Mobile Privacy Consumer Survey Results by Harris Interactive & TRUSTe

00

Mobile Privacy:

A User’s Perspective

TRUSTe & Harris Interactive

May 5, 2010

1

Speakers

Janet Jaiswal, Sr. Director, TRUSTe

Mobile Product Manager & Head of Product Marketing

Janet possesses more than 20 years of experience building and

marketing products in the mobile, e-commerce and Internet

industries that specifically increase the trust and safety of its users.

Her industry knowledge was formed from previous positions held at

eBay, Scient and PayPal where she was responsible for protecting

more than 110 million users worldwide. Follow Janet at JanetJaiswal

Ms. Jaiswal holds an MBA from the Tepper School of Management

at Carnegie Mellon University and a B.S. at the University of

California, Berkeley.

Charlene Richey, Sr. Research Director, Harris Interactive

Technology, Media and Communications

Charlene has been an analyst in the marketing research industry

for over 15 years, crafting her skills as the global research lead on

a number of projects for some of the biggest names in technology,

the largest of which spanned 54 countries and 31 languages. She

has also analyzed the overall effectiveness of more than $1 billion

worth of advertising.

Ms. Richey has a Bachelor of Science in Business Administration,

Summa Cum Laude from the University of Colorado.

2

Agenda

• Research Methodology and General Findings

• Mobile Privacy

• Implications for Businesses

• The Impact of TRUSTe on Mobile Usage

• Link to Resources

3

About TRUSTe

Founded in 1997

4,000+ clients

Offers online privacy solutions for all major

customer channels.

We offer privacy certifications, seals and solutions for:

WebsitesAdvertisingMobile Cloud

4

About Harris Interactive

Harris Interactive is one of the world’s

leading custom market research firms,

leveraging research, technology, and business

acumen to transform relevant insight into

actionable foresight. Known widely for the

Harris Poll and for pioneering innovative

research methodologies, Harris offers expertise

in a wide range of industries including

healthcare, technology, public affairs, energy,

telecommunications, financial services,

insurance, media, retail, restaurant, and

consumer package goods. Serving clients in

over 215 countries and territories through

our North American, European, and Asian

offices and a network of independent market

research firms, Harris specializes in delivering

research solutions that help us – and our

clients – stay ahead of what’s next.

55

Research Methodology

& General Findings

6

Research and Methodology

Objectives

• How smartphone users feel about their

privacy on a mobile device

• Specific elements smartphone users

are most concerned with

• Precautions smartphone users take to

protect their privacy

• Reaction to/impact of a “trust mark”

provided by TRUSTe

Weighted Representation

Male54%

Female46%

Gender

18-247%

25-3420%

35-4428%

45-5421%

55+24%

Age

Who

1,000 total interviews were conducted among

Harris Interactive’s online consumer panel

Respondents were qualified as:

• US residents

• Age 18 and over

• Currently own/use a smartphone

When

February 3-17, 2011

How

Via self-administered online survey

7

The smartphone market is evolving

The Smartphone Market

The most commonly used smartphone

OS brands are iPhone, BlackBerry, and

Google Android, though there are

indications this trend could be changing.

– Google Android smartphones are

capturing an even larger share among

new entrants

– BlackBerry (and iPhones to a lesser

extent) ceded some ground to Android

Nine in ten smartphone users have

downloaded at least one application for

their phone.

32%

26%

25%

7%

11%

Smartphone Type Use

All Others

8

Smartphone: Not used just for talking

BASE: Total Qualified Smartphone Users

Q715 Approximately what percentage of time do you spend on the following activities on your smartphone?

3834

16 22

15 13

6 8

8 6

4 74

4

Males[R]

(n=507)

Females[S]

(n=493)

Other

Shopping

Banking

Using a business app

Using a navigation system/GPS

Consuming Media (videos, music, news)

Social networking (Facebook, Twitter, LinkedIn...)

Surfing the Web

Playing games

Email

Text/SMS messaging

Phone calls

Average % Time Spent

R

R

R

S

9

Younger users text more; older users make more calls

BASE: Total Qualified Smartphone Users

Q715 Approximately what percentage of time do you spend on the following activities on your smartphone?

