OBA & Compliance. Regulatory Update. The New Face of Online Advertising 9/30/2011

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1 The New Face of Online Advertising OBA & Compliance Presented by: Linda Woolley - DMA Sal Tripi Publishers Clearing House Fran Maier Truste Jonathan Fox - Double Verify Scott Meyer - Evidon Regulatory Update Linda Woolley EVP Washington Operations Direct Marketing Association - DMA 1

2 Sal Tripi Sr. Director of Operations and Compliance Publishers Clearing House Trusted Ads Initial Launch Early 2010 Beta Client for Truste Consumer Feedback Positive Rollout Late 2010 Consolidation into DAA Program 2

3 Digital Advertising Alliance Why PCH Got Involved? Major Brand with Significant Presence Online. Publisher Advertiser 3

4 Aligned Principles Transparency - Providing notice to consumers when they are being served OBA. Education - Facilitating one-click access to all relevant information about OBA. Choice - Enabling consumers to opt out of this type of behaviorally-targeted ads. Enforcement - Ensures consumers' preferences are maintained and respected. Brand Responsibility Partner and Network Vetting Auditing Difficult Decision Thank You! Sal Tripi Sr. Director, Publishers Clearing House 4

5 Fran Maier President and Executive Chair Truste About Us Mission: Truth in Privacy #1 Privacy Management Solutions Provider Founded in 1997 as non-profit industry association Converted to for-profit in 2008 to address emerging privacy challenges Over 4,000 clients TRUSTed Ads Comprehensive Privacy Solutions for: Website Mobile Cloud Advertising Research: Consumer Attitudes on Online Behavioral Advertising and Privacy Objectives What do consumers actually know about online behavioral advertising? How do consumers feel about this practice? How does the icon impact perceptions of online behavioral advertising? Trend to 2008 and 2009 data Methodology 1,004 total interviews were conducted among Harris Interactive s online consumer panel 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. Interviews were conducted May 26 June 2, 2011 Via self-administered online survey 5

6 Privacy Is Important To 94% Of Consumers Q800 Privacy can have a different level of importance to different people. For you, personally, how important is the issue of online privacy? Consumers Think Multiple Parties Are Responsible For Protecting Privacy Responsibility of Different Groups in Protecting an Individuals Privacy Individuals themselves 45% 36% Social networks (e.g. Facebook, Twitter) Website owners and publishers (e.g., CNN.com, NYTimes.com, etc.) Search Engines (e.g. Yahoo, Bing, Google) Manufacturers of browsers and other online software (e.g. Internet Explorer, Safari, Firefox, Chrome) Online advertising networks 34% 44% 33% 44% 31% 40% 31% 30% 40% 29% 40% Internet Service Providers (ISPs) (e.g. Comcast, ATT) Independent privacy certification organizations/self regulatory organizations Online advertisers Government through legislation or regulation 31% 36% 27% 38% 31% 39% 28% 31% Wholly Responsible A Lot Responsible Q836 When thinking about protecting an individual's online privacy, how responsible should each of the following groups be? Yet, At The End Of The Day, They Trust Themselves The Most Q840 Which one would you most trust to protect your privacy? 6

7 Few Would Willingly Share Indentifying or Sensitive Information With Advertisers Types of information consumers would not consent to sharing with advertisers Financial information 66% 14% Contact information ( , phone, physical address) 49% 22% Health related information 52% 18% Current location 46% 20% Name 45% 19% Online browsing behavior 34% 21% Profession 32% 19% Demographic information (not PII) Hobbies/Interests 27% 15% 26% 14% Definitely Would Not Consent Probably Would Not Consent Q741 How likely are you to consent to share each of the following types of information with advertisers? Little Interest In Tracking Browser Behavior For Any Purpose Except Security Likelihood to consent to tracking of online browsing behavior under specific circumstances 10% 32% 4% 18% 2% 13% Definitely Would Consent Probably Would Consent Q731 For each of the following situations below, please indicate how likely you would be to consent to tracking of your online browsing behavior? Most Consumers Are Aware Of OBA 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. 7

