emarketer webinar: the future of digital identity

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The Future of Digital Identity

August 6, 2015

Bryan Yeager

Analyst


Digital Identity Today


A messy, fragmented landscape


Broad digital footprint, myriad identity contexts

>23the average number of online

accounts held by US internet

users as of March 2015

3.5 shopping accounts

3.1 financial accounts

2.8 email accounts

2.7 entertainment accounts

Source: TeleSign


Challenges with digital identity today

Balancing value vs. risk when it comes to consumers

providing digital identity data

Establishing trust when many forms of digital identity

are self-asserted by consumers

Delivering relevance and context in the customer

experience with scattershot signals, identifiers


Fraud and

identity theft

are key risks

of digitization

of identity


Many people have experienced identity theft

2 in 5

US internet users

received a notice

about compromised

personal information

(TeleSign, March 2015)

47.4%

US internet users that

had to replace their

credit card 1-2 times

due to loss or data

being compromised

(Avangate, Sep. 2014)


Balancing convenience and security

“I think consumers are increasingly sensitive to

identity-system fraud. If they feel that they’re

at risk, they’re going to either completely stop

the application online or take their business to

a competitor who’s doing it better. … They

want convenience and ease of use,

but they also want privacy and

security.”

—Kimberly Little Sutherland, senior manager of

identity management strategy at LexisNexis Risk

Solutions


Data security is

a top factor

that influences

how willing

internet users

are to share

their personal

information

with companies


65% believe it’s very important to be able to control

what info is being collected. (Pew Research Center, Feb. 2015)

US internet users claim in surveys that they

want more control over their personal info

50% feel they have not much or no control at all

over the collection of their personal information.

(Pew Research Center, Sep. 2014)

74% believe it’s very important to be in control of

who can get info about them. (Pew Research Center, Feb. 2015)


Desire, resignation about control over personal

data collection for marketing purposes


But…


Clear incentives like

promos and

discounts are most

effective in coaxing

US internet users to

share data with

companies

Getting help with

decision-making,

troubleshooting are

also contributing

factors


There will be 196 million more US smartphone

users in 2019 than there were in 2009

US Smartphone Users (Millions, % of Total Population)

eMarketer, July 2015


Close to half the US population is already on

Facebook, rising to more than half in 2019

US Facebook Users (Millions, % of Total Population)

eMarketer, July 2015


7 in 10 people in the US will be digital buyers by

2019

US Digital Buyers (Millions, % of Total Population)

eMarketer, June 2015


US retail ecommerce sales will exceed half a

trillion dollars by 2019

US Retail Ecommerce Sales (Billions, % of Total Retail Sales)



And a growing proportion of those sales will be

coming from mobile devices

US Retail Ecommerce Sales by Device (Billions)


1% 22%27.5%


And tens of millions of US adults regularly access

sensitive financial accounts on their phones

US Mobile Banking Users (Millions, % of Adult Population)

eMarketer, August 2015


Consumers ultimately want convenience with

minimal friction

“The consumer unfortunately wants to do as little

work as possible to take some of that control into

their own hands. … How do we get the consumer

to take more actions using the tools that are

currently available to them, and what can we

possibly do to at least take some of that

decision-making out of their hands in a

way that they would appreciate?”

—Keir Breitenfeld, VP of product strategy for fraud and ID

at Experian Decision Analytics


Digital identity is the core element of digital

commerce, including payments and experience

“One of the biggest

challenges that

business owners have

when they sell an item

[online] is to trust that

the person who wants

to buy it is who they

say they are.”

—Carey Kolaja, VP of

global consumer products

at PayPal

“You have the security team

that, historically, has had to

go to bat against the product

organizations in these web

businesses to add more

security. But by adding more

security, you’re adding more

clicks, more time,

more user friction.”

—Brett McDowell, executive

director of The FIDO Alliance


Digital payments are among the riskiest to

accept, resulting in revenues lost to fraud

One-third of US

companies selling online

lost 1% to 5% of

ecommerce revenues to

digital fraud

One in 10 lost 36% to

50% of ecommerce

revenues to digital fraud

(TeleSign/RSA, Dec 2014)


Two approaches to shoring up security and

establishing trust in digital commerce

Big Data AnalyticsTokenization


The marketer’s view: different digital identities

across devices for the same person


Consumer behaviors create identity gaps for

marketers

57% of US internet users have refused to provide

info that wasn’t relevant to the related transaction.

(Pew Research Center, Sep. 2014)

46% of worldwide internet users have used a

private browsing window in the past month.

(GlobalWebIndex, Q1 2015)

59% of US internet users have ever cleared cookies

and browser history. (Pew Research Center, Sep. 2014)


Challenges

with merging

fragments of

profiles,

collecting data

across

channels a

symptom of

identity gaps


The ‘cross-device graph’ concept attempts to

connect the dots of identity for marketers

“In most examples of a cross-device graph, you have the

ability to link cookies and devices together so you

can track where a consumer may be exposed to a mobile

ad campaign. … If you want to associate that consumer’s

offline sales transactions with their desktop and mobile

media exposures, that’s going to be tougher unless

you’re able to bridge that gap and get some kind of

linkage to the offline identity.”

