Latin America | Self-Regulation for Interest-Based Advertising An Overview of USA Program February 2015 In this presentation, we’ll try and give you a short history on DAA in the United States, and how we evolved, including our current priorities as an alliance of advertisers, agencies, ad networks, ad tech companies and our association founders. In this action, we hope to give you a better understanding of what Mexico might consider in its own adoption of self-regulatory principles for data collection and relevant advertising, and how you might formally adapt and adopt DAA Principles and the use of the DAA Advertising Option Icon in Mexico. So far, the DAA Icon is in use in 32 countries and 24 languages in North America and Europe – and we welcome your consideration for Mexico as an initial foray in Latin America.

DAA Leadership in USA Digital Advertising Alliance: Enforcement Partners of Digital Advertising Alliance: DAA’s founding partners include these six trade associations who have worked cooperatively for the sake of self-regulation: The 4A’s (formerly known as American Association of Advertising Agencies, American Advertising Federation, Association of National Advertisers, Direct Marketing Association, Interactive Advertising Bureau and Network Advertising Initiative. We were also joined by the Council of Better Business Bureaus, a consortium of independent businesses that helps consumers resolve their complaints regarding business dealings.

DAA Program Timeline: 2009-2013 F E B R U A R Y FTC Behavioral Advertising Report J U L Y DAA Publishes OBA Practice Principles O C T O B E R Icon Program Launches J U N E DAA Announces 100 Program Participants O C T O B E R 11 million+ monthly visits to www.YourAdChoices.com N O V E M B E R Choice Page Live to Web 2009 2010 2011 2012 2013 J U N E First Summit for DAA Participants J U L Y Mobile Guidance Announced to OBA and MSD Principles Industry Education of Mobile Guidance Begins The DAA program is a process – it has taken 4+ years to get to where we are today. It began with a government report on online behavioral advertising, what we call interest-based ads (IBA) today, and moved forward with the development of Principles for IBA, Multi-Site Data Collection Principles and Mobile Guidance to both these sets of Principles – educating enforcement partners, industry, consumers and policymakers along the way F E B R U A R Y White House Event & Support N O V E M B E R DAA Publishes Multi-Site Data Principles M A R C H Global licensing programs (Europe, Canada)

DAA Program during Past Year DAA-commissioned Industry Research on Information Transfer’s Value in Advertising (February) DAA Summit 2014 (June) DAA Launches Branded Site, www.digitaladvertisingalliance.org (July) DAA Web Sites Top 37 million Unique Visits & 5.2 million Opt-Out Choices DAA to Launch AppChoices & Consumer Choice for Mobile Web (Coming This Month) This year was a significant leap forward for us… particularly the last bullet, where we are close to announcing two multi-screen developments for mobile (more on that in a moment)

Consistent Principles Across Ecosystems “…the consumer is multi-screen, so is self-regulation…” The DAA Self-Regulation Principles. First came our DAA Principles for Online Behavioral Advertising (2009) – seven principles pertaining to education, transparency, consumer control, data security, material changes, sensitive data, and accountability -- and then our Principles for Multi-Site Data (2011), how data is collected for marketing use between Web sites. Then, last year, how these Principles apply to the Mobile Environment. These Principles are adaptive and responsive to the market reality that consumers and brands engage with each other on a variety of screens.

Our Current Push: Mobile Mobile Guidance Released – July 2013 Creative Ad Specification for DAA Icon in Mobile – April 2014 Consumer Choice Page for Mobile Web – February 2015 Expected Mobile App Choice Tool: AppChoices – February 2015 Expected Accountability – Late Summer 2015 Expected Let’s focus more on mobile. In 2011, we set out to make the transparency and choice available on desktop also available on mobile. In July 2013, we announced our Mobile Guidance. in April 2014 we announced creative ad specs for use of the DAA Icon in. This month, we’ll roll out our Consumer Choice Page for Mobile Web (www.aboutads.info/choices), and a new mobile application that also affords consumer choice for interest-based ads in the app environment: AppChoices. After an industry education phase is over, we will announce an effective date when companies will be held to comply. The work we do on multi screen is vital not only to keep pace with consumers and the marketplace and their expectations but also being proactive because these issues matter to regulators.

