Christian Hauth 11:00–11:45, in Sala F, on Wednesday 20th June - a4uexpo Europe 2012, Barcelona.

1. The end of the Wild-West of Data
- Relevance and Regulation –
Chris R. Hauth
director strategy & corporate dev.

2. The questions we will address today…
What is BIG DATA and how BIG is it?
When does data become relevant? An analytical
grid.
Why is privacy so important and what do we NEED
to do about it?
Page 2

3. Data is getting bigger and bigger…
Worldwide Digital Data Volume
(created and stored each year)
90 2015:
7,910 EB
80
70
ExaByte
60 x 61
50
40 BIG DATA
2011:
30 1,800 EB
20 2005:
130 EB
10
-
2000 2002 2004 2006 2008 2010 2012 2014
Note: The data of 2015 estimated by IDC Page 3
Source: 2011 IDC Digital Universe Study (2011/6); MIC "Information Distribution Cencus"

4. How big is your data??? Company size is no
longer a determinant
Size DataWarehouse Revenue 2011
(in TB) (in €)
VS.
Page 4
Source: Data Unser – Wie Kundendaten die Wirtschaft revolutionieren (2012), affilinet

5. There is no reason why growth of (unstructured)
data should decrease in the future!
Social media boom The Mobile Revolution
Facebook - Active users ('04-'11) Mobile Data Connections ('04-'11)
160% CAGR 20% CAGR
E-Commerce transactions "Internet of Things"
Global eCommerce Sales ('04-'11) Connected Devices 2015 (excl. PC/Mobile)
Industrials
23% CAGR
Utilities Retail Security
Automotive Travel&Log HealthCare
Page 5
Source: Facebook Prospectus 2012, YankeeGroup Topline Data Forecast 2011,
JPMorgan eCommerce Forecast

6. The questions we will address today…
What is BIG DATA and how BIG is it?
When does data become relevant? An analytical
grid.
Why is privacy so important and what do we NEED
to do about it?
Page 6

7. But Size doesn't necessarily matter: Big Data is
a complex ecosystem, navigate it wisely
Customer Focus
- Enrichment
Profitability - Vizualization
- Biz Intelligence
- New Storage
- Normalization
- Categorization
( - ) Amount of Data
Quality
( - ) Quality
( - ) Regulation Amount of Data
Page 7
Source: affilinet

8. Enrichment – enrich and link your Big Data to
increase the quality and make it valuable Example
Fit predictors
Evaluations
Shares
Weather Social
Recommendations
Likes
Product
Data
Holidays
Environmental
Info Opinions
Geo-locations
Special Promotions
Connect to other players of the Value Chain
Page 8
Source: affilinet

9. Vizualization – The right visualization of Data is
the key for meaningful interpretation
Page 9
Source: LinkedIn Maps, 2012

10. The questions we will address today…
What is BIG DATA and how BIG is it?
When does data become relevant? An analytical
grid.
Why is privacy so important and what do we NEED
to do about it?
Page 10

11. Too often we see big data as a way to improve
our productivity, but that's just part of the story
What are you using Big Data for???
Increase Operational Efficiency 51% No wonder that
government get's
Inform Strategic Direction 36%
it all wrong and
Better Customer Service 27% tries to curb Data
Analytics
Identify New Products/Services 24%
Enhance Customer Experience 20%
Identify New Markets 11%
Big Data should be
Faster Go-To-Market 8%
about better
Comply with Regulations 6% services for our
customers FIRST
Other 3%
Page 11
Source: The Economist - Harnessing a game changing asset (2011)

12. Privacy and end-user trust perception is key:
BUT privacy perception differs substantially
What is privacy? (EU 27) The good news is:
The information
Visited Websites 25% our industry is
interested in is not
Taste & Opinions 27%
considered private
by the end-
customer
Photos of me 48%
Mobile Number 63%
Medical Information 74% BUT: That's just
one part of the
Financial Info 75% picture…
Page 12
Source: EU -SPECIAL EUROBAROMETER 359, 2011

13. The start and the end of big data is the complex
consumer, don't forget that…!
Your Opinion of Personalized Search? (U.S.)
Total 65% 29%
Obviously we
BAD Good other communicated
something wrong!
>50 70% 24%
Age
<29 56% 38%
High Salary 75% 19% Big Data should be
>75k about privacy and
Low Salary 45% 49% protecting
<30k individual needs
Page 13
Source: PEW Institute – PIP Serach Engine Use 2012, U.S.

