A U G U S T 1 2 , 2 0 2 1

CONSUMER PERSPECTIVESON ONLINEACTIVITY TRACKINGHow can brands develop and maintain relationships with consumers in this new data access environment, what is considered a fair value exchange for leveraging consumers’ data, and what types of incentives are most effective?

Copyright © 2021 Morning Consult. All Rights Reserved.

E X E C U TIV E B IO

Dr. Kyle DroppCO-FOUNDER AND PRESIDENT

Dr. Dropp is a leading scholar in survey research and data science who cofounded Morning Consult in 2014. He leads Morning Consult’s research division, where he had the opportunity to oversee research relationships with dozens of Fortune 500 companies, media organizations, and industry trade associations.

WHO WE ARE

MORNING CONSULT IS A GLOBAL DATA INTELLIGENCE COMPANY

DELIVERING INSIGHTS ON WHAT PEOPLE THINK IN REAL TIME.

AlgeriaArgentinaAustriaBangladeshBelarusBelgiumBoliviaBosnia BotswanaBulgariaCameroonChileColombiaCosta RicaCroatiaCzech RepublicDenmarkEcuadorEgyptEl SalvadorEstoniaEthiopiaFinland

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DAILY TRACKING IN 15 COUNTRIES

AustraliaBrazilCanadaChina

FranceGermanyIndiaItaly

JapanMexicoRussiaSouth Korea

SpainUKUSA

ON DEMAND IN 100+ COUNTRIES

GLOBAL DATA INTELLIGENCEWe survey over 10 million people around the globe every year

§ DAILY TRACKING § ON DEMAND

5

Digital privacy rights are a high concern in the US and Europe, and people feel that not enough is being done to address the issue

DIGITAL PRIVACY

These surveys were conducted between April 8 and April 15, 2021, among representative samples of 1,000 adults in France, 1,000 adults in Germany, 1,000 adults in Italy, 1,000 adults in the U.K, and 1,660 adults in the U.S. The interviews were conducted online, and the data were weighted to approximate a target sample of adults based on age, gender, education, and region. Results from the surveys have a margin of error of plus or minus 3 percentage points.

5%

8%

8%

4%

4%

25%

29%

26%

31%

28%

56%

46%

56%

55%

61%

14%

17%

10%

10%

7%

US

UK

FRANCE

ITALY

GERMANY

More than enough EnoughNot enough Don't know / No opinion

70%

64%

59%

66%

64%

19%

27%

28%

28%

30%

11%

9%

13%

5%

6%

US

UK

FRANCE

ITALY

GERMANY

Concerned Not concerned Don't know / No opinion

How concerned are you about each of the following in your country?

Digital privacy rights

Among those concerned: In your view, is your country doing enough or not

enough to address each of the following? Digital privacy rights

6

Digital privacy rights are a high concern in the US and Europe, and people feel that not enough is being done to address the issue

DIGITAL PRIVACY

These surveys were conducted between April 8 and April 15, 2021, among representative samples of 1,000 adults in France, 1,000 adults in Germany, 1,000 adults in Italy, 1,000 adults in the U.K, and 1,660 adults in the U.S. The interviews were conducted online, and the data were weighted to approximate a target sample of adults based on age, gender, education, and region. Results from the surveys have a margin of error of plus or minus 3 percentage points.

5%

8%

8%

4%

4%

25%

29%

26%

31%

28%

56%

46%

56%

55%

61%

14%

17%

10%

10%

7%

US

UK

FRANCE

ITALY

GERMANY

More than enough EnoughNot enough Don't know / No opinion

70%

64%

59%

66%

64%

19%

27%

28%

28%

30%

11%

9%

13%

5%

6%

US

UK

FRANCE

ITALY

GERMANY

Concerned Not concerned Don't know / No opinion

How concerned are you about each of the following in your country?

Digital privacy rights

Among those concerned: In your view, is your country doing enough or not

enough to address each of the following? Digital privacy rights

7

Digital privacy rights are a high concern in the US and Europe, and people feel that not enough is being done to address the issue

DIGITAL PRIVACY

These surveys were conducted between April 8 and April 15, 2021, among representative samples of 1,000 adults in France, 1,000 adults in Germany, 1,000 adults in Italy, 1,000 adults in the U.K, and 1,660 adults in the U.S. The interviews were conducted online, and the data were weighted to approximate a target sample of adults based on age, gender, education, and region. Results from the surveys have a margin of error of plus or minus 3 percentage points.

