Identifying trends in data collection within digital advertising, focussing specifically on online behavioural advertising and where this data sits on the regulatory spectrum.

1. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited
Online Advertising and Data –
The road to anonymisation,
privacy and self-regulation
Samantha Yorke Acting CEO & Director of Regulatory Affairs

2. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited
Let’s discuss…..
• Trends in online advertising and use of data
• Online behavioural or interest based data
• The Australian Privacy Act
• Gap between the Privacy Act and broader
public expectations around data protection
• International trends – ‘do not track’ and
ePrivacy Directive
• IAB regulatory agenda and key deliverables

3. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited
Advertising market share by media – AU
Source: PWC Online Advertising
Expenditure Report March 2013
March 2013 Quarter
$AU 910.8 Million
(+15% y-o-y)
March 2013 Quarter
$AU 36.6 Million
(+182% y-o-y)
TV
29%
Digital
25%
Newspapers
21%
Radio
8%
Directories
7%
Magazines &
specialist publ
5%
Outdoor
4%
Cinema
1%
Media Advertising Expenditure 2012
source: CEASA

4. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited
Data, data and more data…..
• Data has become the currency of the Internet
• Free content and services are made available
through advertising
• Advertisers want to reach consumers who are
interested in their products
• 74% of marketers will spend 2013 honing their
ability to better target and segment consumers
(Responsys 2012 Digital Marketing Big Australia Report)
• Resulting in a hyper-targeted personalised online
experience

5. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited
Video
http://www.youtube.com/watch?v=Y9Y4Efyxmk4&feature=p
layer_embedded

6. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited Sydney Consumer Trend Seminar |
“The phenomenon of
collecting, analyzing and
interpreting consumers’ personal
information, and using it to give
tailored recommendations that
help consumers make better
decisions.”
DATA
DIVINITY

7. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited
DATA
DIVINITY
Ticketmaster: Recommended
gigs based on Spotify listening
habits Sydney Consumer Trend Seminar |

8. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited Sydney Consumer Trend Seminar |
“Not for everyone, but shows just
how tailored the future will be...”
DATA
DIVINITY

9. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited
IAB UK: Over half prefer to see ads that
are relevant to their interests
31%
29%
29%
20%
11%
7%
39%
39%
31%
35%
35%
34%
30%
33%
40%
45%
55%
59%
Seen increasing amount of relevent advertising
Would like to know more about how online advertising is made more
relevant
I accept that for free services companies need access to my online
behaviour info
Advertising on sites I visit is usually completely random
Rather see advertising online that is relevant to my interests
I'd rather see a low number of relevant ads online than a high
number of less relevant ads
Disagree Neither Agree
Thinking about online advertising, to what extent do you agree or disagree with the following statements?
Base: All adult internet users in the last month (2001)
Most internet users would rather see a low number of relevant
ads online than a high number of less relevant ones

10. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited
PrivacyAct (Cth)
• New definition of personal information:
o information or an opinion about an identified individual, or an
individual who is reasonably identifiable:
o (a) whether the information or opinion is true or not; and
o (b) whether the information or opinion is recorded in a
material form or not.

11. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited
OBA/ analytics
• Data is typically anonymous or de-identified:
click data, search keywords, pages visited;
generally de-coupled from any registration
data
• Does not generally include contextual
advertising or re-targeting
→ sits outside of scope of Privacy Act

12. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited
Pseudonymous data
• Offered as a ‘third way’ in response to binary concepts of
personal and anonymous data
• Means data which has been altered or otherwise processed
so that it cannot be attributed to an individual without the
use of additional data
• Would not identify an individual, but could be unique to a
device

13. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited
Opportunity for industry self regulation
• Consumers understand the need for an ad-funded
internet, they also want greater transparency and
control over data and how it is used
• Tremendous opportunity for industry to proactively
step in and fill the gap;
oEducate consumers
oIncrease transparency around data collection
practices
oDemonstrate responsibility
oCreate accountability

14. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited
I. Personal Information and Third Party OBA
o Third Parties who want to combine OBA Data with Personal
Information must treat the OBA Data as if it is Personal
Information and in accordance with the Privacy Act
II. Providing Clear Information to Users
o Requirement to provide a clear notice to consumers about
which data is collected, how it is collected and what it is used
for.
III. User choice over OBA
o Consumers to be able to make a choice as to whether or not
they consent to the collection of data for OBA and given clear
user-friendly options to manage their Ad choices.
IV. Keeping Data Secure
o Companies must ensure data is stored securely and is only
kept as long as it fulfills a legitimate business need or as
required by law.
V. Careful Handling of Sensitive Segmentation
o OBA categories uniquely designed to target children under 13
will not be created
o Companies seeking to use OBA in relation to Sensitive Market
Segments must obtain explicit consent
VI. Educating Users
o Companies to provide easily accessible, user-friendly
information about OBA.
o A consumer education website providing consumer friendly
non technical information on OBA has been developed by
industry.
VII. Being Accountable
o All businesses are accountable to uphold the principles in the
guideline, develop easily accessible mechanisms for
consumers to lodge complaints directly to companies and
commit to an ongoing review of the Guideline and its
implementation.
7 Principles

15. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited

16. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited
International trends – ‘do not track’
• Browser based controls, IE turned on by default,
Mozilla blocking third party cookies
• Use vs collection
• Industry maintaining a need to collect for other non-
OBA related purposes
• Privacy advocates and governments arguing that an
affirmative expression of ‘do not track’ means do not
collect or use
• W3C working to develop a standard, watch this
space……

17. 13 June 2013Online Advertising and Data © 2013 IAB Australia Pty Limited
Questions Answers