Credit: Rupixen via Unsplash
Retailers face a growing trust crisis as consumers increasingly question how their data is used, forcing a rethink of personalised ads before new privacy laws arrive.
Research by IAB Australia revealed that the majority of advertisers and agencies think the incoming privacy legislation will impact retail media advertising.
The Retail Media State of the Nation 2025 Report also found that consumer concern over how retailers use their data has increased over the past two years.
Afterpay programmatic partnerships lead Chloe Sanderson said that these findings were “disappointing” but not “shocking”.
“In the report, we saw that 73% of Australians and New Zealanders are still feeling quite uneasy about the ways in which their data is being used by retailers,” she told the audience at the IAB Australia Commerce and Retail Media Summit.
“I am a little bit disappointed that it hasn’t shifted year-on-year, so we’re still not getting something right.
“I don’t think this is necessarily just a compliance, regulatory framework or policy issue. I actually think it’s an issue with brand trust.
“I say that because building brand trust actually comes down to a lot of things, like better reward programs and loyalty programs, but it also relevant advertising, and we’re causing distrust in the consumer’s mind if we're missing that mark.”
Sanderson shared a personal anecdote about purchasing a pair of hiking boots online.
“I am planning a trip to Everest Base Camp so I bought a pair of hiking boots about six months ago,” she said.
“I’m still being followed around by the same goddamn hiking boots. It’s so frustrating as a consumer that I’ve stopped shopping there.
“I need a lot of gear for this trip but I’m no longer a loyal customer because of this experience.”
Sanderson said Afterpay knows it’s important to have a robust tech foundation that allows sophisticated targeting and personalisation.
“We recently partnered with the Narrative I/O for this reason, but we also partnered with them because of their privacy by design approach,” she said.
“It’s our centralised data platform and there’s no data movement that happens.
“We’re flipping that data playbook on its head a little bit and making sure we have a tech infrastructure that allows us to stay privacy safe in upcoming reform but still drive relevant targeting.”
Sanderson revealed that the Afterpay 2030 Report showed that shoppers like personalisation.
“We found that 66% of people actually want to be heard by the brand,” she said.
“They want to feel like their needs are being understood and that advertisers are building these campaigns based on those needs and tailoring it to the consumer.
“They don’t hate personalisation. They just want to feel safe about it. They don’t want to be followed around the internet. Trust is not just about policy, it’s about the experience.”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.