Millennials are redefining privacy as a fair value exchange and are wary of brands that abuse this exchange, a study conducted by Contagious Communications and Flamingo has found.
This flies in the face of a common misconception that ‘young people don’t care about privacy’. Research conducted across the US and UK, indicates that millennials and post-millennials are considerably more concerned about privacy than other generations and this is manifesting itself in how they interact both with their peers and with brands.
Millennials are 28% more likely to switch products or services because of privacy concerns than the rest of the population.
- 54% of people aged between 18 and 34 in the US have stopped using a product or service because they were worried about the way it was using their personal data. This is compared to 42% of the general population and 33% of people over 55.
- 48% of people aged between 25 and 34 in the UK have stopped using a product or service because they were worried about the way it was using their personal data, for example. This is compared to 33% of the general population and 30% of people aged 55-64.
“Young people are increasingly aware that their information has value, and brands regularly trade in it to their advantage,” said Arunima Kapoor, associate director at Flamingo.
“But there is a disconnect between the value people place on their information and brands who trade in it. They are demanding a fair exchange and want to negotiate the terms to mutual advantage.”
The study also shows young people are also more willing to pay a premium to ensure their privacy:
- In the UK, 45% of people aged 18-34 would be willing to pay a premium in exchange for total confidentiality when buying products and services online. This compares to 30% of the population and 22% of people aged 45-54.
- 25-34 year olds in the UK would pay a privacy premium of 30%. Meanwhile, those aged 34-64 would only pay 18% more.
More details on the Privacy in Perspective study, including a full break down of the data as well as Flamingo’s consumer research on privacy, can be found here: http://www.contagious.com/blogs/news-and-views/14048709-privacy-in-perspective-and-numbers