Taking the Pulse | COVID- 19 Recovery Navigator - Wave 17 March 2021
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dentsu Recovery Navigator Since the start of the COVID-19 outbreak, marketers, advertisers and consumers have sought to figure out how their lives would be changed. Now, almost a year later, our lives haven’t changed – they are changing, and will continue to do so. It is in this spirit that dentsu has created a monthly US consumer survey tracking consumer sentiment towards the changing situation, the results of which are packaged into our ‘Recovery Navigator’ reports. This report is the seventeenth iteration. You can read previous waves on dentsu.com Survey Methodology • Administered through an online research panel, Toluna, on March 12, 2021 • Random sample of 1,000 US respondents • Age 18-70 years old • Nationally representative weighting across gender and ethnicity (using latest publicly available US Census numbers)
Contents 1. Executive Summary 2. COVID-19: Consumer Sentiment 3. Spending Patterns: Consumer Segments 4. Protecting Privacy: Consumer Perspective on Google’s Ad Announcement
Contents 1. Executive Summary 2. COVID-19: Consumer Sentiment 3. Spending Patterns: Consumer Segments 4. Protecting Privacy: Consumer Perspective on Google’s Ad Announcement
Recapping Recent Events Biden Announces Accelerated Vaccination Normalcy On the Horizon for Vaccinated Third, Sweeping Stimulus Passed Timeline
Executive Summary Nov. 11 Jan. 14 Feb. 10 Mar. 12 14 15 16 17 Ending the Year as We Started, New Year, Little Change Recovery Still Eludes Americans Hope on the Horizon With Uncertainty As the U.S. reaches another grim Consumers react to the lessening US It appears that consumers finally feel As we near the end of the year, we ask milestone in the coronavirus case count optimistically, however, they that the pandemic is decisively headed consumers to reflect on their outlook pandemic, Americans continue to feel remain highly concerned about the risks in the right direction. While there is compared to the beginning of the pandemic, the worst is ahead of them. Health of the pandemic to their health and the still high concern over health risks, as well as speculate how their behaviors may risks are still of concern for home- economy. Most anticipate that a return vaccination rates are picking up and change in the future. to normal will be a gradual and cautious bound consumers, however, concern consumers are beginning to plan when for economic health is greater. process even after the virus has been they will feel ready to jump into All signs point to the US approaching a subdued. significant tipping point in the pandemic. normal life again. American consumers feel the worst is yet to Amid disrupted routines, many come, while feeling a significant send of consumers are taking solace in more This month we debut a new framework The light at the end of the tunnel to consider how ready different fatigue and mental stress. Continued distrust time spent with loved ones, on hobbies consumer segments are to return to couldn’t come at a better time as we in a vaccine despite recent announcements and in the outdoors. It is clear that continue to see the effects of the of successful trials illustrate failing normal. The four Segments analyze confidence in the US. And may result in while we crave a return to familiarity, differences in demographics, attitudes pandemic on consumers’ mental subdued activity even after a vaccine is people have found silver linings. and shopping habits. health. available. Technology has been a driving force of And during Black History Month, Following Google’s Ad announcement, A tumultuous election cycle, that has yet to our ‘new normal’ during the pandemic consumers tell us they continue to we dive into consumer attitudes come to a full resolution, has not resolved and is playing new, more positive roles expect brands to provide ongoing towards privacy. consumer uncertainty. One thing is clear – in consumers’ lives. consumers will continue to expect brands to support for racial equality in the US. step up to issues in society.
Charting consumer sentiment over the course of the pandemic Over the last two waves, we have begun to see a steady stream of consumers identifying as “Moving Into Recovery” – increasing 10 percentage points since mid-January of this year to 21%. This shift comes primarily from a softening of those in “Initial Shock” and “Coming to Grips”. Asking Consumers to Self-Identify with The Stages of Crisis Response INITIAL SHOCK COMING TO GRIPS LIVING THE NEW NORMAL MOVING INTO RECOVERY POST-COVID LIFE Modifying daily routine. Many moments of Outbreak is spreading. Feeling confusion, Starting to settle into a new routine, adapting There has been progress to mitigate the Fully reconnected to work and life without frustration and anxiety, focusing on what I fear or anger about how will impact my life to the evolving crisis outbreak in my community and the nation the threat of the outbreak hanging over me can control WAVE 14 NOV ‘20 24% 26% 29% 10% 11% WAVE 15 JAN ‘21 23% 26% 30% 11% 10% WAVE 16 FEB ’21 23% 26% 25% 14% 11% WAVE 17 MAR ‘21 21% 23% 24% 21% 10%
Contents 1. Executive Summary 2. COVID-19: Consumer Sentiment 3. Spending Patterns: Consumer Segments 4. Protecting Privacy: Consumer Perspective on Google’s Ad Announcement
Consumers react to lessening case counts and increasing vaccinations Optimism is soaring as consumers feel the pandemic is shifting in the right direction. Since mid-January, there has been a 42-point decrease in the share of respondents who say the pandemic is out of control or getting worse. Consumer Outlook on the Trajectory of the Pandemic Out of control Getting worse, but controllable Getting better Under-control It's over January '21 34% 38% 16% 7% 5% February '21 26% 31% 30% 8% 4% March ' 21 16% 24% 45% 10% 4% - 42 points + 29 points OOC/Getting Worse Getting Better Since January Q: Which of the following statements best describes how you feel about the trajectory of the pandemic in the US?