8 Over Half Do Not Like Behavioral Advertising OBA Favorability Mobile OBA Favorability 1 1% 22% Do Not Like It 74% Neutral Like It Q715 How do you feel about Online Behavioral Advertising as described above? 1. Source: Mobile Privacy: A User s Perspective, TRUSTe & Harris Interactive. Spring BASE: Total Qualified Smartphone Users (n=1000) Q1045 How do you feel about being tracked by advertisers on your mobile phone? 52% Believe That OBA Uses Personally Identifiable Information (PII) Q720 Do you believe that personally identifiable information (such as your name or address, etc.) is attached to this tracking activity? However, Favorability Increases 100% When They Are Assured PII Is Not Used 11% 22% OBA Favorability If They Believe PII Is Attached OBA Favorability If Assured PII Not Attached 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 address, etc.), then how would you feel about Online Behavioral Advertising? 8

9 Consumers Are Favorable To Enhanced Choice It Improves Engagement Levels Q751 Please indicate the degree to which you agree or disagree with each of the following statements related to online advertising. Consumer Awareness of the Icon is 5% Awareness Source Of Awareness Q910 Have you seen either of the following icons or symbols online? BASE: Have Seen Forward I Icon (n=32) Q915 Where did you see this icon? The DAA Program Enhances Consumer Favorability Toward Advertisers 43% Favorability Toward Advertisers After Being Shown DAA Notice/Choice Experience BASE: Total Qualified Respondents Q935/Q950 And, how does having this information available make you feel about the advertiser? 9

10 Most Consumers Are Aware Of Mobile Tracking -The Vast Majority Want The Ability To Opt-Out 1 Feelings About Advertiser Tracking 1. Source: Mobile Privacy: A User s Perspective, TRUSTe & Harris Interactive. Spring BASE: Total Qualified Smartphone Users (n=1000) Q1040 Are you aware that advertisers are tracking your mobile activities and delivering ads targeted to you based on your behavior? Q1045 How do you feel about being tracked by advertisers on your mobile phone? Q1050 Are you interested in being able to opt in or out of targeted mobile ads? Conclusions 1. Consumers care about privacy 2. Consumers trust themselves the most to protect their privacy industry must provide them with the necessary tools 3. Education is critical to building trust in the absence of information consumers will assume the worst 4. Consumer awareness of the DAA icon is currently low, but the notice and choice provided by the DAA program build substantial consumer trust TRUSTed Ads 1. A TRUSTe ad tag inserts the Advertising Option Icon. 2. The icon launches TRUSTe-served privacy notice 3. Consumers can navigate from the privacy notice to TRUSTe s Opt-Out Preference Manager 10

11 TRUSTed Ads Behind the Scenes Two Integration Points Ad Tag HTML Icon Serving Notice Presentation Preference Management Allstate Insurance cares about your privacy. Advertising.com delivered this personalized ad for Allstate based on your interests. Consumer Experience Trafficking Console Operational Reporting Compliance Reporting OBA Database Platform Tools TRUSTe IE9 Tracking Protection List IE9 users can download Tracking Protection Lists Lists can BLOCK or ALLOW tracking companies ALLOWs override BLOCKs For full survey results please visit: 11

12 Jonathan Fox DoubleVerify: The Industry Leader 40 billion+ imps verified monthly 96% see through rate (STR) of nested iframes DAA-approved OBA compliance solution Only verification vendor certified on the Big 4 (Yahoo, AOL, MSN, Google) Preferred partner of 6 out of 6 agency holding companies Fortune 500 Clients over 200 and counting 67% Decrease in inappropriate content 84% Decrease in international traffic 35 The Digital Advertising Environment Visibility is Limited 31% Non-Compliance 36 12

