There is a flood of new middlemen in the internet data game, offering everything fom crypto-rewards to AirPods to cash in exchange for consumers' data—a business proposition borne of the interest in privacy across the web. But there are signs that major stakeholders, like brands and publishers, which would need to support these emerging players, are hesitant to endorse their novel data ideas.
Take YouGov Safe, for example, which is asking consumers to use its web extension on Chrome, giving permission for their online behavior to be tracked, in exchange for rewards. Another company called Brave, which has been innovating in the privacy-based internet, is trying to get consumers to adopt a program that shows ads in its browser in exchange for crypto-reward points. There's also an ad agency Shackleton, owned by Accenture, which built a real-world vending machine that will give people consumer goods like AirPods for handing over data about their shopping habits.
But even with the clear upfront pitch to consumers and other privacy-minded features, brands and publishers are wary about letting any new entrants into the ecosystem. Brands like Mondeléz are looking to build their own data programs to foster a direct relationship with consumers, not introduce new partners into the middle of the transaction. Meanwhile, publishers and major media companies are raising questions about the need for another internet company to get between their readers and advertisers.
There also are real questions about whether any of these concepts actually work. And even if they did, will brands bite?
Hamish Brocklebank, head of YouGov Safe, a product from British market research company YouGov, says that his company is trying to create a new relationship between consumers and marketers that want their data. “Lots of companies get this data in shady, slightly unethical manners,” Brocklebank says. “You as the consumer are not benefiting from it. We give you an option where you can provide this data to companies you are comfortable sharing it with, and financially benefit from it.”
YouGov Safe is a data payment plan, based on a Chrome extension, which people can download easily. Once installed, the extension tracks users' browser habits. YouGov pays the user for sharing the data either with points or with money. YouGov Safe also pays users to upload data that they can download from websites and platforms they frequently use online.
YouGov says the data is used only to inform its market research and produce new audience insights for brands, and any data shared with clients is anonymized, protecting user privacy. YouGov Safe is currently beta testing in the U.S. and U.K. with around 16,000 people.
However, some brands say the promise of protecting user privacy may not be enough to justify a new "middleman." "If I'm trying to acquire customer data, the equity of our brands plays a role," says Jonathan Halvorson, VP of consumer experience for Mondeléz. "I want that relationship to be as direct as possible."
Brands are grappling with monumental changes in how user data is obtained, like the loss of third-party cookies and restrictions on Apple’s iOS software. The focus on user privacy is forcing the industry to consider alternatives like these cash-for-data schemes. Companies like DataLucent offer rewards like airline miles, hotel rooms and streaming service discounts in exchange for sharing user data with brands.
Brave Browser, which bills itself as a more secure and privacy-minded web browser, gives users Brave Rewards to view ads that the company approves and curates, while other ads are blocked. The users accumulate “Basic Attention Tokens” for the ads they view. Users can send the tokens to publishers, websites or even content creators on YouTube as “payment,” or the tokens can be converted into cryptocurrency and withdrawn by the user. Brave says there are around 6 million users who have opted into Brave Rewards out of over 30 million monthly active users.
“Brave is making crypto more like airline frequent flier points, if you will,” says Brendan Eich, CEO and co-founder of Brave Browser.
Brave claims it is creating a more sustainable way to support publishers and platforms. “There are superfans, they show up on YouTube, on Indiegogo,” Eich says, referring to the Kickstarter competitor. “They want to earn and give back.”
But publishers are hesitant to let another company get between their readers and advertisers. The Brave browser disrupts the ad experience that the media companies are already trying to create—and profit from. The New York Times, for instance, says it has tested partnerships with browsers like Brave, but is currently not using it and does not plan to accept revenue from Brave crypto-tokens.
Other companies are testing data-collection methods that are even more experimental, and perhaps even more rewarding. Shackleton, a creative agency owned by the consultancy company Accenture, created a physical vending machine that sells products like Apple AirPods in exchange for a "buyer" filling out a survey or questionnaire.
The machine, called the Data Pro Quo, can be deployed in places like shopping malls to gather retail insights, or in workplaces to conduct workforce surveys. "It's a good way to show the real value of data," says Pablo Alzugaray, CEO of Shackleton. "In a cookieless environment, companies have to collect data about buyers. We have to be transparent that the data has value, and this is a good way to show it not in theory, but to show it practically."
