As a consumer, you know how difficult it can be to manage your identity online. How many email addresses, usernames, passwords and profiles do you maintain across a variety of platforms and devices? We’re betting the answer is several. As a marketer, you know your target audience is in the same boat—so how can you make sense of it all and get the right message to the right person? Topics in this webinar include: What tools and strategies can marketers use to deal with the fragmentation of digital identity? How are consumers attempting to take control of their identity online? What changes in digital identity will come as the internet of things takes deeper hold?

1. © 2015 eMarketer Inc.
Made possible by
The Future of Digital Identity
August 6, 2015
Bryan Yeager
Analyst

2. © 2015 eMarketer Inc.
Digital Identity Today

3. © 2015 eMarketer Inc.
A messy, fragmented landscape

4. © 2015 eMarketer Inc.
Broad digital footprint, myriad identity contexts
>23
the average number of online
accounts held by US internet
users as of March 2015
3.5 shopping accounts
3.1 financial accounts
2.8 email accounts
2.7 entertainment accounts
Source: TeleSign

5. © 2015 eMarketer Inc.
Challenges with digital identity today
 Balancing value vs. risk when it comes to consumers
providing digital identity data
 Establishing trust when many forms of digital identity
are self-asserted by consumers
 Delivering relevance and context in the customer
experience with scattershot signals, identifiers

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Fraud and
identity theft
are key risks
of digitization
of identity

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Many people have experienced identity theft
2 in 5
US internet users
received a notice
about compromised
personal information
(TeleSign, March 2015)
47.4%
US internet users that
had to replace their
credit card 1-2 times
due to loss or data
being compromised
(Avangate, Sep. 2014)

8. © 2015 eMarketer Inc.
Balancing convenience and security
“I think consumers are increasingly sensitive to
identity-system fraud. If they feel that they’re
at risk, they’re going to either completely stop
the application online or take their business to
a competitor who’s doing it better. … They
want convenience and ease of use,
but they also want privacy and
security.”
—Kimberly Little Sutherland, senior manager of
identity management strategy at LexisNexis Risk
Solutions

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Data security is
a top factor
that influences
how willing
internet users
are to share
their personal
information
with companies

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65% believe it’s very important to be able to control
what info is being collected. (Pew Research Center, Feb. 2015)
US internet users claim in surveys that they
want more control over their personal info
50% feel they have not much or no control at all
over the collection of their personal information.
(Pew Research Center, Sep. 2014)
74% believe it’s very important to be in control of
who can get info about them. (Pew Research Center, Feb. 2015)

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Desire, resignation about control over personal
data collection for marketing purposes

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But…

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Clear incentives like
promos and
discounts are most
effective in coaxing
US internet users to
share data with
companies
Getting help with
decision-making,
troubleshooting are
also contributing
factors

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There will be 196 million more US smartphone
users in 2019 than there were in 2009
US Smartphone Users (Millions, % of Total Population)
eMarketer, July 2015

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Close to half the US population is already on
Facebook, rising to more than half in 2019
US Facebook Users (Millions, % of Total Population)
eMarketer, July 2015

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7 in 10 people in the US will be digital buyers by
2019
US Digital Buyers (Millions, % of Total Population)
eMarketer, June 2015

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US retail ecommerce sales will exceed half a
trillion dollars by 2019
US Retail Ecommerce Sales (Billions, % of Total Retail Sales)
eMarketer, June 2015

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And a growing proportion of those sales will be
coming from mobile devices
US Retail Ecommerce Sales by Device (Billions)
eMarketer, June 2015
1% 22%
27.5%

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And tens of millions of US adults regularly access
sensitive financial accounts on their phones
US Mobile Banking Users (Millions, % of Adult Population)
eMarketer, August 2015

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Consumers ultimately want convenience with
minimal friction
“The consumer unfortunately wants to do as little
work as possible to take some of that control into
their own hands. … How do we get the consumer
to take more actions using the tools that are
currently available to them, and what can we
possibly do to at least take some of that
decision-making out of their hands in a
way that they would appreciate?”
—Keir Breitenfeld, VP of product strategy for fraud and ID
at Experian Decision Analytics

