Preference central survey_fullreport

813 views
759 views

Published on

PreferenceCentral_Survey_FullRepor

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
813
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
16
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Preference central survey_fullreport

  1. 1. Consumer Perspectives on Online Advertising - 2010 preferencecentral benchmark research study, with support from survey sampling international by karl w. lendenmann, phd
  2. 2. consumer perspectives on online advertising - 2010 2 2010 consumer perspectives on online advertising As vice president of marketing and analytics for Datran Media, Dr. Karl Lendenmann is re- sponsible for driving company-wide best practices in key areas that increase the relevance, engagement and value of marketing programs for consumers, advertisers, and publishers. Dr. Lendenmann previously served as a partner at KPMG LLP (US) and was partner-in- charge of KPMG International marketing and communications (Amsterdam, NL). Karl has also been a senior partner and managing director of account planning at Bozell Worldwide and has held similar positions at Salvati Montgomery & Sakoda, Wakeman & deForest, Bri- erley & Partners and Dentsu Young & Rubicam. Dr. Lendenmann has taught courses for over 10 years in strategic market planning, consumer behavior, research and integrated market- Dr. Karl W. Lendenmann ing, first at UCLA Extension and then at UC Irvine Extension. executive summary This PreferenceCentral survey reveals that Internet users are more likely to prefer targeted online ads when they are asked to make real-world, value-for-value trade-offs, such as access to free content in exchange for targeted ads. The research, conducted with 1,050 Internet users in May of 2010, also shows that attitudes and preferences significantly shift when consumers are provided with education about behavioral targeting or when they are of- fered the ability to control targeted ad exposure. Today’s privacy legislative and regulatory landscape is fast evolving. Many of the decisions lawmakers have to make are based on their understanding of consumer expectations balanced with consumer desires for businesses to have flexible business models. The recent discussion draft bill by Congressmen Boucher and Stearns as well as the Best Practices Act proposed by Congressman Rush are strong starting points for a discussion on how to best strike this balance. Hearings before the House’s Subcommittee on Commerce, Trade, and Consumer Protection as well as the Senate Committee on Commerce, Science and Transportation continue to move these conversations forward. Prior research on consumers’ attitudes toward behavioral targeting has largely employed simple, single-option questions, and they have led to an incomplete and misleading view of consumers’ real-world perspectives on online advertising. For example, the recent Annenberg-Berkeley study (Americans Reject Tailored Advertising, September 2009), reported that, contrary to what many marketers claim, a majority of US Internet users reject tailored adver- tising due to a fact that their need for online privacy and security are greater than their desire for relevant advertis- ing messages (i.e. ads that are tailored to their interests). In an effort to contribute to a more informed and balanced course of action for the online advertising industry, PreferenceCentral sought to build upon past research with its consumer survey, which asked consumers to state their preferences for tailored online advertising within a behavioral economic context of real-world, value-for-value trade-off options. preferencecentral . reproduction prohibited.
