Growth of the perpetually connected consumer continues with more than 1 billion smartphones in use globally by 2014 according to IDC. More than just a large user base, nearly 40% of the $85 billion global online retailing market is carried out over mobile devices.
This creates new opportunities within the advertising ecosystem and it’s essential that marketers understand how to target consumers more effectively on mobile to heighten brand awareness and build loyalty across all channels.
The challenge is that targeting consumers on mobile is a sensitive issue as it feels more personal – your mobile is a device that is always on and always with you. It’s personal, just like privacy.
Consumer Behavior
Research into consumer behavior reveals the importance of educating consumers on how to actively manage their privacy. According to Choicestream, 60% of consumers felt retargeted advertising was “annoying”.
Recent research by Harris Interactive, on behalf of TRUSTe, found that nearly 80% of consumers want control of their privacy and 70% are aware of ad tracking on mobile devices. However, they will not sacrifice their privacy – 78% will not download an app they don’t trust.
New Technology Helps Target Consumers
As consumers increasingly turn to their mobile to get the perfect gift and grab the best deals, it’s still tough for marketers to track consumers on this platform.
Why? There are limitations due to technology, whether it is the use of cookies on mobile devices or each vendor having its own technology to deliver targeted advertising across all devices, and the lack of education about how consumers can reap the benefits of sharing their preferences.
The technology is evolving too.
The move to mobile means that cookies are not optimal for use on mobile as there are two environments to consider on a mobile phone – mobile web and mobile applications. And while some cookies may work in mobile web, they do not help create a unified user experience for the consumer.
Targeting consumers on mobile devices creates new challenges as marketers deal with complex environments and need to carefully consider how to deal with the issue of privacy. New technology requires education – consumers need to understand how to manage their privacy.
As companies start to use new platforms to understand and track consumer behavior, privacy concerns arise.
New technologies include cross-device programmatic platforms and geo-location processing platforms. Cross-device platforms capture information from consumers on both desktop and mobile without using personal identifiable information (PII).
They use data points available on mobile web and app browsers and pair it with devices. Geo-location platforms use location data to create, or tie to, user profiles and provide consumers with relevant mobile advertising.
Respecting consumer privacy is of paramount importance when protecting a company’s brand reputation. The solution for companies is to provide transparency about their data collection practices and offer ways for consumers to manage their privacy preferences across different advertising networks and platforms.
With today’s privacy conscious consumers it is important to help them understand how their information is being captured, used and for what purpose. Each consumer has a different personal definition of privacy.
TrustArc helps educate consumers as well as advise companies on how to protect their brand reputation, and deliver privacy safe, interest-based advertising to their target audiences. As a result, consumer engagement can be positively impacted and advertising ROI can be maximized.
Helping consumers understand how to manage their privacy and easily opt-out or opt-in, along with helping companies address consumer privacy concerns, is key to the future growth of the mobile advertising ecosystem.
Transparency and Investment in Mobile Privacy Key for Businesses
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- Understand data flows within your company – learn how customer information collected, stored and used.
- Companies need to provide transparency about their data collection practices and offer ways for consumers to manage their privacy preferences across different advertising networks and platforms. 80% of consumers want to control their privacy – 78% will not download an app they don’t trust.
- Investing in mobile privacy can help to protect brand reputation, increase consumer engagement and maximize advertising ROI.
