Consumers are increasingly wary about the information they share on social platforms and how their data is being used

Consumers have low levels of trust for social media advertising, but will pay more to purchase from a trusted brand, a new report from Cheetah Digital reveals.

According to Cheetah Digital’s new Digital Consumer Trends Index, 67% of consumers do not trust the advertising they see on social media platforms. And more than half (63%) don’t trust social media platforms with their data.

In a recent Cheetah Digital-hosted webinar, Teresa Sperti, Founder and Director, Arktic Fox said she doesn’t find the results surprising at all.

“Over time, there has been an erosion in the level of trust for social platforms,” she points out. “As a whole, this has led consumers to be increasingly wary about the information they provide on these platforms and how their data is being utilised.”

“From a data privacy point of view, consumers’ expectations are changing broadly,” Teresa adds. “Consumers are less trusting of brands when it comes to providing data. They don’t believe brands can be trusted to protect personal data or utilise it effectively. As a result, we’re seeing a wave of greater skepticism from consumers as a whole.”

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Adam Posner, CEO and Founder, The Point of Loyalty, agrees, pointing out the disruptive aspect of social ads. “The ads interrupt and are, oftentimes, irrelevant. But even more, they’re invasive. That aspect of social ads feels creepy, which works to erode consumer trust as well,” he says.

Adam brings up the idea that, on these platforms, the consumer is essentially the product. “It’s a real awakening,” he says. “Consumers are realising that if they’re the product through their data, then that means they’re valuable. So, naturally, they’ve become even more protective over their data.”

Cheetah Digital’s report also shows that email still reigns supreme when it comes to driving sales, beating paid social and display advertising by up to 228%. Meanwhile 63% of consumers are willing to pay more to purchase from a trusted brand. Almost half (40%) of consumers in Australia are more likely to take part in loyalty programs compared to last year. And 24% of consumers left their favourite brand because they didn’t feel valued as a customer.

Miles Toolin, Senior Solutions Consultant, Cheetah Digital says we’re going to see a shift to a ‘value exchange’ where the platform says ‘give me your data, and I’ll give you something to make it worth your while. And that’s when social platforms will start regaining consumer trust.

“The statistics don’t lie,” Miles says. “We’ve gone back to the future of marketing, in a sense. In light of all the creepy advertising, marketers are going back to the basics of building a brand. And that’s putting the spotlight back on email.

“Email is a trusted channel. At least 90% of consumer brands have emails. And it’s widely accepted. So, it’s a great foundation and super effective for marketers.” 

Access the webinar free and on-demand here.

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