Anonos Trusted Advertising White Paper

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1. PrivacyfortheInterconnectedWorldTrustedAdvertisingStopPrivacyBleedingandIncreaseEngagementNovember20142014AnonosInc.AllRightsReserved.Thecontentsofthisdocumentareprotectedbydomesticandinternationalcopyrightandpatentlaws.TheinventionsreflectedinthisdocumentaresubjecttoprotectionunderU.S.PatentApplicationsNo.13/764,773;61/675,815;61/832,087;61/899,096;61/938,631;61/941,242;61/944,565;61/945,821;61/948,575;61/969,194;61/974,442;61/988,373;61/992,441;61/994,076;61/994,715;61/994,721;62/001,127;14/298,723;62/015,431;62/019,987;62/037,703;62/043,238;62/045,321;62/051,270;62/055,669;62/059,882;62/080,077;14/529,960;14/530,304;14/530,339andInternationalPCTPatentApplicationsNo.PCTUS13/52159andPCT/US14/63520.Anonos,PrivacyfortheInterconnectedWorld,TrustedAdvertising,DynamicAnonymity,CirclesofTrust,CoT,DynamicDe-Identifier,andDDIDaretrademarksofAnonosInc. 2. 2TableofContentsanonos.comPage1.ExecutiveSummary32.TrustisCriticaltoMaximizingDigitalValueonaGlobalBasis43.TrustTheNewCurrency5ANegativeConsumerReactiontoIncreasedIntrusiveness5BConsumerDemandforMorePersonalizedEngagement64.LimitationsofTraditionalStaticAnonymityOvercomewithDynamicAnonymity75.ANewParadigmfortheTrustEconomy-TrustedAdvertising76.HowTrustedAdvertisingWorkswithAnonosDynamicAnonymity/CirclesofTrust(CoT)9ADynamicDe-Identifiers(DDIDs)9BObscuringObservationalData10CUser-Controlled3rdPartyEngagement13DAnonos-EnabledCirclesofTrust(CoT)14AppendixAAnonosCircleofTrust(CoT)iAppendixBBackgroundonAnonosC-Foundersvii 3. IntheUS,technologyfirmslikeApple,Google,FacebookandTwitterareoftenadmiredasinnovatorsandjobcreators.Elsewhereintheworld,thesesamefirmsaresometimesportrayedasrepresentingDigital31.ExecutiveSummaryFormerNewYorkCityMayorMichaelBloomberghighlightedtensionsbetweendigitalbusiness,privacyandpoliticswitharecentobservationthat:GoogleandFacebookandTwitter,theywanttocollectdataoneverythingyoudo,everybodyyousleepwith,everyplaceyoueatandwhatyouorderedatthevenue,andthentheyregoingtosellitfortheirownpersonalprofit...andwerecomplainingabouttheNSA?1anonos.comAmericanImperialism2disrespectingtherightsofothernationscitizens.EvenintheUS,concernsoverprivacytaketheirtoll.Accordingtostudies,in2013approximately60%ofFacebookuserstookabreakofseveralweeksormore,50%ofusersconsideredquittingthesiteand20%ofusersactuallystoppedusingthesitecitingprivacyconcernsasthebiggestreason;64%ofTwitterusersand65%ofGoogle+usersaccountedformorethanonebillionunusedaccountsonamonthlybasishowmanyoftheseaccountswereunusedduetoprivacyconcerns?3HowdoesAnonosuniquelystopprivacybleeding?Weenableplatformandapplicationproviderstoestablishgreatertrustwithoutdiminishingvalueofuserdata.Withoutrequiringawholelotfromusers,Anonosfostersgreatertrustthatenablescross-device,geo-specific,real-time,targetedadvertisingthat: Leveragesdramaticincreasedavailabilityofinterconnecteddevices; Respondstoconsumerdemandforselectivecontrolsenablingincreasedengagementwithtrustedmerchantswhileprotectingpersonalinformationfrommisuse; Maximizesanticipated1000Ximprovementsinvoice,dataandvideocapabilitiesof5Gover4Gnetworksmakingitpossibletointerconnectwithbillionsofdevicesandsensors; SupportsongoingviabilityofthesafeharboragreementbetweentheUSandEurope(which1http://nypost.com/2014/11/11/bloomberg-says-dodd-frank-regulations-are-stupid-laws/2http://www.usatoday.com/story/money/business/2014/10/02/apple-facebook-google-too-big-in-europe/16445385/;http://www.forbes.com/sites/davealtavilla/2014/07/11/the-snowden-effect-continues-as-china-claims-apples-iphone-a-threat-to-national-security/3http://www.huffingtonpost.com/2013/09/20/quitting-facebook_n_3962473.html;http://www.pewinternet.org/2013/02/05/coming-and-going-on-facebook/;http://www.businessinsider.com/twitter-total-registered-users-v-monthly-active-users-2013-11;https://econsultancy.com/blog/64319-google-just-35-of-users-are-active#i.1vzy36h5kmdsas 