CONSUMERS ARE MORE AWARE OF HOW COMPANIES UTILIZE AND RETAIN THEIR DATA, IMPACTING BRAND TRUST, PREFERENCE AND PURCHASE INTENT

New Research by MAGNA, a unit of IPG Mediabrands, reveals 74% of consumers highly value their data privacy and will reward brands who are responsible data stewards with 23% increased purchase intent

New York, NY- July 12, 2022 –The way that companies handle personal data is a hot-button issue among consumers, according to a new study by MAGNA Media Trials, MAGNA’s industry-leading proprietary research offering, and Ketch, a privacy and data governance platform. The study, “The Person Behind the Data,” found increase in purchase intent of 23% for brands and companies with responsible data practices. Further, the study found that data privacy is a top priority to 74% of respondents.

The study explored the opinions of primary purchasers and decision makers about how companies handle their data. Privacy is as important a shared value for companies to focus on as environmental sustainability, and diversity and inclusion, with respondents ranking all three at highest levels of importance. Meanwhile, companies would do well to provide greater transparency and control for consumers, as 82% voiced concern about how their personal data is gathered and used.

“The findings highlight that offering meaningful transparency and greater choice over data collection and use is a commercial imperative. Creating a thoughtful, people-friendly experience for expressing those choices is a key component of trustworthy data practice that delivers to consumer expectation,” said Arielle Garcia, Chief Privacy Officer, at UM. “When people understand and appreciate the benefits of sharing their personal information with a company that they trust, they are more willing to participate in that exchange. In sum, these findings underscore the opportunity for companies that take a cross-functional approach to privacy and data initiatives, with stakeholders across legal, privacy, marketing, sales, IT, and customer experience.”

Other study findings include:

  • Lack of Transparency and Control: 57% of respondents agreed that not knowing where data is going or how it is used was a problem, and 64% said they felt they did not have full control of their data.
  • The Value Exchange: While 82% were concerned how data was gathered and used, 83% of respondents could see the value of sharing their data. Some of the benefits of sharing data include learning about new products (45%) having a personalized experience (45%) and receiving a benefit from the company (43%)
  • Storage Wars: How long companies store their data impacted trust (40%) and purchase intent (52%) more so than the amount of data collected, level of transparency and data-sharing practices.
  • Challenges by Industry: The study examined various industry verticals and found data collection practices impact purchase intent somewhat differently—Amount of data collected, by far, concerns telecom users at 55% while retail shoppers cited data sharing practices as their greatest concern at 44%.

 

“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, Managing Director, Intelligence Solutions, at MAGNA. “It is an important issue that effects 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 the brand preference and trust.”

“Brands are looking for the responsible path forward. What I love about this study is it confirms how important data privacy is to consumers in their relationship with brands and puts the numbers to that trust” said Jonathan Joseph, Head of Solutions & Marketing at Ketch. “Consumers care about data privacy, they understand the value exchange when sharing data, and will make purchase decisions based on how brands handle their data.”

“The Person Behind the Data,” surveyed a nationally representative sample of 2,751 people, in two (POV and conjoint) online surveys and incorporated the feedback from five, diversely populated focus groups.

The full study may be found here.

About MAGNA

MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.

We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://magnaglobal.com/ and follow us on LinkedIn and Twitter.

About Ketch

Ketch enables businesses to build trust with consumers and drive growth through data. Ketch’s Trust-by-Design Platform is a coordinated set of applications, infrastructure, and APIs that collapses the cost and complexity of privacy operations and mobilizes responsibly gathered data for deeper customer engagement and top-line growth. To learn more, visit ketch.com.

 

 

Media Contact:
Zinnia Gill
Mediabrands
Vice President, Global Corporate Communications
(646) 965-4271

Twitter, Magna Media Trials Study Brands’ Path Toward Cultural Relevance

By David Cohen, Published by Adweek
 
Social media can help them develop a two-way relationship with people, rather than just sharing their messages

Respondents to a new study conducted by Magna Media Trials in partnership with Twitter had a strong message for brands: It is no longer satisfactory when they “talk the talk,” and they must also “walk the walk.”

The study found that brands clearly benefit from cultural involvement and, while there are many actions they can take in order to ensure that they are culturally relevant, accountability is the most important factor in the minds of consumers.

Media accounted for 67% of what drives a brand’s cultural relevance, and the two companies found that social media, in particular, gives those brands a pathway to impactful brand action by enabling them to form two-way relationships with people, to listen to what those people have to say and to incorporate their feedback into their actions.

Magna Media Trials and Twitter found that brand cultural relevance is highly correlated with metrics including brand favorability, brand preference and purchase intent.

