New survey shows Australians’ concerns with Facebook

A survey of Australians provides plenty of evidence that we are not happy with what has been going on. Not happy at all.

We’ve learned a lot in the past few weeks about social media platforms and their ability to collect incredible amounts of data from users, then use it in targeted personal advertising. But as the dust settles from the Cambridge Analytica scandal and Facebook chief executive Mark Zuckerberg’s testimony in US congressional hearings, no one is sure what the Australian public — some of the people whose data is at the heart of the matter — thinks about all of this.

A new report from research firm Nature offers some of the first insights. The data, based on a survey of a representative sample of Australians conducted this month, provides plenty of evidence that we are not happy with what has been going on. Not happy at all.

The Cambridge Analytica scandal and the issue of data privacy certainly has occupied media and marketing people for weeks, but do average Australians care? The answer is an unequivocal “yes”. The Nature research confirms that most Australians, 67 per cent, are aware of the Facebook data incident. And more than 80 per cent of those who are aware of it also regard it as a serious incident, one that has made them more worried about what companies do with their data.

An even bigger challenge emerges with the results relating to personal targeting. Ultimately the biggest advantage of Facebook and other digital media is the ability to collect enormous amounts of user data, then segment the market into much more granular, precise target groups than was possible previously. Rather than reaching four million 18 to 35-year-olds to promote an expensive mountain bike, marketers can target the 16,000 people that enjoying cycling, have searched for mountain bikes recently and have been geolocated on various off-road bike paths on a regular basis in the past year.

But this bold vision of advertising depends on getting the data from users, then using it to hit them with personalised, more targeted offers. And it’s apparent from the Nature data that most Australians do not want to be targeted in this way.

Only one in five Australians likes receiving personalised messages. Most Australians, 62 per cent, regard ads that appear on their phone or desktop and use their personal data to target them as creepy. It’s common for marketers to misunderstand this clear signal. They will argue that consumers simply “don’t yet understand” how good targeted advertising can be or what the “ultimate benefits are for the consumer”, and use these excuses to continue their data-driven messaging. But the facts could not be clearer: most Australians, 60 per cent of the adult population, do not want to receive targeted advertising.

A disjuncture is becoming clear between marketers, who are obsessed with the potential of big data, micro-targeting and digital media, and the consumers at the centre of the bullseye who want nothing to do with it. Just because marketers can micro-target Australians based on personal information, does not mean that they necessarily should do it. The average Australian is dead against it. Of course, we should be careful taking such a general and broadbased approach to the Australian population. Using averages is a dangerous game.

Fortunately, the team at Nature not only looked at the average responses of Australians but also identified four very distinct segments that exhibit very different attitudes and behaviours towards data security.

The “actively concerned” segment believes that if their personal data were to be misused it would have serious implications for them, and they are more concerned than any other segment that this might occur. Their level of trust in companies and organisations is low, with this scepticism translating into a serious dislike of targeted advertising and a very real reticence to share any personal data.

The “cautious” segment also believes that companies regularly misuse personal data for their own gain, they are also more trusting in that far fewer assume that personal data shared online is available to everyone. Their greater trust also translates into greater willingness to share data — subject to guarantees of it not being shared with third parties.

“Pay for privacy” respondents are more savvy when it comes to protecting themselves online and they are far more likely to read a platform’s T&Cs before signing up. This savviness and caution also translates to a much greater willingness to pay for privacy protection.

Finally, the “comfortable” are happy to share personal data and believe companies can better meet customers’ needs by using their personal data. They fit marketer’s vision for consumers in that they like receiving personalised advice and messages, and are happy to share personal data if it leads to better browsing suggestions.

A final section of the Nature report looks at whether users would be prepared to pay for Facebook if their data remained private. It’s quite clear why Facebook has been reticent to consider a paid version of the site which users can access while keeping their data kept private. Facebook has never disclosed their full Australian revenue but we know they generate about 30c per user in advertising per week in Asia Pacific. If Facebook offered a paid service that cost 50c a week it would make more money, in Australia at least, than it does from its current advertising model. The problem, however, is that most Australians simply would not pay for Facebook. According to the Nature survey, only 22 per cent of Australians would pay 50c a week to protect their data and still access Facebook, leaving the company with an intractable problem. Most Australians have three things in common; they like to use Facebook, do not want their private data shared with Facebook, but they also do not want to pay even a small amount to keep that data private.

We have reached the equivalent of a data stand-off. Facebook is clear that is existing business model built on personal data and targeting is here to stay. Australians are equally determined to protect their private data and resent anyone attempting to use it to target them. Who will blink first? Facebook’s user data over the next 12 months will tell us