4. ImprovesrelationsbetweenUStechnologycompaniesandtherestoftheworldinthepost-4enablesUScompaniestoprocessEuropeansdata)byupholdingprivacyrules;anonos.comSnowdenera;and Overcomesprivacychallengestounlockdigitaleconomicgrowth.SeeSection6belowformoreinformationonhowthisisaccomplished.TheOctober2014AnonosWhitePaperonDynamicDataObscurity(theDynamicDataObscurityWhitePaper)4,explainshowAnonosDynamicAnonymityhelpsbalancecompetinginterestsofbusiness,privacyandpoliticsbydynamicallyobscuringandstoringinformationinAnonos-enabledCirclesofTrust(CoTs)foruseinaccordancewithpermissionsestablishedbyindividualstowhomtheinformationrelates(DataSubjects).ThisdocumentbuildsupontheDynamicDataObscurityWhitePapertoexplainhowTrustedAdvertisingleveragesAnonosDynamicAnonymityandCoTstoimproveuponcurrentdigitaladvertisingpracticesbyprotectingprivacy,increasingconsumerengagementandenhancingthevalueandaccuracyofpersonaldata.2.TrustisCriticaltoMaximizingDigitalValueonaGlobalBasisStatementsbyAndrusAnsip,newlyappointedEuropeanCommissionVice-PresidentfortheDigitalSingleMarket,emphasizetheimportanceoftrustinovercomingconflictsbetweenmaximizingdigitalvalueandpreservingprivacy.InhisfirstblogpostsincetakingtheseniorEuropeanCommissiondigitalpositiononNovember1st2014,AnsiphighlightedIt'saboutmakingEuropedigitaltothewidestanddeepestextentsothatwebenefitfromtheadvantagesandefficienciesandthatmeanspeopleaswellasbusiness.5Inhisconfirmationhearings,heemphasizedhismissiontorestoreEuropesplaceasagloballeaderinthedigitaleconomy,creatinghundredsofthousandsofnewjobs.wouldrequireprotectingeveryonesprivacy.DataprotectionwillbeanimportantcornerstoneoftheDigitalInternalMarket.Thecitizensmusthavetrustinthisproject.6Similarly,in2013,FacebooksChiefPrivacyOfficer,ErinEgan,encapsulatedtheneedtobalancedigitalvaluewithconsumerprivacyinachievingeconomicobjectiveswhenshecalledonindustryrepresentativestositdownwithprivacyadvocatestobothhonortheexpectationsconsumershavewhentheyuseonlineservicesandtopromotetheinnovationthathasfueledthegrowthoftheInternetintoanengineofjobcreationandaproviderofinvaluableservices.7AccordingtoAnsipandotherEuropeanofficials,however,theUSmaynotbedoingenoughtoprotecttheprivacyandtrustof4http://www.anonos.com/anonos-dynamic-data-obscurity/5http://ec.europa.eu/commission/2014-2019/ansip/blog/first-impressions_en6http://www.euractiv.com/sections/innovation-enterprise/ansip-threatens-suspend-safe-harbour-data-agreement-us-3089627http://www.bloomberg.com/news/2012-02-23/obama-looks-to-web-industry-for-online-consumer-privacy-standard.html 5. reportedthat:91%ofadultsinthesurveyagreeorstronglyagreethatconsumershavelostcontroloverhowpersonalinformationiscollectedandusedbycompanies;80%ofthosewhousesocialnetworkingsitessaytheyareconcernedaboutthirdpartieslikeadvertisersorbusinessesaccessingthedatatheyshareonthesesites;and64%believethegovernmentshoulddomoretoregulateadvertisers,comparedwith34%whothinkthegovernmentshouldnotgetmoreinvolved.95Europeancitizens-amajorityoftheEuropeanParliamentvotedinMay2014tosuspendthesafeharboragreement.8AndintheUnitedStates,aNovember2014PewResearchInternetProject3.TrustTheNewCurrencyTheresanewcurrencyelbowingitswayintocommerce:Trust.AuthorBrianSolisiscreditedwithpredictingin2009,Thenextstageintheevolutionofnewmediaisthetrusteconomy.10Arecentarticleinanonos.comTheGuardiannotedThereisadirectlinkbetweenhowmuchpeopletrustsitesandthedegreeofpersonalinformationtheydisclosetothem.11AForbesarticleentitledYourBusiness,StrippedBare:HowToWinInTheNewTrustEconomyreportsthatSmartbusinessesareincreasinglyrealizingthatwinningtodayinvolveslettinggoofoldwaysofsellingthemselves.12Anonos-enabledCirclesofTrust(CoTs)enablepartnerstoletgoofoldwaysofsellingthemselvesandconcentrateonprovidingtrustedusesofdataasopposedtoprivateusesofdatathatovercomenegativeconsumerreactiontoincreasedintrusivenessandsatisfyconsumerdemandformorepersonalizedengagement.3.ANegativeConsumerReactiontoIncreasedIntrusivenessTheincreasingvolume,velocityandvariety(the3Vs)ofbigdataelevatethelikelihoodthatconsumerswillbeidentifiedbytheironlineandofflinebehaviors.Thiscanandshouldgenerateanxietyandseriousprivacyconcernsamongconsumers,potentiallyleadingtostate,federal,andinternationalprivacylawsbeinginvokedtoprotecttheirprivacy.TechnologydevelopmentsliketheInternetofThings(IoT)inwhichvirtuallyeveryproduct,locale,personalitem,mobiledeviceandobjectwouldhaveauniqueIPaddress,makingitremotely/8SeeFootnote6,supra.9http://www.pewinternet.org/2014/11/12/public-privacy-perceptions/10http://www.socialmediatoday.com/content/evolution-new-trust-economy11http://www.theguardian.com/media-network/media-network-blog/2014/nov/10/online-privacy-digital-trust-psychology12http://www.forbes.com/sites/robasghar/2014/09/17/your-business-stripped-bare-how-to-win-in-the-new-trust-economy/ 6. TheIoTwilldramaticallyincreasetheabilitytotrack,aggregate,profileandanalyzedataelementsandbehaviorsthat,whiletheymaynotdirectlyidentifyconsumers,couldeasilycombinewithotherdatagatheringandprofilingmethodstocreateasituationthatconsumersfindinvasiveandcreepy.WhenyoustopinatChipotleafterthegym,doyouwanttogetacoupononyoursmartphoneforthesaladinsteadoftheburritobecausethenetworkservingtheadknowsyouskippedhalfofyourworkout?Privatebrowsingandsimilarattemptsatanonymityprovidegreaterprivacybutatthecostofthelossofpersonalizedofferingsandthepotentiallossofaccountability.Withtheseapproaches,thevalueofinformationislargelydestroyedandtheconsumerislefttostartafreshwitheachengagement.6wirelesslyaccessibleandcapableofprovidingobservationaldataaboutuserswillexacerbatethesituationexponentially.anonos.comThereisnomiddleground.Eitheryoureinvisibleoryourenaked.3.BConsumerDemandforMorePersonalizedEngagementAsnotedintheFastCompanyarticlebelow,despiteprivacyconcernsconsumersareeagertoprovideevenmoreaccurateandcompellingdatatomerchantswhomtheytrust.Imagineafuturewheremerchantswhoearnhighlevelsoftrustreceivevaluableandaccuratepersonalinformationfromconsumerswhilemerchantswhofailthetrusttestgetnothing.Youngerconsumersarethemosteffectiveatusingonlineprivacysettingstocontrolwhoseestheirdata.IanMiller,adoctoralcandidatestudyingthepsychologyofonlinesharingattheUniversityofToronto,saysinFastCompany:Teensunderstandingofprivacyisveryrealandconcrete...Theyknowexactlywhytheyneedtorestricttheirprivacysettingsbecausetheydontwantthisonefriendtoseethisonething.Withthisknowledgeandskillcomessomedegreeofpowerteenagersarequicktolearnhowtouseprivacysettingstotheirbestadvantage...forteensandevenmillennials,sharingdatawithcompaniesisnowgoingdeeperthanasimpleexchangeofvalue.Youngpeoplearenotjustacquiescingtogivetheirdatatocompanies,theyareactivelysharingtheircontentwithbrandstheylike.13Consistentwiththeaboveobservations,aMcKinsey&CompanyarticleentitledViewsFromTheFrontLinesOfTheData-AnalyticsRevolutionreportedthatdata-analyticsleadersare:unanimousintheirviewthatplacingmorecontrolofinformationinthehandsofconsumers,alongwithbuildingtheirtrust,istherightpathforward.1413http://www.fastcompany.com/3037962/then-and-now/the-truth-about-teenagers-the-internet-and-privacy14http://www.mckinsey.com/insights/business_technology/views_from_the_front_lines_of_the_data_analytics_revolution 7. Consumersneedtobeprovidedwithtrustedcontrolsthatpreventcompaniesfrommisusing7IfcompanieswanttomaximizerevenuesintheTrustEconomy:anonos.compersonalinformation;and