Consumers' Surprising Take on Online Privacy

Is the current debate over online privacy more media hype than true consumer concern?

Yes, according to a new study released jointly by Upshot, a Chicago-based marketing agency, and BrainJuicer®, a consumer-driven consultancy firm. Their research found that, when presented with providing personal information in order to receive a useful service, consumers cared more about receiving a highly personalized, high quality and relevant service than protecting their privacy online.

The results come in stark contrast to the debate over online privacy blared across the media in recent months, from the blogosphere to traditional media. That drumbeat of coverage has seen Facebook to address its privacy settings, led MySpace and AOL to simplify privacy settings and introduce parental controls and pushed legislators on Capitol Hill to introduce online privacy legislation.

The study’s authors say they undertook the study for the benefit of marketers, who they feared were being scared away from offering more enhanced personalized online services by all the negative publicity.

Branded by the firms as a “Social Experiment,” the study presented more than 600 consumers with three service concepts – personalized deal finding alerts, cash rewards for using green transit and a virtual, personal shopping experience. The first, ‘experimental cell,’ was presented the services in the context of the privacy issue, while the second, ‘control cell,’ was asked to give their opinions about the services in terms of the personalized experience they offered.

Consumers had ‘very few’ concerns over giving up control of their personal information, as long as they received something useful in return. Those who declined the services did so because they didn’t see the product as useful, not because of privacy. Even the few who did cite privacy concerns cared more about financial security than sharing their general personal information online.

What’s the result for the marketers the study’s authors sought to allay? Upshot gives them four takeaways for offering better online services:

1)Â   Free your creativity.

2)Â   Market the benefits.

3)Â   Be transparent, but not apologetic.

4)Â   Don’t abuse their trust.

As for consumers? Looks like we’ll have to wait and see.

Join Baratunde Thurston (left), The Onion’s Director of Digital and author of How to Be Black, for an entertaining look at creative social media campaigns in our Social Media Marketing Boot Camp starting February 16. Other speakers include Morin Oluwole (Facebook), Tim Devane (bitly), and SocialTimes' writer Devon Glenn.   Register now.