Social Mixer 2024 Singapore
marketing interactive Content360 Singapore 2024 Content360 Singapore 2024
How much does that data cost?

How much does that data cost?

share on

Majority of consumers are willing to share their data only if there is an incentive (68%). For consumers in developed markets in particular, they are less willing to share their data and also have a greater demand for incentives.

According to GroupM's latest study titled "Consumer trust in digital marketing", 57% of Singaporeans are willing to share their data but have a high demand for incentives (353 out of 400). Most Malaysians (63%) are willing to share their data and they too demand for greater incentives (209). Meanwhile, Indonesians are more willing to share their data (75%) compared to Singaporeans and Malaysians, and are less demanding about incentives (124). On the other hand, compared to the three Southeast Asian countries, those in Hong Kong are least willing to share their data (56%) and have the greatest demand when it comes to incentives (399).

groupm consumer trust chart

The type of data willingly shared differs too. The study found that consumers worldwide were most willing to share data that is likely to be general, aggregated, online behavioural information. These include entertainment history (84%), lifestyle information such as hobbies and interests (82%), purchasing history and demographic information (80%), as well as health and well-being (74%). Such data allows consumers to be classified into certain groups.

On the other hand, consumers were least willing to real-time location (50%), contacts and connections (42%), facial recognition (41%) and biometric (37%), as such data allows consumers to be identified as individuals. When it comes to personally identifable information, fewer than 50% would be willing to share even if incentivised as consumers view such data as sensitive.

groupm consumer trust chart 2

The study added that voice and facial recognition, contacts and connections, and communications history may by "the future flashpoints" as ads begin to appear on the associated platforms and leverages the data they produce.

In light of this, marketers need to have a clear data-usage framework that guides the type of data which can be used for what purposes. For example, aggregated information such as demographic information or purchasing history can be used on a tactical, personalised, creative level with no incentive since consumers are less sensitive to usage of this kind of data. This allows relative freedom within the realm of eCommerce, for example.

Conversely, the usage of individual information such as travel history and calendar information, should only be allowed for strategic, non-personalised, segmentation level. When it comes to other individual information such as communications history, a decision may be made such that it will never be used except with high incentivisation and a clear statement that the data will only be used for non-advertising purposes.

"All organisations should consider their approach to this level of detail as the data they collect on consumers continues to broaden and deepen. In turn, this creates an organisational implication in the need for CMOs to be even more closely aligned with data protection officers," GroupM explained.

As the marketing opportunities offered by data increases, there will also be more debate about the opportunities for data privacy requirements. Hence, GroupM said this requires tight, multifunctional communication and discipline within the organisation.

Which advertising touchpoint gives a positive impression?

Recommendations still reign supreme (46%) when it comes to the advertising touch-point that leaves a more positive impression of brands. This is followed by positive online reviews from other users (41%), TV ads (39%), social network ads (24%) and influencer recommendations (20%).

groupm consumer trust chart 3

When it comes to influencers, in particular, those in Indonesia (32%) give consumers a more positive impression of brands compared to Singapore (18%), Malaysia (27%) and Hong Kong (17%). That said, influencers are more popular in Asia Pacific markets, excluding Australia and New Zealand, compared to Europe, North America and Latin America.

groupm consumer trust chart 4

"The high figures likely result from a combination of complex cultural factors, together with how Asia Pacific has economically developed with emerging digital technologies and marketing solutions, rather than legacy perceptions," GroupM explained. 

According to GroupM, this makes a strong case, particularly in Asia Pacific, for the three actions - leveraging influencers or increasing the percentage of marketing spend allocated to them; being strategic in the use of influencers; and applying traditional media rigour to this modern marketing technique.

The importance of influencers is expected to continue to rise due to the fatigue with digital advertising. Also, the growth of direct-to-consumer eCommerce sales from influencers will accelerate this trend, GroupM said. While there is no detailed playbook on influencers, brands should always consider who to work with, the platforms to leverage and the tactics used. Additionally, it is known that ad fraud is rife in the industry and while there has been some improvement, GroupM said the attention applied to cleaning up the influencer space is still not proportional to the percentage of spending and power that these influencers supposedly have. As such, accurate, verified, robust measurement based on outcomes is required. The study surveyed 13,900 respondents aged 18 to 49 years old from 23 markets across Asia Pacific, Europe, Latin America and North America.

Related articles:
Are virtual influencers giving real ones a run for their money?
Making marketing work in Indonesia with influencers, data analysis and raw talent
Southeast Asia a 'highly lucrative' target for mobile ad fraud, says AppsFlyer
Infographic: Singapore hardest hit by mobile ad fraud in APAC
Study: Low data literacy causing SG$5.1bn loss in productivity in SG
Build a data reservoir: Regional marketers on Google cutting third-party cookies
Google to scrap third-party cookies: Will it crumble parts of the digital ad world?

share on

Follow us on our Telegram channel for the latest updates in the marketing and advertising scene.
Follow

Free newsletter

Get the daily lowdown on Asia's top marketing stories.

We break down the big and messy topics of the day so you're updated on the most important developments in Asia's marketing development – for free.

subscribe now open in new window