Federal Trade Commission and the DAA On a government affairs level, while our association founders do the lobbying (something DAA does NOT do), we do continue to be engaged with the Federal Trade Commission. This is actually a headline the day after our 2013 Summit in Washington, DC, when Commissioner Maureen Ohlhausen came to us to provide her own views on the DAA program and what we’ve accomplished to date. We think we provide a credible, effective privacy program (unparalleled in its breadth in the commercial web) and we’d like to think that the headline supports that premise. Responsive, adaptive, credible, effective, Web-wide – and thanks to your consideration, increasingly global. We take these are expressions of support. But we don’t take these for granted. They are earned through our industry’s adherence to DAA’s principles, the flexibility the Principles provide as marketing innovates, and the enforcement of those principles in all places digital. Multiple codes of conduct Trillions of icons served Dozens of compliance cases And, more tools to come.

USA Poll: Online Ads Deliver Real User Value Selected results from DAA’s 2 surveys in 2013 follow… Has an Internet ad ever helped you find an offer or product you wouldn’t otherwise have known about? But we also continue to keep our eye on the real value that is at stake w/o effective self-regulation. DAA commissioned two important U.S. surveys of Net users in 2013 regarding their online experiences, their privacy expectations, and how the DAA program enhances their confidence in online advertising (both through Zogby Analytics). In one, we found that more than 90 percent of Americans polled said that free content was important to the overall value of the Internet, and more than 60 percent said it was “extremely” important. Similarly, more than 75 percent of poll respondents said they prefer content (like news, blogs and entertainment sites) to remain free and supported by advertising. Nearly 70 percent of respondents indicated that they’d like at least some ads tailored directly to their interests. Some of the stats have been widely reported, but this one surprisingly got less play. Nearly 60% of folks are finding out about new products and services via online advertising. This basically says that online advertising is helping people in the discovery process. Discovering new products and services they wouldn’t have otherwise known about. This is the birthplace of competition and innovation.

USA Poll: 73% Enjoy ‘Trust Dividend’ from Self-Regulation Protections More than 73 percent of users polled said they’d feel more comfortable with interest-based ads if they knew they had access to the protections that the DAA currently provides (opt out, limitations on data collection, third-party enforcement), according to the survey [this one also polled roughly 1,000 U.S. adults]. DAA’s program privacy features are responsive to what consumer want from online advertising.

USA Poll: 51.3% Are More Likely to Click on an Online Ad that Includes an Icon More than half of all Americans polled (51.3 percent) said they’d be more likely to click on an online ad that included an icon – like the Advertising Option icon – that allowed them to opt out of ad-related information collection. So, that is the backdrop for why the DAA Program is necessary to provide nimble self-regulation creating transparency and control for consumers while supporting innovation and competition.

USA Poll: Access to Similar Protections Wanted, No Matter the Screen Source:  Zogby Interactive Survey of 1,015 US Adults – 10/03/14 – 10/05/14 Margin of Error ±3.1 Percentage Points. In late 2014, as we approached the imminent release of Consumer Choice tools in mobile this year, we wanted to see if consumer privacy expectations on their smartphones and tablets differed largely from desktop – and again how we, as users of data in the mobile environment, and as interest-based advertisers on mobile platforms, can deliver to bring confidence to consumers here. Our October 2014 poll showed that two-thirds of U.S. consumers want access to similar protections – different devices, similar expectations. This measurement appears to confirm our direction as we prepare to announce our next pair of consumer tools.

USA Poll: Consumers Expect To See Names of Companies Providing Choice Source:  Zogby Interactive Survey of 1,015 US Adults – 10/03/14 – 10/05/14 Margin of Error ±3.1 Percentage Points. For those who have visited our Consumer Choice page on desktop, they are able to see in real time the very names of companies that are collecting data, and enable a company-specific (or industry-wide) opt-out. Two-thirds of consumers agree or strongly agree with this approach – as we move to mobile. They want a consistent consumer experience no matter what the screen. This type of transparency resonates. Not every consumer avails himself or herself to an opt-out option, but they have comfort knowing it is available at any time.