Comfort level in public is increasing, yet health concerns remain While consumer’s general comfort level in public is beginning to rise in tandem with a more optimistic outlook on the pandemic, they remain concerned about health risks. However, there is also a slight softening there. Consumer Comfort or Discomfort Going Out In Public Concern Abouts Risks the Pandemic Poses to Their Health Comfortable Uncomfortable Extremely Concerned Very Concerned Somewhat Concerned Not at all Concerned 10% 10% 14% +4 57% 56% 56% 54% 23% 24% 52% 28% +4 50% 28% 30% 46% 26% 44% 44% 48% 43% 39% 36% 32% June Aug. Oct. Jan. '21 Feb. Mar. Jan '21 Feb '21 Mar ' 21 Q. In the context of COVID-19, how comfortable are you currently going out in public? Q: How concerned are you about the risks of the pandemic to your health?
Concerns around health threat are highest among groups who are most impacted Although consumers share general concern about the risks the pandemic poses, the groups who express the highest level of concern (extremely or very concerned) are also those who have been most impacted – Black and Hispanic adults and generational cohorts who continue to straddle work and family obligations. Concern Abouts Risks the Pandemic Poses to Their Health Concern Abouts Risks the Pandemic Poses to Their Health Extremely Concerned Very Concerned Extremely Concerned Very Concerned Somewhat Concerned Not at all Concerned Somewhat Concerned Not at all Concerned 7% 11% 12% 12% 16% 18% 18% 25% 23% 24% 25% 29% 31% 35% 20% 30% 30% 37% 21% 67% 62% 22% 47% 65% 33% 52% 55% 66% 46% 37% 35% 34% 25% 25% 19% Boomers Gen X Millennials Gen Z Black Hispanic White Q. In the context of COVID-19, how comfortable are you currently going out in public? Q: How concerned are you about the risks of the pandemic to your health?
Activity levels rising slowly, most consumers remain hesitant Consumers continue to abstain from many activities including international & domestic travel, attending live events and going to beauty services. For necessities such as grocery shopping or going to medical appts., 1 in 5 continue to feel very uncomfortable. Consumer Comfort Level Doing Select Activities I don’t do this I do this but feel v ery uncomfortable I do this and feel somewhat uncomfortable I do this and feel fine Exercisin g 24% 12% 18% 46% +4 *Change since January 2021 Grocery shopp in g 8% 18% 31% 43% +3 Health /Med ical-related appoin tments 16% 19% 29% 36% +3 Non -grocery s hopping 22% 17% 28% 32% +4 Socializing 27% 18% 27% +3 28% +3 Dining out 35% 14% 24% +3 27% +5 Working at my office/place of work 40% 12% 22% +2 26% +2 Attending beauty service estab lish men... 40% 14% 21% 24% +5 Attending religious s ervices 49% 11% 18% +3 22% +4 Domestic Travel 47% 14% 19% +2 20% +2 Attending live events 56% 12% 15% 17% Sending kids to camp/sch ool 52% 13% 18% +4 17% +3 Internation al Travel 63% 11% 13% 13% +2 Q: Which of the following things, if any, do you currently do outside of the home and what is your level of comfort?
When consumers will feel comfortable returning is often dictated by each activities’ level of interaction When Consumers Say They Will Feel Comfortable Doing Select Activities: Attending Live Events International Travel Once experts say it Once they have Once the pandemic is safe to lift been vaccinated is officially over restrictions Domestic Travel For activities where the level of interaction is intense, like going to live events and international travel, a majority of consumers say they will only feel comfortable once the pandemic is over. Going to Beauty Service Establishments On other activities consumers were split between trusting expert guidance and wanting to be vaccinated themselves. For more interaction- driven activities like going to beauty services or socializing, consumers Socializing wanted expert advice, but many also wanted to be vaccinated. For activities done solo or with a trusted group and very closely tied to Retail Shopping local community, like shopping or dining out, consumers were more likely to listen to expert guidance. Dining Out Q: When do you expect to feel comfortable doing the following activities?
