Marketers Underestimate But Say They Are Prepared to Respond to Consumer Data Privacy Concerns

A new survey by Wakefield Market Research conducted for customer engagement platform Braze finds an overwhelming majority of US consumers expressing concern not just about their own data but also about their children39s data At the same time the study reveals that many marketers are struggling to comply with existing and anticipated legislation while also being effective in their roles Similarly The Myers Report39s 2020 Supply Chain Study shows that 40 percent of agency and 44 percent of advertiser respondents say they are not prepared or just simply don39t know if they are prepared for privacy changes in 2020The solution most marketers are reaching for is to futureproof their data collection storage and usage strategies against whatever regulations are coming down the road But that39s easier said than doneThe Legislative BackgroundThe world changed for datadriven marketing on May 25 2018 when the General Data Protection Regulation became enforceable GDPR imposed sweeping privacy regulations on any brands doing business with European quotdata subjectsquot defined as European citizens residing in European Union countries regardless of where brand operations were basedThe heavy fines attached to breaches of GDPR 4 percent of annual global revenue or up to amp836420 million got the attention not just of brands knowingly marketing to Europe but also brands concerned with inadvertently engaging and collecting the nonanonymized personal data of European customers In other words almost everyoneThis prompted major efforts to audit existing data and to collect data in a compliant way going forward But it soon became obvious that the threat wouldn39t be confined to EuropeThe California Consumer Privacy Act came into effect on January 1 2020 It39s important to understand that there are key differences between CCPA and GDPR Compliance with one is not necessarily compliance with the other For example GDPR grants data subjects the right to correct errors in their personal data whereas CCPA does notThe sheer impracticality for brands of imposing different standards of governance on data from Europe California and elsewhere is compelling the adoption of standards that meet the most stringent requirements of existing legislation But that39s not the end of the story Several other US states now have data privacy laws in place with more doubtless to follow amp8212 unless Congress shakes off its legislative paralysis and preempts state laws with federal regulationConsumer ConcernsThe Wakefield survey suggests that legislators are responding to very real consumer anxieties Based on a survey of 2000 nationally representative US consumers including 800 parents it found98 percent of consumers said that protecting their data is important 82 percent of them said very important98 percent of parents said that protecting their children39s data is important 87 percent of them said very important93 percent have concerns about how websites use their personal data87 percent have taken some kind of action in response to these concernsThat last statistic should cause brand marketers to lose some sleep If the US was once a land of data laissezfaire where consumers didn39t much care what data they gave up in return for free services and a personalized browsing experience those days are gone amp8212 thanks no doubt to highprofile incidents such as the Cambridge Analytica scandalOf course consumers aren39t generally going the arduous route of filing complaints against brands they suspect of misusing data the most significant claims under GDPR have come from activist groups rather than individuals They39re doing something much easier saying goodbye Typical responses are deleting an app 59 percent stopping an installation halfway through 49 percent or offering an alternative email address 34 percent Plus81 percent of US adults say they have apps on their phone about which they have privacy concerns84 percent have decided against engaging with a brand because it requested personal information71 percent have decided against engaging with a brand more than once quotamp8230it is a patternquot the report findsUnderestimating ConcernsThis pattern of consumers responding to data protection concerns by backing away from engagement with brands ought to trouble brand marketers But do they really understand how serious the concerns are Based on responses from 500 US marketing executives the Wakefield study reports that while 94 percent think that keeping consumer data private is important what are the other 6 percent thinking only 29 percent believe data privacy is very important to consumersBased on this survey that39s a serious misapprehension amp8212 although it39s less prevalent at the top of the ladder with 42 percent of Csuite marketers believing that consumers view data privacy as very important versus only 23 percent of nonCsuite Even so the Csuite isn39t even close to rightCombine these reported attitudes with a perception that implementing data protection is expensive and complex 54 percent and takes a long time 51 percent and you end up with this disappointing statistic quot83 percent of marketers believe there is no need to protect consumer privacy beyond what is required by lawquotIt39s disappointing not just because it39s deaf to what consumers are saying but also because it39s shortsighted from the brand39s perspective What is required by law already differs across territories and it will change as more and more laws are passedAlthough it39s no surprise that 88 percent of marketers believe that federal legislation will bring clarity to the situation amp8212 within the US at least amp8212 and 52 percent of consumers believe the federal government should lead the way data privacy has scarcely been an issue in this election seasonMarketers and consumers are in complete agreement 72 percent that presidential candidates should talk more about data privacy Only Andrew Yang predictably highlighted quotdata as a property rightquot and he39s no longer runningBut it39s not all doom and gloom Despite the problems of complying with patchwork regulations 94 percent of marketers do see advantages in implementing strong data governance standards before they become mandatory They also see the advantage in collecting targeted quality dataMost important they39re willing to face the cost According to the report quotThe vast majority of marketing executives 71 percent say that their companies will increase their investments in data privacy governance next year with nearly a quarter 24 percent saying that they will increase significantlyquotDon39t stop now Read more on data privacyClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNetamp160

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Marketers Underestimate But Say They Are Prepared to Respond to Consumer Data Privacy Concerns

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Kim Davis

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Marketers Underestimate But Say They Are Prepared to Respond to Consumer Data Privacy Concerns

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Kim Davis

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