Every day, each of us produces a wealth of personal data as we navigate through the digital world sending emails, using apps, and liking posts. Leaving such a breadcrumb trail allows both corporations and governments to identify, track, and target internet users – be it with harmless gym ads or warnings to put their masks back on, writes Virna Sekuj, Strategic Insights Manager, GlobalWebIndex (GWI). The company has brought out a ‘Connecting the dots’ trends report.
Through recent years – and recent scandals – this has increasingly troubled us. Back in 2013, GWI’s global data showed that 56pc of internet users were concerned about the internet eroding their personal privacy. By 2019, this had climbed to 61pc. Fast-forward to 2020, however, and the pattern has muddied. Some privacy concerns have actually declined in the wake of Covid.
So what’s happened? The threat to online privacy itself hasn’t lessened – if anything, it’s actually increased. What’s more, this is unfolding at a crucial time, when government regulation and moves by big tech to safeguard data privacy are challenging the ad industry – an industry largely reliant on user tracking to make money.
Unraveling this trend and figuring out what’s next has many layers. A deeper look into public perceptions around coronavirus and, especially, market nuances in heavily affected areas offers us some insight. Our research suggests that pandemic fears might be paving the way for greater acceptance of less data privacy, largely because of the benefit to public health.
Fortunately for brands, advertisers, and other for-profit companies that rely on user data, the knock-on effects of this are positive – and might well shape the future of this space.
A blip or a mindset shift?
In contrast to past trends, early 2020 saw a decline in attitudinal privacy metrics. This was especially true in markets which suffered through the pandemic early on. In China, the number of internet users who reported being concerned about the internet eroding their personal privacy dipped by 8% between Q4 2019 and Q1 2020. In Italy, it decreased by 4%.
The story takes a more nuanced path in other regions, urging us to further explore the changing relationship between consumers and their privacy. In Latin America, Argentina stands as a clear outlier. Related to this might be the country’s recent increased use of surveillance technology, both pre-Covid for public safety and post-Covid to manage the virus’ spread on transit lines.
A chicken-or-the-egg question comes to mind with this case – does a softening public opinion allow for more widespread erosion of privacy, or is it the other way around?
For many European countries, noticeable declines in privacy attitudes suggest a mindset shift might be happening. In Sweden, concern about the internet eroding personal privacy went down 12 per cent between Q4 2019 and Q1 2020, while in Switzerland it declined by 9pc, and in Austria, by 7pc.
Europe has been at the forefront of consumer data protection, setting a precedent with GDPR. Seeing this dip in privacy-consciousness across many of its markets, therefore, begs the question – how?
Being accustomed to stronger protection of their data, many Europeans might be the first to move into a new, more open, and evolved relationship with online privacy.
It’s difficult to isolate the effects of the pandemic from broader factors shaping data privacy, as all are inevitably connected. However, our research shows that COVID-19 has had a more direct impact on alleviating privacy fears in the name of public health. There’s a clear global demand for data-driven solutions to combat the virus: namely, contact tracing.
This method for contact tracing – while effective – is rife with potential privacy issues because of how sensitive data would be identified, stored, and processed.
But that concern has hardly made a dent in public demand for these apps, whose potential benefits to public health evidently outweigh the privacy risks. Across 18 markets, nearly 3 out of 4 internet users support government contact tracing apps/programs to curb the spread of the virus.
What’s especially striking, and suggests that we’re turning a corner in our acceptance of less data privacy, is that the most privacy-conscious among us are just as likely to support contact tracing apps as the rest.
Aside from Covid-19, considering technology’s broader capacity to improve our health seems to also mediate the usual suspicions. Among all global consumers, 30% say they trust new technology to improve their health. This is equally as high among those with strong privacy attitudes. It’s even higher, at 35%, for those with strong privacy behaviours.
It seems that consumers – even the most privacy-conscious – are able to relax their fears a bit when they know their data is being used for a public good. But what does this imply for data being used for commercial good?
Between the public good and the commercial bottom-line there is a step: the personal benefit. For an industry grappling with consent laws and opt-outs, emphasising this step is crucial.
Consumers make decisions every day based on costs vs. benefits. They’ll pay for what they deem to be “worth it” as long as they know the terms. What is the modern data economy, then, if not an exchange to mirror this? And how do people evaluate when it’s “worth it” to give up on some of their privacy?
Despite GDPR and other efforts, this has been wildly difficult for most people.
In reality, data sharing does provide personal benefit for internet users. It’s what gives us a seamless browsing experience online, keeps ads we see relevant, and lets us take advantage of more tangible things like free wifi or discounts. And, of course, it does come at a cost – the exact terms of which are often murky or difficult to find.
Companies that use our data need to make both of these clear to cultivate a more equitable relationship with consumers. When you understand both costs and benefits, you can make a more reasoned choice.
For industries to take advantage of relaxing consumer worries during this period, a new commitment to transparency and clarity in the long run will be paramount.