Conditions required for comfort differ by generational cohort Gen Z is most likely to be reliant on a vaccine to resume activities, while Millennials and Gen X are waiting for the pandemic to be over, or for experts to tell them it is safe. Boomers are the most cautious, preferring to wait until the pandemic is over to resume most activities. When Consumers Say They Will Feel Comfortable Doing Select Activities: Gen Z Millennials Gen X Boomers Attending Live Events Attending Live Events Attending Live Events Attending Live Events International Travel International Travel International Travel International Travel Domestic Travel Domestic Travel Domestic Travel Domestic Travel Going to Beauty Going to Beauty Service Going to Beauty Service Going to Beauty Service Establishments Establishments Service Establishments Establishments Socializing Socializing Socializing Socializing Retail Shopping Retail Shopping Retail Shopping Retail Shopping Dining Out Dining Out Dining Out Dining Out Q: When do you expect to feel comfortable doing the following activities?
Many feel a return to normal is close, yet individual recoveries may be staggered Half of consumers expect that life will return to normal either within the next 3 months or 6 months. While one-third say they will resume their pre- pandemic routines immediately, two-thirds express a more cautious and gradual return. Expected Timeframe to Return to Normal Life How Quickly Consumers Plan to Resume Pre-Pandemic Routines I already I will retu rn to my normal life immediately 32% 1/3 ready have to jump in Within 3 9% months 19% I will retu rn to SOME as pects of normal life right away but wait to 12 months retu rn to others 37% or longer 2/3 more cautious & 21% gradual Within 6 I will wait to s ee whether it is truly safe before resuming my 23% normal life months Within 9 32% months 19% I am fairly conten t with life right n ow and plan to continue many habits even after th e pandemic is over 8% Q: Based on the news and your personal experiences, when do you think you will be able to return to Q: Once it is deemed safe by experts to return to your pre-pandemic life and routines, how quickly your pre-pandemic life and routines? to you expect to pick things back up?
Millennials & Gen X are planning the quickest returns to normal life Straddling work and family needs, Millennials and Gen X appear most eager for normalcy. They anticipate being able to return to normal life within 3 to 6 months and plan to jump right back into their regular routines. Expected Timeframe to Return to Normal Life How Quickly Consumers Plan to Resume Pre-Pandemic Routines Boomers Gen X Millennials Gen Z Millennials & Gen X 3-6 months I will return to my normal life immediately 21% 38% 42% 20% Gen Z 39% I will return to SOME aspects of normal life right away but wait 33% 6-9 months to return to others 36% 41% 30% I will wait to see whether it is truly safe before resuming my 19% Boomers normal life 17% 9-12+ months 30% 9% I am fairly content with life right now and plan to continue 6% many habits even after the pandemic is over 8% 9% Q: Based on the news and your personal experiences, when do you think you will be able to return to Q: Once it is deemed safe by experts to return to your pre-pandemic life and routines, how quickly your pre-pandemic life and routines? to you expect to pick things back up?
Trust in vaccines is steady, with vaccination rates climbing Consumer trust in the COVID-19 vaccine is holding at 39%, relatively high compared to earlier this year. At the same time, the share of consumers who have been vaccinated continues to increase while those who plan to wait, or pass is declining. Levels Of Trust In COVID Vaccines When Consumers Plan to Get Vaccinated Jan. '21 Feb. Mar. Completely trust it Somewhat trust it Hesitate to trust it Do not trust it 14% Already vaccinated 22% 27% Jan. '21 30% 37% 20% 13% 29% Will be first in line 31% 27% 30% Feb. 44% 34% 11% 11% Plan to wait and see whether it is safe 25% 24% 9% Plan to be one of the last people 8% 9% Mar. 39% 35% 16% 11% 18% Do not plan on it 14% 13% Q1: Considering everything you know about the roll out of the Pfizer and Moderna COVID-19 vaccines in the US, how much do you ‘trust’ the safety and efficacy of those vaccines? Q2: Once the COVID-19 vaccine is available to people like you (if it isn’t already), when will you be willing to get vaccinated?
