Over Half Of Consumers Not Happy With Data-Driven Marketing: Study

Over Half Of Consumers Not Happy With Data-Driven Marketing: Study
SHARE
THIS


What best describes you?

In an age where the internet knows everything there is to know about you, it’s interesting to note that most people aren’t really ok with the practice.

A new Pew Research Center study from the US has shown that while shoppers enjoy the perks of belonging to a grocery store loyalty programs, they’re not lovers of the way their data gets passed around.

Looking at consumer data and privacy, the study shows that while 47 per cent believe it’s acceptable for a grocery store to track shopping habits and sell that data to third parties in exchange for providing people with discounts, 32 per cent said it was not. In addition, 20 per cent responded with “it depends”.

Many of the participants expressed concerns about the safety and security of their personal data in light of numerous high-profile data breaches. They also regularly expressed anger about the barrage of unsolicited emails, phone calls, customised ads or other contacts that inevitably arise when they choose to share precious details about themselves.

In response to a question about having their online behaviour tracked in exchange for getting access to a free online service, one survey respondent wrote, “I want control over what ads are being ‘pushed back’ to me.

“I have no interest in ‘puppy portraits’ but I may be interested in cameras, equipment, etc. In an effort to ‘target’ my preferences, my inbox gets full of [expletive] that is not relevant to me.”

“The ‘selling to third party’ part makes me worry,” another participant said, before acknowledging, “[On the other hand], I have and frequently use a Safeway rewards card, which I suspect has just such an agreement.”

Pew surveyed 461 US adults in addition to conducting online focus groups with a total of 80 panellists for the study.

Older people were even less tolerant of the loyalty exchange, it found. Among those 50 and above, 39 per cent said they would not accept the deals-for-data sharing exchange that defines today’s sophisticated loyalty programs. Meanwhile, 27 per cent of those 18-49 would not be OK with the scenario.

When presented with a scenario in which they might save money on their energy bill by installing a “smart thermostat” that would monitor their movements around the home, most adults consider this an unacceptable trade-off.

As one survey respondent said, “There will be no ‘SMART’ anythings in this household. I have enough personal data being stolen by the government and sold [by companies] to spammers now.”

And while the study didn’t cover every possible data for deals trade-off, it is interesting to note that 17 per cent of adults say they wouldn’t take any of the deals described in the six scenarios and 4 per cent say they would accept all of the deals.

The substantial majority indicate that at least one of these transactions is potentially acceptable to them.

The researchers found that 57 per cent of people agreeing to allow data collection in exchange for supermarket discounts were “resigned” to the concept, while 32 per cent called themselves “tradeoff supporters.”

“By misrepresenting the American people and championing the tradeoff argument, marketers give policymakers false justifications for allowing the collection and use of all kinds of consumer data often in ways that the public find objectionable,” the study concluded.

 

Please login with linkedin to comment

Latest News

The Advertising ID Consortium Welcomes New Platform Partners
  • Advertising

The Advertising ID Consortium Welcomes New Platform Partners

The Advertising ID Consortium – the open identity solution for the digital advertising ecosystem – has announced new platform partners. Since the Consortium’s announcement in May 2017, the founding members have established a governance framework and product specification that includes an open and standardised cookie and accessible people-based identifiers, delivered in a secure, privacy conscious […]

Marketing Melodies Partners With Spotify-Backed Soundtrack Your Brand
  • Marketing

Marketing Melodies Partners With Spotify-Backed Soundtrack Your Brand

Australian in-store music provider Marketing Melodies has announced an exclusive reseller agreement with Spotify-backed Soundtrack Your Brand for the Australia and New Zealand markets. Founded in Sweden in 2013, Soundtrack Your Brand was developed to kill bad background music. Its flagship solution, Soundtrack Business, is a music streaming platform licensed for commercial and public spaces. The […]

Social Garden Becomes First Bronze Snapchat Certified Partner In Australia
  • Advertising
  • Marketing

Social Garden Becomes First Bronze Snapchat Certified Partner In Australia

Customer acquisition firm Social Garden has become the first business in Australia to achieve Bronze status on Snapchat. Among the new benefits Social Garden will receive as a result of its Bronze status is access to beta versions of Snapchat data tools, such as the Snapchat Conversion Pixel, as well as being among the first […]

Hypetap Appoints Nuffnang’s Chris Morfis As GM
  • Marketing

Hypetap Appoints Nuffnang’s Chris Morfis As GM

Influencer marketing player Hypetap has made its second senior hire in less than a month, appointing Chris Morfis as the company’s general manager. Joining from influencer marketing provider Nuffnang Australia, Morfis will guide Hypetap’s growing team, providing strategic direction to accelerate the company’s growth, as well as leading operations and managing relationships with key partners. Morfis’ appointment will […]

On Air sign in a studio broadcasting via radio, podcast or wireless transmission.
  • Media

ARN Announces Departure Of Content Director & Radio Veteran

Australian Radio Network (ARN) has announced that Charlie Fox, content Director for WSFM and The Edge, and WSFM morning announcer Ron E Sparks, have departed. Fox has been with ARN since 2005, and Sparks joined WSFM in 2002. ARN national content director Duncan Campbell said the departure of Fox and Sparks are part of the […]

OMD Announces New MD For Melbourne
  • Media

OMD Announces New MD For Melbourne

OMD unveils new Melbourne MD, and it certainly wasn't among any of B&T's picks. Not that we were picking, mind you.

Sydney Festival Chooses Brightcove To Enhance Online Video Content
  • Media

Sydney Festival Chooses Brightcove To Enhance Online Video Content

Video cloud service Brightcove has announced that Sydney Festival has selected the platform to improve its user experience through online video content. Brightcove will do so by removing third-party branding and pre-roll ads, as well as adding autoplay functionality, ahead of the event in January. Leveraging the Brightcove video platform to host and publish video […]

Does Your Christmas Marketing Suck?
  • Opinion

Does Your Christmas Marketing Suck?

Remember the old Palmolive soap ad that asked, "Don't wait to be told"? This is sort of similar, albeit sans any suds.

Opinion

by Peter Harris

Peter Harris
Queensland Anti-Porn Crusaders Cop Ad Ban
  • Campaigns

Queensland Anti-Porn Crusaders Cop Ad Ban

We have a strident anti-pornography policy at B&T. Earphones must be worn at all times and strictly no little people.

by B&T Magazine

B&T Magazine
Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful
  • Advertising
  • Campaigns
  • Marketing

Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful

Health and wellbeing company Nature’s Way is celebrating the achievements of kids in a series of relatable and entertaining online videos that tug at the heart strings of parents. Instead of using actors to tell the brand story of Nature’s Way’s Kids Smart supplement range, Storyful has helped Wavemaker to license user-generated content clips of […]

DEC PR Wins Hisense Account
  • Marketing

DEC PR Wins Hisense Account

Electronics and whitegoods specialist Hisense has announced it has appointed DEC PR to lead its strategic communications remit in the local market, following a competitive tender process. DEC PR will work to support its brand building activities and managing corporate communications. The agency’s work will integrate closely with Hisense’s other marketing partners. Andre Iannuzzi, marketing […]