—Michael Schoen, VP of marketing services at Neustar


Social logins aim to reduce user friction, improve

digital identity management


Most popular for

ecommerce + overall

Used in media

category the most

Used in travel

category the most

(Gigya, Q1 2015)

Top reasons US internet users

use social logins

1. Don’t want to spend time filling

in registration forms (56%)

2. Don’t want to create and

remember another username,

password (43%)

3. Like being able to use the same

identity on all devices, websites

(25%)

(Gigya, Apr 2015)

Facebook dominates social logins, as users seek

easier ways to access digital services


Digital Identity Tomorrow


The future is already here

Image Credit: Bob Croslin, Wired.com


F

Image Credit: Disney via Fast Company

10 million

people had tried Disney

World’s MagicBands as of

April 2015▼30%

turnstile transaction time

reduced since the launch of

MagicBands

5,000

more people can experience

the park at the same time


Mobile: a convergence point for identity?


Emerging technologies could enable persistent,

authenticated digital identity

Biometrics Wearables

Internet of Things


A real-world future scenario


Technology can bridge physical identity with

digital identity

“I think [digital] identity needs to be

close to the person. A wearable

could identify the person when

they interact with a

computer, a phone, a home,

a car and more.”

—Jonathan Schler, chief scientist at

Sizmek


Biometrics: digitizing unique physical traits to

confirm you are who you say you are

Prominent biometric

ID methods:

Fingerprint scanning

Voice recognition

Facial recognition

Vein recognition

Iris/retina scanning

Heartbeat measures

DNA


Digital identity: the killer app for wearables?

64%of US smartphone owners not

likely to purchase a wearable

device because they don’t

see the need to own one

(Chadwick Martin Bailey, April 2015)


223 million connected smart home appliances to be

sold worldwide in 2020, up from 1 million in 2014.

(IHS, July 2015)

The burgeoning Internet of Things market

Worldwide sales of IoT-enabled products to reach

$1.7 trillion by 2020. (IDC, June 2015)

US sales of connected home technologies to reach

$967 million in 2015. (Consumer Electronics Association, July 2015)


Points of integration for the Internet of Things

Connected/smart-home devices

that internet users in North

America are likely to purchase

1. Connected home camera (37%)

2. Connected thermostat (37%)

3. Connected lighting (34%)

4. Connected door lock (34%)

5. Smart-home hub (32%)

(Icontrol Networks, April 2015)


CMOs expect

IoT and

wearables to

have big

impact on

marketers

by 2020


IoT, wearables bring new dimension to mobile

challenges marketers deal with

“Anything that was built to solve just mobile

devices is going to be different than what you

have to use to solve for thermostats or for cars or

for wearables. As a brand or technology company,

you have to figure out, ‘How do I ingest this

information and find things that are

meaningful enough in this to connect

and understand who this consumer is?’”

—Martin Gilliard, general manager of Americas for

AdTruth, an Experian Marketing Services company


Shifting mindsets as consumers go from having

five or 10 connected devices to owning hundreds

“I think when you look a bit further out,

cross-screen doesn’t become

cross-screen anymore—it’s

cross-everywhere. Every system

interacts with the user, especially if you

think about the internet of things.”

—Jonathan Schler, chief scientist at Sizmek


Amazon Dash buttons: connecting buyers with

brands, products with the click of a button

Wi-Fi-connected, branded “replenishment

device” that places an order when button is

pressed

Setup via Amazon mobile app to connect to

network and specify the product and order

quantity to place for pressing button

Push notification via mobile app when order

is placed via button

Leverages identity established with Amazon,

including payments, address, past successful

orders and Prime statusImage Credit: Amazon


Benefits of IoT

tech needs to

be clearly

communicated

to allay

perceived

consumer

privacy

concerns


Key takeaways

Digital identity today is a fragmented, messy landscape

with challenges around balancing value vs. risk,

communicating trust and delivering relevance and

context. Cross-device measurement tactics and social

logins are a few ways these issues are being addressed.

Digital identity tomorrow could rely on a combination of

mobile devices like smartphones and wearables, as well

as biometrics and the internet of things to converge and

simplify today’s identity ecosystem. But companies have

to show consumers value to make the future a reality.

MARKETERS MUST BRIDGE THE GAP


Only 17% of

marketers tailor their

offers or messages

to the individual

Over 70% of

consumers will not

respond to

offers/messages if

irrelevant

Source: IBM

WHY IS IDENTITY SO HARD?


Connecting the Dots

a Real Challenge

Complex

Buyer Journey

Lines between offline and online are blurring

Dynamic and Scarce Data

Makes Identification Essential

Consumers’

households relocate16M

Consumers change

their phone numbers45M

People legally change

their name2.1M

Publicly available information for

U.S. households has declined

78% 30%

2000 2013


NEUSTAR BRIDGES THE GAP WITH PERSISTENT IDENTITY

ACROSS CHANNELS

Analyze and Optimize

CampaignsBuild Rich

Customer Profiles

Persistent Identity

Analytics

NEEDS

Leverage & own your data

to market with precision

Bridge online & offline

worlds and personalize

your dialogue

Analyze & optimize

across channels and

devices

SOLUTIONS

Onboarding Market Analytics& Segmentation

Targeting

Measurement

Customer Interaction Management

Attribution

NEUSTAR OFFERS AN INTEGRATED MARKETING SUITE

UNDERPINNED BY EXTENSIBLE IDENTITY


NEUSTAR IDENTITY

Scale

Depth

Accuracy


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Bryan Yeager

The Future of Digital Identity

Digital Identity: How Tomorrow's Connected Life Could Help

Solve Today's Fragmentation Issues

Cross-Device Targeting: Success Hinges on Device

Identification Methods

Mobile Audience Targeting: Have Industry Advances Raised

Advertisers' Confidence Levels?

Mobile Wallets: Six Things Marketers Should Know

Marketing Technology: Nine Important Trends for Brands and

Agencies in 2015

emarketer webinar: the future of digital identity

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future of digital identity

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