JOINING THE DOTS AMONG CONNECTED CONSUMERS From the Big Data Economy to Personal Data Economy Ryan Garner, Research Director Ryan.garner@gfk.com GfK UK © GfK 2014 | Connected Consumer | March 2014 1 Connected consumer is here but data is disconnected UK households own an average of 3 different device types that connect to the internet “Personal data is the new oil of the Internet and the new currency of the digital world.” Personalisation is restricted by service provider Ofcom 2013 © GfK 2014 | Connected Consumer | March 2014 2 WHAT IS THE MOST EFFECTIVE WAY TO JOIN UP DATA THAT CREATES VALUE FOR BOTH BRANDS AND CONSUMERS? © GfK 2014 | Connected Consumer | March 2014 3 Personalisation of media content and advertising is the current approach. However, gaining an accurate single person view is very difficult Apple’s Approach Only a view within the Apple ecosystem iTunes Radio Digital tracking is difficult across so many touchpoints (cross media personalisation) Survey work is too unreliable for this particular purpose © GfK 2014 | Connected Consumer | March 2014 4 Furthermore, consumer behaviours and attitudes are making effective personalisation very difficult Ad Blocking Control 38% 47% Claim they have taken steps to block the display of online advertising Claim they want more control over the way their personal data is used Creepy 69% Find it creepy the way that some companies use information about them Source: GfK 2013 © GfK 2014 | Connected Consumer | March 2014 5 The impact of the creepiness factor Brand Attachment The Uncanny Valley Effect Chart by Masahiro Mori and Karl MacDorman A B C D E F Level of Personalisation © GfK 2014 | Connected Consumer | March 2014 G Source: GfK 2013 6 So what’s the alternative? The shift from the Big Data Economy to the Personal Data Economy Personal Data Economy • Individuals control their own data • Individuals are the point of data integration • Information is collected, used and disclosed by individuals for their own purposes and according to the individuals own personal privacy settings © GfK 2014 | Connected Consumer | March 2014 No issues around single customer view Choice given back individual not filtered by brand/advertiser 7 Brands can build stronger relationships with consumers by differentiating on trust/consent I would provide companies with more information about myself if I could be sure they were not going to share it with anyone else unless I gave explicit permission 4% 16% Disagree strongly 29% Disagree somewhat 48% Neither Agree somewhat “Give a man a mask and he will show you his true face” Oscar Wilde Agree strongly Source: GfK 2013 © GfK 2014 | Connected Consumer | March 2014 8 But consumers want convenience not spreadsheets Choice Engines © GfK 2014 | Connected Consumer | March 2014 9 The future is uncertain but the obstacles are very real Proliferation of platforms & devices © GfK 2014 | Connected Consumer | March 2014 Data locked behind walled gardens Uncanny Valley Effect 10 Three alternative considerations: 1. If data is the ‘oil’ of the information age, then trust will be the driver of brand preference and loyalty among customers 2. There’s nothing new about customer centricity but being customer driven can avoid creepiness and increase brand attachment 3. Remove the complicated algorithms, profiling and personalisation. Becoming a choice engine gives control back the customer and allows the brand to differentiate by filtering around the edges © GfK 2014 | Connected Consumer | March 2014 11