Commentary

Data Still Makes Ads Irrelevant, Consumers Say

Marketers still lack the skills to use data correctly, even when they have access to search, location and other types of data.

When consumers were asked in a recent survey how effective brands have been in using data to personalize digital advertising campaigns, only 18% said ads "often" seemed to understand their needs. Some 47% report that ads seem to understand their needs at least "sometimes," 26% said online ads "hardly ever" understand them, and 9% said they "never" understand them.

Janrain, which focuses on customer identify and access management, will release findings this week from its Consumer Attitudes Toward Data Privacy and Security Survey in which 1,079 U.S.-based residents 18 years old and over participated in during August 2018. The results show that for the most part, U.S. consumers still trust brands but would rather have "consent-based relationships" following the recent breaches and controversies affecting data privacy.

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Consent-based relationships refers to brands having some sort of way for consumers to opt in to agree for brands to use their data before serving them products, services, or advertisements.

While 14% have lost all faith in an organization’s ability to protect their data, 42% say they are open to forgive the brand and 7% refuse when it comes to a brand allowing "bad actors" to steel personal data.

Nearly half of consumers participating in the survey said they would give brands a pass for data breaches as long as they tell them immediately about the attack and how the company plans to respond.

Although consumers have mixed feelings when it comes to privacy and trusting brands, many have stepped up to take control of protecting their data. The study reports that 71% have downloaded software that protects their data privacy or otherwise helps control their web experience.

The findings also suggest that given the option, 55% of consumers surveyed would allow companies they trust to use some of their personal data for specific purposes that benefit them. Only 36% would not allow any company to use their personal data, while some 66% like the idea of being able to alert companies when they are interested in something as long as they could "switch it off" when they are no longer interested, and 16% are not interested in this even if it came with preferences control.

Some 54% said they might give up personal information up front like a phone number or email address before being able to conduct business with a brand. Some 15% of those surveyed said "yes" they would, while 24% said "probably."

The findings also found that Europe’s General Data Protection Rules have caught the attention of U.S. consumers. Some 66% of those surveyed have begun to ask again for GDPR-like rules in the United States that force brands to provide consumers with greater privacy, security and control of their personal data.

In the May 2018 survey, about 69% of those who responded wanted more regulation in the U.S. Only 9% believe such laws would be ineffective, while only 6% believe more regulation would be too hard on businesses and the economy.

Some 59% believe achieving data security requires consumers, business and government to share in the responsibility, while 44% report being most concerned about protecting their financial data over all other forms of personal data, 25% of consumers realize the importance of protecting their passwords -- and 12% have given up worrying about their computer/mobile security, since hackers can break into company networks anyway.

1 comment about "Data Still Makes Ads Irrelevant, Consumers Say".
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  1. Mike Merna from Oracle, October 17, 2018 at 3:46 p.m.

    "Data Still Makes Ads Irrelevant, Consumers Say"

    "Most Marketers Don't Use Data Properly" - I say.

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