For years, audiences posted their every thought and shared their activity online without hardly a care. We didn’t think twice about linking all of our apps and profiles together, giving Facebook access to our favorite games. Why waste time creating a new username and password when you could click a button and log in with Facebook?
Most people weren’t deeply concerned with how their movements were being tracked or if their information was being collected. Everyone was just excited to get access to the hot new technology, never mind the terms and conditions.
Then data breaches started making the news. The conversation around online privacy exploded in 2018 with the Facebook-Cambridge Analytica scandal, when the world learned that Facebook had exposed nearly 100 million users’ data to a political consulting firm. Suddenly, nothing on the Internet was safe. Users began to realize that technology companies closely tracked their habits and interests, and even more worryingly, that they were selling the information to other companies and advertisers.
Business leaders and news outlets debate the ethics of buying and selling online user information every day now. For companies, there is a fine line to walk between creating relevant ads and turning users off with your data use. To uncover the best ways to navigate our data-driven world, we’ll explore the pros and cons of collecting data while developing and running marketing campaigns.
The Case For Data
Though the idea of companies accessing your unique information can be off-putting, data-driven marketing can actually be incredibly useful and help improve your daily experience. We’re always going to see ads on social media one way or another. It’s how our favorite platforms are able to stay in business and remain free for us. If you have to continue to deal with ads, data and targeting can ensure that the ones interrupting your activity are at least interesting and relevant.
It can be helpful to think of the Internet and data usage like a two-way conversation. How does it make you feel when you talk with a friend who actively listens to you and remembers important details you mentioned? Usually, those friends are the ones that leave a positive mark on your life and are the most helpful when you need advice.
From a business perspective, customer data can help brands better understand the needs and interests of their audience. Reaching an engaged and interested audience helps companies get more bang for their buck, ultimately saving them money which they can use to improve their products and experiences. This all comes back to happier customers, and that’s what everyone wants at the end of the day.
The Case Against Data
Even when they’re helpful, highly targeted ads can seem creepy. That’s just the way it is. It can be unsettling for customers to see ads related to items they previously searched, especially if the searches were related to personal topics like health, finance or relationships.
Many users, especially those who aren’t as tech-savvy, don’t fully understand how their data is being used. They likely aren’t aware that the data a company sees isn’t attached to their unique name. Instead, it feels like corporate America is watching them. According to a Pew Research study, 74% of Americans say being in control of who has their data is very important. If users feel they are being spied on, they’re less likely to trust the company, let alone search for more information. Losing their trust can mean losing a future customer for good.
Overcoming Mistrust
At the root of the problems with data usage is a lack of transparency and understanding. Targeted ads can be extremely effective, but not if your audience feels violated. Help your customers become aware that social networks like Facebook make your data completely anonymous to advertisers. As a company, you just know you have reached a nameless group of people who fit X, Y and Z categories.
It may also help to be upfront about how you use data in your advertising. Include disclaimers on landing pages or on your website that outlines your anonymous targeting metrics and assures customers that you didn’t purchase their data. People appreciate companies that are upfront, and a little transparency can go a long way toward building lasting trust.
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