Vaccination efforts need to increase trust among younger and multicultural consumers Vaccine adoption continues to be driven primarily by Boomers as most states are focusing on older and more vulnerable populations. Gen Z , Black and Hispanic audiences exhibit the lowest levels of “complete trust” in the COVID-19 vaccine. BOOMERS GEN X BLACK HISPANIC 42% VACCINATED 28% VACCINATED 20% 15% VACCINATED VACCINATED MILLENNIALS GEN Z WHITE 22% VACCINATED 12% VACCINATED 33% VACCINATED Only 1 in 5 Only 1 in 3 Of Gen Z respondents ‘completely’ trust the COVID-19 vaccines Of Black and Hispanic respondents ‘completely’ trust the COVID-19 vaccines Q1: Considering everything you know about the roll out of the Pfizer and Moderna COVID-19 vaccines in the US, how much do you ‘trust’ the safety and efficacy of those vaccines? Q2: Once the COVID-19 vaccine is available to people like you (if it isn’t already), when will you be willing to get vaccinated?
Consumer’s emotional wellbeing mirrors the duality of the pandemic With a light at the end of the tunnel in the US, a majority of consumers express feeling hopeful, grateful and calm. However, the pandemic has stretched on for over one-year, and consumers are struggling with exhaustion, isolation and uncertainty. Emotional Sentiment - Mar. ‘ 21 Strong: Hope, Gratitude, Calmness Struggling: Exhaustion, Uncertainty, Isolation Hopeful Fearful Grateful Agry Motivated Exhausted Connected Isolated 22% 24% 45% 59% 41% 55% 78% 76% Confident Uncertain Calm Frustrated 35% 40% 60% 65% Q: For each of the following pairs of emotions, please select the one that best describes how you currently feel right now.
Implications for Marketers • Increase hope and optimism. Optimism is soaring as consumers feel the pandemic shifting in the right direction. For the first time since we started tracking a year ago, the percentage of consumers who believe the pandemic is getting better outweighs those who believe it is getting worse. However, with nearly half of consumers still suffering from exhaustion and isolation, marketers should consider how they can increase hope and improve mental well-being as we head into what we hope is the final stretch. • Continue to take a cautious approach to recovery. As of this month, only Gen Z considers the vaccine their passport back into out-of-home activities. Most consumers are waiting for experts to deem it safe, or for the end of the pandemic altogether. With 2/3 of consumers anticipating a cautious and gradual re-entry, brands should plan for a slow and staggered re-opening and consider how they can increase consumer comfort levels short-term. • Reinforce safety, particularly among younger and multi-cultural audiences. Both younger and multi-cultural audiences continue to express lower levels of trust in the safety of a vaccine. These same groups cite the strongest level of concern about the pandemic’s risk to their health. To appeal to these cohorts, brands should prioritize and reinforce safety measures.
Contents 1. Executive Summary 2. COVID-19: Consumer Sentiment 3. Spending Patterns: Consumer Segments 4. Protecting Privacy: Consumer Perspective on Google’s Ad Announcement
Most Americans concerned for the US economy, many struggling financially themselves 71% of respondents are highly (‘very’ or ‘extremely’) concerned about the risks the pandemic poses to the US economy, while 52% are highly concerned about their own financial situation right now. Concern About Risks to the US Economy Concern About Personal Finances Extremely Concerned Very Concerned Extremely Concerned Very Concerned Somewhat Concerned Not Concerned Somewhat Concerned Not Concerned 6% 6% 17% 18% 18% 22% 27% 30% 32% 33% 25% 23% 44% 38% 31% 29% Feb. '21 Mar. Feb. '21 Mar. Q1: How concerned are you about the risks of the pandemic to the American economy? Q2: How concerned are you about your personal finances right now?
Mapping Consumer Financial Security to Health Concerns LOW CONCERN FOR HEALTH RISKS Squeezed Set-to-Go LOW CONCERN FOR FINANCES 10% 32% of respondents of respondents HIGH CONCERN FOR FINANCES Strained Sheltering 42% 16% of respondents of respondents HIGH CONCERN FOR HEALTH RISKS
Overview: Consumer Recovery Segments Full profiles in the appendix. SQUEEZED SET-TO-GO Comfortable in public Comfortable in public Normal ads Business as normal GEN Z/ MILLENNIALS & MILLENNIALS BOOMERS Increase spend on dining & Increase spend on health & entertainment fitness STRAINED SHELTERING Anticipating long-haul Likely frontline or essential workers Portray pandemic life in ads Products/services that improve GEN X/ wellbeing PARENTS BOOMERS+ Connected, at-home habits Increase spend on necessities
Media Consumption Habits In-depth data in the appendix. SQUEEZED SET-TO-GO Younger and more budget conscious, they rely heavily on a variety of media channels for More comfortable out in public, they have reduced their reliance on media and are entertainment. heavily engaging in fewer channels. STRAINED SHELTERING They are hard workers who likely have less time for media (having resumed their regular They are older consumers who lean across less channels in general but are now relying on routines despite discomfort), so they engage across fewer channels. media to stay connected and informed, as they shelter in place.
