A majority of global consumers believe that companies are primarily responsible for safeguarding customer data privacy. However, increasing distrust towards companies that fail to adhere to regulations is eroding brand loyalty and prompting calls for punitive measures. According to GetApp’s 2024 Advertising Preferences Survey, which examined nearly 6,000 consumer responses worldwide, an overwhelming 89% of US consumers feel that deceptive marketing practices should incur significant fines.
“There are signs that American consumers are becoming resistant to practices that have been taken for granted by digital marketers, such as personalized marketing or third-party data.”
Consumers Push Back Against Personalization Tactics
Personal data acquisition is crucial for tailoring marketing efforts and maintaining updated CRM databases. However, approximately 30% of US consumers disapprove of companies tracking their online activities for personalized advertising, a stark contrast to the global average of 19%. Many US states are implementing new regulations, such as the California Privacy Rights Act (CPRA), which restrict certain methods businesses use to collect and utilize personal data.
Despite this, 73% of consumers still prefer ads that are tailored to their preferences over generic advertisements. This indicates that marketers may be missing opportunities if negative perceptions of data tracking continue to persist.
US Consumers Withdraw Support from Misleading Marketers
Businesses should be wary of potential regulatory repercussions for misleading marketing practices, which often stem from poor customer experiences. Sometimes, negative reviews or word-of-mouth can be even more damaging than regulatory penalties.
Misleading content and false product claims have caused consumers to abandon brands. Alarmingly, 40% of US consumers report having ceased business with companies that employ deceptive marketing tactics—higher than the global average of 33%. In contrast, 32% of global consumers would inform their family, friends, or colleagues about deceptive marketing practices, compared to 29% of Americans.
Many US consumers are skeptical about businesses’ adherence to marketing regulations. Nearly half (48%) of those surveyed do not trust that companies are complying with regulatory guidelines regarding marketing communications.
“There are signs that American consumers are becoming resistant to practices that have been taken for granted by digital marketers, such as personalized marketing or third-party data,” said David Jani, a marketing analyst at GetApp. “Understanding what prompts consumers to report a business can help prevent harmful practices.”
Restoring Trust Through Transparency
To shift consumer perceptions, companies should prioritize data transparency and adhere to sound data practices. Utilizing CRM software and marketing analytics tools can help manage user data retention and ensure compliance with regulations. Additionally, engaging in social listening to gauge consumer sentiment is essential for quickly addressing any arising controversies.
For further insights, expert analysis, and recommendations, access the full report on GetApp.
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