  3. 3. consumer perspectives on online advertising - 2010 3 With this approach, PreferenceCentral found that over half of consumers surveyed indicated that they prefer relevant targeted online ads as a trade-off for access to free content. Also, within the context of a value-for-value trade-off, only 12% of consumers opt out of all targeted advertising, and only about 10% of consumers express a preference for paying for content with no advertising. However, certain factors do play a material role in consumers’ comfort level with online advertising. When edu- cated about behavioral targeting, 29% of respondents became less comfortable with the trade-off of free content for targeted ads. However, when subsequently informed that behavioral targeting information is anonymous, non- personally identifiable to advertisers, 35% of these Internet users became more comfortable, indicating a need for ongoing consumer education on this topic. Further, when presented with the option of a consumer control solution that would give them more control over their exposure to targeted ads and transparency into the data used by advertisers, 70% of Internet users expressed interest in using such a tool. In fact, 41% of consumers became more comfortable and were 27% more willing to receive targeted, relevant ads in exchange for free content if they were given a control solution. The core takeaways for the advertising industry are that it’s not enough to just educate consumers on targeted advertising; we must also provide meaningful choice and control over their online ad experience, and, of course, comply with consumers’ preferences across the Internet. For online publishers, the key implication of the consumers’ preferences is that they should be offering multiple content-access models to optimize appeal and monetization. In this regard, the Network Advertising Initiative (NAI) recently released their own research that shows behaviorally targeted ads are more than twice as valuable in terms of prices advertisers pay and more than twice as effective in converting consumers who click on ads into buyers than normal run-of-network ads. With such strong value tied to behavioral targeting, it is crucial to obtain and understand a more complete view of consumers’ perspectives on online advertising. Finally, it is recommended that future research on consumers’ preferences regarding online advertising employ the behavioral economic context of real-world, value-for-value trade-offs, as were used in this survey. Simple, single- option questions do not provide a realistic method of fully assessing consumers’ preferences for tailored online advertising. In the real world, the trade-off consumers take for access to free content across the Web is targeted advertising, and our study found that, when presented in this trade-off context, the majority of consumers’ prefer relevant targeted advertising in exchange for continued access to free content. The PreferenceCentral study, conducted in collaboration with Survey Sampling International, is the first of an ongo- ing series of research studies the company plans to produce in support of its mission to strengthen consumer trust and understanding of advertising through technology and education. preferencecentral . reproduction prohibited.
  4. 4. consumer perspectives on online advertising - 2010 4 table of contents 5 Research Purpose 7 Research & Objectives 8 Key Findings 10 Detailed Findings 10 Consumers’ “Current-State” Attitudes toward Online Advertising 11 “Trade-off” between Free Content-Targeted Ads vs. Limited Content vs. Paying 12 Impact of Behavioral Targeting on Consumers’ Attitudes & Trade-off 19 Consumers’ Interest in and Reaction to PreferenceCentral 27 Consumers’ Relative Comfort with Types of Audience Data 30 Consumer Profiles: Internet Usage & Demographics, Response Segments 39 Implications 40 Appendix 40 Frequently Asked Questions 46 Questionnaire 53 Sample Profile preferencecentral . reproduction prohibited.
  5. 5. consumer perspectives on online advertising - 2010 5 research purpose new research reveals consumers’ attitudes toward behavioral targeting are more complex than indicated in past research Digital advertising has never been more important for brands Led by Dr. Karl W. Lendenmann, the survey was conducted that are seeking to communicate and engage with their with 1,050 Internet users in May 2010 with support from customers than it is today. At the same time, privacy advocates Survey Sampling International. The results are meant to and legislators are concerned that practices like behavioral help the industry establish benchmarks and a tracking targeting are ripe for abuse. tool for understanding consumers’ evolving perspectives on online advertising relevance and audience measure- Prior research conducted on consumers’ attitudes toward ment, which will help: behavioral targeting, such as the recent Annenberg-Berkeley study, Americans Reject Tailored Advertising (September • Inform public discourse with a more complete and 2009), claimed consumers did not want targeted advertising, balanced understanding of consumers’ preferences and that consumers’ concerns for online privacy are greater than their desire for relevant advertising messages. • Assure consumers that their interests, concerns, and preferences are being considered However, this prior research on consumers’ attitudes toward behavioral targeting has largely employed simple, single- • Guide policies for behavioral targeting that are option preference questions, and, as such, they have provided optimal for consumers, as well as advertisers and an incomplete and misleading view of consumers’ real-world publishers perspectives on online advertising, and which, in turn, has misinformed public discourse on this topic. • Support refinements in industry best-practices and self-regulation In an effort to contribute to a more informed and balanced course of action that is optimal for con- sumers and for the online advertising industry, PreferenceCentral sought to build upon past research with its consumer survey, which asked consumers to state their preferences for tailored online advertising within a behavioral economic context of real-world, val- ue-for-value trade-off options. And with this more real- istic approach, this PreferenceCentral survey found that over half of consumers surveyed indicated that they prefer relevant targeted online ads as a trade-off for access to free content. preferencecentral . reproduction prohibited.
