Can relevant advertising and consumer privacy co-exist? Absolutely. More importantly, consumers know they can — and demand that they do.

That was one of the findings of a recent survey of 4,000 consumers by Verve into the current state of in-app users’ privacy perceptions and related behaviors. For brands and app publishers, the significance of this expected balance can’t be overstated. Let’s dig deeper.

A greater appreciation for relevant advertising

At a high level, nearly 7 in 10 US and UK consumers (68%) agree they have more control over their app privacy settings than two years ago, and almost 6 in 10 (58%) of consumers are also more willing to share data on apps than before. That’s an important opportunity for brands and app publishers — and a big part of it has to do with relevance.

Three-quarters (75%) of consumers said they appreciated seeing content for free due to receiving relevant ads. Consumers also recognize the role of relevant ads when shopping, with 81% of respondents saying that relevant ads helped them to find products they didn’t know existed, and 69% saying that relevant ads made shopping quicker and more efficient.

Continued demand for stronger privacy safeguards

The flip side of the relevance coin is that of privacy. In parallel with their enhanced sense of data privacy control, consumers remain apprehensive about how their information is protected and used. Just under half (44%) are more concerned by the possibility of unauthorized parties accessing their data than they were two years ago, with 40% also citing increased concern around not knowing the purpose for which their data will be used.

Overall, 75% agreed that there is still more to be done in communicating how consumer data is used. Consumers pointed to three actions app publishers could take to improve consumer trust in apps:

  • Providing better assurance that data isn’t being shared with third parties (35%)
  • Ensuring understanding of exactly how data is being stored or handled (34%)
  • Offering insight into the security measures apps take and how they are protecting consumers from attacks (33%)

How to embrace the balancing act

As evidenced by these new survey findings, brands and app publishers must strike a careful balance between delivering relevant ads and protecting user privacy. Here are several strategies they can implement to achieve this:

Optimize privacy choice and clarity

Transparency is key to building consumer trust. As users become more knowledgeable and aware of how their data is used, they also demand clarity. App publishers should ensure that consent requests are not only easy to understand but also specific. For instance, they should list the exact purposes for data collection and the tangible benefits users will receive, such as more relevant ads or improved app functionality.

Adopting frameworks like the IAB’s Transparency and Consent Framework (TCF) V2.2 can help publishers communicate privacy choices across the entire ad ecosystem. This ensures that consumer preferences are respected throughout the data journey, from collection to usage by third-party partners. Additionally, keeping up with global data regulations, such as GDPR or CCPA, and continuously updating privacy policies is crucial to remain compliant and gain consumer trust.

Prioritize ID-less ad targeting

With growing concerns about data security and the effective phase-out of third-party cookies, contextual advertising is becoming a more reliable and privacy-conscious alternative. Rather than relying on individual user IDs, app publishers can leverage ID-less targeting approaches that focus on anonymous, device-based signals. By analyzing on-device behavior and grouping users into interest-based cohorts, publishers can still deliver personalized ads without compromising individual privacy.

Additionally, brands can test different types of ad formats and messages to identify which ones resonate best with their audiences. Conducting A/B tests within specific app environments can help optimize ad fit, ensuring that users see ads that feel relevant and contextually appropriate, which can significantly increase engagement and conversion rates.

Reshape revenue streams

As consumers become more comfortable with the value exchange in free apps, app publishers have a unique opportunity to rethink their monetization strategies. Shifting the revenue split between in-app purchases and ad-driven models can open new avenues for growth. By incorporating more immersive and interactive ad formats, such as gamified or video ads, publishers can create a more engaging experience for users.

Additionally, offering a wider variety of rewards for engaging with ads can incentivize users to interact with them more frequently. These rewards could range from exclusive in-app bonuses to extended free access to premium content. Publishers can increase consumer willingness to trade data for a better app experience by enhancing the value that ads provide to app users.

Navigating the relevance-privacy balancing act is not only possible but essential for brands and app publishers in today’s digital ecosystem. By optimizing transparency, embracing ID-less targeting, and innovating ad formats, publishers can deliver personalized, relevant ads while maintaining user privacy. This thoughtful approach will help build lasting consumer trust and create more sustainable, privacy-conscious revenue streams for the future.