London, 21.02.13: MEF, the global community for mobile content and commerce, today announced the results of its first Global Privacy Report.  Supported by AVG Technologies, the ten country study of 9,500 respondents reveals consumer attitudes towards the use of their personal information by mobile app providers.

Against a backdrop of recent high profile transgressions, the report was carried out in partnership with mobile specialists On Device Research to understand global consumer understanding and perceptions of apps that gather and use personal data such as address book information and location.

The explosion of the apps ecosystem is driven by new business models where many apps are free or heavily discounted which of course consumers love, but where developers monetize the information they collect on their users.

The report identified:

• Only a third of consumers (37%) are comfortable sharing personal data with an app.
• The majority of consumers consider it important to know when an app is gathering (70%) and sharing (71%) their personal information.
• Perceptions are that security around data is robust with only 18% stating they are not confident that their personal information is being protected.
• Females and older consumers (over 35s) are more likely to have concerns over privacy.
• Growth markets including Brazil, Mexico and South Africa are least comfortable sharing personal information.

“Two main themes emerge from the research: Consumers demand transparency when apps are sharing their data, and importantly the app community needs to do a better job of explaining to consumers why it’s in their interests to do so,” commented Andrew Bud, MEF Global Chair.

“This lack of active transparency and education risks holding back the global mobile content and commerce market. MEF’s 2012 Global Consumer Survey found that 35 per cent of consumers do not purchase more often on their mobile because of a lack of trust. We are committed to working with our members to help the industry address this challenge,” he continued.

“For every one of us with a stake in the future of mobile apps, the MEF Global Privacy Report delivers a stark message that’s also filled with exciting opportunity,” said J.R. Smith, CEO, AVG Technologies. “We need to deliver transparency, security, and control or we fail. And maybe, amid an unprecedented wealth of opportunity for innovation and market creation, fail even to survive.”

The report analyses four key factors of privacy:

Transparency:

• 70 % of all consumers think it’s important to know what information is being gathered by an app (and 46% think it’s very important)
• 71 % of all consumers think it’s important to know what information is being shared by an app (and 49% think it’s very important)

Consumers understand the impact of mobile apps on their privacy. They want app providers to be transparent when it comes to the use of their personal information so they can make an informed decision about whether to download the app.

Comfort:

• 33% are not at all comfortable sharing personal information
• 35% are not at all comfortable sharing location information, suggesting consumers do not consider it especially sensitive.
• More than half (52%) are not at all comfortable storing their billing information within an app

Consumers are either choosing to ignore apps until such time as they can trust them not to share their personal information or more worryingly they are engaging with apps not knowing that the app is sharing information without their permission.

Security

• Only 18% of consumers lack confidence in the security of their personal information
• This is somewhat higher in growth markets 22% in Saudi Arabia and 27% in South Africa

Security is a broad topic and clearly has a key impact on consumer trust. This survey asked consumers about security in relation to privacy. In this context, consumer perceptions fair well. Most mobile users trust app providers to safely protect their personal information.

Control

• A third of consumers (33%) think they have complete control over how their personal information is used for advertising purposes.

In reality it is unlikely consumers are able to control the way companies use their personal information, or if they can, it is likely few will understand how to exercise control. This means there is a gap between the power they think they have, and what they are actually able to do. This paves the way for a possible ‘wake-up call’ that will dent trust further. 

The report is part of MEF’s on-going activities to champion and advance Consumer Trust in the mobile industry. This was formalised last year with the launch of the Privacy in Mobile Applications Initiative whose 17 member companies Working Group has a remit to establish industry wide best practice across the mobile value-chain built on the consumer’s informed consent. 

Download the Executive Summary here

To access the full report: MEF Privacy Report

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About MEF

www.mefmobile.org

MEF is the global community for mobile content and commerce. It is the leading trade organisation for companies wishing to monetize their goods, services and digital products via the mobile connected device.  MEF provides competitive advantage to its diverse membership, shapes industry growth, connects thought leaders and spearheads groundbreaking initiatives which explore and promote monetization opportunities.

With global headquarters in London and operational chapters and offices in Asia, EMEA, Latin America, Middle East and North America, MEF is a member network with global reach and strong local representation, ideally placed to drive market growth. Established in 2000, MEF provides an impartial, consistent and powerful voice for the foremost companies and entrepreneurs from across the mobile content and commerce value chain.

About the MEF Privacy in Mobile Apps Working Group

In February 2012, MEF launched its Privacy in Mobile Apps initiative which has as its aim to establish best practice privacy behaviours across the mobile value-chain.  The Working Group, comprising companies spanning the mobile marketplace, is currently working on a web-based tool that will help developers build best practice privacy right into the heart of their app.

The Working Group currently comprises Addafix; AVG; EA; Impact Mobile; Inmobi; mBlox; Nielsen; Mippin; Mozilla; Openmarket; Preiskel & Co; Red Bull Media House; SNR Denton; Turner; Vodafone; and UFT.

About AVG Technologies

AVG’s mission is to simplify, optimize and secure the Internet experience, providing peace of mind to a connected world. AVG’s powerful yet easy-to-use software and online services put users in control of their Internet experience. By choosing AVG’s software and services, users become part of a trusted global community that benefits from inherent network effects, mutual protection and support. AVG has grown its user base to 143 million active users as of September30, 2012 and offers a product portfolio that targets the consumer and smallbusiness markets and includes Internet security, PC performance optimization, online backup, mobile security, identity protection and family safety software.

www.avg.com