By: Yohan P Chawla
GroupM APAC recently launched their annual report on Data Privacy and Brand Trust in Asia Pacific, Turning Risk Into Opportunity.
I caught up with Chris Myers, Regional Director, Insights & Research, GroupM APAC, about the findings of the report.
How did you decide the report’s title, Turning Risk Into Opportunity?
It was clear from the research that consumers are worried about data privacy. This represents a clear risk to brands customer relationships if they mismanage handling their data. However, the research also shows that consumers are open to their data being used if it is done in a transparent, respectful, and incentivised manner. This is an opportunity for companies to take a leadership position in the market by bolstering consumer trust. Brand trust may become a competitive differentiator and growth driver, thus turning risk to opportunity.
Please highlight the key takeaways beneficial for brands and businesses in the APAC region and the sample size of the findings.
The research shows that data privacy is a concern for Asia-Pacific, and that attitudes do vary by country, suggesting the importance of localized strategies and solutions. The research also revealed that data privacy does impact choices about consumer products and services and that consumers desire to have control. To have access and use of consumer data, brands will need to build trust and may need to build incentives for data sharing. The paper also considers the implications for advertising and how companies will need to proceed carefully, particularly with regard to the home. Finally, the paper makes the case for proactively leaning into adopting progressive and consumer-friendly policies for handling data ahead of legislation. It is a call to action. The sample sizes by country are here:
Hong Kong: 589
New Zealand: 585
What is the impact of Data privacy issues on a brand’s equity? What should brands do to make sure that they don’t violate any data privacy laws?
Our research shows that higher levels of concern about data privacy is a barrier to consumers adopting technologies and purchasing products. While brands must comply with data privacy laws, our point of view is that brands should move ahead of regulation. Just because current data privacy regulation doesn’t preclude a brand from doing something with consumer data, it doesn’t mean they should.
The report states that 44% people are discouraged to own smart home devices due to privacy concerns
How do technology companies in the smart home device space deal with this?
The key is to offer consumers control over how their data is used, offer appropriate incentives, and reassure consumers those agreements will be honored through policy and technology.
Do the other 66% people have complete control of their privacy with these devices?
It simply suggests that this is not a top of mind concern for the remaining 56%. The other typical barriers to adoption are price and perceived benefits, but as the technology becomes more accessible (pricing and utility), data privacy concerns will rise in prominence.
Would improved privacy control settings provided by technology giants like Facebook and Google help solve the problem of data privacy?
To a certain extent, yes, and the tech giants have already moved in this direction. However, these companies face fundamental challenges given their business models are based on monetizing consumer data which our research shows is a mounting concern for consumers.
How do brands advertise if they do not have enough data to be able to maintain the relatability of a product or service with a customer?
Today, data is everywhere and available to marketers to employ in their marketing programs. Data is available from third-party data vendors, media partners, and agencies. The problem most advertisers face is not having accessibility to data, but rather knowing which data is most credible and important to informing their plans and ensuring they have responsible practices for data collection and use that gives consumers control and a fair value proposition for use of their data. This was illustrated in our research findings.
What should consumers do to make sure their data is not being misused by brands and data aggregators across?