Dealing with Techlash. Have Consumers Reached Their Technological Breaking Point? An Interview with Researcher Craig Charney.

Like everything else, fascination and adoption of technology can reach a saturation point. The question is, have we reached it yet? Craig Charney, Founder and President, Charney Research and Lead Author of the AMA Techlash study offered his views on the concept of techlash which is defined as the tipping point of consumers’ engagement with technology. 

Charlene Weisler: What did the study set out to do?

Craig Charney: We wanted to take a look at the next 3-10 years of marketing – not just next year’s ad spend or CMO headaches.  This is unique.  We took a thorough look at social media trends, attitudes to ad tech, and economic nationalism in the world’s 2 biggest markets – America and China.

Charlene Weisler: What were some of the takeaways?

Craig Charney: Among the many takeaways, we found the following trends: 

      Ø  Social media and gaming seem to have peaked in the USA. 

      Ø  Americans are very skeptical about innovations in martech – including personalization, micro-influencers, smart speakers, and IOT – while many marketers are unaware of this. 

      Ø  Americans and Chinese are very concerned about privacy, hacking, and misinformation as a result of martech. 

      Ø  Economic nationalism is on the rise in both countries – Americans and Chinese both say they are likelier to buy their own country’s products

Charlene Weisler: Were there any surprise findings?

Craig Charney: The social media level off in America and the extent of privacy fears in China.

Charlene Weisler: Why do you think social and gaming will decline or level off? Will this occur across ages and genders?

Craig Charney: Saturation and privacy both seem to be at work, particularly with social media.  We are seeing declining engagement with social media across a variety of age groups.

Charlene Weisler: What are the major ad tech innovations in the study?

Craig Charney: Smart speakers, personalization, micro-influencers, IOT homes, IOT cities, employee influencers, VR, AI, AI assistants, omnichannel.

Charlene Weisler:  Do you think Americans understand all of the new tech? Which ones? 

Craig Charney: No, which is why we described them in the questionnaire.  But what we learned is that the more they know about them, the less they like it!

Charlene Weisler: Is there going to continue to be Techlash or will consumers settle in?    

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Craig Charney:  Hard to say.  A lot depends on marketers’ response, as well as that of industry and government.  Will they take consumer concerns seriously and respond with codes of conduct, different practices, GDPR type protections?  If so they may have permission to continue.  If not they may see consumers slip away to those who offer them – or the authorities require them. 

Charlene Weisler:  Do you think concern about privacy impacts some of these attitudes?

Craig Charney: Yes – it’s very clear.  Four in five Americans and over three in five Chinese are afraid they will lose their privacy with the new ad tech. 

Charlene Weisler: What do you think advertisers need to know and do to prepare?

Craig Charney: In the wake of the seemingly infinite series of data breaches (and Facebook scandals) consumers are wary about the new martech.  Part of the answer is consumer education  - but part is also self-regulation:  understandable opt-ins, letting people know what they’ve collected and choose how it can be used, data portability, and of course – better protection of privacy!  If marketers and industry don’t do it themselves, they will face trouble from consumers, government, or both

This article first appeared in www.Mediapost.com