2428 32

43 44

31 2220

15 13

913

16

15 157 8

86 68 7

87 6

9 87 4 3

5 5 4 4 4

18-24[T]

(n=105)

25-34[U]

(n=228)

35-44[V]

(n=251)

45-54[W]

(n=201)

55+[X]

(n=215)

Other

Shopping

Banking

Using a business app

Using a navigation system/GPS

Consuming Media (videos, music, news)

Social networking (Facebook, Twitter, LinkedIn...)

Surfing the Web

Playing games

Email

Text/SMS messaging

Phone calls

Average % Time Spent

TUV TUV

UVWX WX WX

TT

T

WX WXWX

10BASE: Total Qualified Smartphone Users (n=1000)

Q910 What type(s) of information are you willing to share with first parties (app owner/developer) and/or third parties (everyone else besides the app owner/developer)?

Types of Information

Willing To ShareNot Willing

To Share

First Party Only

(app owner/developer)

Third Party

OnlyBoth

Full name 64% 25% 0 11%

Gender 57% 18% 2% 23%

Email address 59% 29% 0 12%

Location 77% 17% 1% 5%

Address 85% 13% 0 2%

Phone number 87% 11% 0 1%

Age 66% 18% 1% 15%

Date of birth 85% 11% 0 4%

Photos or videos 91% 7% 0 3%

Access to your list of contacts 96% 4% 0 1%

My web site surfing behavior on the

smartphone90% 6% 1% 3%

Anonymous demographic info 71% 15% 1% 13%

Users share less info with third parties

11

It’s all about apps

BASE: Total Qualified Smartphone Users (n=1000)

Q710 Approximately how many applications have you downloaded for your smartphone?

10%

28%

21%

17%

24%

Number of AppsDownloaded For Smartphone

None 1-5 6-10 11-20 21+

99% 98%

84% 80%

59%

18.6

12.8

4.65.8

4.60

5

10

15

20

25

Apple/iPhone Users

[B](n=330)

Google/AndroidUsers

[C](n=251)

BlackBerry Users

[D](n=260)

WindowsMobileUsers

[E](n=51)

All Others

[F](n=108)

0%

25%

50%

75%

100%

Any Average #

Differences By Smartphone Used

Differences By Age

94% 96%87% 89% 85%

14.9

11.7 11.59.7

10.8

0

5

10

15

20

25

18-24[T]

(n=105)

25-34[U]

(n=228)

35-44[V]

(n=251)

45-54[W]

(n=201)

55+[X]

(n=215)

0%

25%

50%

75%

100%

VWX

VWX

CDF

DF

DEF DEF

F F

VX

Nine in ten smartphone users have downloaded

at least one app for their phone; iPhone and

Android users download significantly more apps,

as do younger users.

12

Research notes

Weighting1

Data were weighted by Harris Interactive propriety propensity weighting scheme.

Significance Notations

Significance testing was conducting at the 95% confidence level. When comparisons among

three or more groups have been made, letters (A/B/C/D/E) are used to indicate a value that is

significantly greater than the group referenced. For comparisons between two groups arrows ()

indicate a number is significantly higher/lower than the other group.

Understanding Sample Sizes

• Every sample drawn from a population has a known sampling error associated with it. This

value is the amount the survey responses differ from true population values. In this case, this

includes the difference between the number of respondents surveyed and all respondents in

the total market.

• The maximum error range for a sample of 1,000 is 3.1 percentage points at a 95% confidence

level. This means that if 100 different samples of 1,000 respondents each were randomly

drawn from the population measured, 95 times out of 100 the total results obtained would vary

no more than 3.1 percentage points.

• Readers should note that the error range noted above applies to the total sample only.

However, as the sample size decreases, the error range increases. For example, the error

range for a sample size of 500 is 4.4 percentage points

1 See appendix for additional details on weight factors applied

1313

Mobile Privacy Findings

14

Privacy is a greater concern than security

Privacy38%

Security26%

Sharing14%

Identity19%

None3%

Primary Concern When Using Mobile Apps

Mobile App Privacy, Security Attitudes

Privacy and security represent significant concerns for a majority of

smartphone users.

