There is a trust opportunity that the advertising world is not capitalizing on

Data-driven thinkingis written by members of the media community and contains fresh insights into the digital revolution in media.

Today’s column is written by Lauren Wetzel, COO of InfoSum.

When you download apps to your phone, most of them ask for information about you and the device you’re using. They may want to know your name, email address, or home address. Sometimes even your exact location.

This all happens courtesy (but not always ethically), but the amount of access these apps then have to personal data may surprise people. It’s no secret that Meta tracks visitors across its various platforms. What people may not know is how much he follows them on the internet.

In its first quarter 2022 earnings report, Facebook said he had 2.94 billion a month active users. At the same time, many of these users now feel a loss of control over their personal information. But it doesn’t have to be that way.

A YouGov study found that people are more likely to sign up for an online platform if they can see how their information will be used. This presents a trusted opportunity for marketers. There is a future at hand where people can be sure that in exchange for data they are receiving something of fair value, such as enriching and personalized experiences, curated content or early access to new offers. And while maintaining total transparency and control.

When customers are confident and feel in control of their data, their brand buy-in and loyalty will increase. And marketers can make data-driven strategic decisions to deliver a richer customer experience. Yet, with third-party cookies set to end next year, marketers face the inevitable: they must invest in a first-party data strategy to get a clearer picture of their customers. So what will it look like?

The two essential Ts of a data first party strategy: trust and transparency

The shift to first-party data will power the world of modern advertising, but it will require trust and transparency. According to Edelman Trust Barometer this year, mistrust is now society’s default emotion. Six in 10 consumers say their default tendency is to be suspicious of something until they see proof it’s trustworthy. For an industry that has often played fast and loose with consumer trust, it’s easy to see why there’s a lack of trust.

Moreover, trust is extremely fragile. It can be hard earned and easily broken. As brands and businesses move towards a first-party data model that will often require consumers to proactively sign up and register with their details, it may seem like brands are already behind the times.

The exchange of value must therefore be clear: consumers must know that if they share their data, it will not be used in a harmful way and they will reap clear benefits. On the other hand, brands need to ensure that privacy is a priority. Will it take regulation with fangs to deter advertisers from abusing data? Hopefully the industry can act together before this becomes a necessity.

Value expectations rise

We are already seeing better education going on about the exact value exchange that effective advertising requires. As consumers become more aware, they will want to know if something is a fair transaction. If companies continue with obscure practices or mislead their customers, they will not survive in an increasingly privacy-conscious world.

To build that trust, brands need to do two things: clearly communicate the benefits and implications of data sharing, and process data in a way that suits a modern, tech- and data-aware consumer.

It’s both good business and the right decision to make trust the cornerstone of your privacy strategy going forward.

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