Public Concern: Online Data Privacy
Zero-Party data is data that a customer knowingly and proactively shares with a brand, which can include preference center data, purchase intentions, personal context, and how the individual wants the brand to know them.
As third-party cookie-less marketing is nearly here, a recent research study reveals a significant lack of trust among Americans regarding their data privacy with brands. Attest, a prominent consumer research platform, indicates that 84% of Americans harbor concerns about data privacy when engaging with brands online, with 41% expressing profound apprehension.
This unease regarding intrusive data collection and uncomfortably personalized advertisements seems to be widespread. Among those surveyed, individuals aged 55-64 exhibited the most significant level of concern about their data privacy, with 87% expressing worry. However, even digital natives aged 18-24 indicated their discomfort, with 82% expressing unease regarding how brands gather their information online.
Consumers are scaling back on the sharing of their data
The Zero-Party Data Revolution report indicates that cautious consumers are increasingly limiting their data sharing, demonstrating a reluctance to disclose personal information.
The majority of consumers, about 85%, choose to refrain from joining a company's mailing list at least occasionally, with 58% stating they do so consistently, either "always" or "most of the time."
Apart from mailing lists, the data indicates that almost one-third of consumers (31%) would decline non-essential website cookies if given the choice. Consumers who opt out of cookies typically cite concerns about targeted advertising and distrust of the website with their data (both at 36%). Additionally, over a quarter (27%) express worries about potential data breaches by hackers. Interestingly, Generation Z shows a higher-than-average level of distrust in websites regarding their data privacy, with 52% expressing such concerns.
Furthermore, the nature of the brand and its industry can significantly influence consumer readiness to share data through first-party cookies. Consumers exhibit a higher tendency to decline cookies on social media platforms (47%), possibly influenced by perceptions of extensive advertising on these sites and a track record of inadequate data privacy safeguards.
The probability of opting out of first-party cookies varies by website category:
- Social media websites: 47%
- Travel websites: 42%
- Food and beverage websites: 40%
- Financial services and retail websites: Both at 39%
The desire for enhanced data privacy: Premium subscriptions without ads
Businesses are responding by offering ad-free alternatives directly in line with consumers' desires for enhanced data privacy. In October 2023, Meta introduced its inaugural paid ad-free subscription service in Europe, with potential plans to expand it to the US later on. Through this monthly subscription, users gain access to Facebook and Instagram devoid of any advertisements.
According to Attest's findings, approximately one-quarter of US consumers (23%) would consider subscribing to such a service, even at a relatively high price exceeding $13/$14 (the current subscription fee in Europe is €12.99). Specifically, Gen Z Americans demonstrate significant interest in subscribing to the service, with 40% of those aged 18-24 expressing intent. This indicates that advertisers would lose access to reaching this demographic on Instagram, one of their most utilized platforms.
Consumer perceptions of zero-party data: Enhanced confidence
The concluding section of this research report explores attitudes toward zero-party data, where consumers proactively and voluntarily share their data to assist brands in shaping products and services, as opposed to passively collecting it via cookies.
- Regarding data privacy, 48% indicated they would be inclined to "trust" brands that gathered zero-party data.
- When it comes to a brand's website and engaging on social media, consumers would feel more comfortable utilizing the brand's website (57%) and interacting on social media (53%) if zero-party collection methods were employed.
- With the establishment of this heightened trust, 49% would be open to subscribing to a brand's mailing list.
Considering that zero-party data entails directly requesting information from consumers, this is achieved through interactive data collection techniques. Attest aimed to determine which methods consumers favored the most, discovering:
- Interactive surveys lead the survey: 47% of participants indicate that interactive surveys are their favored method for a brand to gather data about them, followed by loyalty cards (e.g., purchase history), with 27% preferring online forms. Cookies and customer chat services/chatbots were the least preferred options, chosen by only 18% of respondents.
- Prevalent among all demographics: Consumer surveys emerge as the favored data collection method across all age brackets; 66% of individuals aged 18-24 express a preference for them, along with 41% of those aged 55-64.
The Zero-Party Data Revolution report polled 1,500 US consumers, representative of the nation, and the study aligns with the phasing out of third-party cookies on Google Chrome this year, marking one of the most significant changes in digital advertising since the inception of the cookie in 1992.
Through this recent research report, Attest seeks to enable marketers to understand why this transition presents a pivotal opportunity to leverage an alternative data stream, zero-party data, to effectively reach target demographics, rebuild trust, and craft advertisements that are compelling rather than intrusive.