15

Privacy, transparency and control


Q946 How important is it know what type of information is being collected and to have visibility to that information?

Q951 How important is your privacy when using a mobile device?

Q1031 How important is it to have easy access to controls regarding the sharing of your personal information inside a mobile app?

2%

1%

1%

27%

25%

20%

36%

32%

33%

36%

42%

46%

Having easy access to controls regarding the sharing of your

personal information inside a mobile app

Knowing what type of information is being collected and to have visibility

to that information

Your privacy when using a mobile device

Not At All Important Not Very Important Important Very Important Extremely Important

How important is the following…

16

About one-half claim to have read the privacy


Q1010 Have you ever read the privacy policy of a mobile app?

BASE: Those who have checked the privacy policy of a mobile app (n=523)

Q1015 Where have you checked the privacy policy of a mobile app?

52%

17%

32%

Have you ever read the privacy policy of a mobile app?

YesNo, I have never seen an app with a privacy policyNo, I have not read the privacy policy

Where have you checked

the privacy policy of a mobile app?

21%

28%

51%

Through the company's website on your computer

Through the browser on your mobile phone

From the application itself

17

High awareness regarding mobile app sharing


Q935 Are you aware that some mobile apps might share your info with other third parties?

Yes72%

No28%

Are you aware that some mobile apps might share your info with

other third parties?69%

78%69%

87%

63%

Apple/iPhone

[B](n=330)

Google/Android

[C](n=251)

BlackBerry[D]

(n=260)

Windows Mobile

[E](n=51)

All Others

[F](n=108)

Differences By Type of Smartphone Used

54%74%

None[N]

(n=86)

Any[O]

(n=914)

Differences By # of Apps DownloadedL

N

18

But low feeling of control


Q1036 How much to you agree or disagree with the following statement? - I feel in control of my personal information when using my mobile device?

5%

31%

42%

18%

3%

I Feel In Control of My Personal Information When Using My Mobile

Device

Strongly Agree

Agree

Neither Agree Nor Disagree

Disagree

Strongly Disagree

Net:

Agree

37%

33%39%

32%

49% 45%

Apple/iPhone

[B](n=330)

Google/Android

[C](n=251)

BlackBerry[D]

(n=260)

Windows Mobile

[E](n=51)

All Others

[F](n=108)


19

Location: Choice regarding location collection

and use?


Q925 Do you feel you have a choice regarding the collection and use of your location information by an application?

Yes36%

Not sure37%

No28%

Do you feel you have a choice regarding the collection and use of

your location information by an application?

Differences By

Type of Smartphone Used

All Others

[F]

(n=108)30%

38%

20%

41%

45%

[E]

(n=51)

[D]

(n=260)

[C]

(n=251)

[B]

(n=330)

DF

D

20

Location: Are you alerted?


Q920 Does your smartphone alert you when location information is being collected?

Yes31%

Not sure41%

No28%

Does your smartphone alert you when location information is

being collected?

Differences By


All Others

[F]

(n=108)16%

31%

14%

35%

47%

[E]

(n=51)

[D]

(n=260)

[C]

(n=251)

[B]

(n=330)

CDF

21

Location: Only 35% allow access


Q930 If an application asks for your location information, what do you typically do?

4%

31%

22%

22%

22%

If an application asks for your location information, what do you

typically do?

Always allow access

Sometimes allow access

Rarely allow access

Do not allow access

I have never had an application ask for my location

Differences By


All Others

[F]

(n=108)21%

23%

13%

38%

54%

[E]

(n=51)

[D]

(n=260)

[C]

(n=251)

[B]

(n=330)

CDF

DF

Net:

Allow

35%

22

Advertising tracking and targeting:

Don’t like; want control


Q1040 Are you aware that advertisers are tracking your mobile activities and delivering ads targeted to you based on your behavior?

Q1045 How do you feel about being tracked by advertisers on your mobile phone?

Q1050 Are you interested in being able to opt in or out of targeted mobile ads?

