With marketing without third-party cookies almost on the horizon, a new research report released today finds that an overwhelming majority of Americans don't trust brands when it comes to data privacy.
Attest, a leading consumer research platform, found that 84% of Americans are concerned about data privacy when interacting with brands online, including 41% who are “very concerned.” ).
This concern about intrusive data collection and embarrassing personal advertising appears to be universal. Of those surveyed, those aged 55-64 expressed the highest concerns about their data privacy (87%), but even digital natives aged 18-24 (82%) are concerned about how their information is handled by brands. Online said they are worried about what will be collected.
Consumers back off from data sharing
The Zero-Party Data Revolution report reveals that exhausted consumers are even withdrawing what they share and are reluctant to divulge their personal data.
Eight in 10 (85%) consumers opt out of being added to a company's email list at least some of the time, but 58% do so habitually (“always” or “Most of the time” they opt out.
Beyond mailing lists, the data suggests that nearly a third (31%) of consumers would refuse non-essential website cookies if asked. Consumers who decline cookies are most likely to do so because they don't want to be targeted with ads and because they don't trust the website's data (both 36%). Meanwhile, more than a quarter (27%) are worried that hackers will steal their data. Surprisingly, Gen Z is over-indexed (52%) as saying he doesn't trust websites when it comes to data privacy.
Furthermore, the type of brand and its sector can have a distinct impact on consumers' willingness to share data via first-party cookies. Consumers are more likely to opt out of social media websites' cookies (47%). This is likely due to awareness of the high levels of advertising on these platforms and a history of poor data privacy protections.
Possibility to opt out of first-party cookies by website type
- Social media website: 47%
- Travel website: 42%
- Food and beverage websites: 40%
- Financial services and retail websites: both 39%
Demand for better data privacy – Ad-free premium subscription
Companies are offering ad-free options in direct response to consumer demands for increased data privacy. In October 2023, Meta introduced paid ad-free subscriptions for the first time in Europe, with potential expansion to the US in the future. This monthly subscription allows users to enjoy Facebook and Instagram without ads.
According to data from Attest, nearly a quarter (23%) of U.S. consumers are likely to subscribe to such a service, even at a relatively high price point of more than $13 or $14. (In Europe, the subscription price is currently 12.99 euros). . Gen Z Americans in particular have shown a high intent to subscribe to the service (40% of 18-24 year olds), making it one of the most used platforms by this demographic for advertisers. It means you won't be able to reach them on Instagram.
How consumers view zero-party data – Improving trust
The final part of this research report explores how consumers actively and willingly share their data to help brands shape their products and services, rather than being passively collected through cookies. A deep dive into how we think about party data.
- Data privacy: 48% say they are likely to do so “trust” Brands that collect zero-party data.
- Brand website and social interactions: With zero-party collections, consumers will feel more comfortable using a brand's website (57%) and will find it easier to interact with them on social media (53%).
- Mailing list: This increased trust makes 49% more willing to sign up for a brand's email list.
Since zero-party data involves explicitly asking consumers for information, this is done through interactive data collection methods. Attest sought to find out which method consumers prefer the most. As a result, we found the following:
- Interactive surveys rank high in polls: 47% of respondents say interactive surveys are their preferred way for brands to collect data about them, followed by loyalty cards (i.e. purchase history), and 27% prefer online forms. Cookies and customer chat services/chatbots were the lowest-ranked preferences (18%).
- Popular among all groups: Consumer surveys are the most popular data collection method across all age groups. 66% of consumers ages 18-24 say they prefer them, as do 41% of consumers ages 55-64.
The Zero-Party Data Revolution report surveyed 1,500 representative U.S. consumers, and the survey coincided with the retirement of third-party cookies in Google Chrome this year, making it the first cookie in 1992. marks one of the biggest changes in digital advertising since its invention.
With this latest research report, Attest believes that this change will help you use an alternative data source, zero-party data, to continuously reach your target audience, regain their trust, and create ads that are less invasive and more persuasive. We aim to help marketers understand why this is an opportunity for change. .
Want to hear major global brands discuss these topics directly? Learn more about Digital Marketing World Forum (#DMWF) Europe, London, North America, and Singapore.
