Privacy in the digital age...an oxymoron for
some, a heated debate for most. The following
webinar from eMarketer is
incredibly effective in outlining different perspectives around the digital privacy issue, while also the exploring the ways in which marketers and advertisers can address these concerns.
Here are some highlights, but be sure to check out the full slidecast on Slideshare:
Factors Driving the Privacy Debate
Trust. Control. Transparency. These are just a few of the buzzwords that have surrounded the privacy debate over the past few years, with control of consumer data remaining central to that debate. As eMarketer research in 2011 has uncovered, 79% of female consumers in the U.S agree that online companies have access and control over too much of their personal information, with male consumers following at 74%. Of concern to many is the inability to determine who can collect and share your data, along with the inability to dictate how or how long that data can be used.
Adding to this dispute are the differing ideas around how transparent companies should be in their data collection. Some have even made the argument that the problem of privacy is now outdated, as our very concept of privacy has evolved with the pervasiveness of digital technologies.
Consumer Concerns
eMarketer research has found that privacy concerns vary according to age, with non-millennial respondents (those 30+) having stronger concerns around hackers, Facebook privacy, targeted web ads, search engine tracking, etc. Consumers are also found to have contradictory viewpoints in their attitude towards privacy, which adds a layer of complexity to the issue. For example, an August 2011 eMarketer survey found that 37% of respondents are very suspicious of targeted ads, while 41% are also frustrated when shown ads that don't apply to them. In addition, there seems to be a disconnect between consumers' apprehension over privacy and a general unwillingness to actively manage their own privacy settings.
The Role of Mobile and Social Media
Also inherent in the debate is the role that mobile plays in amplifying consumers' fears around privacy. For example, in a February 2011 eMarketer study, 38% (the biggest segment) of respondents indicated that privacy was their primary concern when accessing mobile apps. Often thought of as a personal device, many mobile users are uncomfortable with location tracking, along with ad-supported apps that have built-in data collection. For many mobile users, it's the fear of unsolicited use of data (on a device that follows you just about everywhere!) that is most disconcerting. Marketers too find the deployment of mobile ads to be a challenge, with privacy issues being at the top of the list.
Social media adds another layer to the debate. Most survey respondents have expressed some level of concern about privacy on Facebook, for instance, as regular changes in Facebook's privacy settings are difficult to manage and keep track of.
Government Regulations
The contention over who should be regulating user privacy is a whole other debate, but interestingly, eMarketer's research has found that most users feel that individuals should be wholly responsible for protecting their own privacy, as opposed to government legislation or independent privacy certification organizations. Research ultimately discovered that few users (only 9%) actually trust government regulation enough to protect their privacy in this area.
Solutions for Advertisers and Marketers
Some ways in which the ad industry is addressing these challenges? Transparency and trade-offs, providing something of value in exchange for data, are two prime examples. Other methods, including those which place more onus on the user, include privacy policy pages, the Digital Advertising Alliance's "Advertising Option" icon, opt-outs, and "do-not-track" headers.
However, about 1/3 of users indicated that data collection is justified when receiving something of value for free, and are more likely to interact with companies that employ this kind of value exchange. Marketers are starting to catch onto this wave, and rewards have proven to be an effective incentive for sharing personal data.
To close off, we'd like to share a couple of concluding quotes from the slidecast:
- Danah Boyd, Senior Researcher at Microsoft Research: "The battle that is underway is not a battle over the future of privacy and publicity. It's a battle over choice and informed consent."
- Chris Babel, CEO of TRUSTe: "How do you make the jump from seeing self-regulation as a threat to ad targeting to viewing consumer choice as a brand enhancer?"
Click here to check out the full slidecast. We highly recommend it as a complement to your 2012 marketing thought leadership resources.
