or
less
2 to 3times amonth
At leastonce aweek
2 to 3times aweek
Everyday
CookiesInternet Files
When you are giving personal information to a website, how often do you check to make sure the website has a privacy statement?
CONFIDENTIAL 23
15%
18%
17%
20%
30%
0% 5% 10% 15% 20% 25% 30% 35%
Most of the time(>75%)
Often (51% to 75%)
Sometimes (25% to50%)
Rarely (<25%)
Never / AlmostNever 33%
50%
When you are giving personal information to a website, how often do you read the privacy statement (if provided)?
CONFIDENTIAL 24
30%
20%
17%
18%
15%
13%
19%
24%
24%
20%
0% 5% 10% 15% 20% 25% 30% 35%
Most of the time(>75%)
Often (51% to75%)
Sometimes(25% to 50%)
Rarely (<25%)
Never / AlmostNever
Read Privacy Statement
Check Site for Privacy Statement
f
f
Self-assessment about protecting PII online
CONFIDENTIAL 25
32%
28%
40%
20%
37%
43%
0% 10% 20% 30% 40% 50%
1
2
3
I know how to protect my personal information online and consistently take the necessary steps to do so.
I know how to protect my personal information online but don’t consistently do so.
I don’t really know how to protect my personal information online.
f fFeb. 2008 Oct. 2004
How would you describe your online technical expertise?
CONFIDENTIAL 26
6%
31%
42%
18%
3%
0% 10% 20% 30% 40% 50%
Expert
Very competent, but not quite anexpert
Competent
More than a beginner, but stillhave much to learn
Beginner
CONFIDENTIAL 27
Cookie Deletion by Level of Online Technical Expertise
15%
5%
31%
15%13%
18% 18%
31%
14%14%14%13%
31%
9%12%
14%
7%
29%
0%5%10%15%20%25%30%35%
Never Once a monthor less
2 to 3 times amonth
At least once aweek
2 to 3 times aweek
Every day
All Respondents Expert / Very Competent Beginners / Much to Learn
When I am online, I am aware that my browsing information may be collected by a third party for advertising purposes.
CONFIDENTIAL 28
71%
13%
77%
10%
66%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Agree Disagree
All Respondents Expert / Very Competent Beginner / Much to Learn
Are you familiar with the term Behavioral Targeting?
CONFIDENTIAL 29
55%
29%
40%
62% Expert / Very Competent
Beginner / Much to Learn
What percentage of ads that you see while browsing online are relevant to your wants and needs?
CONFIDENTIAL 30
Percentage of ads
% o
f con
sum
ers
64% Expert / Very Competent
62% Beginner / Much to Learn
51% Competent
BEST PRACTICES
CONFIDENTIAL 31
TRUSTe Program Requirements that Currently Address Targeting and Tracking
• TRUSTe requires sealholders to disclose the use of first party and third party tracking technologies on the site
• Opt-in is required if sensitive PII is transferred to 3rd parties using Web beacons
• If information collected via tracking technologies is linked to collected PII - then the that information is considered PII and all our requirements around PII apply
CONFIDENTIAL 32
Forward Perspective on Behavioral Advertising
• Consumer Education– all commercial beneficiaries should be accountable in providing
education, notice and choice to consumers, where appropriate• Sliding Scale Proactive Notice
– sliding scale for notice and choice should be employed based on practices and privacy implications
• Accountability – Websites where tracking and targeting is initiated, collected or
used, as well as ad networks serving behavioral advertising, should all participate in providing privacy information and options to consumers
CONFIDENTIAL 33
Consumer Education
CONFIDENTIAL 34
AOL Penguin Campaign
Sliding Scale for Notice and Choice
CONFIDENTIAL 35
Source: Microsoft Corporation
Proactive Notice and Choice in Advertising
CONFIDENTIAL 36
Opt-In for 3rd Party Sharing: Disclosures for Beacon Advertisers
CONFIDENTIAL 37
Don’t give visitors and customers any reason to worry about data collection and use practices.
• Go beyond the privacy statement– Matter-of-factly incorporate some disclosure of tracking and
targeting as part of your product or service value proposition. • Provide a “what is this” button to explain how your customization
works. – Primary purpose on websites is not to read notices but to transact
and build experiences– Opt-out rates are low but address the vocal minority
• Make sure your service providers, agencies, and others are following industry standards for privacy notice and disclosure. – Many of the serious complaints or issues TRUSTe encounters are
privacy breaches by marketing vendors.
CONFIDENTIA 38
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