74% of consumers "highly value" data privacy, says a new study from Ketch and MAGNA.
Welcome to Data File. At The Current, we comb industry, analyst and economic sources for the data that matters to ecommerce professionals. This weekly feature is one of the ways we’re sharing what we find.
Whether it's a debate about changing practices or the fallout from them, data privacy is a polarizing topic.
For brands and retailers, it's the fallout. Data privacy often comes up in conversation when it relates to changes made by platforms that affect attribution in digital advertising. But leave aside how these changes were executed and their impact, and it’s worth recalling one of the primary reasons that they were made in the first place: Privacy is important to consumers.
A new report released this week by the programmatic data privacy company Ketch and media investment and intelligence firm MAGNA offers new findings to back that up. Titled “The Person Behind The Data: Consumer perspectives on data privacy,” the report offers insights from a survey of 2,750 consumers.
The results: Here’s a look at some of the key results:
Key quote: “People see the value in data sharing but they are concerned about how companies are handling their personal information and think they should be doing more,” said Kara Manatt, EVP and managing director of intelligence solutions at MAGNA Global, in a statement. “It is an important issue that affects the bottom line and even long-term brand preference. Marketers spend billions of dollars and years building how people feel about their brands, and now, increasingly, data practices play a growing role in brand preference and trust.”
The opportunity: For brands, building data privacy into their practices can help to win favor with shoppers. The study found that there was an increase in purchase intent of 23% for brands with responsible data practices.
What it means for ecommerce professionals: Reaching people interested in buying a product often means advertising, and data privacy has been front and center when it comes to that approach. For brands that built an ecommerce business using the powerful marketing tools of platforms like Facebook, Apple’s privacy-oriented updates with iOS 14.5 in 2021 had significant impact. While the key changes affected attribution at a time when customer acquisition costs were already going up, they had the effect of putting privacy front-and-center in the conversation.
This year, other tech companies are leading with privacy. At ShopTalk earlier this year, Google President of Americas and Global Partners Allan Thygesen said it was time for digital advertising to evolve in a privacy-first way. It is leading brands to focus in the following areas:
The bottom line: It’s a time of experimentation in marketing approaches, as many ecommerce brands shift from Facebook-only to many-pronged strategies. By centering privacy during this period of building, brands can build stronger relationships with consumers, the report from Ketch and MAGNA shows. When transparency and control of data are present, 87% of consumers see a positive impact on their relationship with a company. This includes 49% who trust the company more, and many others who are more likely to tell other about the brand or buy more from it.
“The implications of these findings are clear; data privacy builds trust with consumers, and responsible data practices have a measurable impact on the bottom line,” said Tom Chavez, Founder and CEO of Ketch.