Research: More control drives more data sharing
September 16, 2024
Research from Verve has highlighted that while 68 per cent of UK and US consumers who shared their opinion agree they have more control over their app privacy settings than two years ago, 58 per cent of consumers are also more willing to share data on apps than before.
The study surveyed 4,001 respondents across the UK and US in August 2024 to explore the current state of in-app advertising and data privacy, from the consumers’ point of view.
Increased willingness to trade data for free content
Of those that gave an opinion, 67 per cent of consumers agreed they are more willing to watch or receive ads on apps in exchange for free content than two years ago, and 69 per cent stated that if advertising is more targeted and interesting, they would be less likely to pay to remove them.
The report identified that consumers surveyed are most willing to share personal data on shopping apps (30 per cent), closely followed by social media apps (28 per cent), and almost a quarter on food and drink apps (23 per cent). Conversely, 53 per cent of all respondents surveyed were unwilling to share any personal data on dating apps. On average, just under half (48 per cent) of Gen Z respondents were willing to share their name across all app types, with only three in 10 of those aged over 55 prepared to do the same.
A greater appreciation of relevant advertising
Consumers from the UK and US also shared their reactions to relevant advertising on apps, with 75 per cent of respondents who shared an opinion stating they appreciated seeing content for free due to receiving relevant ads. The study highlighted that consumers surveyed also recognise the role of relevant ads when shopping, with 81 per cent of respondents saying that relevant adverts helped them to find products they didn’t know existed, and 69 per cent saying they made shopping quicker and more efficient.
Continued demand for stronger privacy safeguards
In parallel with their enhanced sense of data privacy control, however, consumers remain apprehensive about how their information is protected and used. Just under half (44 per cent) of those who gave their opinion are more concerned by the possibility of unauthorised parties accessing their data than they were two years ago, with 40 per cent also citing increased concern around not knowing the purpose for which their data will be used.
Overall, 75 per cent agreed that there is still more to be done in communicating how consumer data is used; with study findings highlighting three main action actions for app publishers to improve consumer trust in apps. Alongside providing better assurance that data isn’t being shared with third parties (35 per cent), this includes ensuring understanding of exactly how data is being stored or handled (34 per cent) and offering insight into the security measures apps and how they are protecting consumers from attacks (33 per cent).
Other key findings from the research include:
● Context matters: 79 per cent of consumers that shared their opinion said seeing an ad in a contradicting context (ie. a beauty ad on a sports app) would put them off engaging with the ad, with 76 per cent saying it would negatively change their perception of the brand.
● Consumers most open with name and email address data: Consumers stated they were on average most likely to share name and email address (38 per cent and 37 per cent respectively) across all app types, whereas only one in 14 were willing to share their health data.
● Users prefer in-app ads to paying for premium features: On average, more than twice as many consumers (39 per cent) shared they’d rather watch an ad than pay for additional benefits (13 per cent) such as extra lives in a game, access to discounts or further information.
Commenting on the results, Aviran Edery, SVP & GM, Marketplace at Verve, said: “The findings outlined in this report provide an encouraging and insightful view of the mobile advertising industry in 2024. The last few years have seen rising industry concerns that greater consumer control over data sharing will result in reduced access for advertising purposes, but our findings show this fear isn’t being realised: consumers are confident about safeguarding their information and more willing to share it with app publishers and brands when they receive worthwhile rewards, including relevant ads. In addition to having a stronger grasp of the value exchange, they are also becoming attuned to ad placement — including not only being able to distinguish between good and bad contextual matches, but also changing their perception of brands based on how well ads fit their surroundings.”
“A greater receptiveness to sharing data on apps is a huge opportunity for brands but this must be handled responsibly. Creating and maintaining trust in apps at a time when demand for consumer time and money is greater than ever before means brands must execute a future-proofed, intelligent, and cohesive advertising strategy that will achieve great outcomes,” Edery concluded.