  6. 6. consumer perspectives on online advertising - 2010 6 research objectives current state Benchmark consumers’ “current state” attitudes towards: • Relevant online advertising • “Trade-off” preferences toward the following three options: free content with targeted ads vs. free limited content with untargeted ads vs. paying for content with no ads behavioral targeting Determine how awareness and/or education of behavioral targeting impacts consumers’: • Desire for free content supported by relevant targeted online ads • Attitudes towards relevant online advertising • “Trade-off” preferences consumer control solution Assess consumers’ interest in and reaction to a consumer control solution, such as PreferenceCentral: • Interest and motivations in using a consumer control solution • Perceived value of key components • Impact on consumers’ attitudes & trade-off preferences audience data Evaluate consumers’ relative comfort with types of audience data • Determine attitudinal impact of knowledge that audience data is anonymous – not PII • Assess influence of consumer characteristics (i.e. Internet usage & demographics) • Internet usage: Length (years) and heaviness (hours per week) of usage, as well as frequency in engaging in specific activities (e.g., click on ads, purchase, etc.) demographics Gender, age, education, income, regions, etc. preferencecentral . reproduction prohibited.
  7. 7. consumer perspectives on online advertising - 2010 7 research methodology This PreferenceCentral consumer research study was led by Dr. Karl Lendenmann, vice president, marketing & analytics at Datran Media, and executed in collaboration with Survey Sampling International (SSI), which randomly assigned Internet users, selecting 50% from their existing panel members and 50% from real-time online recruit- ment. Respondents were screened for age and gender to assure a proportionally-representative sample. Further, the online survey was administered across all days of the week and day-parts to prevent potential timing biases. The completion rate was 65% for this online questionnaire, which took approximately 10 minutes. For this sample of 1,050 U.S. Internet users 18 to 64 years of age, the error estimates are +/- 3% at the 95% confidence level. survey participants were asked a series of By framing our core preference questions within behav- questions in each of the following stages: ioral economic context of real-world trade-off options, we were able to gain a much more accurate, complete view • Current-State of how consumers feel about targeted advertising in their Obtain current-state attitudes toward online everyday lives. advertising at start Specifically, for this research, consumers were asked to • Behavioral Targeting Education indicate what proportion of their time online would they Determine impact of awareness of behavioral prefer to spend among each of the three trade-off options targeting on consumers’ attitudes below? To indicate their preferences they were asked to al- locate 100% of their time online between these three • Consumer Control Solution Presentation trade-off alternatives: Assess interest in a consumer control solution and how its availability affects consumers’ at- • I prefer to receive free online information and titudes services in exchange for relevant advertising targeted to me • Audience Data - Relative Comfort Determine relative comfort regarding different • I prefer to pay for online information and ser- types of audience data collected online, as well vices in exchange for no online advertising as education on the fact that the behavioral and contextual data are totally anonymous, non- • I prefer to receive free, but somewhat limited personally identifiable information to online information or less functional services advertisers in exchange for untargeted and less relevant advertising note: see appendix of this report for a full copy of the survey questionnaire. preferencecentral . reproduction prohibited.
  8. 8. consumer perspectives on online advertising - 2010 8 key f indings Consumers’ “current-state” trade-off preferences favor free content-targeted online ads • Majority (55%) focus is on the benefits of free ad-supported content and relevant ads • In trade-off, only 12% opted out of all targeted advertising • Only about 10% of consumers indicate preference for Pay-No Ads option • This was steady across all three trade-off preference allocations Minority desire “tailored” ads, when later asked as a simple, single-option (i.e. yes - no) • Primary reason was a dislike for annoying online ads, not privacy concerns Awareness-education of behavioral targeting, however does materially reduce consumers’ preference for “tailored” ads • 29% becomes less comfortable with “free content-targeted online ads” option Majority of consumers (70%) are interested in using a consumer control solution • Primary reason is control of ads seen, concern for information is secondary • 41% becomes more comfortable and 27% more likely to trade-off for “tailored” ads Assurance of data anonymity (non-PII) helps maintain elevated comfort levels • 35% becomes more comfortable with behavioral targeting Interestingly, those with prior awareness of behavioral targeting are more positive about tailored on- line advertising and interested in a consumer control solution Further, those with positive attitudes and interest are more active-valuable Internet users. In fact, In- ternet usage characteristics are much stronger predictors of users’ attitudes, awareness, and interest, than are users’ demographics Consumers interested in relevant targeted ads generally have more positive attitudes toward tailored ads and are more interested in a control solution. They are also: • More likely to feel a loss of control over how their information is collected and used • More likely to be aware of behavioral targeting • More active-valuable Internet users preferencecentral . reproduction prohibited.
