The digital advertising ecosystem is evolving – and so too is the value exchange between consumers and brands. With Google planning to phase out third-party cookies by 2023, many advertisers are turning to first-party consumer data to facilitate a privacy-safe approach to targeting and personalization.
At the same time, consumers recognize the immense value their data holds, and want greater control over how and when it is used. According to a report from Publicis Sapient, those who know what companies do with their data are more likely to see the benefit in sharing their information, and also feel more comfortable doing so.
In a recent survey, Fluent polled over 14,000 US adults to better understand attitudes toward data privacy – and what motivates consumers to share their information with brands. The findings reinforce the industry-wide need for more transparent data practices and a proper value exchange between brands and consumers.
So what exactly is a value exchange?
A value exchange is like a pact between brands and consumers. In this pact, a consumer provides a piece of information (and their explicit consent for the brand to use it) in exchange for relevant content, offers, and experiences.
For consumers, this can look like:
- Access to free content – I.e. An iOS user opts in to tracking via Apple’s ATT prompt in exchange for free access to their favorite gaming app.
- Monetary incentives – I.e. A college athlete signs up for a sports retailer’s email newsletter in exchange for a 20% discount on their first apparel purchase.
- Personalized experiences – I.e. A beauty enthusiast completes a short questionnaire in exchange for personalized product recommendations based on their skin type.
For brands, the data volunteered by the consumer is the true prize. The more data a brand has, the easier it becomes to understand consumer preferences and deliver personalized advertising experiences. In turn, the more seamless the consumer journey, the more likely it is to foster brand loyalty and ideally, generate sales. As advertisers seek to engage consumers across channels and devices in world without third-party cookies, access to first-party, opted-in insights will only continue to increase in value.
Importance of getting the value exchange right
According to Publicis Sapient, 39% of Americans believe their data has more value than the services they receive in return. In order to get the value exchange right, it’s important to know which offers appeal to your audience and what value they expect to gain from your brand. For success, relevancy, personalization, and timeliness of content and offers are key. When consumers feel like their needs are understood, and their privacy is respected, the value exchange works at its best.
While advertisers can leverage different offers to collect different data points, below we focus on the incentives that encourage consumers to share their email address with a brand. For more information on the types of data consumers are willing to share and what they expect from brands in return, check out our report, Consumers, Data, and Control: Driving Loyalty and Trust Through a Strong Value Exchange.