Australians fear hackers, not ads: just 1% worry about personalised targeting

Australians are far more concerned about hackers than personalised advertising, with just 1% listing targeted ads as a privacy issue compared to 53% who fear cyber threats, new research has found.

The study, conducted by Yahoo and Magna, highlights a major disconnect between consumer perception and industry concerns, suggesting that most Australians are comfortable with data-driven marketing—provided security fears are addressed.

The study, which surveyed more than 1,200 Australians, found that despite widespread concerns over online privacy, most remain unaware of their rights and how their data is handled. This lack of understanding is fuelling resistance to targeted advertising, even as personalised experiences become more embedded in digital marketing.

The data shows just 14% of Australians believe they have the necessary resources to protect their data online, leaving 86% unsure or unprotected. 

Some 74% don’t realise they can opt out of data collection on media and shopping platforms, highlighting a lack of awareness about existing privacy controls.

The study also found that while 53% of Australians cite hacking as their biggest online privacy concern, just 1% are worried about personalised advertising - suggesting that most consumers are comfortable with data-driven targeting once concerns about security are addressed. 

However, less than a third of respondents understand that advertisers and agencies do not have direct access to their personal data.

Yahoo AUSEA’s director of data and insights, Dan Richardson, said the findings highlight a deeper trust issue in digital advertising.

“Data privacy and targeted advertising have been hot topics for years, yet many Australians still don’t fully understand how their data is used or who is responsible for protecting it,” Richardson said.

“This isn’t just an awareness issue - it’s a trust issue. If we don’t bridge this gap, we risk losing consumer confidence, leading to stricter policies and less effective advertising.”

The research found that when data usage is explained properly, consumer approval for personalised ads jumps by 88%, proving that transparency can significantly shift attitudes.

Magna managing director Lucy Formosa Morgan (pictured) said the results highlight an urgent need for brands to communicate data usage more clearly.

“This data reveals a major disconnect. While consumers enjoy personalised experiences, they don’t understand how data powers them - and that’s a problem,” she said.

“If people don’t trust the ecosystem, they will push back against targeted advertising and potentially the brands in question, making it harder for brands to connect with their audiences in meaningful ways,” she said.

While 80% of Australians say they trust government regulations to protect their data, only 10% are familiar with the Privacy Act - marketers face an uphill battle in building confidence.