MAGNA and the IPG Media Lab partnered with Verizon Media to explore the consumer POV on data privacy and ad personalization. The research included extensive testing of personalized ad experiences on mobile devices – 39 scenarios of varying levels of personalization to be exact. A separate set of 1,000 online interviews were conducted to explore consumer concerns around data privacy and awareness of consumer protection laws.
Key findings from the media trial include:
- Awareness of personalized ads has grown from 62% to 88% over the past several years
- In general, awareness of the specific types of data being used by advertisers for ad personalization is somewhat low, with 50% being the highest awareness level (social media data). However, consumers deem most commonly used forms of data for ad personalization to be acceptable. In fact, acceptance of data use has grown considerably over the past few years.
- Results showed that consumers have better website experiences with the inclusion of personalized ads. Higher levels of personalization, such as the use of location data or search terms resonate stronger than more general, demographic-based personalization. But some personalization was better than none.
- Vast majority (88%) of consumer are willing to share their data in exchange for a service or product
- It’s true that consumers have real concerns about their data privacy, but harmful uses of their data are what consumers are primarily concerned about.
- While data concerns are real, lack of education is equally problematic. When it comes to data concerns, most people don’t feel empowered to protect their data. There is an increased need for the industry to educate consumers and provide adequate tools for data protection.