When Consumers Will Feel Comfortable Resuming Activities: SQUEEZED SET-TO-GO Highly comfortable dining out and shopping. Curing stir-craziness with affordable The most comfortable dining out and shopping. Will attend live events once the pandemic domestic travel. is declared over. Retail shopping 47% 17% 13% 16% 6% Retail shopping 49% 19% 13% 10% 9% Domestic travel 43% 13% 12% 16% 15% Dining out 43% 19% 15% 15% 8% Dining out 40% 18% 17% 20% 5% Domestic travel 30% 19% 17% 17% 17% Attend live events 25% 15% 16% 15% 29% Attend live events 21% 18% 14% 24% 23% Int'l travel 18% 15% 11% 16% 40% Int'l travel 18% 10% 16% 19% 38% STRAINED SHELTERING More trusting in expert opinions on when it is safe to lift safety precautions. Others will The least comfortable doing activities. Many will wait until the pandemic is over to wait until the pandemic is officially over. resume activities. Others will pick back up once they are vaccinated. Retail shopping 22% 22% 26% 23% 7% Retail shopping 29% 25% 20% 19% 6% Dining out 18% 23% 23% 30% 7% Dining out 22% 26% 21% 22% 9% Attend live events 8% 17% 21% 31% 22% Attend live events 20% 21% 19% 25% 14% Domestic travel 7% 19% 25% 31% 18% Domestic travel 20% 25% 21% 21% 14% Int'l travel 5% 16% 18% 27% 35% Int'l travel 19% 19% 14% 24% 23%
Implications for Marketers • Personal health and financial security will dictate shifts in behavior and mindset. While there will be macro changes to consumers’ behaviors and spending as the pandemic evolves in 2021, many will be making decisions based on their personal circumstances. Behaviors will diverge along the lines of fear and desire. • Sheltering: This group is looking to be uplifted and is relying more heavily on media to stay connected as they shelter in place. Focus on bringing your brand to consumers by integrating into at-home entertainment, fitness, education and work habits. Relate to their situation by reflecting pandemic life in ads. • Strained: They are waiting on experts to signal that it’s safe to resume the activities they love. Many have reduced their media footprint as they’ve been forced back to work. They are looking for support from brands and likely need some uplifting. • Squeezed: They are feeling comfortable out in public and are resuming activities like dining and travel. When their budget constricts them, they turn to a variety of media channels to fill their entertainment needs. Brands should offer discounts and new experiences to engage them. • Set-to-Go: Open to resuming activities (though still mindful of safety), this group is ready to be welcomed back by brands. Marketers can appeal to them through normal communications or offer safely modified versions of everyday experiences.
Contents 1. Executive Summary 2. COVID-19: Consumer Sentiment 3. Spending Patterns: Consumer Segments 4. Protecting Privacy: Consumer Perspective on Google’s Ad Announcement
Consumer data privacy and technology timeline 2018 2020 January 2021 GDPR goes into CCPA goes into Apple to give users effect effect ability to block IDFA GDPR 2017 2020 March 3rd Apple introduces ITP Chrome announces 3rd in Safari party cookie deprecation
March 3, 2021 • No more third-party cookie targeting or tracking • No use of identity graphs • First party data focused • Use of Google FLoCs for interest-based ads
Consumers are aware of Google’s changes, feel favorably about it As of March 11th, two-thirds of consumers were aware of Google’s announcement. While 70% of respondents feel the announcement is a good thing, this is down slightly from one year ago when we first fielded the question after gaining insight into Google’s plans. Sentiment About Google Ad Tech Changes It's a good thing It's a bad thing I don't care/not sure 68% 11% 12% 12% 18% of respondents are aware of the - 7 points Google announcement Good Thing 77% 70% Jan. '20 Mar. '21 Q1: Google recently announced that they will stop using technology that tracks an individual’s online activity as they move from site to site across the internet. The personal information this type of technology collects is sold by Google to advertisers in order to help them serve more relevant and personalized ads to individuals online. How much did you know about this announcement prior to taking this survey? Q2: How do you feel about Google’s decision to stop using individual tracking technology?