Aware68%

Not aware32%

Are you aware that advertisers are tracking your mobile activities and delivering ads targeted to you based on your behavior?

2%

74%

22%

1%

0%

25%

50%

75%

100%

I like advertiser tracking

I neither like nor dislike being tracked

I do not like to be tracked

Not important at all

Feelings About Advertiser Tracking

Yes85%

Not sure10%

No5%

Are you interested in being able to opt in or out of targeted mobile ads?

2323

Implications for Businesses

24

For Businesses: Loss of engagement


Q900 Are there certain kinds of information you do not share through a mobile app?

33%

40%

61%

65%

85%

Profile information (age, gender)

Location

Personal information (name, address)

Account information (username, password)

At least one type (Net)

0% 25% 50% 75% 100%

Information Would Not Share Through A Mobile App

78% 85% 91% 88% 90%

Apple/iPhone

[B](n=330)

Google/Android

[C](n=251)

BlackBerry[D]

(n=260)

Windows Mobile

[E](n=51)

All Others

[F](n=108)


B B

25

For Business: Loss of engagement; Not willing to share

8%

17%

18%

24%

28%

28%

42%

54%

62%

65%

75%

78%

Access to your list of contacts

Photos or videos

My web site surfing behavior on the smartphone

Phone number

Date of birth

Address

Location

Anonymous demographic information

Age

Full name

Email address

Gender

0% 25% 50% 75% 100%

Types of Information Willing To Share With Either A First Party App Owner/Developer Or A Third Party

BASE: Those Willing Or Might Be Willing To Share Info (n=592)

Q910 What type(s) of information are you willing to share with first parties (app owner/developer) and/or third parties (everyone else besides the

app owner/developer)?

Least likely

to be shared

26BASE: Total Qualified Smartphone Users (n=1000)

Q820 Which, if any, of the following privacy precautions do you take with regards to your online accounts?

7%

2%

38%

40%

42%

64%

0% 25% 50% 75% 100%

Privacy Precautions Taken

I create a strong password that contains numbers, letters and

characters

I read and understand disclosures regarding use of my

personal information before installing an app

I don't use apps or go to sites that ask/use my personal

information

I don't access my account(s) via mobile device

Other

I haven't taken any of these privacy precautions

G

L

N

For business: Loss of engagement

not using apps or accessing accounts

27

For businesses: Loss of engagement

not even for a free or lower cost app


Q905 Are you willing to share any personal information with a company in exchange for a free or lower cost mobile app?

45%

18%

33%

4%

37%

0% 20% 40% 60%

Willingness To Share Personal Info in Exchange for a Free or Lower Cost

Mobile App

YES (NET)

Yes, I would be willing to share

at least some information about

myself with any company

Yes, I would be willing to share

at least some information about

myself with certain companies

I might be willing

No, I would not be willing to

share any information about

myself with any company

28

For Businesses: Signing in with another account ID

makes users uncomfortable


Q941 How comfortable do you feel signing in to other applications or websites with your Facebook or Twitter account or other ID compared to registering

with the application directly/creating an account for just that app or company website?

38%

22%

16%

14%

13%

22%

29%

31%

32%

32%

19%

30%

24%

35%

31%

34%

36%

31%

8%

11%

18%

17%

24%

14%

0

0

3%

3%

8%

2%

55+ [X](n=215)

45-54 [W](n=201)

35-44 [V](n=251)

25-34 [U](n=228)

18-24 [T](n=105)

Total(n=1000)

Very Uncomfortable Uncomfortable Neither Comfortable Nor Uncomfortable Comfortable Very Comfortable

Comfort Level With Signing In To Other Applications or

Websites With Your Facebook, Twitter, or Other Account ID

TUVW

WX

X

WX

52 percent

29

Few feel that app stores and directories safeguard privacy


Q825 Do you feel that the mobile application store you use only makes available apps that safeguard the privacy of your information?

Q831 How much do you agree or disagree with the following statement? - I feel confident that most mobile apps protect the privacy of my information

Yes25%

No25%

Not sure50%

Does your mobile app store make available only apps that safeguard

your privacy?