The two companies shared the following takeaways for brands:

  • Be consistent: Magna Media Trials and Twitter found that younger people, in particular, are especially likely to see brands as culturally relevant when they show a consistent commitment to a cause.
  • Develop a two-way relationship with people: Brands should go beyond using media to simply put out a series of messages and get involved in the earned ecosystem, where they can converse and collect feedback.
  • Donations are a tangible way to show accountability: While people want brands to put their money where their mouth is, people are willing to do the same and pay more for brands that are donating.
  • Brands must embrace inclusivity: Creative inclusion goes beyond positioning brands as culturally relevant—it meets expectations and is a strong driver of purchase intent and brand favorability.
  • Actions speak louder by industry norms: The strength of brand actions varies by industry vertical. For example, sustainability is critical for consumer packaged goods, having an even bigger impact on the bottom line than the brand making donations.

 

Twitter vice president of global business partners Stephanie Prager said in a statement, “Life’s events play out across social media—Twitter is called the world’s town square by many for that reason—making the category the logical place for brands to share their stories and values and engage with people. Being part of the conversation in real-time, staying current and communicating through culture are some of the attributes brands can build through proactive, culturally relevant social media strategies.”

Magna executive vp, intelligence solutions Kara Manatt added, “The results not only show that brands should be owning their brand actions, but also telling a measurable story about them over time. Social media serves as a critical ingredient because it allows brands to own their own narrative around their place in culture and, in addition, build ‘listen/react’ relationships with people.”
 

Download the full study

 

Read the full article in Adweek

NEW STUDY BY MAGNA AND TWITTER REVEALS BOTTOM-LINE BENEFITS OF BRAND CULTURAL RELEVANCE

Study shows the strong relationship between brand cultural relevance and the amount consumers are willing to pay for brands

 

New York, NY- June 16, 2022 – New research conducted by MAGNA Media Trials, MAGNA’s industry-leading proprietary research offering, in partnership with Twitter, quantifies the benefits and drivers of brand cultural relevance today. The study, “Cultural Relevance Drivers: Understanding the Building Blocks of Brand Relevance,” reveals that brands clearly benefit from cultural involvement even to the extent of people willing to invest more in those that are perceived as more culturally relevant (based on correlation of R2=0.9786). The study found that people are no longer satisfied that brands “talk the talk,” they must also “walk the walk.” While there are many types of actions brands can take to ensure cultural relevance, accountability is now table stakes in the minds of consumers.

 

Another key finding from the study highlights the clear opportunity marketers have to make a big impact, with media accounting for 67% of what drives brand cultural relevance. Social media, in particular, allows brands a pathway to achieve the topmost impactful brand action – developing a 2-way relationship with people, by listening to what they have to say and reacting to their feedback. The implication is that brands should go beyond using media to simply put out a series of messages and get involved in places where they can converse and collect feedback.

 

“The results not only show that brands should be owning their brand actions, but also telling a measurable story about them over time,” said Kara Manatt, EVP, Intelligence Solutions, MAGNA. “Social media serves as a critical ingredient because it allows brands to own their own narrative around their place in culture and, in addition, build ‘listen/react’ relationships with people.”

 

Additional key findings from the study include:

 

  • Cultural relevance pays: Brand cultural relevance is highly correlated with metrics that matter, including Brand Favorability (R2=0.797), Purchase Intent (R2=0.791), and Brand Preference over other brands (R2=0.994).
  • Donations are a tangible way to show accountability: While people want brands to put their money where their mouth is, people are willing to do the same and pay more for brands that are donating.
  • Brands must embrace inclusivity: Creative inclusion goes beyond positioning brands as culturally relevant – it meets expectations and is a strong driver of purchase intent and brand favorability.
  • Actions speak louder by industry norms: The strength of brand actions varies by industry vertical. For example, sustainability is critical for CPG, having an even bigger impact on the bottom line than the brand making donations.

 

“Life’s events play out across social media—Twitter is called the world’s town square by many for that reason—making the category the logical place for brands to share their stories and values and engage with people,” said Stephanie Prager, VP, Global Business Partner at Twitter. “Being part of the conversation in real-time, staying current and communicating through culture are some of the attributes brands can build through proactive, culturally relevant social media strategies.”

 

The methodology used in the study included both qualitative and quantitative components. Focus groups were utilized during the qualitative phase to help define brand cultural relevance and uncover potential drivers. The quantitative phase consisted of a drivers’ analysis based on 4,917 online surveys among a nationally representative sample.

 

The full study can be found here.

 

About Twitter, Inc.
Twitter (NYSE: TWTR) is what’s happening and what people are talking about right now. To learn more, visit about.twitter.com and follow @Twitter. Let’s talk.

 

About MAGNA
MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.

We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://magnaglobal.com/ and follow us on LinkedIn and Twitter.

Media Contact:
Zinnia Gill
Mediabrands
Vice President, Global Corporate Communications
(646) 965-4271