Despite the rise of Facebook, the fact remains that companies like Google, Amazon generate more confidence with consumers. At least that’s what a recent a report says, by location-based marketing firm Placecast, conducted online by Harris Interactive.
According to the survey, users with their personal data trust Facebook less than other internet companies including Amazon, Google or their cell phone providers. Interestingly, U.S. adults trust their grocery store more than Facebook when it comes to sharing of personal data.
The report, entitled The Alert Shopper III, suggested that 81 percent of consumers were comfortable using profile information to target ads especially for your shopping needs. Only 33 percent were comfortable with Facebook to target ads specifically based on your location and your needs.
In contrast, 66 percent of people were comfortable with Amazon to promote items based on the relevance, and 41 percent were accepted Google to use their personal information to target ads specifically to you.
“Facebook’s business is based on the use of consumer data to target ads. They clearly have a challenge convincing their huge user base that there is value in the exchange of personal data for a free service,” Placecast CEO Alistair Goodman said. “In contrast, Amazon is a company just a few years older than Facebook, but they have created a scenario where consumers understand and accept the benefit their data provides for the service they are receiving – much like consumer’s acceptance of grocery coupons tied to purchase data.”
When asked, “How comfortable are you, if at all, about your privacy and the use of your cell phone service provider using location information from your phone, with your permission, to send you local offers?” U.S. adults age 18-34 show that nearly half of the respondents are comfortable with merchants sending them local offers on their phones. Only 27 percent of users aged 55 and above were acknowledged receiving ads based on their location.
“There is great potential for the use of location for targeting on mobile,” says Kathryn Koegel, Chief of Insights for Primary Impact consulting, which worked with Placecast and Harris to develop the poll. “Location is incredibly predictive of purchase intent – you are where you intend to buy – and marketers should look closely at acceptable, permission-based ways to use this data. As more and more consumers use apps that convey a specific benefit for turning on location tracking on their device – finding movies, restaurants, retail and entertainment options near them – they will be increasingly open to this kind of info being used by marketers to push relevant offers.”
As mobile phones becomes an increasingly important shopping tool and communication device, the industry owes it to consumers to ensure that they are given control over their mobile experience and their data — which means opt-in programs, transparency about how data will be used, and a simple opt-out process, Goodman added, describing the responsibility marketers and technology providers have in this new era.
Facebook is also ranks lower than Google+ on consumer satisfaction meter. A recent report from the latest American Customer Satisfaction Index (ACSI) E-Business divulges that Google+ grades higher than Facebook when it comes to privacy features, better mobile experience and absence of advertising on the social site.