Study: NSA Scandal Is Still Setting Off Privacy Alarm Bells Among Consumers

Now that consumers know that NSA spooks are reviewing their every click, online privacy has become a much bigger concern. After seven weeks of steady media coverage, the percentage of Internet users worried about their online privacy jumped 19 percent, from 48 percent in June (when the story first appeared in The Guardian and Washington Post) to 57 percent in July, according to Annalect, Omnicom Media Group's data and analytics company.

The findings have huge implications for the targeted advertising because the more concerned Internet users are about privacy, the more likely they are to change settings and block tracking. "If these trends continue, and Mozilla implements its plan for its Firefox browser to block most third-party cookies by default later this year, the ad industry's ability to effectively use third-party cookies for marketing purposes will decrease," the study concluded. Annalect's study was based on three national online surveys conducted from May to July among 2,100 adults 18+. Because of the NSA story, Annelect extended its second quarter report into July to document the impact of the news on Internet users' privacy attitudes and practices. When consumers were asked about their response to the NSA's collection of online information, nearly one-third (31 percent) said they were now taking action to protect their online privacy.