Research finds consumers are willing to provide first-party data to trusted brands for a more effective ad experience
New York, 03/14/23 – MediaMath, the leading independent demand-side platform, has announced findings from its second-annual Consumer Privacy Survey, revealing consumers have 10% less trust in brands than they did one year ago. Data shows that brands have an opportunity to maintain trust by improving transparency and prioritizing data privacy.
In light of economic headwinds and declining consumer spending, the consumer-brand trust dynamic is more important than ever. MediaMath’s data finds nearly half of consumers surveyed are interested in sharing first-party data for a more effective and personalized experience.
“Brands have a critical responsibility to their consumers to provide transparency as they shift to a first-party data ad targeting strategy,” said Fiona Campbell-Webster, chief privacy officer at MediaMath. “First-party data is vital for ad targeting moving forward, and brands must maintain trust to ensure consumers are comfortable sharing their preferences. The relationship is a two-way street: consumers deserve both transparency and the best ad experiences from brands.”
Impact of consumer privacy on brand trust
Data from the 2023 Consumer Privacy Survey highlights a drop in consumer trust compared to the 2022 survey. But, the data shows that brands can improve trust via factors such as improving transparency and providing audience targeting disclosures. It also found that misuse of personal data negatively impacts brand trust.
- 74% of consumers are more likely to trust brands that prioritize using personal information with a privacy-safe approach. This is a 10% decrease from 2022’s Consumer Privacy Survey.
- 59% of consumers said their trust in a brand would increase if there was a disclosure regarding how the recipient of the ad was determined.
- 65% of consumers ranked ‘misuse of personal data’ as the top reason they would lose trust in a brand.
Consumer understanding of analytics and measurement
Additional findings illustrate that nearly half of consumers are interested in providing brands access to analytics and measurement, knowing that it will provide them with a more effective, targeted experience. Data also shows a third of consumers are unaware that targeted advertising provides analytics and measurement when they don’t opt out.
- 48% of consumers would provide brands access to analytics and measurement if they knew its purpose is to inform advertisers to show less ineffective ads.
- 51% of consumers would provide brands access to analytics and measurement if it meant they were only shown the same ad a limited number of times.
- 33% of consumers are unaware that targeted advertising provides analytics and measurement when they don’t opt out (e.g., measuring when you are and aren’t interested in engaging with a specific brand).
- 65% of consumers have been unsure as to why they received a certain advertisement (i.e., the product is not relevant to their interests).
“One year ago, our data showed consumers lacked a complete understanding of third-party cookies, and today, there is still a misunderstanding of how their first-party data is being used. However, our data shows that consumers are interested in the benefits that targeted advertising would provide, including avoiding over-frequency and receiving ads with clear relevance to their interests,” said Campbell-Webster. “Education is important to ensure customers understand how their first-party data is used to refine and improve their interactions with brands.”
These findings are based upon data collected from a consumer survey capturing one thousand respondents ranging from ages 18 to 65+ across the United States. For more information, please visit mediamath.com.
MediaMath is the leading technology pioneer on a mission to make advertising better. We deliver outstanding results through powerful ad tech, partnership and a curiosity for what’s next. We help more than 3,500 advertisers solve complex marketing problems so they can deepen their customer relationships across screens and around the world.
Media Contact: Lauren Bigland, firstname.lastname@example.org
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