According to MMA India’s Data Privacy Report, only one in every three brands can provide personalized offerings, although most consumers are willing to pay a premium for it.
In its report titled, Data Protection and Personalisation in a Privacy-First World: A Marketer’s Guide to Future-Proofing Data, MMA India (part of MMA Global), the only not-for-profit marketing trade body, revealed some intriguing insights and findings. The report, which conveys needs and opinions, includes strategic recommendations from industry experts from AdTech and MarTech monoliths such as Google, Meta, Accenture, AppsFlyer, and Dentsu.
According to a vantage point article in the report by Vineet R Ahuja, Managing Director – Strategy & Consulting, Accenture India & MMA India Board Member, while the vast majority of consumers are willing to pay a premium for personalization, only one in three brands can offer a personalized offering or messaging. On the other hand, consumer data privacy issues are at an all-time high due to rising consumer awareness, stringent regulations, and initiatives by technology platforms.
The report also highlights discussions about why responsible use of consumer data has become an urgent need. It also explains the new gen’s desire for personalization without compromising their privacy.
MMA believes that marketers today must find ways to ensure that privacy does not become a barrier to providing better products and services to consumers. Rather, how a privacy-first approach to data can boost customer trust in the brand. The report offers advice on how to accelerate brand growth and delivery performance without compromising consumers’ privacy concerns. As per Arun Neelakantan, VP-Digital Transformation & Growth, Unilever South Asia, “with rapid digitization across sectors, the digital fingerprints of consumers have increased exponentially over the last few years and will continue to gain pace in the coming times.”
Important Points
- Meta believes that personalized advertising is central to the digital advertising ecosystem, which needs to drive the sharing transformation and has an impact on overall growth in the economy.
- According to a Meta POV, if businesses do not evolve to meet this moment, people will face a very different digital world dominated by less targeted ads and increasing costs for advertisers. Meta believes that personalization and data privacy can coexist.
- According to a 2020 Salesforce study, advertisers are still heavily reliant on third-party data, the majority of which is collected using third-party cookies.
- Dentsu believes that advertisers should build strong first-party data fortresses, data clean rooms, and novel ways to stitch around each other audience intelligence.
- As per Google’s brand-new marketer’s playbook, PepsiCo increased ROI by up to 3X by cultivating direct customer relationships. Asos, a U.K.-based retailer, saw a 31% increase in conversions upon using first-party data, and Rituals, a bath, and body retail company, saw an 85% increase in conversions within a week of surfacing powerful insights from its first-party data to find more valuable customers.
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