M A R K E T R E S E A R C H S E R I E S
ONLINE DATA PRIVACY, 2012 CONSUMERS AND SMALL BUSINESS
dax Asparna Ltd 259 HaPeleg, Be’erotayim 45820 Israel
Inbal Pasternak & Etamar Laron December 2012
Material contained herein made available to the public Phone +972 (77) 52.55.412 ∙ Fax +972 (9) 76.77.412 ∙ http://www.asparna.com
“94% of US online adults
worry about their privacy
online”
ONLINE PRIVACY
TRUSTe.org and Harris Interactive, June 2012. US Consumer Data Privacy Study (2,000 U.S. online adults)
A REALLY IMPORTANT issue I think
about OFTEN
55%
A SOMEWHAT important
issue I think about
SOMETIMES 39%
Not much of an issue, I
hardly ever think about it
6%
Is Data Privacy an important issue to you? (TRUSTe, 6-2012)
60% of US online adults are
more worried about their
privacy online
PRIVACY CONCERNS ARE ON THE RISE
TRUSTe.org and Harris Interactive, June 2012. US Consumer Data Privacy Study (2,000 U.S. online adults)
More concerned than last
year 60%
Just as concerned
37% Less concerned
than last year 3%
Privacy concerns are up from 2011 (TRUSTe, Apr 2012)
71% of Internet users across
North American and Europe
consider their personal
information to be at risk online
ONLINE PERSONAL INFORMATION
AT RISK
Yes 71%
Likely 19%
Unlikely 6%
No 5%
My personal information online is at Risk (meinungsraum, Jun 2011, n=5,778)
Meinungsraum (Germany), Jan 2011. Privacy Survey 2011 | 5,778 USA + Europe online adults
Over 80% of US Mobile
adults are Concerned over
mobile-internet privacy
MOBILE INTERNET PRIVACY CONCERNS
GSM Association, Sep 2011. Privacy is a Significant Concern to Mobile Users | 4,121 USA + EUROPE Mobile adults
92%
76% 81%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Concerned about appscollecting their personal
info w/o consent
Very selective who theygive personal info due to
privacy concerns
Believe thatsafeguarding their
personal info is Veryimportant
Privacy Concerns among Mobile Internet users (GSMA, Sep 2011)
“54% decided to
not install Apps
due to privacy concerns”
ACTING ON CONCERNS
TRUSTe.org and Harris Interactive, June 2012. US Consumer Data Privacy Study (2,000 U.S. online adults)
ACTED
55,242,000 54%
Not acted
47,058,000 46%
Decided to not install App due to Privacy concerns
30% of Mobile users have
uninstalled pre-configured
Apps on their Smartphones
due to privacy concerns
ACTING ON CONCERNS
TRUSTe.org and Harris Interactive, June 2012. US Consumer Data Privacy Study (2,000 U.S. online adults)
ACTED
30,690,000 30%
Not acted
71,610,000 70%
Uninstalled pre-installed App due to Privacy concerns
48% of US Mobile adults
did not use their Mobile
Internet in 2011 due to
privacy concerns
ACTING ON CONCERNS
NOT USING due to
PRIVACY CONCERNS
48%
USE but want BETTER
SAFEGUARDS 26%
USE and DON'T MIND
PRIVACY 26%
Use of Mobile Internet on Mobile platforms (GSMA, Sep 2011)
GSM Association, Sep 2011. Privacy is a Significant Concern to Mobile Users | 4,121 USA + EUROPE Mobile adults
In the current online world of
Web-based cloud services,
Consumers are pro-active
to self-protect themselves
ACTING ON CONCERNS
TRUSTe and Harris Interactive, Jun 2012. US Consumer Privacy Attitudes & Business Implications | 1,033 USA consumers
76%
50%
49%
46%
40%
79%
67%
64%
83%
37%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Refuse to allow companies sharing w/ 3rd parties
Opt out of Online Behavioral Advertising
Check for certification or seal of privacy
Check for website privacy statement
Read the website privacy statement
Manually delete cookies, cache or browsing histories
Automatically delete cookies, cache or browsing…
Install browser Privacy-Addons
Understand / aware of Online Behavioral Advertising
Do not trust my App-Store with my Privacy
Consumers Take a Range of Actions to Protect Themselves Online
2010 2011 2012
Gov’ Web / Cloud Person-centric + friends
Consumers see mainly themselves and
their friends as responsible for privacy.
Next, they would relay responsibility to
web technologies or companies, and only
eventually to governments.
WHO DO CONSUMERS SEE AS
RESPONSIBLE?