5%

8%

8%

4%

4%

25%

29%

26%

31%

28%

56%

46%

56%

55%

61%

14%

17%

10%

10%

7%

US

UK

FRANCE

ITALY

GERMANY

More than enough EnoughNot enough Don't know / No opinion

70%

64%

59%

66%

64%

19%

27%

28%

28%

30%

11%

9%

13%

5%

6%

US

UK

FRANCE

ITALY

GERMANY

Concerned Not concerned Don't know / No opinion

How concerned are you about each of the following in your country?

Digital privacy rights

Among those concerned: In your view, is your country doing enough or not

enough to address each of the following? Digital privacy rights

OPT-IN VS. OPT-OUT

TRADEOFF INCENTIVES

TRACKING ON IPHONE

AGENDA

9

c

DIGITAL PRIVACY

Customers see more disadvantages than advantages to being tracked online

In your view, are there mostly advantages or disadvantages to allowing companies to collect information about you online?

23%28%

48% Say there are mostly

disadvantages to companies collecting their information

Mostly advantages Don't know / No opinion

Mostly disadvantages

10

c

DIGITAL PRIVACY

Customers see more disadvantages than advantages to being tracked online, and do not trust companies to keep their information safeIn your view, are there mostly advantages or disadvantages to allowing companies to collect information about you online?

23%28%

48% Say there are mostly

disadvantages to companies collecting their

information

6%

25%

5%

30%34%

Trust a lot Trust somewhat Trust a little Don't trust at all Don't know / Noopinion

How much do you typically trust companies to keep information about you collected online safe and secure?

Mostly advantages Don't know / No opinion

Mostly disadvantages

11

23% 28%28% 21%

19% 35%30% 32%30% 28%

21% 29%13% 23%

28% 28%16% 36%

25% 21%22% 32%23% 25%

30% 20%23% 28%25% 29%

48%50%46%

39%43%

50%64%

44%48%

53%45%

53%50%49%47%Android Users

iPhone Users

Income: 100k+

Income: 50k-100k

Income: Under 50k

PID: Rep (no lean)

PID: Ind (no lean)

PID: Dem (no lean)

Age: 65+

Age: 45-64

Age: 35-44

Age: 18-34

Gender: Female

Gender: Male

Adults

Younger consumers are more likely to see advantages of companies collecting information about their online activity

Mostly advantages Don't know / No opinion Mostly disadvantages

APPENDIX

In your view, are there mostly advantages or disadvantages to allowing companies to collect information about you online?

12

Those who say there are advantages to activity tracking point to relevance, finding deals, convenience, and discovery

OPT- IN VS. OPT-OUT

The companies will know how to tailor my

experience with them. So, ads and other

suggestions are possibly what I'm looking for.

“

I can receive offers I am interested in. As long as it is not invasive, I am

mostly fine with it.

“

Finding products or services that are meant for me and often given

discounts on something I am needing or wanting.

“

Because then the companies can send you advertising on the good deals that are on sale

that would interest you.

“

They are able to point out websites that are of

interest to you. This allows someone to make better use of their time

on the internet.

“

I actually enjoy receiving targeted ads based on my prior activity online, that’s a convenient way for me to find things I’m

looking for.

“

Provide me with information I may have

missed. Offer products I may be interested in.

“

They can pinpoint your interests and make

pertinent suggestions.

“

RELEVANCE DEALS CONVENIENCE DISCOVERY

In your own words, what is the greatest advantage to allowing companies to track the sites you visit or information you look up?

13

Unsurprisingly, consumers say disadvantages to tracking center almost entirely around privacy

OPT- IN VS. OPT-OUT

In your own words, what is the greatest disadvantage to allowing companies to track the sites you visit or information you look up?

I feel that my privacy is at risk. In my opinion,

companies cannot be trusted to look after

anyone or anything but their investors and bottom line. How am I supposed to know that they're not going through my bank accounts, emails, etc.

“

The biggest disadvantage is invasion of privacy. I

would like to control what I want to look for and not be

bombarded by ads because I spoke about

something or happened to do a search.

