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#MITXData 2015 - Digital Privacy

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Digital Privacy

Alan Chapell @Chapell68PresidentChapell & Associates

2015 MITX DATA SUMMIT:“THE ART & SCIENCE OF PRIVACY”

Alan ChapellChapell & AssociatesJune 23rd, 2015

Key Privacy ConceptsCross Device AdvertisingThe EU’s opt-in dystopia

Working with privacy & legalRethinking data use rules

Agenda

Key Privacy Concepts

Privacy Rules assume some dysfunction and inconsistency

“Art and Science”

Fair Information Practice Principles

NoticeChoiceAccessSecurityRedress

Privacy Rules Depend

on the type of data

Data Types

Anonymous Data

Pseudonymous Data

Personal Data (“PII”)

Sensitive Personal Data (SS#, credit card)

Privacy Rules Depend

on the Jurisdiction

Low to mid-level standard

Mid-to-high enforcement

Sectoral Approach

Harm based approach - until recently

United States

High standard

Low level enforcement

Comprehensive Approach

Privacy as a fundamental right

European Union

Medium standard

mid-level enforcement

Comprehensive Privacy Law

Privacy as a right

Canada

Burgeoning standard

mid-level enforcement

Comprehensive Privacy Law

Privacy as a right

APAC

Burgeoning standard

low-level to nonexistent enforcement

And the rest….

Privacy Rules Depend

on the Use of the data

Spectrum of Data Use

Fraud Prevention

Product Development, First party ad targeting and customization

Market Research

Third Party Ad Targeting

Security

Privacy Rules Depend upon

who is the data owner

First PartyRelationship with consumerData Controller

Who ‘owns’ / controls the data

Service ProviderWorks under 1st PartyInvisible to consumerData ProcessorNo independent use

Third PartyWorks with 1st PartiesInvisible to consumerController / ProcessorSeparate use of data

Growth of Cross Device

Different Browsers, Different Policies

21

9%, 15% 21%, 16% 37%, 25% 30%, 40%

Cookie Policy:✓ Allows existing cookies to be read from any context

✗ Blocks all 3rd party cookies from being written

Impact of Policy:Allows first parties acting as 3rd parties to read cookies

Cookie Policy:✓ Allows cookies to be read and written to, so long as they already exist)

✗ might block new 3rd party cookies from being written

Impact of Policy:Allows 1st parties who are also 3rd parties.

Cookie Policy:✓ Allows 3rd party cookies to be read and written, regardless of context

Impact of Policy:Supports cookie-based targeting, data-retention, and opt-out

Cookie Policy:✓ Allows 3rd party cookies to be read and written, regardless of context

Impact of Policy:Supports cookie-based targeting, data-retention, and opt-out

Source: gs.statcounter.com

Global, US Global, US Global, US Global, US

Cross-Channel Targeting & Attribution

Cross-Channel Targeting & Attribution

New tracking technologies are necessary to address

multiple business challenges

Keys to being privacy-safe in a cross-device world

Notice / Transparency

Choice

Data Segment Retention

Notice / Transparency

• All data is YOUR data• YOUR data, YOUR responsibility• Good Faith Description• Who is working on your behalf?• Understand agencies / vendor practices

Notice / Transparency Considerations

Choice:

Where is it a requirement?Where is it a best practice?

Data Segment Retention

Even the kids know: the Internet is forever

Sunset your digital Segments

Precise Location

Auto-Intender

Income / Age Range

Frequent SN Sharer

Europe’s opt-in Dystopia

Günther OettingerEU Commiss ioner:digital economy & society

“The Americans are in the lead, they’ve got the data, the business models and so the power.”

The EU’s Solution:Higher Privacy Standards

• Privacy FAIL: – Creates incentives to collect MORE data

• Competition FAIL–Who is in the best position to obtain consent?

Affirmative Consent

The Care and Feeding of your Internal Privacy &

Legal Teams

• The Mindset of a privacy professional• Learning curve – even at tech companies• Culture of “NO”• Rarely do they (or you) want to be “first”• Bring outside help to translate from “tech”

to “marketing” to “privacy” speak

Privacy & Legal

New Thinking on Data Usage and Intellectual Property

• 2001 – Wild West• 2009 – Publisher and Advertiser “Own” • 2015 – Sliding Scale of data ownership– Community Pool• Ad Serving Optimization• Device Graph Data• Limited data Co-op (maybe)

Data Use Timeline

Questions?

[email protected]