Consumers are willing to trade some privacy if they can see the results.

Predictive Personalization, one of our 10 Trends for 2013, is the idea that as data analysis becomes more cost efficient, the science gets more sophisticated and consumers generate more measurable data, brands will be able to predict customer behavior, needs or wants—and tailor offers and communications very precisely. Importantly, however, they will need to tread carefully around privacy issues, as confirmed in a November survey of 1,016 British and American adults that we conducted using SONAR™, JWT’s proprietary online tool.

Close to two-thirds of respondents said the idea of customized offerings gleaned through data analysis feels like Big Brother is watching and that the idea of being tracked and analyzed makes them anxious. But a majority said they are OK with the idea if they receive a tangible benefit in return: saving money, seeing relevant offers or having shopping made easier. Marketers will need to assuage privacy concerns by clearly showing how their use of data benefits the consumer.