As consumers take control of their data, marketers and technologies adjust
Originally authored for Digitas’ Trends Report
Facebook and Apple's war of words recently reached a fever pitch when Facebook launched a campaign in direct response to the news that Apple would include a mandatory data permission prompt for all apps in its App Store. While both corporations have their own interests in mind, it's hard to disagree with Apple CEO Tim Cook's point of view when he said, “users should have the choice over the data that is being collected about them and how it's used”.
While the battle of tech juggernauts is a continuing story of data privacy that's been brewing for years, individual consumers in larger numbers are not only paying attention to what companies do with their data, they're taking action to opt out, take control and completely shift the ways in which they interact with the digital landscape. We usually focus our attention on trends that engage and build on consumer relationships, but how do we market to consumers that are changing the game? In this issue we'll look at five areas in flux.
Smart speaker shift
Smart speaker purchases have been on the rise for years, but using them for higher utility tasks like shopping is still not quite taking off as expected. While shopping via smart speakers has flattened, voice search and online shopping in general continue to rise, as consumers favor other devices to conduct searches and complete transactions.
It turns out that most consumers only use their speakers for playing music, asking quirky questions or doing simple voice queries like checking on the weather. Additionally, the rise of privacy concerns based on "always listening" technology has, rightly or wrongly, soured some consumers' impressions of smart speakers. With only 24% of Alexa skills having privacy policies, one wonders when consumers will turn off their speakers and turn to other devices.
Paying customers for engagement
With the ongoing upheaval of social media platforms, alternative options like MeWe and Minds - a blockchain social platform with a marketplace built into the experience - have introduced the concept of rewarding consumers for their engagement.
This new model empowers consumers to control their own data and essentially barter it with brands in exchange for micropayments through online tokens or for deeper content. If these platforms can combat social toxicity and establish coherent moderation guidelines, then they may represent a new day for social media.
In the meantime, requesting data companies to alter or delete personal data is still a pain. New tools and services are stepping in to help. Datawallet and Panel App offer tools to fine-tune and anonymize a consumer's data and then sell it for cash or rewards. With the ubiquitous nature of personal data being collected and with the toothpaste already out of the tube, so to speak, this trend could squeeze data-dependent industries.
Opaque tech in cars
Most car owners have little idea what technology exists in their car, or what the tech actually does in their car for that matter. Consumers expect the full driving experience to just work. The ever-increasing auto tech stack has moved from being a relatively easy-to-understand transportation device that sometimes could be maintained yourself, to a computer-on-wheels that needs expert maintenance. Pair that with an increase in demand for a full, frictionless online shopping journey - from online car research to actual purchase to at-home
delivery - and the demand for a high-tech experience is increasingly not found at local dealerships, as ThinkwithGoogle recently detailed.
The increase in telematics built into cars coupled with increased usage of iOS and Android maps while driving, will only increase in-car privacy issues. Automated speeding tickets from telematic or app data await us in the future, as do the privacy bills crafted in response shortly thereafter. Assuming that some drivers won't want to change their behavior, opting out of these features or purchasing additional tech to counteract it may become prevalent. This competing mix of agendas will reshape how consumers interact with the automotive industry.
Fewer features, please
Meditation and mental wellness app usage was up this past year. However, there remains a worrying relationship between our time spent on our phones and a corresponding rise in anxiety, loss of sleep and depression. Do we solve this addiction with more technology, or will consumers decide on their own by turning off their phones? The widely reported Light Phone represents an interesting trend towards purchasing fewer features and functionality. Turning off all notifications on apps definitely impacts a brand's KPls, but it may be a necessary step towards the recovery of consumers' collective mental health.
Banking on the Blockchain
In a world of copying, pirating, and the mass sharing of peoples' files, non-fungible tokens (NFTs) offer a new and purportedly securer alternative for digital ownership. In some ways, it's the latest version of purchasing rare collectibles but, ironically, through one of the most cutting-edge digital technologies available in blockchain.
Partially born out of consumers diminishing faith in traditional financial institutions, NFTs offer the allure of buying a certified digital piece of art that some would argue has more intrinsic value than fiat currency. Individuals, celebrities and some brands have jumped on the speculative train, including Grimes and NBA Top Shot. Potentially as disruptive as Napster in the 90's, this space will be a volatile and fluid one to watch.