Brands Getting More Transparent About Data Collection

         With recent privacy regulations such as GDPR and the California Consumer Privacy Act, both app publishers and brands have had to become more transparent than ever on how and what location data they collect. Fortunately for consumers, an article on emarketer points out that many on the brand/publisher side have already embraced this transparency.

         The author of the article argues that it is this transparency that allows brands to make the case to consumers for collecting their data. According to a survey conducted by the University of Southern California (USC), over half of US smartphone users expressed they would be willing to share their location if they understood the benefits behind doing so. In that same study, only 18% of the overall respondents said they would be unwilling to share this data, further re-emphasizing that a vast majority of consumers are willing to share data in the right circumstances.

         Of course, the ability of a brand or an app to express those clear benefits is also significantly impacted by the value proposition that the brand/app is able to offer based on the data. For example, the article points out that a transport or shopping app has the advantage of being able to speak about an experience that a user would be able to potentially have. Furthermore, the article shows an example of how Jersey Mike’s Subs created an additional screen in their app to explain why they want a user’s location data and how they are using that data.

         From an advertising perspective, while it may be a bit more difficult of a case to make to the consumer for collecting data, it still is extremely feasible as advertisers can highlight opportunities for the consumer through more tailored offers or special promotions on services.

         Overall, I do think the recent regulations have helped force brands/apps to be both more cognizant and transparent about how they are collecting consumer data. As both a consumer and as someone who works directly for a brand, I’ve seen from both sides the benefits of the new regulations and with it, the additional effort from brands to ensure they are being more transparent about data collection. At the same time, brands/apps are also looking to acquire more data than ever on consumers. As an example, what used to simply be email marketing is also now being supplemented by SMS/text marketing as brands look to find new ways to ensure their messages are being put in front of consumers. What I think will be interesting to watch is how these regulations evolve as brands/apps continue to find more ways to personalize shopping experiences to drive higher conversions. To accomplish the more personalized experience, brands/apps will need to collect even more data and the impetus will be on them to convince the consumer that it will ultimately benefit them by having an easier and more rewarding shopping experience. 

https://www.emarketer.com/content/brands-are-getting-more-transparent-about-data-collection