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TRANSCRIPT
CONFIDENTIAL 1
How Privacy Impacts Your Mobile Business Strategy
Dave Deasy
Vice President, Marketing
@davedeasy
August 2012
CONFIDENTIAL 2
Leader in Data Privacy Management Solutions• 15 years of privacy experience
• #1 privacy brand & trustmark
• Robust technology infrastructure
Comprehensive Suite• All online channels
• Global coverage
• Strategy + Certifications + Technology
Large / Loyal Customer Base• Over 5,000 clients
• Over 90% renewal rate
• Cross industry solutions
TRUSTe Overview
CONFIDENTIAL 3
A little privacy humor…
CONFIDENTIAL 4
1. Compliance
2. Brand
3. Engagement
Three Reasons To Address Mobile Privacy
CONFIDENTIAL 5
Reason #1 – It’s the law
CONFIDENTIAL 6
Current mobile privacy policies are lacking
The average website privacy policy is 2,464 words long – that’s nearly twice the length of the Declaration of Independence!
33%67%
Among top iOS/Android apps1
PolicyNo Policy
1. Source: www.truste.com/privacy-index-2011-websites2. Source: http://www.truste.com/blog/2012/04/02/apps-need-to-step-up-their-privacy-game
CONFIDENTIAL 7
The legislative pressure is increasing
CONFIDENTIAL 8
Reason #2 – You need to protect your brand
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Reason #3 – Consumers worry about their privacy, and are acting with their clicks and wallets
TRUSTe 2012 Consumer Data Privacy Research
Conducted by Harris Interactive
1,000 US Adults, National Sample, June 2012
Part of the TRUSTe Privacy Research Series
www.truste.com/resources
CONFIDENTIAL 10
Research Part I – The Bad News
CONFIDENTIAL 11
Importance of Online Privacy
94% of Consumers Consider Online Privacy Important – Many Think About it Often
BASE: Total Qualified Respondents (2011: n=1004; 2012: n=1033)Q800 Privacy can have a different level of importance to different people. For you, personally, how important is the issue of online privacy?
55%
39%
6%
A really important issue that I think about often
A somewhat important issue that I think about sometimes
Not much of an issue / I hardly ever think about it
CONFIDENTIAL 12
Privacy Concerns Today Compared to a Year Ago
Have Stopped Doing Business Due to Privacy Concerns
Privacy Concerns are Growing - Business Impact is Real
BASE: Total Qualified Respondents (n=1033)Q1000 Are you more or less concerned today than you were a year ago about your online privacy?Q1005 Have you ever stopped doing business online with any companies or stopped using their websites because of privacy concerns?
More 60%
No Change
37%
Less 3%
Yes35%
No 65%
CONFIDENTIAL 13
BASE: Total Qualified Respondents (n=1004) See: 2011 OBA Survey: http://truste.com/ad-privacy/Q836 When thinking about protecting an individual's online privacy, how responsible should each of the following groups be?
Government/ Regulation
Independent Privacy Organizations
Internet Service Providers
Online Advertising Networks
Browsers
Online Advertisers
Search Engines
Website Owners / Publishers
Social Networks
Individuals Themselves
28%
27%
31%
29%
30%
31%
31%
33%
34%
45%
31%
38%
36%
40%
40%
39%
40%
44%
44%
36%
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
CONFIDENTIAL 14
BASE: Total Qualified Smartphone Users (n=554)Q1090 How do you decide if you should trust a mobile app with your personal information?
I trust all apps
I ask friends
I check to see if the app has a third party trustmark/seal
I read the privacy policy (if provided)
I check to see if the app has a privacy policy
I research the app online
15%
19%
21%
30%
34%
38%
Steps to Determine Mobile App Privacy Trust
Consumers Take a Variety of Steps to Protect Their Personal Information With Apps
CONFIDENTIAL 15
Less Than 1 in 7 Consumers Believe Their App Stores Only Offer Privacy-Safe Apps
BASE: Total Qualified Smartphone Users (n=554)Q1065 Do you feel that the mobile application store you use only makes available apps that safeguard the privacy of your information?
