Mobile Privacy: A User's Perspective (Consumer Survey Results Presented by TRUSTe & Harris Interactive)
Presenters: Janet Jaiswal & Charlene Richey
Date of survey: Feb 2011
A successful mobile strategy relies on fulfilling user expectations. TRUSTe uncovers consumer mobile concerns and expectations through a National survey with Harris Interactive and finds surprising results.
Experts predict that within the next 3 years mobile devices will overtake traditional computers as the preferred platform for web browsing.
Consumers are becoming increasingly savvy on their mobile devices and now expect that the sites and apps they interact with are taking the same precautions to ensure their safety as they have expected on traditional PCs (think mobile vs. desktop banking).
To gauge these expectations, TRUSTe commissioned Harris Interactive to conduct a nationwide survey of one thousand consumers about their usage of mobile apps and sites, how they feel about their safety and what steps they take to protect themselves.
Harris Interactive will explain:
• The most common activities users perform on their mobile device including differences by age, gender and smart phone type
• Key user concerns with mobile devices, in general and with advertising and geo-location
• How smart phone users are changing their behavior as a result of the concerns and the precautions they are taking
• Tips for mobile site/app owners to address user concerns
Speakers 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. 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. 1
Agenda• Research Methodology and General Findings• Mobile Privacy• Implications for Businesses• The Impact of TRUSTe on Mobile Usage• Link to Resources 2
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: Mobile Advertising Cloud Websites 3
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. 4
Research and Methodology Objectives Who 1,000 total interviews were conducted among Harris Interactive’s online consumer panel • How smartphone users feel about their privacy on a mobile device Respondents were qualified as: • Specific elements smartphone users • US residents are most concerned with • Age 18 and over • Precautions smartphone users take to • Currently own/use a smartphone protect their privacy When • Reaction to/impact of a “trust mark” February 3-17, 2011 provided by TRUSTe How Via self-administered online survey Gender Age 18-24 55+ 7% 24% 25-34 Female 20% 46% Male 54% 45-54 21% 35-44 28% Weighted Representation 6
The smartphone market is evolvingThe Smartphone Market Smartphone Type Use The most commonly used smartphone OS brands are iPhone, BlackBerry, and 11% Google Android, though there are All Others indications this trend could be changing. 7% 32% – Google Android smartphones are capturing an even larger share among new entrants 25% – BlackBerry (and iPhones to a lesser extent) ceded some ground to Android Nine in ten smartphone users have 26% downloaded at least one application for their phone. 7
Smartphone: Not used just for talking Average % Time Spent Other 4 4 4 7 R Shopping 8S 6 Banking 6 8 R Using a business app 15 13 Using a navigation system/GPS Consuming Media (videos, music, news) 16 22 R Social networking (Facebook, Twitter, LinkedIn...) Surfing the Web Playing games 38 Email 34 Text/SMS messaging Phone calls Males Females [R] [S] (n=507) (n=493)BASE: Total Qualified Smartphone UsersQ715 Approximately what percentage of time do you spend on the following activities on your smartphone? 8
Younger users text more; older users make more calls Average % Time Spent Other 5 5 4 4 4 7 WX 4 3 Shopping 9WX 8 WX 7 6 8 Banking 8 7 6 6 8 Using a business app 7 8 15 T 15 Using a navigation system/GPS 9 16 T 13 T Consuming Media (videos, music, news) 15 13 UVWX WX WX Social networking (Facebook, Twitter, LinkedIn...) 31 20 22 Surfing the Web Playing games TUV TUV 43 44 Email 28 32 24 Text/SMS messaging Phone calls 18-24 25-34 35-44 45-54 55+ [T] [U] [V] [W] [X] (n=105) (n=228) (n=251) (n=201) (n=215)BASE: Total Qualified Smartphone UsersQ715 Approximately what percentage of time do you spend on the following activities on your smartphone? 9
Users share less info with third parties Types of Information Not Willing First Party Only Third Party Both Willing To Share To Share (app owner/developer) Only 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 90% 6% 1% 3% smartphone Anonymous demographic info 71% 15% 1% 13%BASE: 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)? 10
It’s all about apps Differences By Smartphone Used Nine in ten smartphone users have downloaded at least one app for their phone; iPhone and 100% 25 Android users download significantly more apps, 99% 98% as do younger users. 75% DEF DEF 20 84% 80% 18.6 F F 15 50% CDF 59% 12.8 10 25% DF Number of Apps 5 5.8 4.6 4.6 Downloaded For Smartphone 0% 0 Apple/ Google/ BlackBerry Windows All iPhone Android Users Mobile Others 10% Users Users [D] Users [F] [B] [C] (n=260) [E] (n=108) 24% (n=330) (n=251) (n=51) Any Average # 28% Differences By Age 100% 25 17% 96% 94% 89% 20 75% VX 87% 85% VWX 15 21% 50% 14.9 VWX 10 11.7 11.5 10.8 25% 9.7 5 0% 0 None 1-5 6-10 11-20 21+ 18-24 25-34 35-44 45-54 55+ [T] [U] [V] [W] [X] (n=105) (n=228) (n=251) (n=201) (n=215)BASE: Total Qualified Smartphone Users (n=1000)Q710 Approximately how many applications have you downloaded for your smartphone? 11
Research notesWeighting1Data were weighted by Harris Interactive propriety propensity weighting scheme.Significance NotationsSignificance testing was conducting at the 95% confidence level. When comparisons amongthree or more groups have been made, letters (A/B/C/D/E) are used to indicate a value that issignificantly 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 points1 See appendix for additional details on weight factors applied 12
