Fresh evidence has emerged about the threat of major “signal loss” when Google lets Chrome users adjust privacy settings to eliminate ad tracking, with nearly three-fifths of UK consumers saying most ads they served under the current regime are irrelevant, ill-timed and intrusive.
That is according to a new study by Publicis-owned data and tech specialist Epsilon, which claims that this lack of personalisation gives consumers little reason to approve cookies when Google launches its new browser-level cookie settings.
Google’s decision has already fuelled fears that it will lead to a repeat Apple’s iOS 14.5 update in 2021, when millions of consumers ditched advertising. In fact, leading UK industry bodies the IPA and ISBA have already pledged to work closely with Google in a bid to gain clarity over what advertisers can expect.
According to Epsilon’s study of over 2,000 UK consumers, nearly three-fifths of Brits (56%) see ads that are irrelevant so they simply scroll past, while 47% see the same ad too often and just over a third (34%) say ads pop up at the ‘worst possible time’.
Epsilon insists that, when it comes to sharing data, a better solution is needed to build a more favourable value exchange for consumers.
More positively, 20% of consumers have noticed an overall improvement in brand efforts to personalise messages and interactions across several key verticals over the past two years.
Some 20% reported enhancements specifically in the grocery brand category, indicating that those who recognised improvements did so particularly with messages from grocers such as Morrisons, Sainsbury’s and Waitrose.
Epsilon UK managing director Elliott Clayton said: “These improvements illustrate the contribution of first-party data-led strategy to a more positive consumer perception of advertising. Grocery has long been the poster child of retail media, with the frequency of purchases and vast customer bases foundational to a channel focused on smarter use of transactional data.
“Supermarkets are increasingly focused on making every shopper feel recognised and valued. Morrisons’ ‘My Points Boosters’ scheme is a perfect example, offering customers the chance to select their favourite brands from a personalised list. Similarly, Waitrose impresses with personalised vouchers that reflect individual shopping habits. These tailored approaches show a strong commitment to customer satisfaction.”
The findings place groceries significantly higher than the next best category, technology – which includes brands like Apple and Samsung – within which 14% of consumers reported improvements. Completing the top five are fashion and apparel (13%), travel (12%) and food and beverage (11%).
An interesting proof point is that just 15% of consumers report brands still forget they have already bought from them. It indicates the increasing contribution of transactional data and more accurate user profiles through first-party data.
However, a specific challenge related to retail media is proving incrementality, that a campaign drives new revenue as opposed to being shown to people who are already going to buy an item.
While the data suggests most ads do reach the right shoppers, 17% of respondents reported seeing ads for products they were already planning to purchase.
Finally, Epsilon’s research provides further evidence that some brands are still focusing on personalisation for younger generations and failing to target the over 55s properly.
It reveals that, while 38% of 18 to 24s say brands have got better, only 11% of people aged over 55 thought this was the case.
Furthermore, two-thirds (67%) of over 55s say most ads are irrelevant to them and they scroll past. Considering this generation spends more annually than any other generation, according to previous Epsilon data, brands are still potentially missing out on this lucrative market.
Earlier this week, a separate GWI study claimed that too many marketers and their agencies are producing campaigns that only actually appeal to them, rather than to consumers at large, exposing the folly of running activity that is “young and trendy”.
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