Not sure
No
Yes
49%
37%
14%
50%
25%
25% 2011
2012
Does your mobile app store only make available apps that safeguard your privacy?
CONFIDENTIAL 16
Smartphone Users Restrict Certain Types of Personal Data That They Share With Apps
Types of Information They Would Consent to Sharing With Mobile Apps
List of contacts
Photos/Videos
Home address
Web surfing behavior
Phone number
Precise location
Date of birth
Full Name
Age
Gender
1%
3%
5%
6%
8%
9%
12%
25%
35%
36%
49%
BASE: Total Qualified Respondents (n=554)Q1070 What type(s) of information are you willing to share with mobile apps?
None of the above
28%
CONFIDENTIAL 17
Privacy Mistrust Limits App Downloads for 85% of Consumers
BASE: Total Qualified Smartphone Users (n=554)Q1080 If you don’t trust a mobile app, what do you do?
85%
8% 4%3%
I don't download it
I limit the information I share with it
I limit my usage of the app
I do not change my behavior
What do you do when you don't trust a mobile app?
CONFIDENTIAL 18
Six in ten aware advertisers track mobile activities to deliver targeted ads - virtually nobody likes it!
BASE: Total Qualified Smartphone Users (n=554)Q1055 Are you aware that advertisers are tracking your mobile activities and delivering ads targeted to you based on your behavior?Q1060 How do you feel about being tracked by advertisers on your mobile phone?
Aware62%
Not Aware38%
74%
25%
1%
I do not like it
I neither like nor dis-like it
I like it
Are you aware advertisers track your mobile activities to deliver
behaviorally targeted ads?
Feelings About Being Tracked
CONFIDENTIAL 19
Research Part II – The Good News
CONFIDENTIAL 20
I would be more inclined to click on an adver-tisement that gives me the option to opt out of
Online Behavioral Advertising
11%
11%
29% 33% 16%
Strongly Disagree Somewhat Disagree Neither Agree Nor Disagree Somewhat Agree Strongly Agree
BASE: Total Qualified Respondents (n=1033)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 – option to opt out
Consumers Reward Good Privacy Practices with More Ad Clicks
49%
CONFIDENTIAL 21
BASE: Total Qualified Respondents (n=1033)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 – option to opt out
Consumers Reward Good Privacy Practices with More Business
I would be inclined to do more business with an ad-vertiser or publisher who gives me the option to opt-
out of Online Behavioral Advertising
7%
5%
27% 40% 21%
Strongly Disagree Somewhat Disagree Neither Agree Nor Disagree Somewhat Agree Strongly Agree
61%
CONFIDENTIAL 22
The DAA Self-Regulatory Program For Online Behavioral Advertising
Provides consumers with notice and opt-out choicefor behavioral advertising
CONFIDENTIAL 23
Impact on Feelings Towards the Adver-
tiser_x000d_51% 31% 7%
Much Less Positive Somewhat Less Positive No Impact Somewhat More Positive Much More Positive
BASE: Total Qualified RespondentsQ930/Q945 How does having this information available, along with the option of opting out of Online Behavioral Advertising make you feel about the concept of Online Behavioral Advertising?Q935/Q950 And, how does having this information available make you feel about the advertiser?
38%
The DAA Program Increases Acceptance of Behavioral Advertising and Brand Favorability
Impact on Online Behav-ioral Advertising Concept 54% 32% 5%
37%4%
5%
6%
5%
CONFIDENTIAL 24
You need a Data Privacy Management Strategy
• What data do you collect?• How do you use the data?• Do you need all the data you collect?• Who do you share data with?• How long do you store it?• Do you provide opt-outs?• Are the opt-outs enforced?
• Do you do business in the EU?• Do you market to children?• Do you do behavioral advertising?• How do you manage preferences
across mobile web and apps?• Do your disclosures match your
data collection practices?
CONFIDENTIAL 25
TRUSTe Can Help
Mobile Ads OBA ManagementMobile App Certifications
Children’s Privacy / COPPAEU Compliance Management
CONFIDENTIAL 26
A sampling of our 5,000+ customers
Ad Agencies / Platforms
Internet / Cloud
Media / Entertainment
Financial / HealthTechnology / Telecom
Consumer
