64% of APAC Respondents More Willing to Engage with Brands That Collect Data Directly; 57% Open to Sharing Demographics Data: Twilio Research Shows

SINGAPORE, June 6, 2023  — Twilio (NYSE: TWLO), the customer engagement platform that drives real-time, personalised experience for many of today’s leading brands, has launched a first-of-its-kind research, The Consumer Data Revolution in Asia Pacific, providing unique insights into Asia Pacific (APAC) consumers' mindset around major shifts in data privacy and the evolution of digital marketing, including the industry’s imminent shift away from third-party cookies. 

The research showcases how consumers embrace personalised experiences while prioritising data privacy, highlighting the importance of trust, transparency, and education in building a sustainable data sharing ecosystem. It explores consumers’ preferences, attitudes, and expectations around data sharing amid the sunsetting of third-party cookies, and highlights opportunities for brands to strengthen consumer trust. The report includes findings from a total of 1,500 consumers in APAC across Australia, Hong Kong, Indonesia, Japan, the Philippines and Singapore.

APAC Consumers: Informed and Open to Data Sharing for Personalisation; Cautious of Third-Party Data

In a landscape where practically all businesses and organisations leverage consumer data at various levels, the study reveals that 50% of the respondents in the APAC region have some understanding of how their data is used.

The research also uncovers a correlation between comfort levels in sharing personal data and knowledge about how organisations utilise this data. An informed consumer base is key to fostering a sustainable data sharing ecosystem.

Respondents appreciate the benefits of personalised experiences, with 65% acknowledging that personal data usage enhances their interaction with brand websites. Over half (57%) are comfortable or indifferent to social media platforms sharing their personal data with other brands or businesses.

To elevate trust, 60% of respondents expect clear and comprehensible information about data usage, emphasising the importance of transparency in building consumer confidence.

The survey also suggests that education is key to strengthening trust. Among respondents in APAC who are unsure of how their data is being used by businesses, only 15% were comfortable with all their data being shared with another brand. This figure more than doubled to 34% among those who were generally aware how their data is being used, rising to 46% for those who had full knowledge of how organisations use their data. 

Striking a Balance: Consumer Scepticism and Usage of Cookies

Interestingly, 76% of respondents either accept all cookies or allow selected cookies, reflecting a willingness to engage in data sharing. This widespread acceptance appears to be mainly due to pragmatism, not ignorance, however. Most survey respondents understand that cookies are widely used to provide personalised experiences on a website or app. But they also say they would prefer that they are not used.

In fact, 72% of respondents believe consumers should avoid websites that collect cookies, indicating caution towards cookie practices. An overwhelming 90% agree that site owners must disclose their use of cookies and provide the option to opt out, or risk losing consumer trust. These findings underscore the need for brands to balance personalised experiences and consumer privacy, maintaining trust while offering tailored engagements.

Cyberattacks, Transparency, and Brand Loyalty

Following a data breach, 23% of respondents would still continue to share personal data with their favourite brand, while 42% would be less keen. However, 64% would be more willing to share personal data if the brand is transparent about the breach and takes necessary steps to address the situation. These insights emphasise the critical role of clear communication and prompt action in mitigating cyberattack damages, highlighting the importance of trust and transparency in today’s digital environment.

Zero-Party Data: A Mutual Benefit for Brands and Consumers

As third-party cookies phase out, consumers have higher data privacy expectations. Regionally, 72% believe in avoiding websites that collect cookies, reflecting an aversion to third-party data collection. The study also reveals that 64% of respondents would be more inclined to engage with brands if they obtain data directly from consumers. Additionally, 42% find personalised ads useful and are comfortable receiving such advertisements, while 52% state that personalised ads offer more options after making a purchase.

Nicholas Kontopoulos, Vice President of Marketing, Asia Pacific & Japan, Twilio said, "Today, consumers expect brands to protect their data and be upfront about how their data is being used. The combination of scepticism towards third-party data and the willingness to share data with trusted brands is fuelling new opportunities and forging the pathway to a healthy and sustainable data-sharing ecosystem across the region."

The Consumer Data Revolution in Asia Pacific report can be downloaded here.

Methodology
Twilio’s The Consumer Data Revolution in Asia Pacific study findings are based on a survey conducted in January 2023, gathering from a total of 1,500 APAC consumers across six markets — 250 each from Australia, Hong Kong, Indonesia, Japan, the Philippines, and Singapore. The survey respondents included a broad range of demographic groups, from 18 - 24 years old to over 55.