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Consumer Trust 3-26 Header

2018’s Privacy Scandals Left Indelible Impact on Consumers, Study Finds

Posted Mar 26, 2019

One of mobile marketing’s core strengths is the ability to target individual devices with mobile IDs, but the events of the past year – from the Cambridge Analytica data scandal to the Experian breach – have put consumers on high alert.

Now, a full year after these privacy concerns began to surface, and the European Union’s data privacy laws have been fully adopted, consumers are saying they are still concerned. More than 3 in 4 US consumers surveyed indicated they are now “moderately” (37%) or “significantly” (40%) concerned about their data when interacting with brands.

Data privacy is now a significant concern for mobile users, specifically, but if advertisers respond by moving away from device IDs, that could lead to more fraud because they will need to rely more heavily on algorithms and programmatic buying, according to Advertiser Perceptions.

The study by SlickText sampled 1000 US consumers in early 2019 and found that nearly 86% of consumers have become more aware of brand trying to target them online in just the past year – and they don’t like it. Some 29% of consumers said they find it “extremely uncomfortable” when they realize they are being targeted by a brand based on personal information they’ve given elsewhere on the web.

Other highlights from the report:

  • 94% of consumers surveyed are unlikely to do business with a company if they have concerns about their privacy practices
  • 80% of consumers surveyed said brands contact them in ways they find inappropriate
  • 52% of those surveyed said in the last year, concerns about privacy have motivated them to unsubscribe from email lists

All of these concerns give brands all the more reason to stop forcing messages on consumers and to embrace an “opt-in” mentality. And opting in is not just for email; when you serve rich media and video ads to consumers in a way that they can choose to initiate a play – rather than having to watch it in order to continue their experience – you are giving them the choice to engage with your brand. That choice can do wonders for your brand reputation, not to mention their ability to recall your brand and message in a positive way long after the view is over.

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