  9. 9. consumer perspectives on online advertising - 2010 9 This same positive profile was obtained for those interested in using a consumer control solution Majority of consumers agree that they are more likely to click on relevant ads • Majority also agree that online ads that are not relevant are annoying • Only one in five respondents agree that most online ads are relevant Only a slight majority of Internet users feel they have lost control of how their information is collected and used • However, these consumers are just as receptive to relevant targeted advertising Only three in ten consumers currently agree that businesses handle personal information properly, as well as existing laws provide reasonable protection. Consumers are most concerned over behavioral, attitudinal, and contextual data, and relatively more comfortable with geographic, psychographic, and demographic data preferencecentral . reproduction prohibited.
  10. 10. consumer perspectives on online advertising - 2010 10 detailed results current-state attitudes towards tailored online advertising Overall, about half of consumers surveyed state a preference for relevant, tailored online ads – because they capture attention and create a favorable view of the brand. [fig. 1] However, common perception is that most online ads are still not relevant and are often annoying. At this point, just over 10% appear willing to pay for ad-free content online. figure 1 consumers’ “current-state” attitudes regarding tailored online ads Strongly Agree Agree Somewhat Q: Please indicate your agreement with each of the following statements: Shown: % Strongly Agree; % Agree Somewhat ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) preferencecentral . reproduction prohibited.
  11. 11. consumer perspectives on online advertising - 2010 11 In a trade-off for free content with tailored ads, a majority (55%) prefer “free content-relevant, targeted” ads. [fig. 2] Only 8% of customers show a willingness to pay for ad-free content online. figure 2 current-state – trade-off preferences for “free content with tailored ads” Average Allocation % Internet Users Free Content - Targeted Ads Free Content - Targeted Ads Pay - No Ads Pay - No Ads Free - Limited - Untargeted Ads Free - Limited - Untargeted Ads Ties What proportion of your time online would you prefer to spend among each of the options below? Please allocate 100% of your time online between these three alternatives. • I prefer to receive free online information and services in exchange for relevant advertising targeted to me • I prefer to pay for online information and services in exchange for no online advertising • I prefer to receive free, but somewhat limited online information or less functional services in exchange for untargeted and less relevant advertising ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) preferencecentral . reproduction prohibited.
  12. 12. consumer perspectives on online advertising - 2010 12 All attitudinal items are significantly related to “willingness” and “desire”, except “intrusive when not relevant”, which is not related to these. [fig. 3] However, consumer attitudes were not materially related to trade-off percentages. figure 3 attitudinal items – correlation analysis behavioral targeting – consumer perspectives In this part of the survey, we introduced the topic of behavioral targeting to gauge its impact on consumer perception. We wanted to know if consumers were aware that ads are commonly tailored based on their online behavior, and if this fact changed their attitudes toward online advertising. With single-option wording, we now learn that a minority of consumers express a desire for tailored ads. This corroborates the result obtained in the recent Annenberg-Berkeley study (2009). However, the primary reasons consumers stated are based on their dislike for online ads, not a concern over privacy. [fig. 4] preferencecentral . reproduction prohibited.