13 The Digital Advertising Environment It s a Jungle Out There. Inappropriate Content International Traffic Not on approved site list Regulatory compliance Hyper-frequency Competitive Separation Multiple Ads on Page Above the Fold/Below the Fold Fraudulent sites with invisible iframes 37 The Digital Advertising Environment Until now, focus has been on publication and placement: Viewership of publications fit demographic Ads were being served to appropriate sites Ads were placed on appropriate context Online Behavior Advertising (OBA) OBA brings greater opportunity Greater opportunity brings greater responsibility OBA brings the need for OBA Compliance 13

14 In-ad OBA Compliance Solution DoubleVerify s solution meets all the requirements for compliance: Advertising Options Icon is displayed on all ads Privacy Notice Interstitial informs users about OBA and links to privacy preference manager DoubleVerify s Privacy Manager provides opt out and in choices 40 Site OBA Compliance Solution Clear and Meaningful Notice Easy to use mechanism for consumer choice 41 It is About Trust Getting it right is about trust Each interest-based ad is test of consumer and industry trust Breaking this trust has consequences On an individual user level On an industry level 14

15 While Circle Grows OBA Compliance Fraud Inappropriate Content Competitive Separation Ad Placement Geo- Targeting So does the opportunity And so do the tools and consumer confidence Thank You! Jonathan Fox 15

16 Strategy and technology to power privacy and compliance around the world 2011 Evidon, Inc. All Rights Reserved. Purpose-Built for Compliance Self-Regulatory Regulatory Contractual Advertentievoorkeuren Deze advertentie werd voor u geselecteerd door Canon op basis van uw eerdere zoekopdrachten en surfgedrag. Canon werkt samen met internetbedrijven om u advertenties te tonen die zo goed mogelijk aansluiten bij uw interesses, bepaald op basis van uw recente surfgedrag. Voor meer informatie klikt u op de link Meer informatie & privacy-opties 47 Purpose-Built for Compliance 65+ billion notices (will update) 100+ brands 40+ networks, DSPs, etc 4+ million downloads 300k member opt-in panel 800+ companies, 8M domains Auto-translation into French, Dutch, German, Italian, and Spanish (to start) Advertentievoorkeuren Deze advertentie werd voor u geselecteerd door Canon op basis van uw eerdere zoekopdrachten en surfgedrag. Canon werkt samen met internetbedrijven om u advertenties te tonen die zo goed mogelijk aansluiten bij uw interesses, bepaald op basis van uw recente surfgedrag. Voor meer informatie klikt u op de link Meer informatie & privacy-opties 48 16

17 Two Roles in DAA Program Compliance Services Technology Provider 1. Panel Data 2. Lab Data 3. Privacy Database Assurance Platform Delivers ad/site notice to consumers; helps all businesses comply with Program. All data owned and controlled by client, not Evidon or anyone else. Monitoring Platform Delivers data to CBBB/DMA, primarily from panel, enhanced by lab and other analytics tools, to support Accountability Mechanisms. Enforcement decisions made by BBB/DMA, not Evidon. Tracking the Trackers 50 Clarity into Data Ecosystem 1. Ghostery Panel Data (300k members) 2. Privacy Database (800+ companies) Protect your data Supports enforcement InLight Reports 30+ trackers found, including: [x+1] 24/7 Real Media 33Across Adconion AddThis AdNexus Advertising.com 51 17

18 Brands Have Options, And Obligations On Advertiser s site In Ads 1. Use approved provider Manage yourself 2. Buy only through DAA-compliant businesses 70 networks, DSPs, publishers 3. Build your own solution 1. ADVERTISER needs to provide simple opt-out If 3 rd party OBA tags are present 52 Chrysler: First US Automaker to Deploy Icon Strategic, proactive approach to protecting consumers Ad notice, site notice, participation in Program promotion Site notice Stay on top of collection across properties Compliance with company policies 53 Walmart: Navigating Complexity Effectively OBA on unaffiliated sites 3 rd party ads on Walmart.com that use 1 st party data Robust disclosure and controls and 3 rd party data 54 18

19 The Icon It s Not Just for OBA Anymore = Think: Nutritional label for ads 55 19

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