6% 14% 42% 35% 3%

Total

Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly Agree

I feel confident that most mobile apps protect

the privacy of my information

28%22%

28%18% 16%

Apple/iPhone

[B](n=330)

Google/Android

[C](n=251)

BlackBerry[D]

(n=260)

Windows Mobile

[E](n=51)

All Others

[F](n=108)


(% Yes)

30

In fact, mobile apps collect lots of information

and most don’t have a privacy policy

Good reason for concern . . .

44% 43%

35%33%

30% 28%

19% 19%

13% 12% 11%

6%3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

e-Mail Name Location Terms of Service or

EULA

Access to contacts

Phone number

Connect to Facebook,Twitter, or

Amazon etc

Privacy Policy

Push notifications

Date of Birth

Messages Gender Age

Mobile App Info Collection and Privacy Policy

(average of Apple, Android & Blackberry apps)

N=342 (Apple:119, Android:177, Blackberry:46); free apps only

TRUSTe analysis conducted in January 2011

3131

Impact of TRUSTe seal

32

Smart phone users want accessible mobile

privacy policy


Q1021 How much more likely would you be to read a company's privacy policy (on your mobile phone) if it was easier to navigate and read?

Q1025 Which privacy policy would you prefer to read?

1%1% 30% 41% 28%Total

Much Less Likely to Read Less Likely To Read About the Same More Likely To Read Much More Likely To Read

Likelihood To Read Privacy Policy

That Is Easier to Navigate and Read

7%

Prefer90%

Prefer3%

Prefer

More Likely (Net) 68%

33

TRUSTe can help address privacy concerns


Q1051 Have you ever seen this trust mark or seal before today (on

mobile apps, mobile websites, or traditional PC websites)?

Aware70%

Not sure16%

Not aware14%

Aware of TRUSTe Mark

N

Yes, I would feel more

comfortable72%

No, this would not affect my comfort

level28%

Impact of TRUSTe Mark On Comfort Level


Q1055 If you saw this trust mark or seal on a mobile app or mobile web site or store

would you feel more comfortable about your privacy on that site?

34

TRUSTe Mobile Privacy Certification

• Extension of TRUSTe’s Privacy Certification

for Mobile Web and Mobile Applications

– Offers consumers the same privacy commitment

as web site certification

– Express consent required for the collection and

use of geo-location data

• Features unique and accessible Layered

Short Privacy Notice

– Calls out most significant privacy concerns

− Optimized for the mobile device

− Enhanced disclosures to address concerns

unique to mobile platform

– Enhanced consumer transparency and access90%

Prefer

35

Privacy tips for app owners

1. Get Serious About Privacy74 percent of consumers believe it’s “very important” or “extremely important” to

understand what personal information a mobile app collects

2. Always Ask Before Collecting Location DataOnly 36 percent of consumers felt that they had a choice regarding the collection and

use of their location data

3. Offer Opt-Outs For Mobile Ad Targeting

85 percent of consumers want to be able to opt-in or out of targeted mobile ads

4. Give Consumers Transparency & Choice98 percent of consumers believe it’s important for mobile apps to provide easy

access to controls for collecting and sharing personal information

5. Get Your App Privacy CertifiedOnly 1 in 3 consumers feel in control of their personal information when using their

mobile devices

3636

For the detailed survey

results or to learn more about

mobile privacy, go to

http://www.truste.com/harris-mobile-survey/

37

Harris Interactive Propensity Weighting

All surveys, no matter how perfectly designed and implemented, have some

biases associated with them. These biases may include demographic biases,

such as a demographic skew among those who answer the survey. In addition

to these demographic biases, there are unique biases associated with Internet-

based surveys. For example, as a result of the choices Internet respondents

make, these respondents may differ in fundamental ways from the population of

interest in attitude and behavior as well as demographics.

Harris strives to reduce significantly or eliminate these biases in order to project

accurately the data collected within the survey as representative of the total

target population (in this case, smartphone users). We use demographic

questions and proprietary score questions specific to a weighting technique

proprietary to Harris to achieve this goal. With each survey we are constantly

refining these techniques in order to serve our clients better.