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

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Regulatory Update

Linda WoolleyEVP Washington OperationsDirect Marketing Association - DMA

Sal TripiSr. Director of Operations and CompliancePublishers Clearing House

Trusted Ads

• Initial Launch – Early 2010

• Beta Client for Truste– Consumer Feedback Positive

• Rollout Late 2010

• Consolidation into DAA Program

Digital Advertising Alliance

Why PCH Got Involved?

Major Brand with Significant Presence Online.

Publisher Advertiser

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

Fran MaierPresident and Executive ChairTruste

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

Website AdvertisingMobile Cloud

Comprehensive Privacy Solutions for:

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

Privacy Is Important To 94% Of Consumers

BASE: Total Qualified Respondents (n=1004)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

45% 36%

34% 44%

33% 44%

Individuals themselves

Social networks (e.g. Facebook, Twitter)

Website owners and publishers (e.g., CNN.com, NYTimes.com, etc.)

31% 40%31%

31% 36%

30% 40%

29% 40%

28% 31%

27% 38%

Search Engines (e.g. Yahoo, Bing, Google)

Online advertisers

Internet Service Providers (ISPs) (e.g. Comcast, ATT)

Manufacturers of browsers and other online software(e.g. Internet Explorer, Safari, Firefox, Chrome)

Online advertising networks

Government through legislation or regulation

Independent privacy certification organizations/self regulatory organizations

39%31%Wholly Responsible

A Lot Responsible

Responsibility of Different Groups in Protecting an Individuals Privacy

BASE: Total Qualified Respondents (n=1004)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

BASE: Total Qualified Respondents (n=1004)Q840 Which one would you most trust to protect your privacy?

Few Would Willingly Share Indentifying or Sensitive 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)

Online browsing behavior

Hobbies/Interests

Current location

27% 15%

34% 21%

46% 20%

45% 19%

32% 19%

49% 22%

52% 18%

Name

Profession

Contact information (email, phone, physical address)

Health related information

Financial information

Definitely Would Not Consent

Probably Would Not Consent26% 14%

66% 14%

Types of information consumers would not consent to sharing 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

BASE: Total Qualified Respondents (n=1004)Q731 For each of the following situations below, please indicate how likely you would be to consent to tracking of your online browsing behavior?

10% 32%

4% 18%

2% 13%Definitely Would Consent

Probably Would Consent

Most Consumers Are Aware Of OBA

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.

Over Half Do Not Like Behavioral Advertising

Mobile OBA Favorability1OBA Favorability

1. Source: “Mobile Privacy: A User’s Perspective”, TRUSTe & Harris Interactive. Spring 2011.BASE: Total Qualified Smartphone Users (n=1000)Q1045 How do you feel about being tracked by advertisers on your mobile phone?

BASE: Total Qualified Respondents (n=1004)Q715 How do you feel about Online Behavioral Advertising as described above?

1%

52% Believe That OBA Uses Personally Identifiable Information (PII)

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?

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 email address, etc.),

then how would you feel about Online Behavioral Advertising?

Consumers Are Favorable To Enhanced Choice – It Improves Engagement Levels

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.

Consumer Awareness of the Icon is 5%

Awareness Source Of Awareness

BASE: Total Qualified Respondents (n=1004)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 RespondentsQ935/Q950 And, how does having this information available make you feel about the advertiser?

Feelings About Advertiser Tracking

Most Consumers Are Aware Of Mobile Tracking -The Vast Majority Want The Ability To Opt-Out1

1. Source: “Mobile Privacy: A User’s Perspective”, TRUSTe & Harris Interactive. Spring 2011. 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

A TRUSTe ad tag inserts the Advertising Option Icon.

1. The icon launches TRUSTe-served privacy notice

2. Consumers can navigate from the privacy notice to TRUSTe’s Opt-Out Preference Manager

3.

TRUSTed Ads – Behind the Scenes

Two Integration

Points

ConsumerExperience

PlatformTools

TraffickingConsole

ComplianceReporting

OperationalReporting

OBA Database

Ad Tag HTML

Notice Presentation

Icon Serving

Preference Management

Allstate Insurance cares about your privacy. Advertising.com delivered this personalized ad for Allstate based on your interests.

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:

http://www.truste.com/ad-privacy/

Jonathan Fox

jonathan.fox@doubleverify.com

www.doubleverify.com

DoubleVerify: The Industry Leader

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67%Decrease in inappropriate content

84%Decrease in international traffic

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

The Digital Advertising Environment

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Visibility is Limited

31% Non-Compliance

The Digital Advertising Environment

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• 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

It’s a Jungle Out There….

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

In-ad OBA Compliance Solution

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• DoubleVerify’s solution meets all the requirements for compliance:

DoubleVerify’s Privacy Manager provides opt out and in choices

Advertising Options Icon is displayed on all ads

Privacy Notice Interstitial informs users about OBA and links to privacy preference manager

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Site OBA Compliance SolutionClear and Meaningful Notice

Easy to use mechanism for consumer choice

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

While Circle Grows…

So does the opportunity…

…And so do the tools and consumer confidence

Thank You!

Jonathan Fox

jonathan.fox@doubleverify.com

www.doubleverify.com

2011 Evidon, Inc. All Rights Reserved.

Strategy and technology topower privacy and compliance around the world

Purpose-Built for Compliance

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Self-Regulatory Regulatory Contractual

AdvertentievoorkeurenDeze 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”

Purpose-Built for Compliance

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AdvertentievoorkeurenDeze 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”

65+ billion notices (will update)

100+ brands40+ networks, DSPs, etc

Auto-translation into French, Dutch, German,

Italian, and Spanish (to start)

4+ million downloads300k member opt-in panel800+ companies, 8M domains

Two Roles in DAA Program

Assurance PlatformDelivers ad/site notice to consumers; helps all businesses comply with Program. All data owned and controlled by client, not Evidon or anyone else.

Monitoring PlatformDelivers 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.

Compliance Services Technology Provider

—Tracking the Trackers

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Clarity into Data Ecosystem

Protect your data

Supports enforcement

1. Ghostery Panel Data (300k members)

2. Privacy Database (800+ companies)

InLight Reports30+ trackers found, including:

[x+1]

24/7 Real Media

33Across

Adconion

AddThis

AdNexus

Advertising.com

…

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Brands Have Options, And Obligations

1. Use approved providerManage yourself

2. Buy only through DAA-compliant businesses70 networks, DSPs, publishers

3. Build your own solution

1. ADVERTISER needs to provide simple opt-outIf 3rd party OBA tags are present

In Ads On Advertiser’s site

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Chrysler: First US Automaker to Deploy Icon

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• 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

Walmart: Navigating Complexity Effectively

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OBA on unaffiliated

sites

Robust disclosure and controls

3rd party ads on

Walmart.com

…that use 1st party data…

…and 3rd party data

The Icon—It’s Not Just for OBA Anymore…

=

Think: Nutritional label for ads

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