Amid the backdrop of stringent data-privacy regulations and increased scrutiny on the utilization of third-party data within the advertising industry, a disheartening consequence emerges: The fundamental principle of digital communication, namely personalization, risks being overshadowed and neglected.
The ad industry is simply losing sight of shifting the perception of digital advertising from an avoided experience to a desired experience. This is where marketers and advertisers need to spend more time and energy. Data regulations are inevitable, and innovative solutions to a cookie-less world will be adopted, but if consumers continue choosing to opt out of tracking, then all of this is futile. A recent stat showed that 75% of mobile users are opting out of app tracking. This means that the vast majority of consumers still don’t see the benefits of personalized advertising or still carry a negative perception of it. To reverse this trend, we must establish a meaningful value exchange where consumers willingly embrace personalized ads and reap the associated benefits. Despite a high percentage of consumers opting out, 71% of respondents said they prefer personalized advertising which gives us hope. We just need to catch up to their expectations and, better yet, exceed them.
This begs the question of how do we get consumers to opt in at a higher rate and invite personalized experiences into their lives? Below are three ways to create a meaningful value exchange between marketers and consumers:
Ensuring a better experience.
Marketers and advertisers need to ensure that the stereotypes of being associated with “annoying” or “invasive” advertising are eliminated. This means better control around frequency management, avoiding taboo topics, suppressing ads, etc.
Creating a value exchange.
Aside from publishers being forced to charge for a subscription, perhaps new opportunities can be explored such as providing exclusive content or discounts on products or services to consumers when they opt in.
Open two-way communication.
Embrace zero-party data by encouraging consumers to provide feedback to brands on their interests and how they want to be marketed to. All of this takes into account the very notion of data privacy: user consent and control. With the view of personalized advertising from the consumer’s lens, the ad industry can quickly gain trust and a willingness to accept personalized advertising, which will in the end be a win-win for both parties.