Why great marketers should care about privacy.

May, 2015

The data suggest that opt-in is not the same thing as buy in.

• 47% of consumers are concerned about privacy & security of “smart home“ devices.1

• 37% of mobile brand marketers cited privacy as a very important issue.2

• The government’s new Office of Technology Research & Investigation will explore areas like privacy, big data, and the IoT.3

1 Privacy Concerns About the Smart Home, Parks Associates, April, 2015 2 IAB Mobile Marketplace conference, March, 2015

3 Press Release, March, 2015

1 Gallup Poll Social Series: Crime, October, 2014 2 Coleman Parkes/Accenture Interactive study, May, 2014

3 Pew Research Center, November, 2014 4 Pew Research Center, December, 2014

Privacy fears are a wedge between customers and brands.

• Americans fear hacking more than any other crime.1

• 70% believe businesses aren’t transparent about how their information is being used.2

• 91% of adults agree that consumers have lost control over how personal information is collected and used by companies.3

• 52% of internet users believe — incorrectly — that privacy policies ensure the confidentiality of their personal information.4

Your customers don’t have to be zealots before their privacy concerns impact their decisions.

Environmental policies can affect purchase decisions, especially when other benefits are similar.

Positions on social and governance issues (like sustainability) can affect valuations from equity investors and other communities.

Compliance on privacy doesn’t affect those decisions, and it’s no defense in a crisis.

Great marketers can do much more than tolerate the disconnect between policy & understanding.

2015

Expectati

ons/Awa

reness

Reality/Revelations

They know that better privacy communications can yield better brands and reputations.

Closing the understanding gap can make privacy a benefit that encourages transactions, engenders loyalty, and reduces backlash in the event of a breach.

2015

1 Reuters, September 2014 2 The Definitive Guide to Shopping Cart Abandonment 2015, Design For Founders

3 Opinion Lab survey, via Fortune, March, 2014

The costs and risks of not doing so cannot be ignored.

• Cyber attack could cost Sony Studio as much as $100 million (PlayStation hack impact was estimated at $171 million)1

• 28% of online purchase carts are abandoned because consumers don’t want to create an account.2

• 77% of respondents find in-store tracking unacceptable, and 81% said they don’t trust retailers to keep data private and secure.3

19 people, 8 cities, 3 continents. We’re researchers, brand strategists, content creators, media experts, alternate reality gamers and artists.

13 partner firms, specializing in technologies (CRM, mobile development, systems integration), community management, and industry-specific skills.

20 major engagement successes (current or past) for brands either 1, 2 or 3 in such categories as computer hardware, CE, automotive, insurance, transportation, non-profits, entertainment, and retail.

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Jonathan Salem Baskin President +1 312 725 0261 jonathan@arcadialab.net