Younger generations feel less favorably about Google changes While Boomers and Gen X decisively feel that Google’s decision to stop using individual tracking technology is a good thing, Gen Z is split with an equal number of respondents saying it is a good and bad thing. As savvy and avid internet users, they may fear that their online experiences will become less personalized, or they may simply not care for the regulation. Sentiment About Google Ad Tech Changes It's a good thing It's a bad thing I don't care/not sure 9% 10% 12% 7% 21% 11% 22% 39% 84% 79% 66% 40% Boomers Gen X Millennials Gen Z Q: How do you feel about Google’s decision to stop using individual tracking technology?
The past year appears to have heightened awareness of data collection Compared to one-year ago, when the CCPA went into effect, consumers report being more aware of what data is being collected on them and how it is being used. Those with a clear understanding rose 10 points, while those with a vague or no understanding declined 11 points from a year ago. Consumer’s Level of Understanding About Data Collection The Past Year Has Sparked Much Public Discussion A clear understanding A good understanding A vague understanding Little to no understanding 10% 8% - 11 points Vague/No 19% Understanding 28% 39% 39% + 10 points 34% Clear 24% Understanding Jan. '20 Mar. '21 Q: Recently, it has become apparent that companies/brands are collecting personal information on people. What is your level of understanding about what data is being collected on you and how it is being used?
Consumers believe that the risks of data collection far exceed the benefits And agree that not enough is being done to ensure their privacy is protected online. This sentiment is true across all age brackets. “The potential risks of data collection “Not enough is being done to ensure my outweigh the benefits” privacy is protected” 77% AGREE 83% AGREE 37% agree STRONGLY 38% agree STRONGLY Q: How much do you agree or disagree with the following statements?
Reclaiming privacy is top-of-mind for concerned consumers The urgency of concern over data privacy has risen slightly in the past year – with 46% of consumers now saying they are ‘very’ concerned. Consumers continue to actively protect themselves with 80% reducing the amount of data they share. Concern Over Privacy & Data Protection “I have reduced the amount of data I share with companies…” Very concerned Somewhat concerned Significantly Somewhat Not really Not very concerned Not at all concerned 1% 3% 22% 20% 18% 12% 39% 41% 38% 41% 46% 40% 39% 40% Jan. '20 Mar. '21 Jan. '20 Mar. '21 Q 1: How concerned are you about the privacy and protection of your personal information online? Q2: Have you reduced the amount of information you share with companies in recent years?
Heavy internet users express less urgency than light internet users Interestingly, light internet users are more highly concerned about privacy than heavy internet users and are more likely to have significantly reduced the amount of data they share. Heavy internet users may see more benefits than risks in data collection. Concern Over Privacy & Data Protection “I have reduced the amount of data I share with companies…” Very concerned Somewhat concerned Significantly Somewhat Not really Not very concerned Not at all concerned 2% 1% 21% 18% 12% 14% 32% 42% 37% 45% +9 point gap Very concerned +10 point gap over data privacy Significantly reduced data 53% 44% 44% 34% Heavy internet user Light internet user Heavy internet user Light internet user Q1: How concerned are you about the privacy and protection of your personal information online? Q2: Have you reduced the amount of information you share with companies in recent years?
Privacy concerns are strongest among older generations, but they are less likely to take action Boomers and Gen X express the strongest concerns over privacy and data protection. Interestingly, Boomers are the least likely to reduce the amount of data they share, potentially due to a lower degree of digital literacy than that of Gen X and Millennials (who are actively reducing data sharing). Concern Over Privacy & Data Protection “I have reduced the amount of data I share with companies…” Very concerned Somewhat concerned Significantly Somewhat Not really Not very concerned Not at all concerned 2% 3% 3% 7% 17% 17% 9% 9% 20% 16% 27% 17% 32% 42% 40% 39% 41% 39% 50% 44% 57% 48% 44% 43% 41% 34% 32% 30% Boomers Gen X Millennials Gen Z Boomers Gen X Millennials Gen Z Q1: How concerned are you about the privacy and protection of your personal information online? Q2: Have you reduced the amount of information you share with companies in recent years?
Brands should put data ethics at the center of their ethos A commitment to not sell or share personal information ranks among the highest factors in earning consumer trust. Of equal value is security, transparency and reputation/previous experience with the brand. Less impactful, but still a draw, is personal gain, such as custom experiences or discounts in exchange for personal data. Factors That make Consumers Most Comfortable Sharing Data Respondents asked to select TOP THREE choices They promise not to share or sell my personal information with 36% others They securely collect and store my personal information 35% They are transparent about how my personal information will be 34% stored and used I trust them or have a lot of experience with them 34% They have never been the subject of any data breach or misuse 29% scandal I have something to gain personally (i.e. discounts, a 25% personalized experience) None of the above 10% Q: Which of the following factors would make you MOST comfortable to share your personal information with a company? Please select your top three choices.