21. © 2015 eMarketer Inc.
Digital identity is the core element of digital
commerce, including payments and experience
“One of the biggest
challenges that
business owners have
when they sell an item
[online] is to trust that
the person who wants
to buy it is who they
say they are.”
—Carey Kolaja, VP of
global consumer products
at PayPal
“You have the security team
that, historically, has had to
go to bat against the product
organizations in these web
businesses to add more
security. But by adding more
security, you’re adding more
clicks, more time,
more user friction.”
—Brett McDowell, executive
director of The FIDO Alliance

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Digital payments are among the riskiest to
accept, resulting in revenues lost to fraud
 One-third of US
companies selling online
lost 1% to 5% of
ecommerce revenues to
digital fraud
 One in 10 lost 36% to
50% of ecommerce
revenues to digital fraud
(TeleSign/RSA, Dec 2014)

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Two approaches to shoring up security and
establishing trust in digital commerce
Big Data AnalyticsTokenization

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The marketer’s view: different digital identities
across devices for the same person

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Consumer behaviors create identity gaps for
marketers
57% of US internet users have refused to provide
info that wasn’t relevant to the related transaction.
(Pew Research Center, Sep. 2014)
46% of worldwide internet users have used a
private browsing window in the past month.
(GlobalWebIndex, Q1 2015)
59% of US internet users have ever cleared cookies
and browser history. (Pew Research Center, Sep. 2014)

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Challenges
with merging
fragments of
profiles,
collecting data
across
channels a
symptom of
identity gaps

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The ‘cross-device graph’ concept attempts to
connect the dots of identity for marketers
“In most examples of a cross-device graph, you have the
ability to link cookies and devices together so you
can track where a consumer may be exposed to a mobile
ad campaign. … If you want to associate that consumer’s
offline sales transactions with their desktop and mobile
media exposures, that’s going to be tougher unless
you’re able to bridge that gap and get some kind of
linkage to the offline identity.”
—Michael Schoen, VP of marketing services at Neustar

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Social logins aim to reduce user friction, improve
digital identity management

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Most popular for
ecommerce + overall
Used in media
category the most
Used in travel
category the most
(Gigya, Q1 2015)
Top reasons US internet users
use social logins
1. Don’t want to spend time filling
in registration forms (56%)
2. Don’t want to create and
remember another username,
password (43%)
3. Like being able to use the same
identity on all devices, websites
(25%)
(Gigya, Apr 2015)
Facebook dominates social logins, as users seek
easier ways to access digital services

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Digital Identity Tomorrow

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The future is already here
Image Credit: Bob Croslin, Wired.com

32. © 2015 eMarketer Inc.
F
Image Credit: Disney via Fast Company
10 million
people had tried Disney
World’s MagicBands as of
April 2015
▼30%
turnstile transaction time
reduced since the launch of
MagicBands
5,000
more people can experience
the park at the same time

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Mobile: a convergence point for identity?

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Emerging technologies could enable persistent,
authenticated digital identity
Biometrics Wearables
Internet of Things

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A real-world future scenario

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Technology can bridge physical identity with
digital identity
“I think [digital] identity needs to be
close to the person. A wearable
could identify the person when
they interact with a
computer, a phone, a home,
a car and more.”
—Jonathan Schler, chief scientist at
Sizmek

37. © 2015 eMarketer Inc.
Biometrics: digitizing unique physical traits to
confirm you are who you say you are
Prominent biometric
ID methods:
 Fingerprint scanning
 Voice recognition
 Facial recognition
 Vein recognition
 Iris/retina scanning
 Heartbeat measures
 DNA

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Digital identity: the killer app for wearables?
64%
of US smartphone owners not
likely to purchase a wearable
device because they don’t
see the need to own one
(Chadwick Martin Bailey, April 2015)

39. © 2015 eMarketer Inc.
223 million connected smart home appliances to be
sold worldwide in 2020, up from 1 million in 2014.
(IHS, July 2015)
The burgeoning Internet of Things market
Worldwide sales of IoT-enabled products to reach
$1.7 trillion by 2020. (IDC, June 2015)
US sales of connected home technologies to reach
$967 million in 2015. (Consumer Electronics Association, July 2015)

40. © 2015 eMarketer Inc.
Points of integration for the Internet of Things
Connected/smart-home devices
that internet users in North
America are likely to purchase
1. Connected home camera (37%)
2. Connected thermostat (37%)
3. Connected lighting (34%)
4. Connected door lock (34%)
5. Smart-home hub (32%)
(Icontrol Networks, April 2015)

