Personalization vs. Privacy: Can Consumers Have Both?
There’s a ton of debate going on these days over online consumer privacy. And, that’s a good thing. For personalized advertising to really flourish, our industry has to take a hard look at itself and figure out how to get to a place where the ‘rules of engagement’ are clear and consumers are comfortable with those rules.
One thing we know for sure is that consumers want personalized advertising. We’ve been surveying consumers for years on their attitudes towards personalization. Their interest in personalized advertising online has never wavered, with more than 72% indicating interest in last year’s survey.
We also know that consumers are increasingly savvy about the need for retailers to collect information about them to make those ads relevant. According to our survey, 60% are aware that retailers use their click and purchase data to target advertising to them. A recent TRUSTe survey showed that number to be even higher at 68.6%
Interestingly, what concerns consumers most about retailers monitoring their online activity is not the invasion of privacy. Instead, it’s the security of their personal information. According to our survey, 59% of consumers express concern over data security, while only 38% indicate concern over privacy.
Consumers are also concerned about retailers sharing the information they collect with other retailers. As our data and the TRUSTe survey pointed out, consumers know that the retailers they visit track information about them. For the most part, consumers are beginning to trust those ‘known’ retailers. What concerns consumers is when those retailers share their information with other retailers. That’s where things get complicated.
As an industry, we need to take these concerns seriously. We have a responsibility to consumers to:
• Keep their information safe
• Provide transparency in how that information is used and shared
• Offer ways for consumers to control their information
Look for future blog posts in which we talk more specifically about how we approach privacy and address these concerns.
