Understandably, many consumers demand explanations as to why they are prompted to share their data and information with businesses, whilst many more seek transparency on how their data is used. Some consumers who are subject to targeted advertising may not be aware of how their data is being used at all.
Targeted ads have been a game changer for advertisers, allowing them to reach their target audience through the power of data. But are these targeted audiences aware of how their data is used, and, more importantly, do they mind? Read on to find out more.
What is targeted advertising?
Targeted advertising is a type of online advertising in which advertisers can target specific customers based on their distinctive traits, behaviours and preferences. Or, in other words, based on their data.
In order to collect this data, brands and advertisers monitor and track consumers’ online activity, which sheds light on their behaviours and preferences. By using a solution like Finecast, you can even place targeted ads on specific consumers’ TV screens.
As a result, advertisers can target the right audience by matching their target audience profiles with the data of other consumers, offering advanced personalisation and receiving higher ROI.
So, targeted ads work by gathering and analysing users’ online activity to advise the type of ads that are shown to a user. But, how much do audiences themselves know about this data?
Privacy concerns of targeted ads
Over the past few years, there have been growing privacy concerns around the use of tracking data in targeted advertising. As targeted ads rely on gathering information from users’ online browsing activity and habits, some consumers may feel as though they are being monitored and troubled by the ads.
Governments all across the world have therefore established consumer privacy laws that safeguard consumer data, because of the concerns consumers have had over how their data was stored and used.
Considering how widespread advertisements are in the digital sphere, and the significance of tailored advertisements to customers’ entire online experiences, developers ought to think about creating platforms and apps that can link to ad networks. This will help to tackle some of the concerns that many audiences have over the use of their personal data for advertising purposes.
What do consumers know about how their data is used?
There are quite a lot of consumers who have no understanding of where and how brands use their personal data in their usual advertising efforts.
According to research published by The BBC, only 7% of consumers have a good understanding of how advertisers use their data, and 45% say they somewhat understand how their data is used by advertisers. In fact, only 16% of people surveyed said they always read the terms and conditions.
The statistics indicate that brands and authorities need to explain how data is used, and what the new data rules mean, more clearly. Consumers have a choice of whether or not they want to share their data with apps, websites and third-party sources in the form of the cookies option that often pops up when you visit a site.
As you can see, not all targeted audiences will be aware of how their data is being used, even if the brands who collect it have been completely transparent in their terms and conditions.