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

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



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

Account planning Advertising Standards Bureau New Site the seven network

Latest News

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign
  • Campaigns

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign

Canteen’s latest campaign features the combined talents of Director Luna Laure and creative agency Crater. The campaign strives to raise awareness for young people affected by cancer. The awareness campaign centres around Harry Barentson, who at 12 years of age found out his pregnant mum had cancer. While his mother fortunately survived, he lost his […]

AFL Legend Kevin Sheedy Narrates ‘A Love Letter To Victoria’ Via Enthral Partners
  • Campaigns

AFL Legend Kevin Sheedy Narrates ‘A Love Letter To Victoria’ Via Enthral Partners

In partnership with storytelling agency Enthral, AFL star Kevin Sheedy has voiced a video ‘Love Letter to Victoria’ using visuals to showcase the state’s natural beauty and culture. Victoria has been hit with the worst of the coronavirus pandemic compared with any other Aussie state experiencing four lockdowns. Sheedy has partnered with Ethral to share […]

Telstra’s Belong Appoints Howatson + White For Strategy & Creative, Retains OMD For Media
  • Advertising

Telstra’s Belong Appoints Howatson + White For Strategy & Creative, Retains OMD For Media

Telstra’s lower-cost telco, Belong, has awarded its strategy and creative account to Howatson + White, and has reappointed OMD to its media buying account, after a competitive pitch process. Howatson + White will handle strategy, planning, creative and CRM, while former agency Clemenger will continue to have a relationship with Belong, managing PR and retail activation. […]

Coke Releases New Campaign, ‘Turn Up Your Break’, Via Ogilvy
  • Advertising
  • Campaigns

Coke Releases New Campaign, ‘Turn Up Your Break’, Via Ogilvy

Coca-Cola Australia has rolled out its new campaign ‘Turn Up Your Break’. The campaign will be led by a TVC that encourages people to truly pause with a Coke on their break so they can walk away feeling refreshed and uplifted. The TVC features two busy chefs stepping outside for a break, the bustling kitchen […]

Nova 91.9’s Ben And Liam Locked Up In Rundle Mall To Raise Awareness For Mental Health
  • Marketing
  • Media

Nova 91.9’s Ben And Liam Locked Up In Rundle Mall To Raise Awareness For Mental Health

Nova 919’s Ben & Liam breakfast show announced that they’ll be throwing their support behind and raising awareness for a cause very close to their hearts, mental health. On Monday 21 June Ben Harvey and Liam Stapleton will be locked in a purpose-built glass structure, in the middle of Rundle Mall, for an entire week […]

iHeartPodcast Network Australia And The New York Times Agree Podcast Ad Sales Deal
  • Advertising
  • Media

iHeartPodcast Network Australia And The New York Times Agree Podcast Ad Sales Deal

ARN and The New York Times have reached an agreement for ARN to become the advertising sales representative for The New York Times’s podcast portfolio in Australia. The deal will enable Australian brands to connect with Australian listeners to The New York Times’s most popular podcasts, such as The Daily, Serial and This American Life, […]

Verizon Media Academy Ends For 2021 With Youth Charity Pitch-Off
  • Advertising
  • Media

Verizon Media Academy Ends For 2021 With Youth Charity Pitch-Off

Verizon Media’s talent program has come to an end for the third year, closing with a hybrid pitch-off event for Musicians Making A Difference (MMAD). The Verizon Media Academy class of 2021, made up of 44 emerging leaders from across Australia and New Zealand media, advertising and marketing industry, were given just one hour to […]