14. E-Privacy Directive and the Data Protection
Regulation
E-Privacy Directive Data Protection Regulation
§ Local Implementation
§ Local Implementation
W3C Proposal on DNT initiative
Page 14
Source: EU, W3C, affilinet

15. The Privacy Directive, DNT and Data Protection
should be seen in conjunction
Step I
Full Transparency
Privacy
Directive
Do Not
Step II Track
Full Control Initiative
(W3C)
Data Protection
Step III Regulation
Right to be Forgotten
Page 15
Source: EU, affilinet

16. The Privacy Directive and its implementation in
the UK and NL – Key points
UK implementation NL implementation
Clear and Comprehensive Information
Cookie is stored Purpose of Cookie Duration of Cookie
"Implicite" Consent Prior Informed Consent
Consent can be revoked at all times
Cookie = Personal Data
Inform DP authority Secure Data Handling
Check & Correct tool for 3rd party processing
end-users agreements
Page 16
Source: EU, affilinet

17. Privacy Directive – Compliance Step 1:
Full Transparency
Goals:
- Overlay and at least
Cookie Policy
one very visible
persistent link on all
pages of your online
presence
- Clearly
communicate
purpose and
hierarchy of cookies
(other tracking
methods)
- Explain the "implicit
consent" issue to
the user
Page 17
Source: affilinet

18. A very first step excluding proactive cookie
management
Link persistent on all
pages
- General
Explanation
- General browser
based Privacy
Management info
- Detailed website
principles on
cookies
- Detailed
explanation and
list of implemented
cookies/segments
Page 18
Source: company information, affilinet

19. Best Practice Basic - Simple & smart solution
excluding proactive cookie management
Persistent Nav Item
Initial Pop up
• How cookies are used in
general
• Which cookies are set and
for what reason (detailed
categorized list)
• How to toogle your browser
settings to manage cookies
(only as indirect link)
Page 19
Source: company information, affilinet

20. Privacy Directive – Compliance Step 2:
Full Control
Additionally to Step 1
Introduce an
Cookie Policy
Cookie Policy
"intelligent 2 stage"
process:
2 - Enable control of
privacy settings in
and outside of
browser settings
- Pro-actively advise
users on active
cookie management
possibilities (e.g.
ghostery, adblock
1 plus, etc.)
Page 20
Source: affilinet

21. Best Practice Advanced - Cookie hierarchy and
segment specific cookie control
- General
Explanation
- Explicit privacy
and cookie setup
- Affiliate cookies
potentially
grouped under
"strictly necessary
and performance"
Pop-up on first page
landing & persistant
cookie settings link
Page 21
Source: company information, affilinet

22. Regulation – What does it mean now for you???
Document, Document, Document!!!
The implications for your daily work
 Non-EU based players will need to comply to the new
rules
 Data protection and compliance become more
important as not only individuals can sue you (e.g.
but also indirectly associated lobby groups)
Current timeplan suggest
 Growing Importance and necessity of well final date for
documented "Customer Consent" implementation in 2016
 More and easier accessible user rights, will mean for Currently the draft
you to offer customers access and controll (e.g.
means significant
"Right to be forgotten", personal data portability)
strains on our
 Profiling will be harder as the definition of "personal operations, increase in
data" is significantly broadened bureocracy and in certain
cases the death of whole
business models
Page 22
Source: EU, affilinet

23. Data Protection Regulation – Compliance Step 3:
The Right to be forgotten
Additional to step 2
- Clearly
communicate use
and purpose of ALL
cookies (ideally
also other tracking
methods)
- Enable individual
control of decisions
taken in the past
and the right to be
forgotten BEFORE
setting cookies
Cookie Policy
Page 23
Source: affilinet

24. Collaborative, cross-segment solutions currently
focused on Behavioral Advertising
Industry Board Solution Private Solution
Page 24
Source: company information, affilinet

25. What are the key take aways…
Big Data is the key decision point for our industry
and we will need to….
 Put the end-customers on Prio 1 will be decisive for
the industry
 Proactively work with government and interest
groups to define the customer way forward
 Intelligently collaborate to improve customer
experience using the non-personal data we have
Page 25
Source: affilinet

26. … thanks for time! Enjoy the rest of your day @ a4u
Barcelona!
affilinet GmbH T. +49 89 435710 170
Chris R. Hauth M. +49 151
Jospeh-Wild-Str. 20 E.m. chauth@affili.net
81829 München www.affili.net