Personalized Ads Viewed Favorably, With Limits

What is the impact of personalized advertisements on the advertisers that deliver them?

According to a recent survey of 1,800 visitors to Coolsavings.com conducted by Q Interactive, the majority of Web users seem to think personalized ads reflect favorably on an advertiser.

This finding comes despite other recent surveys indicating otherwise, according to eMarketer. The firm notes that in a 2008 poll conducted by TNS Global and TRUSTe, more than one-half of respondents expressed concern about advertisers utilizing their browsing history to deliver personalized ads.

eMarketer also noted that in a 2008 Harris Interactive study, 45 percent of respondents said they were uncomfortable with sites that allowed for behaviorally-targeted ads.

The Q Interactive survey found that 53 percent of respondents said they would view an advertiser favorably if their ads were relevant to their interests, while just 5.6 percent said their view would be unfavorable. The remaining respondents were not sure.

The age group most willing to view advertisers favorably if they delivered personalized ads was the 45-54 year-old group, with 56.8 percent saying so, followed by the 35-44 group, with 56.6 percent saying so.

The 65 and over age group was the least willing to view an advertiser favorably if they delivered relevant ads, with 41.4 percent, followed, interestingly enough, by the 18-24 age group, with 43.8 percent.

The 18 and under age group was the most likely to view an advertiser unfavorably if they delivered personalized ads, with 11.8 percent saying so, followed by the 18-24 group, with 9.6 percent.

The most decisive age group was the 18 and under group, with just 35.3 percent saying they were not sure of what their view of an advertiser who delivered tailored ads.

The landscape shifts a bit when respondents were given a return for the use of their personal information. The majority of respondents said they would prefer “to receive free online services and information in exchange for the use of my data to target relevant advertising to me,” with 63.2 percent of 18-24 year-olds agreeing with the statement, along with 62.5 percent of the 18 and under group, 61.9 percent of the 25-34 group and 56.2 percent of the 35-44 group.

Overall, 53 percent said they would prefer this trade-off.

Fifteen percent of respondents said they prefer “to pay for services and sites online in exchange for no advertising,” with 25.0 percent of the 18 and under age group saying so, along with 20.1 percent of the 65 and over group and 16.6 percent of the 55-64 group.

Thirty-two percent of respondents said they prefer “to receive lower caliber or less functional service in exchange for untargeted advertising that does not use my data.”

In terms of the types of personal information that users are willing to share with advertisers, ZIP code topped the list with 77.8 percent of respondents saying they were comfortable sharing this information, followed by gender with 72.3 percent and age with 64.9 percent.

Marital status received a 42.5 percent response, while weight received 23.2 percent, Web sites visited received 22.4 percent and parental status received 22.2 percent.

Social security number received the smallest response with 1.0 percent, followed by phone number with 10.4 percent and income with 11.3 percent.

“Marketers and publishers may still have their work cut out for them when it comes to clarifying the level of data they need to target accurately – along with the meaning of anonymized data,” said Q Interactive in a press release.

The survey also found that brand sensitivity was an important factor in how readily a consumer’s interest is given to an online ad, along with their need for a product.

Sources:</strong

http://www.qinteractive.com/newsSingle.asp?nId=257

http://www.emarketer.com/Article.aspx?R=1007153