  13. 13. consumer perspectives on online advertising - 2010 13 figure 4 behavioral targeting - desire for websites to show tailored ads Key Reasons Not Interested Not Interested in Ads 16% Hate Ads 16% Ads Annoying 13% Interrupt 10% Invasion of Privacy 10% Don’t Pay Attention 7% If Need a Product 7% Waste of Time 6% Yes, I would No, I wouldn’t Maybe / I don’t know Q: Would you want the websites you visit to show you ads that are tailored to your interests? ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) figure 5 behavioral targeting - minority state desire for tailored ads What you do on a website What you do on other web- What you do offline - like sites you have visited? purchases in a store? No Yes & Ok Yes & not Ok Yes & Maybe / I don’t know Q: Would it be OK or not OK if these ads were tailored for you based on the following: ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) preferencecentral . reproduction prohibited.
  14. 14. consumer perspectives on online advertising - 2010 14 However, “awareness” of behavioral targeting makes 29% of consumers less comfortable with relevant, targeted online ads. [fig.6] Further, their willingness to receive and trust online ads are negatively impacted by awareness or education. And, almost half of consumers state they were aware of behavioral targeting of online ads. [fig.7] These “aware” consumers are less neagatively impacted. figure 6 behavioral targeting - consumers become less comfortable I Don’t Know No Change Less Comfortable More Comfortable Q: Does the fact that behavioral information is used change your attitude about relevant, tar- geted online ads? ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) figure 7 behavioral targeting - slight majority not aware Aware Not Aware Not Sure/ I Don’t Know Q: Were you aware that online ads are commonly tailored for specific consumers based on tracking their online behavior? ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) preferencecentral . reproduction prohibited.
  15. 15. consumer perspectives on online advertising - 2010 15 I Don’t Know No Change Less Comfortable More Comfortable Q: Does the fact that behavioral information is used change your attitude about relevant, tar- geted online ads? ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) Educating or raising awareness of behavioral targeting negatively impacts consumers’ additudes. [fig. 8] figure 8 consumers’ attitudes are negatively impacted by behavioral targeting Strongly Agree Agree Somewhat preferencecentral . reproduction prohibited.
  16. 16. consumer perspectives on online advertising - 2010 16 Approximately half of consumers surveyed are not confident in the amount of control they have over how their information is collected and used online. [fig. 9] In fact, less than a third are positive about existing laws and business practices. figure 9 behavioral targeting - attitude toward control, laws & practice Agree Somewhat Strongly Agree Q: Given that online ads are commonly tailored for specific consumers based on tracking their online behavior, please indicate your agreement or disagreement with each of the following statements. ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) preferencecentral . reproduction prohibited.
  17. 17. consumer perspectives on online advertising - 2010 17 Finally, “awareness” reduces consumers trade-off for “free content-targeted ads” (-36%), and shifts towards “free limited content-untargeted ads (+63%). [fig. 10] The percent displaying a willingness to pay for ad-free content remains close to 10%. figure 10 behavioral targeting - “free targeted” preference is dramatically reduced Pay - No Ads Free - Limited - Untargtered Ads Free Content - Targeted Ads Now, what proportion of your time online would you prefer to spend among each of the options below? Please allocate 100% of your time online between these three alternatives. • I prefer to receive free online information and services in exchange for relevant advertising targeted to me • I prefer to pay for online information and services in exchange for no online advertising • I prefer to receive free, but somewhat limited online information or less functional services in exchange for untargeted and less relevant advertising that does not use my data ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) preferencecentral . reproduction prohibited.
  18. 18. consumer perspectives on online advertising - 2010 18 All attitudinal items are significantly related to “willingness” and “interest”. [fig. 11] However, “feel lost control” was not related to these attitudes or their preferences. figure 11 attitudinal items - correlation analysis preferencecentral . reproduction prohibited.
