Transcript

Mobile advertising privacy – an introduction

The explosive growth of mobile advertising (UK mobile ad spend grew 132% in the first half of 2012 alone) is built on the backbone of consumer trust. This trust has come under threat from growing inconsistency in privacy practices on mobile marketing.

1. Do consumers really care about privacy, or have we reached the ‘end of privacy’ era?

Many mobile users care about their privacy and often seek reassurance that the data they share will be safeguarded. Because of this, any instances of privacy mishandlings can have far-reaching consequences: TRUSTe research shows that 85% of mobile users won't download mobile apps that they do not trust*. Deteriorating consumer trust on mobile privacy will ultimately hinder innovation and growth of mobile advertising.

2. Isn’t mobile marketing already regulated by online advertising rules?

Mobile advertising is not a ‘wild west’ – most privacy rules and data protection standards are technology neutral. However, several technical differences between mobile and online measurement methods mean that regulatory frameworks specifically designed for online do not always apply well to mobile. For example, the revised ePrivacy Directive was designed for online, and although it still applies to mobile advertising, the implications for data gathering are different on mobile phones than online.

*TRUSTe Research - consumer attitudes to privacy

3. Who regulates mobile advertising privacy?

Today mobile privacy regulation is highly fragmented, creating uncertainty for businesses and therefore also for mobile users. The US is at the forefront of regulatory developments in this area, and some of the initiatives currently being discussed there may have far-reaching implications across the UK and Europe.

In the US, the Federal Trade Commission (FTC) has recently produced Guidelines for Mobile App Marketing which build over the principles established by the US Privacy Bill of Rights: transparency, control, respect for context, etc. In addition, last Summer the National Telecommunications and Information Administration (NTIA) launched a mobile privacy multi-stakeholder process that brings together a wide range of stakeholders to discuss common principles for the regulation of mobile privacy above and beyond the remit of advertising. Other initiatives proposed during the past 12 months include a recent Mobile Device Privacy Act by Congressman Ed Markey and a Mobile Privacy Fact Sheet produced by Attorney General Harris in the State of California.

In Europe, the regulatory framework for mobile advertising is not nearly as complex, giving some leeway for industry to mature and develop their own set of self-regulatory guidelines. However, a new framework for the regulation of Data Protection currently being discussed in the EU institutions may have strong implications for the mobile advertising industry without addressing it explicitly. For a review of the IAB position on the new EU proposals, visit www.iabuk.net/policy

4. Why should industry get involved?

Regulatory frameworks are developed at the national level, often with little or no input from surrounding countries. The result is a patchwork of different

rules and guidelines that is extremely difficult to comply with or even understand for companies that operate in more than one country. The IAB advocates a self-regulatory system that helps to promote consistency across borders. This setup would help create a consumer and business-friendly privacy framework that meets the needs of an increasingly international media. An IAB UK survey found that global consistency in addressing mobile privacy is key for 93% of mobile businesses. At the moment there is no such set of guidelines for the entire digital advertising industry, although several organisations have produced guidelines that provide useful advice for specific parts of the business – for example, last Summer the GSMA published its Mobile Privacy Principles which include high-level provisions for mobile advertising.

5. How can the IAB help promote a consistent approach to mobile advertising privacy?

The IAB UK is working with the Digital Advertising Alliance (DAA) in the US and with the new European EDAA to produce coordinated guidance for mobile advertising. Joined-up efforts to provide cross-industry guidelines for the advertising sector have already been undertaken in the past, with positive feedback from industry – in particular with the implementation of the Online Behavioural Advertising Framework (the AdChoices icon). Although the regulatory principles must be adapted to different legal jurisdictions, a joined-up approach to public policy ensures that the underlying principles of regulation are consistent across borders.

For more information, or if you would like to get involved in the IAB UK work on mobile privacy contact [email protected].

Businesses understand the importance of mobile privacy and investing resources proactively to help preserve user privacy...

Only 1 in 10 believe that failure to tackle mobile privacy issues would have a limited impact on future growth

Not very important 2%

Not important at all0%

Quite important47%

Very important, business critical

51%

96% of organisations surveyed have some understanding of mobile privacy

98% of respondents

consider mobile advertising privacy

important or business critical

Global consistency in addressing mobile privacy is key for 93% of respondents

Nearly 2/3 (63%) pay for dedicated in-house or external support on mobile advertising privacy

…but the complexity of rules and codes makes it difficult to comply with or even understand privacy standards

8 in 10...

1 in 3...

How well do businesses understand...

EU legislation(ePrivacy, Data

Protection)

Global self-regulatory

agreements for mobile

privacy

US codes on consumer

privacy

...businesses surveyed were familiar with EU rules on online privacy.

...were aware of new mobile privacy codes and US guidelines with global influence

Source: IAB Mobile Regulations Survey August 2012


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