“

14

Consumers would rather opt-in to sharing information than opt-out

32%

19%

49%

Don't know / No opinion

OPT- IN TRACKING

Would you rather opt-in or opt-out of sharing information with companies and brands online?

Opt-in: I’d rather companies not collect information about me online by default, and have the option to give a company permission to startcollecting that information

Opt-out: I’d rather companies start collecting information about me online by default, and tell the company to stopcollecting that information if I choose

15

Higher income households are much more likely to prefer opt-in to opt-out

Don't know / No opinion

OPT- IN TRACKING

Would you rather opt-in or opt-out of sharing information with companies and brands online?

Opt-OutOpt-In

32% 19%35% 14%

30% 24%26% 33%

31% 16%30% 18%35% 15%

31% 19%33% 19%

31% 23%37% 14%

29% 11%36% 17%30% 20%

49%51%

47%41%

52%51%49%50%48%46%49%

60%47%51%Android Users

iPhone Users

Income: 100k+

Income: 50k-100k

Income: Under 50k

Parent: No

Parent: Yes

Baby Boomers: 1946-1964

GenXers: 1965-1980

Millennials: 1981-1996

GenZers: 1997-2012

Gender: Female

Gender: Male

Adults

16

Consumers are less comfortable when asked about “tracking” than they are with phrases like “collecting information” or “using information”

RESPONSES AND MESSAGING

Do you feel comfortable with companies and brands…

33%

31%

28%

51%

52%

59%

16%

16%

12%

I am comfortable with this I am not comfortable with this Don't know / No opinion

“Using information about you”

“Collecting information about you”

“Tracking your activity online”

… so they can deliver personalized ads?Respondents saw only one message of 3 possible

N=699

N=775

N=726

OPT-IN VS. OPT-OUT

TRADEOFF INCENTIVES

TRACKING ON IPHONE

AGENDA

18

Consumers are most likely to be comfortable with advertisers collecting their gender and age, and are least comfortable with financial information

28% 5%

27% 6%

34% 6%

33% 6%

17% 6%

15% 6%

23% 6%

33% 6%

17% 7%

15% 22% 30%

19% 21% 26%

32% 14% 15%

25% 18% 18%

9% 22% 46%

10% 23% 46%

10% 22% 38%

18% 19% 25%

8% 21% 48%Your credit score

Your income

Your search history

Your purchase history

Your email address

Your city

Your birthday

Your age

Your gender

Very comfortable Somewhat comfortable Don't know / Noopinion

Somewhatuncomfortable

Very uncomfortable

DIGITAL PRIVACY

How comfortable or uncomfortable are you with companies and brands having each type of information about you?

66%

58%

46%

51%

43%

25%

33%

26%

25%

TotalComfortable

19

RESPONSES AND MESSAGING

Would each of the following make you more or less likely to allow companies to collect information about you online?

52%

52%

52%

50%

49%

49%

48%

47%

43%

42%

42%

39%

36%

32%

28%

28%

27%

28%

29%

29%

30%

32%

33%

32%

31%

34%

39%

42%

19%

20%

21%

22%

22%

22%

22%

21%

25%

26%

26%

27%

24%

26%

Being paid a small amount in exchange for my information

Knowing that the information is only stored for a short amount of time

Having the ability to regularly review the data that is provided

Having access to websites without having to pay for a subscription

Being given a coupon or discount for products or services

Seeing fewer ads overall

Knowing my information is used for analytics and is not monetized

Receiving regular reminders that you ultimately control how your data is being used

Having access to exclusive products or events

Knowing that the information could be used to help small businesses grow

Being able to download a copy of the data that is provided

Having access to exclusive content

Being entered into a contest to win prizes

Being shown more relevant advertisements

More likely to allow companies to collect information about me Less likely to allow companies to collect information about me Don't know / No opinion

+24

+24

+25

+22

+20

+20

+18

+15

+10

+10

+11

+5

-3

-10

Net more likely

20

Financial incentives and user control over data are most likely to increase comfort with data collection

RESPONSES AND MESSAGING

Would each of the following make you more or less likely to allow companies to collect information about you online?