  19. 19. consumer perspectives on online advertising - 2010 19 interest & reactions to consumer control solution At this point in the survey, consumers were introduced to a free ad preference management solution – PreferenceCentral. The questions here aim to gauge interest in using such a platform and to measure any change in comfort-level of tailored ads based on the availability of the platform. What we see is a clear shift in attitudes. Now we would like you to read a brief description of a new free service called PreferenceCentral. PreferenceCentral is a free service that provides consumers with complete control of what targeted advertising they receive online and complete visibility into what information advertisers use to target the advertisements. More specifically, Prefer- enceCentral provides consumers: • Complete Control: Consumers will now be able to select what online advertising they will get – Selecting the categories, brands, or advertisers they are interested AND those they do not want; • Complete Transparency: Consumers will now know what information is being used by specific advertisers to target advertising to them AND have that specific advertiser stop use of that information for targeting. This will happen through a notification in every targeted ad that links to an account where a consumer can exercise control; • Monitoring & Enforcement: PreferenceCentral will also monitor online advertising to assure that consumers’ preferences and industry best practices are being used by advertisers preferencecentral . reproduction prohibited.
  20. 20. consumer perspectives on online advertising - 2010 20 70% of consumers expressed an interest in using a consumer control solution like PreferenceCentral. A third of all respon- dents are extremely or very interested. [fig. 12] figure 12 consumer control solution - consumer interest in using Q: Based on this description of PreferenceCentral, how interested would you be in using this free service? ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) The promise of control of their online advertising experience is a major stated factor in consumers’ interest in an ad prefer- ence solution like PreferenceCentral. [fig. 13] Control over the types of ads and advertisers they engage with online, as well as a feeling of security about their information offers a new way to think about digital advertising. Those not interested do not feel a need for such a solution, as they simply ignore ads. preferencecentral . reproduction prohibited.
  21. 21. consumer perspectives on online advertising - 2010 21 figure 13 consumer control solution - reasons for interest Key Reasons Interested Key Reasons Not Interested Control of What I See 34% Don’t Need 29% Interesting Idea 15% Don’t Like Ads / Ignore Ads 26% Wanted Ads / Eliminate Unwanted Ads 14% Invasion of Privacy 5% Control Over Information / Protection 11% Not Sure Safe / Trustworthy 3% Free 10% Seems Like a lot of Work 4% Q: Why are you “interested/not interested” in PreferenceCentral? ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) Over 80% perceive a value from using a consumer control solution. [fig. 14] In fact, the availability of such a platform dimin- ishes consumers’ concerns about behavioral targeting, with almost half becoming more comfortable and restoring their willingness to receive free content and services in exchange for targeted ads. [fig. 15] figure 14 consumer control solution - perceived value of components Somewhat Valuable Very Valuable Extremely Valuable Q: How valuable is each of the PreferenceCentral key capabilities listed below? ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) preferencecentral . reproduction prohibited.
  22. 22. consumer perspectives on online advertising - 2010 22 figure 15 consumer control solution - consumers become more comfortable I Don’t Know No Change Less Comfortable More Comfortable Q: Does the availability of PreferenceCentral change your attitude towards the use of behavioral information to target relevant online ads? ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) preferencecentral . reproduction prohibited.
  23. 23. consumer perspectives on online advertising - 2010 23 The availability of a consumer control solution appears to improve consumers’ attitudes towards “control” [fig. 16] and will- ingness to receive free content with targeted ads. [fig. 17] figure 16 consumer control solution - fewer feel loss of control Agree Somewhat Strongly Agree Q: I feel that I have lost all control over how information about my online behavior is collected and used by companies ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) figure 17 consumer control solution - willingness to receive free content - targeted ads Agree Somewhat Strongly Agree Q: I am willing to receive free online information and services in exchange for relevant advertis- ing targeted to me ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) preferencecentral . reproduction prohibited.
  24. 24. consumer perspectives on online advertising - 2010 24 However, other consumer attitudes were not impacted by the availability of a consumer control solution. [fig. 18-20] figure 18 consumer control solution - more favorable view of advertisers Agree Somewhat Strongly Agree Q: I tend to have a more favorable view of those advertisers who send online ads tailored to my interests ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) preferencecentral . reproduction prohibited.
  25. 25. consumer perspectives on online advertising - 2010 25 figure 19 consumer control solution - trust for online advertising efforts Agree Somewhat Strongly Agree Q: I trust the online advertising efforts for brands I recognize Base total = 1050 (Error estimate = +/- 3% at 95% CL ) figure 20 consumer control solution - interest receiving tailored ads Agree Somewhat Strongly Agree Q: I am interested in receiving ads tailored to my interests Base total = 1050 (Error estimate = +/- 3% at 95% CL ) preferencecentral . reproduction prohibited.