45% 34% 33% 31% 31% 30% 29% 31% 27% 28%
36% 44% 44%
40% 39% 40% 40% 36% 38% 31%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Responsibility of different actors to protect Privacy (Jun 2011)
Wholly A lot
TRUSTe and Harris Interactive, Jun 2011. US Consumer Privacy Attitudes & Business Implications | 1,004 USA consumers
74% - 89% of Mobile Internet
users have severe concerns
over specific privacy subjects
PRIVACY CONCERNS SIMILAR ACROSS SUBJECTS
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50%
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70%
80%
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100%
Privacy Concerns among Mobile Internet users (GSMA, Sep-2011)
GSM Association, Sep 2011. Privacy is a Significant Concern to Mobile Users | 4,121 USA + EUROPE Mobile adults
There are no substantial
age-related differences in
concerns over Online Privacy
PRIVACY CONCERN DEMOGRAPHICS
TRUSTe.org and Harris Interactive, April 2012. TRUSTe Privacy Index – Consumer Confidence ed. (2,415 U.S. online adults)
82% 87%
91% 93%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Age 18-34 Age 35-44 Age 45-54 Age 55+
Privacy concern by Age
2012-03
Consumers in the USA are the
most concerned and Europeans
follow right after, though the EU
as a government is more active.
PRIVACY CONCERN DEMOGRAPHICS
Meinungsraum (Germany), Jan 2011. Privacy Survey 2011 | 5,778 USA + Europe online adults
“A full 70% of small businesses are
concerned about where their data is
stored. Just-over half of all SMBs cite
data privacy as a potential deal
breaker for adopting cloud services.”
PRIVACY CONCERNS IN FILE SHARING
SYMANTEC, 2012. SMB File Sharing Flash poll | 1,325 Global SMBs SYMANTEC, 2012. State of Information Survey | 4,506 Global SMBs
Read more on our report SMB File-sharing and sync, 2012
1. At least 50% of consumers have high/critical concerns of online privacy.
2. For 60% of consumers, online privacy concerns are trending higher.
3. Over 4 in 5 individuals are concerned about online privacy, regardless of age, nationality or type of specific concern.
4. 30% - 79% of consumers translate their concerns to actions, across all concerns.
5. Perception of responsibility is aligned towards Elsewhere values more than to web/cloud values.
6. SMBs are highly concerned of data privacy, and over 50% see it as a deal-breaker in cloud solutions.
NEXT: Public opinion as reflected in technology news coverage
High to Critical awareness translated to Actions in 2012
ONLINE PRIVACY 2012 AT A GLANCE
Example of dedicated media coverage
Since 2011, the Wall Street Journal
devotes an entire section of its online
magazine to Online Privacy. In “what
they know”, the prominent economical
magazine tracks how badly your online
privacy is revoked on the internet and
features daily articles, webcasts, videos
and even tools to measure your
exposure levels at common websites.
WALL STREET JOURNAL
WHAT THEY KNOW
A valuable lesson from Randi Zuckerberg: Online privacy is complicated Dec 26, 2012. ZDNet PC
Privacy suit accuses Google, Viacom of feeding 'cookies' to children Dec 26, 2012. The national Law journal
The Gift Of Online Privacy Dec 25, 2012. Tech Crunch
Policy and privacy: Five reasons why 2012 mattered Dec 24, 2012. C|NET.com
Websites Vary Prices, Deals Based on Users' Information Dec 24, 2012. Wall Street Journal
Consumer privacy is the number one concern of Internet users Dec 23, 2012. Center for Democracy
2012 in Review: A Year in Digital Freedom Dec 22, 2012. Electronic Frontier Foundation
Editorial Quick Hits: Protect online privacy Dec 22, 2012. Detroit Times
Experimenting with Your Privacy, Facebook Begins Selling Your Inbox Dec 22, 2012. Electronic Frontier Foundation
Privacy worries go way beyond emails Dec 21, 2012. CNN
Canada: Data Privacy Online Dec 20, 2012. Canadian Bar Association
We need standard disclosure for Online Privacy. Here’s How. Dec 19, 2012. ZDNet PC Magazine
Why the Web Is Freaking Out Over Instagram’s New Terms of Service Dec 19, 2012. Wall Street Journal
FTC beefing up rules for protecting kids’ Privacy Online Dec 19, 2012. ZDNet PC Magazine
The following is a selection of headlines of top,
prominent national newspapers and blogs read
in North America by at least 1M people.
The picture portrayed in the media is that the
internet is not safe; that your privacy is the new
currency in which you pay for your services
online ; that servers keep and store your data
for years; that human mistakes in privacy are
kept forever; and that companies sell your data
and privacy by the pound.
NEWS FOR ONLINE PRIVACY WEEK OF DEC 19-26, 2012
EXAMPLES OF MEDIA COVERAGE
Online Privacy is tracked daily by all major news outlets and agencies.
As a search term, Online Privacy is 10x more widespread than Cloud Computing.
