Consumer concern about online privacy is growing, with 94% worried about it and 54% more concerned than a year ago, according to a new study.
The research, carried out by Truste, suggests the impact on businesses could be significant, with consumers engaging less with companies they do not trust, but there is also evidence that transparency can improve customer loyalty to other companies.
The survey also found that 27% of consumers are more concerned with mobile privacy than website privacy, while they engage less with companies they do not trust – leading to lower purchases (29%), app downloads (68%) and sharing of information (86%)
Consumers also believe advertisers, publishers and ad networks are all responsible for safeguarding their privacy, but trust themselves the most.
The study also shows that transparency is key if businesses are to address these concerns. For example, 79% of consumers are aware of online behavioural advertising (OBA), 53% do not like it, and 42% believe that personally identifiable information is attached to tracking activity.
But favourability towards this kind of advertising almost doubles when consumers are assured that any data that could identify them personally is not used.
Consumers also reward companies for good privacy practices, with 51% more inclined to click on an advertisement that gives them the option to opt out of online behavioural advertising, and 55% are more inclined to do business with publishers and advertisers that give them the option to opt-out.
Truste chief executive Chris Babel said: “The recent EU cookie directive has put third party tracking and online behavioural advertising under the spotlight in the UK, and has forced advertisers, publishers and brands to consider their data privacy practices and how they communicate these to their consumers.”