Companiesinthebusinessofdataanalyticsandusagemustfacilitateengagementbetweenconsumersandtrustedmerchants.4.LimitationsofTraditionalStaticAnonymityOvercomewithDynamicAnonymityStaticanonymityarosetoenableinformationtobeintroducedintocommercewithoutviolatingprivacyrightsofindividuals.Unfortunately,theseapproachestoanonymityhaveprovennomatchforre-identificationcapabilitiesresultingfromincreasedvolumes,velocityandvariety(the3Vs)ofbigdata.AdditionalinformationontheshortcomingsofstaticanonymityisavailableintheAnonosOctober31,2014lettertointernationalregulatorsonenablingbigdatavalueandprivacy(theInternationalRegulatorLetter).15AnonosDynamicAnonymityovercomeslimitationsoftraditionalstaticanonymityopeningupthedoortodisprovetheaxiomthatYoucanhaveprivacyoryoucanhavevaluebutyoucannothaveboth.Thisenablesinformationtobeusedindifferentwaysbymultiplepartiesinacontrolledenvironmentthatfacilitatesunlockingandmaximizingthevalueofdatatherebymaximizingthevalueofcommerce,research,analysisandotherprocesseswhilesimultaneouslysignificantlyimprovingthequalityandperformanceofdataprivacyprocesses.5.ANewParadigmfortheTrustEconomy-TrustedAdvertisingOneofthemostimportanttypesofintermediarycompaniesarethosethatfacilitateonlineandmobileadvertising.Digitaladvertisingworksonewaytoday:personalbehavioraldataiscollectedfromconsumers,profilesarebuiltandadsareservedbasedonwhatadservingcompaniesbelieveconsumersareinterestedin.Itsanecosysteminwhichthevalueofpersonalinformationishigh,butwherecompaniesthatcollectadditionalpersonaldatariskbeingfiledinthecreepycategory.However,Anonosbuildsabridgebetweenadvertisingtheprimarysourceofrevenueformanycompaniesandtrust.AnonosTrustedAdvertisingimprovesupondigitaladvertisingtechniquesbyprotectingprivacy,increasingconsumerengagementandenhancingvalueandaccuracyofpersonaldata.AnonosDynamicAnonymityisbasedontheprinciplethatstaticanonymityisanillusionandthatuseofstaticidentifiersisfundamentallyflawed.TheAnonossystemdynamicallysegmentsandappliesre-assignablede-identifierstodatastreamelementstominimizetheriskofinformationbeing15http://www.anonos.com/anonos-enabling-bigdata/ 8. 8anonos.comunintentionallyshared,whileallowingonlytrustedparties(TrustedParties)tore-stitchthedatastreamelementsintousefulinformation.Thisenablesuseofdataonlyinaccordancewithpermissionsestablishedby,oronbehalfof,consumers.WithAnonosDynamicAnonymity/CoTs,advertisersarenotlimitedbyprofilesandbehaviormodelscurrentlyusedtoguessattheinterestsofconsumers.WithenhancedprivacyfromtheCoT,consumerscantellcompanieswhattheyaremostinterestedinwithouttheriskofbeingstalkedonline.Advertisingbecomesmorerelevant,moretargetedand,mostimportantly,moretrusted,enablingtheconsumerandtheadvertisertodevelopadeeperrelationship.WithTrustedAdvertising: Consumersdonothavetochangetheirbehaviorinawaythatmaybedisadvantageoustomerchants,advertisers,marketersortothemselves; Thedesire,particularlyamongyoungerconsumers,toprovidemoreinformationtotrustedmerchantscanbefacilitated;and Undesiredactionsbystate,federalandinternationallegislatorsandregulatorscanbeavoided.TomasChamorro-Premuzic,aprofessorofbusinesspsychologyatUniversityCollegeLondon,notedinTheGuardian:Rightnow,ourdigitalselfisnotjustmanagedandsoldbyotherssuchasourcreditcardcompany,ourmobilecompany,ourbank,ourgovernmentitisalsohighlyfragmentedbrokersofouronlinefootprinthaveaschizophrenicviewofourdigitalselfThereissurelyanotherlayertobediscovered,andinthisdeeperlayersitstheanswertowhoitisthatisusingadevice,whoissearching,whoisbuying.Inshort,ifcompaniescantrulyhelpconsumersunderstandthemselvesbetterandmakebetterdecisions,theywillhaveaclearincentivetobeobserved.16AnonosTrustedAdvertisingenablesaholisticapproachtodigitaladvertisingthatprotectsprivacy,increasesconsumerengagementandenhancesthevalueandaccuracyofpersonaldataforthebenefitofbothconsumersandmerchants.16h...