Recent Metric Milestones: Consumer Use of DAA Tools The DAA icon is served globally >1 trillion times each month >37 million unique users have visited our two program sites (via our sites, www.aboutads.info , www.youradchoices.com), www.digitaladvertisingalliance.org ) >5.2 million unique users have exercised an opt-out choice on our Consumer Choice Page Our Branded Site, www.digitaladvertisingalliance.org (Summer 2014) Next up are some metrics on the DAA Icon, our interest-based ad indicator (both in desktop and mobile); the DAA Consumer Choice Page; and the Big Picture of Why DAA Exists – Transparency and Choice for Consumers. We’ve recently surpassed 37 million in total visits to our program and consumer sites, and we’ve now recorded more than 5.2 million unique opt-out actions. 1 Trillion icon impressions per month, too: and we are just marking our fourth birthday…we’re still a growing program, but the results are impressive

Independent Enforcement ‘With Teeth’ In 2013-14, DMA reported 539 digital marketing-related queries, with 33 concerning interest-based ads BBB has reported 37 compliance actions to date The keystone of the DAA program is independent enforcement. We have two U.S. enforcement partners independently investigating dozens of cases and handling hundreds of inquiries. The Council of Better Business Bureaus – an independent business organization – issues public compliance decisions, 37 to date. All but one cooperated and the lone holdout is now engaged with DAA to become compliant. DMA just released its ethics report before the past 18 months – it showed just 33 of 539 complaints involving online behavioral ads (interest-based ads).

The DAA Program in USA Today: Choice Page 123 companies listed on the Consumer Choice Page Top 15 ad networks participating Persistent Choice offered in Chrome, Firefox & IE White House and Federal Trade Commission support Now let’s look a participation on our Consumer Choice Page. These 123 companies represent hundreds more of advertisers, agencies and networks – and thousands of brands. The largest ad networks are all participating, as well as many others in niche business areas.

The Ubiquitous DAA Icon This icon is served globally more than 1 trillion times per month.

We know that the DAA has already deployed our ubiquitous icon, which is served more than 1 trillion times each month.   Thanks to the DAA’s participating companies, we’ve already operationalized a layer of control that’s easily accessible, in real time, outside of the privacy policy. Consumers are learning means transparency and control around customized advertising.

DAA Icon Ubiquity on Desktop & Mobile Web Here’s what happens operationally behind transparency (notice provided by the DAA Icon) and control (choice of a consumer to let alone or opt-out, as he or she chooses).

Interest-Based Ads | Self-Regulation: DAA Program www.aboutads.info When a consumer clicks on the icon in an ad it leads to a notice or privacy policy that leads to the DAA Consumer Choice page on our site.

Consumer Education is Key In the United States, we rolled out our own consumer educations efforts beginning 2012 regarding interest-based ads, through the launch of the Web site www.YourAdChoices.com. Through this site, consumers can watch online videos explaining how interest-based ads work, and learn the choices available for controlling how data may be collected from their browsers. At the site, a direct link to the choices page is available as well. Many DAA participants donated billions of impressions for the education effort.

Videos: Explaining Interest-Based Ads Meet the AdChoices (Advertising Options) Icon Your AdChoices and You What is Interest-based Advertising? http://www.youtube.com/watch?feature=player_embedded&v=W_5_jTD0uGw – LINK to video…. Embed code: <object width="560" height="315"><param name="movie" value="http://www.youtube.com/v/W_5_jTD0uGw?version=3&hl=en_US"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/W_5_jTD0uGw?version=3&hl=en_US" type="application/x-shockwave-flash" width="560" height="315" allowscriptaccess="always" allowfullscreen="true"></embed></object>

Going Global – Beyond Borders (again) Increasingly Global 32 countries 24 languages European Interactive Digital Advertising Alliance – Includes a host of organizations -- EACA, FEDMA, IAB Europe, WFA, AER, ENPA, EMMA, EGTA, EPC, and ACTEP, based in Brussels, encompassing European Union member nations DAA of Canada (DAAC) includes ACA, CMA, ASC, IAB Canada, ICA and CMDC, based in Toronto Canada’s addition (DAAC) in Late Summer 2013: www.youradchoices.ca Europeans launch consumer choice regime, www.youronlinechoices.eu, added Croatia earlier this year, and will line up additional nations likely later in 2014. These organizations are adaptive and responsive to needs to multi-national companies and their consumers 2010 2012 2013

DAA’s Global Footprint So that in any language, the icon means the same thing to consumers [Who can find the Croatia flag on here, the most recent to join the program? A: Row 1 Flag 4. By the way, were Mexico to join today, we would place the flag right next to US and Canada in Row 5.]

2013: Expanded to Canada Canada launched its program in late summer 2013. This is a screenshot of the Quebecois French-language Consumer Choice Page.

Gracias, Preguntas? Contact Us! Lou Mastria: lou@aboutads.info | @lmastria | www.digitaladvertisingalliance.org | @daausa Michael A. Signorelli: masignorelli@venable.com