Data privacy is just a smoke screen: Did consumers ever really want data anonymity?
The truth behind consumers concerns about data privacy was never really about privacy, it was always a question of value. Kylie Bates, client director at dentsu's iProspect, explores why new developments and research have revealed that consumers are willing to share data if the value exchange is clear.
We’ve all been crept out by brands following us around the internet. We are almost resigned to our personal data being used in advertising. Governments globally are routinely seeking to legislate to ensure consumers and their data are protected. It seems that everyone is seeking to answer the same question of how to best provide data anonymity.
But, with the rise of AI and consumers increasingly becoming aware of the value of their personal data, the question should be, do Australians actually want data anonymity?
Dentsu’s Consumer Vision 2035 study, which looks 10 years ahead to unpack the future of tech, culture, consumers and brands, revealed that 42% of Australians want to have an AI clone of themselves to take care of life admin.
And this isn’t a new revelation.
The previous 2030 study, released back in 2021, found two thirds of Australians would consider having a microchip implanted in their brains to improve mental and physical capabilities.
This willingness to share all aspects of themselves, the physical makeup of their bodies, access brain waves, is in direct opposition to what we’ve historically known – or thought we knew – about consumer privacy and their data concerns.
As AI and tech develops further and shows the world what is possible, the truth behind consumers concerns about data privacy and its use in advertising starts to come to light.
It was never about privacy – it was always a question of value.
What these developments have brought to the forefront is that consumers are willing to trade their data and their privacy if the value exchange is clear.
Dentsu’s Data Consciousness Project found 55% of Australians would be interested in receiving financial benefits in exchange for organisations using their data, this is up from 41% in 2022.
In the instance of an AI clone, 42% of Australians are willing to make the trade to get back time, a commodity more precious than privacy.
Where digital advertising has been failing is not bringing to consumers a good value exchange or making clear what that value exchange is. Rather than adding to the consumer experience, advertisers have been using data to interject their own single-minded message into the lives of consumers and inundating them with potentially irrelevant messages.
That’s not to say this is the only way of working.
There are instances where agencies and brands have used this data to provide real, tangible benefits for consumers.
Let’s start with loyalty programs. Most of you reading this will likely have used some kind of program during your life.
A loyalty program has a clear value exchange – it might be discounts or exclusive offers or a nice gift on your birthday. Whatever the benefit that reels in consumers, it does so with ease, with 95% of Australians participating in some kind of loyalty program, according to Pureprofile and Retail Doctor Group research.
The value exchange doesn’t need to be as explicit as in the case of loyalty programs – personalisation can create a more valuable experience for consumers.
In finance, personalisation can be crucial in reaching potential customers who have demonstrated a real interest in banking products.
Thailand’s Krungthai Bank was facing two critical challenges amidst COVID-19 – how to identify genuine customers and how to simplify the loan process to eliminate barriers and attract new customers through digital channels.
Partnering with iProspect Thailand, Krungthai Bank sought to demonstrate their understanding of their customer’s needs, innovating how the brand used targeted ads and personalised content to create genuine connection and drive impact. Thanks to personalisation, the value exchange in the advertising was clear as the campaign was connecting with customers who had shown interest in loan products. This personalisation was then carried through the customer journey, with the app and web experience optimised for each specific audience segment, strengthening the value exchange by heightening the relevancy of the entire loan process, driving a significant increase in loan application conversions.
With the depreciation of the cookie now detracted and the power of their own data sitting firmly in the hands of consumers, it’s up to brands to communicate the value exchange and how they’re protecting data in an era where breaches make the news far too routinely.
In a time where marketing budgets are shrinking and the focus on the bottom line is growing, it is easy to get caught up in the numbers, the hard business targets and at the same time get distracted by headlines suggesting what consumers are wanting.
But, much like a client needs campaigns to perform, consumers want their data to deliver results for them, through value and relevancy. They want to be heard, so listen carefully to what they’re telling you and what they’re wanting from an exchange with a brand. Think about the data you have available and how you can best use it to meet the needs of the consumer and drive genuine connection through a meaningful value exchange.
Apply a performance mindset to the data and uncover how you can add value that matches the customer’s needs, and the results will follow.
Kylie Bates is client director at iProspect, a dentsu company.
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