Behavioral Advertising Privacy, Consumer Attitudes and Best Practices Carolyn Hodge, VP of Communications, TRUSTe David W. Stark , VP & North America Privacy Officer, TNS CIPP The Privacy Symposium • August 20, 2008 Personalization Is Expected CONFIDENTIAL 2 So What’s the Fuss? • Privacy Groups Ask for Online 'Do Not Track' List – The interactive online advertising "a virtually invisible, stealth system."Jeffrey Chester, CDD's executive director. • Blockbuster sued over Facebook ad feature – April 16th Class Action lawsuit filed against Blockbuster in Dallas • A Push to Limit the Tracking of Web Surfers’ Clicks – State bills emerging ( New York and Connecticut) to require consent for Web companies to use personal information about consumers for advertising. • Concerns aired about online ad targeting – Federal Trade Commission reviewing comments on proposed Guidelines for Behavioral Advertising • Watch Your Back for ISP-Targeted Ads – UK ‘s Phorm CONFIDENTIAL 3 SURVEY RESULTS CONFIDENTIAL 4 Methodology – Conducted by TNS, the world’s largest custom market research company and a leading provider of social and political polling. – Nationally representative random sample drawn from TNS’s U.S. Internet access panel – Conducted February 2008 – 1,105 completed interviews 5 Key Findings • Consumers express discomfort with tracking and targeting even when anonymous • They desire the ability to limit and control these activities • Internet users who describe themselves as “very competent” or “expert” in their online technical expertise are more aware of tracking and targeting than their less experienced counterparts • Tech-savvy online consumers are more likely to take steps to control or limit targeting (e.g. deleting cookies), but their attitudes towards behavioral targeting are quite similar to self- described “beginners”. CONFIDENTIAL 6 Relevance of Online Ads CONFIDENTIAL 7 What percentage of ads that you see while browsing online are relevant to your wants and needs? s r e m u s n o c f o % Percentage of ads CONFIDENTIAL 8 I find online advertising intrusive and annoying when the products and services being advertised are not relevant to my wants and needs. Strongly Agree 48% 72% Agree Somewhat 25% 18% Neither Agree nor Disagree Disagree Somewhat 5% 9% Strongly Disagree 4% Don't Know 1% 0% 10% 20% 30% 40% 50% 60% CONFIDENTIAL 9 I like seeing ads for coupons or promotions from online stores and brands that I have purchased from before. Strongly Agree 14% 46% Agree Somewhat 32% Neither Agree nor Disagree 26% Disagree Somewhat 11% 26% Strongly Disagree 14% Don't Know 2% 0% 5% 10% 15% 20% 25% 30% 35% CONFIDENTIAL 10