MAGNA and Ketch Study Reveals Just How Critical Data Privacy Is to Consumers

UM Worldwide39s Chief Privacy Officer Arielle Garcia believes the ad industry39s contract with consumers began to unravel as the public39s attention started to shift to the unfettered collection and sharing of their data quotIt39s not the firstparty relationship with the property that they interacted with that is of the greatest concernquot she explained quotIt39s the opacity around the sharing of that data with all of these third parties And that39s where we see people are demanding more controlquotHer observations are backed up in the study39s data Nearly twothirds of respondents 64 said they felt they did not have full control of their data and 57 agreed that not knowing where data is going or how it is used was a problem Being able to highlight this breach in consumer understanding and substantiate real business returns for brands that do right by consumers39 privacy were key drivers in Ketch39s decision to conduct the studyTo unpack how consumers understand data privacy and reward or punish brands for their data practices MAGNA and Ketch focused on four specific company actions 1 the amount of data collected 2 level of transparency in data collectionutilization to consumer 3 retention period of consumer data and 4 data sharing with other companiesThe MAGNA and Ketch teams tested these actions in 320 different consumer scenarios across four business sectors retail travel wireless services and finance The group was able to quantify how different data practices impact consumer trust preference and purchase intent Companies perceived as quotresponsible data stewardsquot can expect a 23 increase in purchase intentWhat drives that valuation Principally how long companies hold onto consumer data drives 52 of purchase intent followed by the amount of data collected 23 the level of transparency around data collection 18 and data sharing practices 7 Data storage is also a key factor impacting brand trust 40 while brand preference is more highly affected by transparency 33 and data sharing practices 31 These results also varied depending on industry verticalamp160amp160amp160Rich with insights from the study Mediabrands continues to make privacy and responsible data practice a more frequent part of its client conversations as well as an important ingredient in how it develops audiences strategy and activationGarcia sees plenty of room for creativity and innovative partnership opportunities for brands as they navigate new ways to open transparent dialogue with consumers around their data privacyKetch39s Head of Solutions and Marketing Jonathan Joseph said he was surprised at how important the data privacy issue has become for consumers relative to other shared values Compared to the 74 who highly value data privacy slightly more than half of respondents 55 highly value the issue of sustainability and 50 feel similarly passionate about diversity and inclusion quotBrands are investing in connecting with consumers around shared values of sustainability and diversity and they should be doing the same with data privacyquot Joseph observedamp160amp160Looking forward both Joseph and Garcia see consumer fatigue on the horizon as more and more brands offer greater access and control over their data privacy options quotDesigning streamlined experiences for consumers to control their privacy choices will ultimately become a big part of successful brand interactionsquot said Joseph Given the billions of dollars invested in building brands expect data privacy to loom large in brand communication for the foreseeable futureThe MAGNAKetch study quotThe Person Behind the Dataquot surveyed a nationally representative sample of 2751 people in two POV and Conjoint online surveys and incorporated the feedback from five diversely populated focus groups The full study can be found hereClick the social buttons above or below to share this content with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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MAGNA and Ketch Study Reveals Just How Critical Data Privacy Is to Consumers

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Stacey Lynn Schulman

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MAGNA and Ketch Study Reveals Just How Critical Data Privacy Is to Consumers

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