Privacy is a greater concern than securityMobile App Privacy, Security Attitudes Privacy and security represent significant concerns for a majority of smartphone users. Primary Concern When Using Mobile Apps None 3% Identity 19% Privacy 38% Sharing 14% Security 26% 14
Privacy, transparency and control How important is the following… Your privacy when using a mobile 1% 20% 33% 46% device Knowing what type of information is being collected and to have visibility 1% 25% 32% 42% to that information Having easy access to controls regarding the sharing of your 2% 27% 36% 36% personal information inside a mobile app Not At All Important Not Very Important Important Very Important Extremely ImportantBASE: Total Qualified Smartphone Users (n=1000)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? 15
High awareness regarding mobile app sharing Differences By Type of Smartphone Used Are you aware that some mobile apps might share your info with other third parties? 78% 87% 69% 69% 63% Apple/ Google/ BlackBerry Windows All iPhone Android [D] Mobile Others [B] [C] (n=260) [E] [F] No (n=330) (n=251) (n=51) (n=108) 28% L Differences By # of Apps Downloaded Yes 72% 74% 54% N None Any [N] [O] (n=86) (n=914)BASE: Total Qualified Smartphone Users (n=1000)Q935 Are you aware that some mobile apps might share your info with other third parties? 17
But low feeling of control I Feel In Control of My Personal Information When Using My Mobile Device 3% 5% Net: Differences By Type of Smartphone Used 18% Agree 37% 49% 45% 39% 33% 32% 31% Apple/ Google/ BlackBerry Windows All iPhone Android [D] Mobile Others [B] [C] (n=260) [E] [F] (n=330) (n=251) (n=51) (n=108) 42% Strongly Agree Agree Neither Agree Nor Disagree Disagree Strongly DisagreeBASE: Total Qualified Smartphone Users (n=1000)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? 18
Location: Choice regarding location collection and use? Do you feel you have a choice Differences By regarding the collection and use of Type of Smartphone Used your location information by an application? [B] DF 45% (n=330) No D 41% [C] 28% Yes 36% (n=251) [D] 20% (n=260) Not sure 37% [E] 38% (n=51) All Others [F] 30% (n=108)BASE: Total Qualified Smartphone Users (n=1000)Q925 Do you feel you have a choice regarding the collection and use of your location information by an application? 19
Location: Are you alerted? Does your smartphone alert you Differences By when location information is Type of Smartphone Used being collected? [B] CDF 47% (n=330) No Yes 35% [C] 28% 31% (n=251) [D] 14% (n=260) Not sure 41% [E] 31% (n=51) All Others [F] 16% (n=108)BASE: Total Qualified Smartphone Users (n=1000)Q920 Does your smartphone alert you when location information is being collected? 20
Location: Only 35% allow access If an application asks for your Differences By location information, what do you Type of Smartphone Used typically do? [B] CDF 54% 4% Net: (n=330) 22% Allow 35% 31% [C] DF 38% (n=251) 22% [D] 13% (n=260) 22% [E] 23% Always allow access (n=51) Sometimes allow access Rarely allow access All Others Do not allow access [F] 21% I have never had an application ask for my location (n=108)BASE: Total Qualified Smartphone Users (n=1000)Q930 If an application asks for your location information, what do you typically do? 21
Advertising tracking and targeting: Don’t like; want control Are you aware that advertisers are tracking your mobile activities and delivering ads targeted to you based on your behavior? Feelings About Advertiser Tracking 100% 1% I like advertiser Not aware tracking 22% 32% 75% Aware I neither like nor 68% dislike being tracked 50% I do not like to be Are you interested in being able to opt in tracked or out of targeted mobile ads? 74% No Not important at Not sure 5% 25% all 10% 0% 2% Yes 85%BASE: Total Qualified Smartphone Users (n=1000)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? 22
For Businesses: Loss of engagement Information Would Not Share Through A Mobile App At least one type (Net) 85% Differences By Type of Smartphone Used Account information 85% 91% 88% 90% 65% 78% B B (username, password) Personal information Apple/ Google/ BlackBerry Windows All 61% iPhone Android [D] Mobile Others (name, address) [B] [C] (n=260) [E] [F] (n=330) (n=251) (n=51) (n=108) Location 40% Profile information 33% (age, gender) 0% 25% 50% 75% 100%BASE: Total Qualified Smartphone Users (n=1000)Q900 Are there certain kinds of information you do not share through a mobile app? 24
For Business: Loss of engagement; Not willing to share Types of Information Willing To Share With Either A First Party App Owner/Developer Or A Third Party Gender 78% Email address 75% Full name 65% Age 62% Anonymous demographic information 54% Location 42% Address 28% Date of birth 28% Phone number 24% Least likely My web site surfing behavior on the smartphone 18% to be shared Photos or videos 17% Access to your list of contacts 8% 0% 25% 50% 75% 100%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)? 25
For business: Loss of engagement not using apps or accessing accounts Privacy Precautions Taken G I create a strong password that contains numbers, letters and 64% characters I read and understand disclosures regarding use of my 42% personal information before installing an app I dont use apps or go to sites that ask/use my personal 40% information L I dont access my account(s) via 38% mobile device Other 2% I havent taken any of these 7% privacy precautions N 0% 25% 50% 75% 100%BASE: Total Qualified Smartphone Users (n=1000) 26Q820 Which, if any, of the following privacy precautions do you take with regards to your online accounts?