Consumers’ trust in the ad industry lags business & tech Businesses and tech companies are most trusted to keep consumer data secure. However, trust in the advertising industry falls a steep 14 percentage points. 68%trust BUSINESSES 65% TECH COMPANIES trust 54% trust AD INDUSTRY to keep their data secure to keep their data secure to keep their data secure Q: What is your level of trust or distrust that the following organizations are taking the necessary steps to keep your data and personal information secure?
Boomers are significantly more distrustful of their data being kept secure, especially by the ad industry BOOMERS GEN X MILLENNIALS GEN Z 49% TRUST BUSINESSES 79% TRUST IN BUSINESS 74% 66% TRUST IN BUSINESS TRUST IN BUSINESS 48% TRUST TECH COMPANIES 75% TRUST IN TECH COMPANIES 74% 64% TRUST IN TECH COMPANIES TRUST IN TECH COMPANIES 25% TRUST IN AD INDUSTRY 67% TRUST IN AD INDUSTRY 66% 55% TRUST IN AD INDUSTRY TRUST IN AD INDUSTRY Q: What is your level of trust or distrust that the following organizations are taking the necessary steps to keep your data and personal information secure?
There continue to be strong business repercussions for data misuse A year ago and now, a strong majority of consumers say they will stop doing business with a company that misuses their data. JANUARY 2020 MARCH 2021 82% Say they will 76% Say they will stop doing business stop doing business with a company that loses with a company that loses or misuses their data or misuses their data Q: How likely are you to stop doing business with a company that loses or misuses your personal information?
Gen Z is significantly less likely to punish brands for misusing their data Whereas Boomers, Gen X and Millennials are more likely to walk away. BOOMERS GEN X MILLENNIALS GEN Z 87% stop doing business 79% stop doing business 74% 57% stop doing business stop doing business with a company that loses with a company that loses with a company that loses with a company that loses or misuses their data or misuses their data or misuses their data or misuses their data 114i 104i 97i 75i Q: How likely are you to stop doing business with a company that loses or misuses your personal information?
Implications for Marketers • Champion data ethics beyond compliance. With industry regulations around privacy in flux, companies who champion data ethics will gain consumer trust. Data misuse is a leading cause of consumers severing their relationships with brands and companies. Brands who lead or participate in the next wave of privacy regulations have a better chance at retaining their customers and deepening trust. • Prioritize trust and transparency. Our research found that consumers feel most comfortable sharing their personal information with companies when there is a commitment that data will not be sold or shared, it is securely collected and stored, and there is transparency about how it will be used. Consumers are also more likely to share information with a brand they trust, pointing to the importance of building relationships. • Rethink the consumer value-exchange. As consumers’ have become more awakened to privacy, they have shifted from thinking of data as inconsequential to valuable. As the idea of data as a commodity becomes more mainstream marketers will need to ensure that every touchpoint works to earn consumer’s trust. Our research found that heavy internet users and younger generations tend to see more benefit than risk in data collection – they may be more open to to the idea of a value-exchange.
