online behavioral advertising from trus te
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Latest Trends in Behavioral Advertising Consumer Insights Your Brand Needs to Know
October 12, 2011
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Matthew Shevach, Head of Ads Product Marketing
TRUSTe
@TRUSTe @matthewshevach
Dave Deasy, Vice President
TRUSTe
@TRUSTe
Introductions
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Who is TRUSTe?
Website
sAdvertisingMobile Cloud
• Founded in 1997
• Over 4,000 customers
• Leading DAA Approved OBA
Compliance Provider
Offering privacy solutions for:
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� What is OBA and OBA Compliance
� Consumer Perceptions of OBA and Privacy
� How to Become Compliant with the DAA Program
� Resources
Overview
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What is the DAA?
Do tags work differently for each publisher?
Introduction
Am I going to OBA jail if I don’t do this?
Am I doing behavioral advertising?
How do I ensure my ads continue to run and perform?
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Online Behavioral Advertising - Examples
What OBA is… What OBA is not…
•Retargeting users across unaffiliated websites
•Tracking users with cookies across unaffiliated websites
•Demographic targeting across unaffiliated websites
•Run of site advertising
•Contextual advertising
•First-party demographic targeting on a single site
• Analytics or Ad Reporting
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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 Concerned54% 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 The Digital Advertising Alliance (DAA) to create an OBA self-regulatory programThe 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
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� 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
Research Methodology
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70% of consumers are aware of online behavioral advertising
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.
F
D
Awareness of OBA Concept
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Over half of consumers do not like OBA
BASE: Total Qualified Respondents (n=1004)Q715 How do you feel about Online Behavioral Advertising as described above?
D
D
F
D
E
Favorability Towards OBA Concept
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Few consumers would willingly share personal information with advertisers
BASE: Total Qualified Respondents (n=1004)Q741 How likely are you to consent to share each of the following types of information with advertisers?
Demographic information (not PII)
Browsing Behavior
Hobbies / Interests
Current Location
27% 15%
34% 21%
46% 20%
45% 19%
32% 19%
49% 22%
52% 18%
Name
Profession
Contact Information
Health Information
Financial Information
Definitely Would Not Consent
Probably Would Not Consent26% 14%
66% 14%
Types of Information Consumers Would Not Share
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More than half of consumers incorrectly believe their personal information is tied to OBA
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?
D
F
D
Believe PII Is Attached To Tracking Activity
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Consumers feel ads have become increasingly relevant over time – suggesting OBA works
BASE: Total Qualified Respondents (n=1004)Q755 What percentage of ads that you see while browsing online are relevant to your wants and needs?.
Percentage Of Online Ads That Are Relevant
12%
16%
32%
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Consumer favorability toward OBA doubles if assured personal information is not attached
Favorability Toward OBA
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?
11%
22%
Favorability If They
Believe PII Is Attached
Favorability If
Assured PII Not Attached
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More than half of consumers are more likely to click and buy if they can control OBA
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.
Agreement With Statements Related To Online Advertising
55%
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57% of consumers would choose to only see online ads from brands they know and trust
BASE: Total Qualified Respondents (n=1004)Q706 What type of connotation or meaning do these terms hold for you personally?
“Somewhat” or “Strongly” Agree
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What does DAA self-regulation require?
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
DAA Compliance Requirements:
�Must use the Ad Choices icon
�Icon should be given “meaningful and prominent notice”
�Consumers provided with a “choice mechanism”
Learn more at www.aboutads.info
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43% of consumers are more favorable about advertisers if presented with the DAA program
BASE: Total Qualified RespondentsQ935/Q950 And, how does having this information available make you feel about the advertiser?
Impact onFeelings Towards
the Advertiser
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Consumer favorability increases to 50% when “Powered By TRUSTe” branding is added
BASE: Total Qualified RespondentsQ935/Q950 And, how does having this information available make you feel about the advertiser?
Impact onFeelings Towards
the Advertiser
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TRUSTe has the highest brand awareness of the 3 DAA-approved solutions – 3 to 5x other options
BASE: Total Qualified Respondents (n=1004)Q706 What type of connotation or meaning do these terms hold for you personally?
Consumers Awareness
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Consumer’s trust the “Powered By TRUSTe” branded DAA solution 10x the Evidon solution
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?
Which Version Offers The Most Trust?
Reasons TRUSTe Preferred
• More familiar with name –
47%
• Better name; implies “trust”, “security” – 25%
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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
Research Summary
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What are your DAA Compliance Options?
Do Nothing• Expose your company to possible lawsuits and
regulatory intervention.
• Risk losing business to compliant competitors.
Build Your Own Solution
• Invest significant capital and resources to build
custom compliance technology.
• Run the risk of not meeting DAA requirements.
Buy Only on DAA CompliantAd Inventory
• Vendor(s) in control of notice/message
• Vendor(s) may place icon incorrectly
• Little or no reporting
Partner with a DAA-approved solution provider
• Cost effective
• Simple, scalable and flexible
• Full customer support & guidance
• Benefit from other customer learning’s
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A simple ad tag
inserts the DAA icon 1.
TRUSTed Ads DAA Solution
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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Publishers implement
in-page, typically in
footer
1.
TRUSTed Ads DAA Solution
Website Solution: In-Page Consumer Experience
Consumers have option to
click to Preference Manager
to learn more about and opt
out of selected tracking
networks
2.
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TRUSTe’s DAA Compliance SolutionTRUSTed Ads
Two
Integration Points
ConsumerExperience
PlatformTools
TraffickingConsole
ComplianceReporting
OperationalReporting
OBA Database
Ad TagHTML
Page-basedIn-ad
Notice Presentation
Icon Serving
Preference Management
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IndustrySelf-Reg
Today Future
Government
Consumers
Browsers
Press
Online Privacy Risks Are Evolvingving
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Over 4,000 satisfied clients
Consumer Products
Health / Medical
Media / Entertainment
Financial / InsuranceTechnology / Telecom
Ad Providers / Agencies
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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
Summary
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