  26. 26. consumer perspectives on online advertising - 2010 26 A consumer control solution does re-inflate consumers’ trade-off preferences towards the “free content - targeted ads” op- tion. [fig. 21] Again, only a small minority of about 10% of consumers state a preference for paying for ad-free content. figure 21 consumer control solution - re-inflates trade-off for “free content - targeted ads” Free Content - Targeted Ads Free - Limited - Untargtered Ads Pay - No Ads Q: What proportion of your time would you prefer to spend among each of the options below? ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) All attitudinal items are related to “willingness,” “interest” & “interest in PC”, except “feel lost control” which is not related to these and other attitudinal items. [fig. 22] Value ratings of the three components were significantly & equally related (.62-.64) figure 22 attitudinal items - correlation analysis preferencecentral . reproduction prohibited.
  27. 27. consumer perspectives on online advertising - 2010 27 audience data - relative comfort Generally, consumers are least comfortable with behavioral, attitudinal and contextual data. [fig. 23-24] Consumers’ com- fort with behavioral targeting is largely maintained with assurances that data is anonymous, not personally identifiable to advertisers - 35% more comfortable. Consumers’ comfort with contextual targeting is comparable to that for behavioral targeting with assurances that data is anonymous, not personally identifiable to advertisers. The same results were seen for contextual data. [fig. 25-26] figure 23 audience data - consumers’ relative comfort selections More Comfortable Less Comfortable Q: Which types of consumer information are you least comfortable with advertisers using to target relevant online ads? ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) preferencecentral . reproduction prohibited.
  28. 28. consumer perspectives on online advertising - 2010 28 figure 24 audience data - consumers’ relative comfort ratings Very Comfortable Somewhat Comfortable Somewhat Uncomfortable Very Uncomfortable Q: How comfortable are you with each of the following types of consumer information being used by advertisers to target relevant online ads? ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) preferencecentral . reproduction prohibited.
  29. 29. consumer perspectives on online advertising - 2010 29 figure 25 audience data - comfort lifted by assurances data is not PII I Don’t Know No Change Less Comfortable More Comfortable I Don’t Know No Change Less Comfortable More Comfortable Q: Does the fact that it’s not personally identifiable information change your attitude towards the use of behavioral (and contextual) information to target relevant ads? ( Base total = 1050 (Error estimate = +/- 3% at 95% CL ) preferencecentral . reproduction prohibited.
  30. 30. consumer perspectives on online advertising - 2010 30 consumer prof iles - internet usage & demographics Internet usage characteristics are stronger predictors of users’ attitudes, awareness, and interest, than are users’ demo- graphics. The more active a consumer is in terms of engagement in online consumer activities and precautions, the more positive, interested, and aware they seem to be. Internet Usage [fig. 26-30] • Sample contained a broad spectrum of Internet users in terms of years and hours of usage • More active-valuable internet users are more positive • Recent users (under 5 years) tend to have more positive attitudes and be less aware • Heavier users (50+ hours per week) are slightly more positive and aware Demographics [fig. 31-35] • Sample is proportional to US population in terms of gender, age & region • Overall, in this study demographics provide little predictive value • No clear meaningful relationships due to education or region • Weak relationships for gender, age, and income • Males, younger (< 30 yrs), and higher incomes ($75+K) are slightly more positive about relevant, targeted online ads, and aware of behavioral targeting preferencecentral . reproduction prohibited.
  31. 31. consumer perspectives on online advertising - 2010 31 Those willing to receive targeted ads are more active-valuable Internet users. figure 26 response profiles - willingness to receive targeted ads preferencecentral . reproduction prohibited.
  32. 32. consumer perspectives on online advertising - 2010 32 Those interested in a control solution are more active-valuable internet users. figure 27 response profiles - interest in consumer control solution preferencecentral . reproduction prohibited.
