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EU & UK Consumer Views on Privacy

February 2013

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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

TRUSTe Overview

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EU: High consumer awareness, concern and business impact

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7BASE: Total Qualified Respondents (n=1004)Q836 When thinking about protecting an individual's online privacy, how responsible should each of the following groups be?

Wholly Responsible

A Lot Responsible

Responsibility of Different Groups In Protecting Privacy

Consumers Believe Multiple Organizations are Responsible for Safeguarding Their Privacy

77%

70%

69%

Data from June 2011 US OBA Study

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BASE: Total Qualified Respondents (n=1027)Q840 Which one would you most trust to protect your privacy?

Who Would You Trust Most To Protect Your Privacy?

Consumers Trust Themselves Most to Protect Their Privacy

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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.

““““Somewhat or ““““Strongly”””” Agree

Consumers Want to See Ads from Brands They Trust

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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.

79% are Aware of Behavioural Advertising

Awareness of Online Behavioural Advertising

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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?

Over Half Do Not Like Behavioural Advertising

Favourability Toward OBA

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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?

42% Believe Personally Identifiable Info is Attached

Believe PII Is Attached To Tracking Activity

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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)

Favourability Toward Behavioural Advertising

OBA Favourability Almost Doubles when Consumers are Assured Pii is Not Used

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Targeted Advertising and Emerging Regulations

Targeting can improve ad performance by 2xNAI Study showed a 2X+ increase in conversion rates for

behaviorally targeted ads vs. run of network.

But, Ad Targeting has Consumers and Regulators Concerned53% of consumers do not like OBA

1and these concerns

have lead to proposed regulations and are limiting spending on OBA by up to 98%

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This lead to the creation of the AdChoices OBA self-regulatory programThe 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

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OBA Self Regulation

EDAA Principles:

Notice

User choice over OBA

Data security

Sensitive segmentation

Education

Compliance and enforcement programs

Review

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

June 2011: ““““The EDAA is incorporated”

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A simple ad tag

inserts the DAA icon 1.

How the AdChoices Solution Works

Advertisement Solution: In-Ad Consumer Experience

If clicked the icon

launches privacy

notice inside the ad

2. Consumers have option to

click to Preference Manager

and opt out of selected

tracking networks

3.

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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?

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The DAA Program Increases Acceptance of Behavioural Advertising and Brand Favourability

BASE: Total Qualified RespondentsQ935/Q950 And, how does having this information available make you feel about the advertiser?

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Brand Favourability Increases to 50% with

““““Powered By TRUSTe”””” DAA Solution

Impact onFeelings Towards

the Advertiser

Harris Research, June 2011

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In Ad Solution

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In App Solution

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Challenges in communicating privacy in a mobile device

• Space constraints

• Inaccessibility

• Poor user experience

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TRUSTe Mobile (Go Daddy example)

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Mobile optimized privacy policies: Podster

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Building trust through certification: NFL

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Questions?

Danilo Labovic –dlabovic@truste.com