“Never has privacy been more important than today, in the age of the internet, the world wide web and
smartphones. …
Much of this innovation is enabled by novel uses of personal information. So it is incumbent on us to do
what we have done throughout history: apply our timeless privacy values to the new technologies and
circumstances of our times …
One thing should be clear, even though we live in a world in which we share personal information more
freely than in the past, we must reject the conclusion that privacy is an outmoded value: it has been at the heart of our democracy from its inception, and
we need it now more than ever.”
BARACK OBAMA CONSUMER PRIVACY BILL OF RIGHTS
White House, Feb 2012. Consumer data privacy in a Networked World – Framework for Protecting Privacy and Promoting Innovation
ONLINE PRIVACY PREDICTIONS FOR 2013 FJORD CONSULTING HTTP://WWW.SLIDESHARE.NET/FJORDNET/FJORD-TRENDS-2013
Huffington Post, Dec 12, 2012. Fjord predicts: 2013 digital trends
ONLINE PRIVACY PREDICTIONS FOR 2013 FJORD CONSULTING HTTP://WWW.SLIDESHARE.NET/FJORDNET/FJORD-TRENDS-2013
ONLINE PRIVACY PREDICTIONS FOR 2013 THE GUARDIAN, UK HTTP://WWW.GUARDIAN.CO.UK/MEDIA-NETWORK/MEDIA-NETWORK-BLOG/2012/DEC/21/DATA-PRIVACY-2013-PREDICTIONS
1. Data privacy gets personal The issues around personal data privacy are also leaking into the corporate environment … As data privacy gets personal and as organisations fight to protect their data assets, the onus will increasingly be on the individual to ensure they too are doing all they can to keep their sensitive information and privacy intact, wherever they are broadcasting it from and to.
2. The rise of new technology
3. Getting global As previously untouched parts of the world are reached through wireless technology, more people from more places will be sharing their data online in 2013. The charge for data privacy and security needs to be a priority across the globe as technology spreads.
4. Tooling up There's no such thing as standing still when it comes to avoiding data breaches and ensuring data privacy standards are upheld. If you're not moving forward then you're falling behind. 2013 looks set to be another big year for data security.
MORE ONLINE PRIVACY PREDICTIONS FOR 2013
PRIVACY PROBLEMS: Because consumers are climbing on board with personalization, they should expect to see more of the general information they share online used by companies. Everything from age, geography and life stage, incorporating social profiles (e.g., married versus single) is predicted to play a part in offering a more relevant, more valuable e-commerce experience.
Forbes http://www.forbes.com/sites/gyro/2012/12/24/10-e-commerce-predictions-for-2013/
Privacy and cyber-security are two topic areas that will continue to be hot topics in 2013. Several privacy-related topics are garnering interest such as Differential Privacy and Do Not Track (DNT), among others. To state the obvious, privacy will be a super-important topic area in 2013.
SC Magazine http://www.scmagazine.com/outlook-for-mobile/article/274057/
Gizmodo editorial http://www.marketplace.org/topics/tech/online-privacy-2013-and-trading-old-school-correspondence-lettrscom
"To me I think the biggest issue is going to be privacy," says Barrett, "and how we live private lives in this age when social media really is almost a utility at this point. … We’re past the honeymoon phase a little bit. We started out with these things that were free services, that are great [in] that [they] connect us --- and now the bill's coming due. We’re going to have to be a much more educated digital populace if we want to protect those things that we would rather keep private."
… MORE ONLINE PRIVACY PREDICTIONS FOR 2013
Companies digest government’s view on Privacy: That’s not to say we don’t still have significant work ahead to protect our children and personal information, but at least the industry has come to terms with understanding the regulative/legislative values and aren’t panicking anymore. Governments and solution providers are working on very creative solutions that should provide a nice compromise for 2013.
Search engine watch http://searchenginewatch.com/article/2232475/2012-Analytics-Year-in-Review-Predictions-for-2013
Forrester research http://www.digitaltrends.com/mobile/the-free-ride-is-over-get-ready-for-mobile-advertising-overload-in-2013/
Privacy and the Digital Trail. The information about our activities and movements can be misused. That is part of a trade-off (of using these online services), but at the moment it's a trade-off we can't measure easily. To a large extent we don't know what information is being collected about us, we don't know if it's correct, and we don't know how to fix what might be wrong.
Privacy concerns about information stored on BYOD devices will gain higher profile in 2013. Employees who get burned [sic] by having personal information wiped from their "personal" devices by employers will start to understand the complexity of BYOD.