52%

52%

52%

50%

49%

49%

48%

47%

43%

42%

42%

39%

36%

32%

28%

28%

27%

28%

29%

29%

30%

32%

33%

32%

31%

34%

39%

42%

19%

20%

21%

22%

22%

22%

22%

21%

25%

26%

26%

27%

24%

26%

Being paid a small amount in exchange for my information

Knowing that the information is only stored for a short amount of time

Having the ability to regularly review the data that is provided

Having access to websites without having to pay for a subscription

Being given a coupon or discount for products or services

Seeing fewer ads overall

Knowing my information is used for analytics and is not monetized

Receiving regular reminders that you ultimately control how your data is being used

Having access to exclusive products or events

Knowing that the information could be used to help small businesses grow

Being able to download a copy of the data that is provided

Having access to exclusive content

Being entered into a contest to win prizes

Being shown more relevant advertisements

More likely to allow companies to collect information about me Less likely to allow companies to collect information about me Don't know / No opinion

+24

+24

+25

+22

+20

+20

+18

+15

+10

+10

+11

+5

-3

-10

Net more likely

21

Knowing that personal data is deleted after a short time and access to sites without paying subscriptions are most likely to sway higher income consumers

RESPONSES AND MESSAGING

Would each of the following make you more or less likely to allow companies to collect information about you online?

AdultsIncome Prefer to

opt inPrefer to opt out

Phone type

<50K 50-100K 100K+ iPhone AndroidHaving the ability to regularly review the data that is provided +25 +24 +22 +29 +35 +17 +18 +31

Being paid a small amount in exchange for my information +24 +26 +19 +25 +31 +19 +20 +28

Knowing that the information is only stored for a short amount of time +24 +21 +26 +33 +34 +14 +20 +28

Having access to websites without having to pay for a subscription +22 +17 +23 +33 +27 +14 +14 +28

Being given a coupon or discount for products or services +20 +19 +19 +26 +23 +16 +19 +21

Seeing fewer ads overall +20 +19 +20 +25 +28 +12 +14 +25

Knowing my information is used for analytics and is not monetized +18 +15 +19 +26 +29 +8 +15 +23

Receiving regular reminders that you ultimately control how your data is being used +15 +14 +14 +22 +23 +10 +9 +21

Being able to download a copy of the data that is provided +11 +9 +9 +21 +22 +2 +5 +16

Having access to exclusive products or events +10 +10 +7 +17 +14 +2 +7 +15

Knowing that the information could be used to help small businesses grow +10 +7 +12 +15 +16 +2 +7 +13

Having access to exclusive content +5 +4 +7 +5 +9 0 +1 +9

Being entered into a contest to win prizes -3 -1 -8 -1 -5 -5 -8 +1

Being shown more relevant advertisements -10 -8 -13 -10 -9 -16 -15 -4

22

Knowing that personal data is deleted after a short time and access to sites without paying subscriptions are most likely to sway higher income consumers

RESPONSES AND MESSAGING

Would each of the following make you more or less likely to allow companies to collect information about you online?

AdultsIncome Prefer to

opt inPrefer to opt out

Phone type

<50K 50-100K 100K+ iPhone AndroidHaving the ability to regularly review the data that is provided +25 +24 +22 +29 +35 +17 +18 +31

Being paid a small amount in exchange for my information +24 +26 +19 +25 +31 +19 +20 +28

Knowing that the information is only stored for a short amount of time +24 +21 +26 +33 +34 +14 +20 +28

Having access to websites without having to pay for a subscription +22 +17 +23 +33 +27 +14 +14 +28

Being given a coupon or discount for products or services +20 +19 +19 +26 +23 +16 +19 +21

Seeing fewer ads overall +20 +19 +20 +25 +28 +12 +14 +25

Knowing my information is used for analytics and is not monetized +18 +15 +19 +26 +29 +8 +15 +23

Receiving regular reminders that you ultimately control how your data is being used +15 +14 +14 +22 +23 +10 +9 +21

Being able to download a copy of the data that is provided +11 +9 +9 +21 +22 +2 +5 +16

Having access to exclusive products or events +10 +10 +7 +17 +14 +2 +7 +15

Knowing that the information could be used to help small businesses grow +10 +7 +12 +15 +16 +2 +7 +13

