Consumers catch on to privacy and data-sharing, GDMA survey shows

Attitudes to privacy in the age of big data are evolving but for Australians, the big message is that trust is paramount as regulators and markets alike adapt to a fast-changing digital marketing ecosystem.

Australians are more aware of how their data is used and collected, with 52% agreeing the exchange of personal information is essential for the smooth running of modern society, says research from the Global Data and Marketing Alliance (GDMA).

Following two years of pandemic-related disruption, it seems Australians have opened up to the benefits of a digital economy and understand the trade-off between sharing personal information and benefiting from connecting and transacting effectively by sharing information online.

“The global consumer is becoming more aware of the intrinsic value of their data and is developing a more entrepreneurial attitude towards data sharing; as a value exchange where both sides can gain benefits,” the research report says.

“As digital markets around the world continue to advance and mature, there is a concomitant increase in public ease and engagement with the data and digital world."

Age is a key factor in people’s confidence with interacting with the data ecosystem, with work still needing to be done to engage older generations with data exchange.

“Initiatives aimed at increasing comfort with data sharing among older generations will optimise wider consumer engagement with data exchange in the 2020s,” the report says.

Trust is paramount, especially for Australians

Trusting an organisation facilitates how happy a consumer is to share their personal information with a company, the research found.

Trust remains the top influencer behind data sharing, followed by cost-related benefits like discounts.

Australians rank amongst the highest of all nations in needing to trust the organisation they share their personal information with.

In Australia, 46% of consumers placed it in their top 3 rankings in 2021, compared to only 33% in Spain.

Privacy and the reasons people share personal information go hand-in-hand -and trust has become more important over time

What are the key GDMA privacy report takeaways?

Most consumers globally — including in Australia -continue to believe that industry benefits the most from data sharing.

For marketers, a majority of consumers expect enhanced levels of service without the need to share more personal information.

The report notes there is an “emerging disconnect between consumers and industry over the requirement of data sharing to fuel future innovation and improvements in customer experience and service”.

Unsurprisingly, younger consumers are more relaxed about sharing data or holding privacy concerns yet they are also more demanding of the role this information exchange should play in making society better.

For example, most consumers agree that the sharing of personal information help ensure organisations meet the needs of a diverse society by better understanding the attitudes and wants of a wider range of groups and identities.

“The role that data sharing can play in encouraging more diverse and inclusive commercial offerings/services will be an effective message to entice wider engagement with the future data ecosystem,” the report says.

There’s an even bigger takeaway for large businesses – younger people seem more eager to share personal information with smaller companies to give the more nimble corporate underdogs a competitive advantage.

Younger Australians are more keen to see smaller companies gain advantages through personal information sharing

“The role that data sharing can play in driving more competitive economies by providing more equal access to customer intelligence for smaller businesses, will be a compelling reason for many consumers to share personal information in the 2020s,” the report says.

After trust, transparency is important

Closely related to both control and trust is the consumer desire for companies to be transparent with how consumer data is collected and used. 

Transparency remains a fundamental factor when sharing personal information with a company, with 3 in 4 across all 16 global markets claiming that transparency over the terms and conditions and the personal benefits received is important when sharing their data with businesses.

About the research

ADMA, in partnership with GDMA, measured consumers’ views of data privacy in 2017 and again in 2021 by asking a range of questions and segmenting people into three groups:

1. Data Pragmatists: People concerned about online privacy but will make trade offs on a case-by-case basis as to whether the service offered is worth the information requested.

2. Data Fundamentalists: People concerned about online privacy and are unwilling to provide personal information even in return for service enhancement.

3. Data Unconcerned: People unconcerned about online privacy in general and have lower levels of concern about sharing personal data.

Source: Global Data Privacy: What the Consumer Really Thinks report conducted In December 2021 by Foresight Factory on behalf of Acxiom and the GDMA. It was an online survey of a minimum 1,000 sample of respondents aged 18+ across 16 global markets exploring public attitudes towards privacy and data exchange.

The survey first began in 10 core countries in 2017 and was repeated in 2021 with the addition of other countries including China, India and Japan.

As privacy regulation in Australia continues to evolve with a review of our Privacy Act and a new Online Privacy Bill, this GDMA research is a useful adjunct to the Office of the Australian Information Commissioner’s 2020 research into Australian attitudes to privacy.

Concepts like digital trust, privacy and big data vary around the world, the Global Data and Marketing Alliance — which ADMA participates in — aims to measure what consumers think about global data privacy by surveying 26 different nations.

Data privacy is no longer some kind of religion that organisations can either choose to believe in or not –this research proves governments and citizens alike expect certain conditions to be in place to share information and ensure privacy remains protected.