CMS Wire http://www.cmswire.com/cms/social-business/2013-predictions-the-changing-needs-of-the-mobile-social-business-018845.php
FURTHER INTERESTING READING IN RECENT NEWS
• Data Privacy Month (USA Educational System) is an annual effort to empower people to protect their privacy and control their digital footprint, as well as escalate the protection of privacy and data as everyone's priority. http://www.educause.edu/focus-areas-and-initiatives/policy-and-security/educause-policy/community-engagement/data-privacy-month
• A cloud computing survey from Microsoft found that a chief concern of potential SMB cloud customers is the security and privacy of their data. A full 70% of small businesses are concerned about where their data is stored. Just-over half of all SMBs cite data privacy as a potential deal breaker for adopting cloud services. And only 36% of businesses think their data is as or more secure in the cloud than their current on premises solution http://www.cloudtweaks.com/2012/08/cloud-infographic-cloud-control-and-file-sharing/
• back-to-back announcements from the California Attorney General and the White House give me some hope that we may finally be entering a period where people can have at least some control over their personal information. http://www.forbes.com/sites/larrymagid/2012/02/23/is-online-privacy-finally-becoming-a-reality/
• From gun-toting, on-the-lam tech giants to flying drones and internet uprisings, these are the privacy and security stories that dominated Threat Level in 2012. http://www.wired.com/threatlevel/2012/12/2012-year-in-review/
• Let’s break down the privacy debate ... at the core of consumer’s objections is the fact that someone is making money off of them. http://www.forbes.com/sites/realspin/2012/03/26/the-economics-of-online-privacy/
• While lawmakers were caving to special interests, however, they cut from the legislative package language requiring the authorities to get a warrant to read your e-mail or other data stored in the cloud. http://www.wired.com/threatlevel/2012/12/congress-caves-privacy/
• Dropbox has come under fire for claims it made about exactly who has access to your files. http://www.macworld.com/article/1159370/dropbox_security.html
• When you upload or otherwise submit content to our Services, you give Google (and those we work with) a worldwide license to use, host, store, reproduce, modify, create derivative works (such as those resulting from translations, adaptations or other changes we make so that your content works better with our Services),communicate, publish, publicly perform, publicly display and distribute such content. http://www.theverge.com/2012/4/25/2973849/google-drive-terms-privacy-data-skydrive-dropbox-icloud
• 81 percent of IT professionals express security concerns when moving data to the cloud, according to a recent survey conducted by GreenSQL. http://www.greensql.com/content/greensql-october-survey-shows-81-it-professionals-have-security-concerns-when-moving-data-cl
• Facebook shares fell Friday after a report said its photo-sharing app Instagram had lost millions of users following the release of planned policy changes … that appeared to clear the way for the mobile photo sharing service to sell pictures without compensation, amid protests from users.http://uk.news-republic.com/Web/ArticleWeb.aspx?regionid=4&articleid=
5827097 • I remain highly concerned about privacy, it's alleged
absence in the U.S. Constitution … and how it's been steadily taken away from us in the era of the web and social media. http://cloudcomputing.sys-con.com/node/2496774
• The 7 biggest privacy offenders: Facebook, Gmail, MSN Live, Skype, Twitter, Dropbox, Google+ [infographics] http://coolcatteacher.visibli.com/share/bh6H04
• International Data Privacy Law (Oxford) has a global focus on all aspects of privacy and data protection, including data processing at a company level, international data transfers, civil liberties issues, technology issues relating to privacy, international security breaches, and conflicts between US privacy rules and European data protection law. http://idpl.oxfordjournals.org/
• Transactions on Data Privacy (UNESCO) is to provide an international forum for researchers on all topics related to data privacy technologies http://www.tdp.cat/
Dax Asparna Ltd 259 HaPeleg street Be’erotayim 42850 Israel P +972 (77) 52.55.412 F +972 (9) 76.77.319
REFERENCE RESEARCH SOURCES READ MORE ON HTTP://WWW.ASPARNA.COM AND OUR
NEWS FEED ON HTTP://WWW.ASPARNA.COM/INTERNET-PRIVACY-NEWS
TRENDS, AWARENESS & ACTIONS TAKEN How important is Data Privacy to you? 2,000 US Adult internet users
Privacy trend: concerns up from 2011 2,000 US Adult internet users
My personal information online is at risk 5,778 US + Europe internet users
Users deciding to not install Apps due to Privacy 2,000 US Adult internet users
Users deciding to uninstall Apps due to Privacy 2,000 US Adult internet users
Users avoiding mobile internet usage in 2011 4,121 US + Europe mobile internet users
Consumers take a range of actions 1,033 US internet users
Whose responsibility is it to protect online privacy? 1,004 US internet users
Privacy concerns among mobile Internet users 4,121 US + Europe mobile internet users
Privacy concerns by consumer age 2,415 US internet users
Concerns about privacy, personal info & reputation 5,778 US + Europe internet users
Privacy concerns in File Sharing 5,831 file-sharing users in Global SMBs