APPENDIX
Sheltering Financially secure, yet highly concerned about the pandemic’s health risks, this group is staying home. ROUTINES SPENDING BRAND EXPECTATIONS They exhibit a high level of concern about Less likely than other groups to increase They want brands to put people first and offer the pandemic: spending. Those that do plan to spend pandemic-friendly shopping: more will continue to spend on in-home • 65% believe the pandemic is getting Brands Should Respond to the Crisis By: necessities and activities: worse or out of control (114i) • Keeping employees safe/paid (70%, 113i) More likely to be: Spending MORE on over next 3 months: • Keeping customers safe (66%, 114i) 1. Groceries (37%) • Boomers+ (43%, 159i) • Offering new ways to shop (45%, 125i) They are anticipating a long-haul ahead 2. Household goods (37%) and a cautious return: 3. Personal care (36%) • Offering discounts (45%, 129i) • Or Millennials (27%), Gen X (24%) 4. Entertainment (32%) • 63% are uneasy in public (121i) 5. Health & Fitness (30%) • Mix of Urban (43%), Suburban (37%), Rural • 43% (134i) plan to be first in line to get They want to see pandemic life reflected (20%) vaccinated (15% have been vaccinated • Show how products/services help improve • White (72%), Asian (10%), Black (15%), already) consumer’s comfort, happiness or wellbeing Hispanic (16%) • 38% say normal is at least 12 months (37%, 116i) out, or longer (152i) • Portray pandemic life in ads (36%, 138i) • Small HH, not parents: 61% have
Strained Both concerned about their personal finances and the pandemic, this cohort is stressed on two angles ROUTINES SPENDING BRAND EXPECTATIONS Data suggests they are likely frontline They are reducing trips to the store They want brands to show their or essential workers who must and stocking up to providing for larger support for people and communities continue normal routines despite families: discomfort: Brands Should Respond to the Crisis • 88% tend to stock their homes with By: More likely to be: • 75% are actively employed (117i) more necessities than they • Keeping employees safe/paid • Gen X (37%, 137i) • 30% have already been vaccinated immediately need (114i) (63%, 102i) (136i) • Supporting local community • Or Millennials (40%), Boomers (17%) • 59% are uneasy in public (113i), with Most plan to increase spend on (50%, 100i) 22% of those citing “total necessities, perhaps ramping up after • Urban (61%, 117i) • Committing to social justice discomfort” (138i) period of budgeting initiatives (27%, 100i) • White (73%), Black (16%), Hispanic (18%) • 29% (126i) say they have already Spending MORE on over next 3 • Helping me and others returned to their normal routines, months: • Larger HH, parents: 49% have
Squeezed This group is more concerned about their financial situation than they are about the pandemic ROUTINES SPENDING BRAND EXPECTATIONS This cohort is more comfortable in Despite a limited budget, they are They want brands to offer safe. easy and public than the average American and excited to spend more on out-of-home convenient ways to shop eager to resume life fully: experiences like restaurants and Brands Should Respond to the Crisis By: entertainment: More likely to be: • 58% believe the pandemic is getting • Keeping employees safe/paid (65%, better or is already under control Spending MORE on over next 3 105i) • Gen Z/Millennial (53%, 118i) (135i) months: • Offering new ways to shop (44%, 125i) • 54% are currently comfortable in 1. Groceries (46%) • Or Boomers+ (31%) public (110i) • Offering discounts (43%, 119i) 2. Household goods (46%) • Rural (23%, 144i) or Urban (51%) • 29% (126i) say they have already 3. Restaurants/Take-out (42%) returned to their normal routines, 4. Personal Care (41%) • Hispanic (26%), Black (20%), White (68%) 27% (117i) say they expect to within 3 5. Entertainment (40%) …and they want to see how brands are months supporting communities • Smaller HH, not parents: 55% have
Set-to-Go Neither concerned about finances or the pandemic, this group has been minimally challenged ROUTINES SPENDING BRAND EXPECTATIONS Despite comfort in public, this group feels Less likely than other groups to less urgency around returning to normal life Return to BAU, while offering new increase spending. Those that do plan perhaps because they aren’t as stressed: to spend more will spend on health, way to shop and save More likely to be: restaurants and entertainment. Brands Should Respond to the Crisis • 71% believe the pandemic is getting better or is already under control (165i) By: • Millennial (37%, 100) or Boomers (32%, Spending MORE on over next 3 months: 128i) • 69% are currently comfortable in public • Offering new ways to shop (39%, 1. Groceries (35%) (141i) 109i) • With some Gen X (16%) and Gen Z (11%) 2. Health & Fitness (34%) • But only 20% (87i) say they have already 3. Restaurants/Take-out(32%) • Offering discounts (40%, 111i) • Suburban (40%, 125i) or Urban (43%) returned to their normal routines, with 4. Household goods (31%) • Show how products/services help another 20% (87i) expecting to within 3 5. Entertainment (31%) improve consumer’s comfort, • White (72%), Asian (11%), Hispanic (18%) or months Black. (12%) happiness or wellbeing (35%, 109i) • Only 34% say they will return to their normal pre-pandemic activities • Advertise as normal (23%, 127i) • Smaller HH, not parents: 60% have
Media Consumption Habits MOBILE TRAD. TV OTT ONLINE VIDEO SOCIAL MEDIA PC INTERNET GAMING AUDIO OOH INTERNET SHELTERING Heavy internet & social M M/H M H H H L L/M L media users STRAINED On-the-go: Heavy mobile M M/H M M/H H M M L M internet SQUEEZED Younger: Heavy digital M H M/H H H H M/H M L/M usage SET-TO-GO Active: Heavy M M/H L/M M/H H M L L/M L mobile internet
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