For businesses: Loss of engagement not even for a free or lower cost app Willingness To Share Personal Info in Exchange for a Free or Lower Cost Mobile App 37% YES (NET) Yes, I would be willing to share 4% at least some information about myself with any company Yes, I would be willing to share 33% at least some information about myself with certain companies I might be willing 18% No, I would not be willing to share any information about 45% myself with any company 0% 20% 40% 60%BASE: Total Qualified Smartphone Users (n=1000)Q905 Are you willing to share any personal information with a company in exchange for a free or lower cost mobile app? 27
For Businesses: Signing in with another account ID makes users uncomfortable Comfort Level With Signing In To Other Applications or Websites With Your Facebook, Twitter, or Other Account ID 52 percent Total 22% 30% 31% 14% 2% (n=1000) 18-24 [T] WX 13% 19% 36% 24% WX 8% (n=105) 25-34 [U] 14% 32% 34% 17% 3% (n=228) 35-44 [V] 16% 32% 31% 18% X 3% (n=251) 45-54 [W] 22% 31% 35% 11% 0 (n=201) 55+ [X] 38% TUVW 29% 24% 8% 0 (n=215) Very Uncomfortable Uncomfortable Neither Comfortable Nor Uncomfortable Comfortable Very ComfortableBASE: Total Qualified Smartphone Users (n=1000)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 28 with the application directly/creating an account for just that app or company website?
Few feel that app stores and directories safeguard privacy Does your mobile app store make available only apps that safeguard Differences By Type of Smartphone Used your privacy? (% Yes) 28% 28% 22% 18% 16% Yes 25% Apple/ Google/ BlackBerry Windows All iPhone Android [D] Mobile Others [B] [C] (n=260) [E] [F] Not sure (n=330) (n=251) (n=51) (n=108) 50% No 25% I feel confident that most mobile apps protect the privacy of my information T o t 6% 14% 42% 35% 3% a l Strongly Disagree Disagree Neither Agree Nor Disagree Agree Strongly AgreeBASE: Total Qualified Smartphone Users (n=1000)Q825 Do you feel that the mobile application store you use only makes available apps that safeguard the privacy of your information? 29Q831 How much do you agree or disagree with the following statement? - I feel confident that most mobile apps protect the privacy of my information
TRUSTe can help address privacy concerns Impact of TRUSTe Mark Aware of TRUSTe Mark On Comfort Level Not aware No, this 14% would not affect my Not sure comfort 16% level 28% Yes, I would Aware feel more 70% comfortable 72% NBASE: Total Qualified Smartphone Users (n=1000) BASE: Total Qualified Smartphone Users (n=1000)Q1051 Have you ever seen this trust mark or seal before today (on Q1055 If you saw this trust mark or seal on a mobile app or mobile web site or store mobile apps, mobile websites, or traditional PC websites)? would you feel more comfortable about your privacy on that site? 33
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 90% – Enhanced consumer transparency and access Prefer 34
Privacy tips for app owners1. Get Serious About Privacy 74 percent of consumers believe it’s “very important” or “extremely important” to understand what personal information a mobile app collects2. Always Ask Before Collecting Location Data Only 36 percent of consumers felt that they had a choice regarding the collection and use of their location data3. Offer Opt-Outs For Mobile Ad Targeting 85 percent of consumers want to be able to opt-in or out of targeted mobile ads4. Give Consumers Transparency & Choice 98 percent of consumers believe it’s important for mobile apps to provide easy access to controls for collecting and sharing personal information5. Get Your App Privacy Certified Only 1 in 3 consumers feel in control of their personal information when using their mobile devices 35
For the detailed surveyresults or to learn more aboutmobile privacy, go tohttp://www.truste.com/harris-mobile-survey/ 36
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. 37