41. © 2015 eMarketer Inc.
CMOs expect
IoT and
wearables to
have big
impact on
marketers
by 2020

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IoT, wearables bring new dimension to mobile
challenges marketers deal with
“Anything that was built to solve just mobile
devices is going to be different than what you
have to use to solve for thermostats or for cars or
for wearables. As a brand or technology company,
you have to figure out, ‘How do I ingest this
information and find things that are
meaningful enough in this to connect
and understand who this consumer is?’”
—Martin Gilliard, general manager of Americas for
AdTruth, an Experian Marketing Services company

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Shifting mindsets as consumers go from having
five or 10 connected devices to owning hundreds
“I think when you look a bit further out,
cross-screen doesn’t become
cross-screen anymore—it’s
cross-everywhere. Every system
interacts with the user, especially if you
think about the internet of things.”
—Jonathan Schler, chief scientist at Sizmek

44. © 2015 eMarketer Inc.
Amazon Dash buttons: connecting buyers with
brands, products with the click of a button
 Wi-Fi-connected, branded “replenishment
device” that places an order when button is
pressed
 Setup via Amazon mobile app to connect to
network and specify the product and order
quantity to place for pressing button
 Push notification via mobile app when order
is placed via button
 Leverages identity established with Amazon,
including payments, address, past successful
orders and Prime status
Image Credit: Amazon

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Benefits of IoT
tech needs to
be clearly
communicated
to allay
perceived
consumer
privacy
concerns

46. © 2015 eMarketer Inc.
Key takeaways
Digital identity today is a fragmented, messy landscape
with challenges around balancing value vs. risk,
communicating trust and delivering relevance and
context. Cross-device measurement tactics and social
logins are a few ways these issues are being addressed.
Digital identity tomorrow could rely on a combination of
mobile devices like smartphones and wearables, as well
as biometrics and the internet of things to converge and
simplify today’s identity ecosystem. But companies have
to show consumers value to make the future a reality.

47. Copyright © 2015 Neustar, Inc. All Rights Reserved
AGE OF EMPOWERED CONSUMERS

48. MARKETERS MUST BRIDGE THE GAP
Copyright © 2015 Neustar, Inc. All Rights Reserved
Only 17% of
marketers tailor their
offers or messages
to the individual
Over 70% of
consumers will not
respond to
offers/messages if
irrelevant
Source: IBM

49. WHY IS IDENTITY SO HARD?
Copyright © 2015 Neustar, Inc. All Rights Reserved
Connecting the Dots
a Real Challenge
Complex
Buyer Journey
Lines between offline and online
are blurring
Dynamic and Scarce Data
Makes Identification Essential
Consumers’
households relocate16M
Consumers change
their phone numbers45M
People legally change
their name2.1M
Publicly available information for
U.S. households has declined
78% 30%
2000 2013

50. Copyright © 2015 Neustar, Inc. All Rights Reserved
NEUSTAR BRIDGES THE GAP WITH PERSISTENT IDENTITY
ACROSS CHANNELS
Analyze and Optimize
Campaigns
Build Rich
Customer Profiles
Persistent Identity
Analytics

51. NEEDS
Leverage & own your data
to market with precision
Bridge online & offline
worlds and personalize
your dialogue
Analyze & optimize
across channels and
devices
SOLUTIONS
Onboarding Market Analytics
& Segmentation
Targeting
Measurement
Customer Interaction
Management
Attribution
NEUSTAR OFFERS AN INTEGRATED MARKETING SUITE
UNDERPINNED BY EXTENSIBLE IDENTITY
Copyright © 2015 Neustar, Inc. All Rights Reserved
NEUSTAR IDENTITY
Scale
Depth
Accuracy

52. © 2015 eMarketer Inc.
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Bryan Yeager
The Future of Digital Identity
 Digital Identity: How Tomorrow's Connected Life Could Help
Solve Today's Fragmentation Issues
 Cross-Device Targeting: Success Hinges on Device
Identification Methods
 Mobile Audience Targeting: Have Industry Advances Raised
Advertisers' Confidence Levels?
 Mobile Wallets: Six Things Marketers Should Know
 Marketing Technology: Nine Important Trends for Brands and
Agencies in 2015