Having access to exclusive content +5 +4 +7 +5 +9 0 +1 +9

Being entered into a contest to win prizes -3 -1 -8 -1 -5 -5 -8 +1

Being shown more relevant advertisements -10 -8 -13 -10 -9 -16 -15 -4

OPT-IN VS. OPT-OUT

TRADEOFF INCENTIVES

TRACKING ON IPHONE

AGENDA

24

Among those, just over half report denying permission most of the time — only 4% granting all the time

26%23%

4% 4%

28%

16%

TRACKING ON IPHONE

When asked permission for an app to track your activity across other apps and websites, do you typically grant permission or deny permission? Showing among iPhone users who recall being asked permission to track n=640

54%

Always deny permission

Deny permission most of the time

Grant permission about half of the time

Grant permission most of the time

Grant permission all the time

Don’t know

25

iPhone users ages 35-44 are most likely to grant cross-app tracking permission

26% 23% 4%26% 19%

26% 27% 7%24% 25% 7%

20% 21%30% 21%

39% 23%26% 22%

33% 21% 8%19% 26%

23% 27% 8%28% 21%

29% 20%

28% 16% 4%32% 17% 5%

23% 14%25% 16% 4%

32% 19% 7%31% 13%

22% 16%30% 16% 4%

19% 16%34% 14% 5%

23% 16%33% 15%

28% 17% 6%Income: 100k+

Income: 50k-100k

Income: Under 50k

PID: Rep (no lean)

PID: Ind (no lean)

PID: Dem (no lean)

Age: 65+

Age: 45-64

Age: 35-44

Age: 18-34

Gender: Female

Gender: Male

Adults

TRACKING ON IPHONE

When asked permission for an app to track your activity across other apps and websites, do you typically grant permission or deny permission? Showing among iPhone users who recall being asked permission to track n=640

Always deny permission

Deny permission most of the time

Grant permission about half of the time

Grant permission most of the time

Grant permission all the time

Don’t know

26

Apple’s decision to require explicit permission is supported by 75% of US adults

26%

6% 7% 13%

49%

Strongly support Somewhat support Somewhat oppose Strongly oppose Don't know / Noopinion

OPT- IN TRACKING

As you may know, Apple recently introduced a new version of its iPhone operating system (iOS 14) that requires websites and apps to obtain explicit permission from users before being granted access to identifiers that allow advertisers to deliver personalized ads.

Do you support or oppose Apple's decision to require websites and apps to obtain explicit permission from users before granting advertisers identifier information?

75%

27

71% of Android users support Apple’s decision to require explicit permissionsOPT- IN TRACKING

As you may know, Apple recently introduced a new version of its iPhone operating system (iOS 14) that requires websites and apps to obtain explicit permission from users before being granted access to identifiers that allow advertisers to deliver personalized ads.

Do you support or oppose Apple's decision to require websites and apps to obtain explicit permission from users before granting advertisers identifier information?

26% 13%28% 11%

24% 16%22% 21%

31% 15%26% 15%

24% 8%29% 16%

25% 12%27% 17%

24% 11%25% 6%

24% 10%27% 16%

49% 6% 7%51% 5% 5%

46% 6% 8%32% 11% 13%

42% 7% 6%47% 5% 7%

61% 4%44% 5% 6%

50% 6% 7%43% 6% 8%

53% 6% 6%63% 4%

55% 6% 5%44% 6% 8%Android Users

iPhone Users

Income: 100k+

Income: 50k-100k

Income: Under 50k

Parent: No

Parent: Yes

Baby Boomers: 1946-1964

GenXers: 1965-1980

Millennials: 1981-1996

GenZers: 1997-2012

Gender: Female

Gender: Male

Adults

Strongly support Somewhat support Don't know / Noopinion

Somewhat oppose Strongly oppose

APPENDIX

AGENDA

29

ADDITIONAL MORNING CONSULT INSIGHTS ON PRIVACY

• Views toward GDPR or the California Consumer Privacy Act or state privacy laws

• Understanding of digital privacy rights

• Concern about digital privacy rights globally

• Levels of trust in handling your data

• Comfort with wide range of info accessed

30

US adults show no preference for when they are asked for tracking permissions

42%

17%

41%

Prompt when that type ofinformation is first used

on a website or app (e.g.,requesting permission to

use your location to suggestnearby businesses)

Prompt when visiting awebsite/using an app for the

first time

Don't know / No opinion

APPENDIX

How would you most prefer that companies ask you for permission to collect information about you online?