  33. 33. consumer perspectives on online advertising - 2010 33 Those who stated prior awareness are more active-valuable Internet users. figure 28 response profiles - awareness of behavioral targeting preferencecentral . reproduction prohibited.
  34. 34. consumer perspectives on online advertising - 2010 34 Recent users tend to have more favorable attitudes and be less aware. figure 29 internet usage profile - length of usage profiles Heavier users appear somewhat more positive and informed. figure 30 internet usage profile - usage level profiles preferencecentral . reproduction prohibited.
  35. 35. consumer perspectives on online advertising - 2010 35 Younger consumers tend to be somewhat more positive than older consumers. figure 31 demographic profiles - age Education is generally not related to attitudes. figure 32 demographic profiles - education preferencecentral . reproduction prohibited.
  36. 36. consumer perspectives on online advertising - 2010 36 Males tend to have more positive attitudes and be more aware. figure 33 demographic profiles - gender Higher income consumers are slightly more aware and interested in targeted ads. figure 34 demographic profiles - household income There are no consistent regional differences (consumers’ attitudes towards targeted online advertising.) figure 35 demographic profiles - regions preferencecentral . reproduction prohibited.
  37. 37. consumer perspectives on online advertising - 2010 37 consumer prof iles - response segments Internet users were segmented according to their responses to the following: • Willingness to receive targeted ads • Awareness of behavioral targeting • Interest in consumer control solution – PreferenceCentral Consumers interested in control solution are very positive about targeted advertising • They are also more likely to feel a loss of control Interestingly, those aware of behavioral targeting are more positive & interested Those with more positive attitudes, and higher interest and awareness, are also more likely to be the more active-valuable internet users (as previously mentioned in fig. 28) Willingness is positively related to other attitudes and awareness. figure 36 response profiles - willingness to receive targeted ads preferencecentral . reproduction prohibited.
  38. 38. consumer perspectives on online advertising - 2010 38 Prior “awareness” tend to have more favorable attitudes. figure 37 response profiles - awareness of behavioral targeting Those interested in a control solution are more positive and aware. figure 38 response profiles - interest in consumer control solution preferencecentral . reproduction prohibited.
  39. 39. consumer perspectives on online advertising - 2010 39 implications All future research on consumers’ preferences toward tailored advertising, needs to use a behavior economic context of real-world, value-for-value trade-off options to fully and accurately assess their preferences. This methodology contributes toward a more informed and balanced discourse, unlike previous research that offered an incomplete and misleading view based on a simple, single-option. The industry needs to educate consumers on the value-for-value trade-off reality and consumer benefits of free quality on- line content supported by relevant targeted advertising. Anonymity (non-PII) of behavioral data may be a difficult concept to fully understand for many consumers, so the industry must make it an ongoing priority to educate their audiences. The industry must also provide consumers with meaningful choice and control over their online ad experience. These types of solutions are proven to be accepted by consumers. Naturally, advertisers must then comply with consumers’ stated pref- erences. Furthermore, online publishers should be offering multiple content-access models to optimize consumer appeal and mon- etization; this reinforces value-for-value. In this regard, a recent Network Advertising Initiative (NAI) study shows that behaviorally targeted ads are more than twice as valuable and effective in converting ad clickers into buyers, then are run- of-network ads. In conclusion, continued message relevance, consumer engagement, and the viability of the ad-supported content model will depend on the industry doing a combination of the following • Reinforcing the trade-off reality and consumer benefits of free, quality content • Educating consumers on data anonymity (non-PII) – Difficult concept • Providing a consumer control solution – Free, easy, trustworthy, and Internet- wide • Complying with consumers’ preferences • Offering multiple content-access models – Value-for-value preferencecentral . reproduction prohibited.
  40. 40. consumer perspectives on online advertising - 2010 40 frequently asked questions about the preferencecentral survey on consumers’ perspectives on online advertising The PreferenceCentral Consumer’s Perspectives Survey was designed to build upon core findings of the recent Annenberg- Berkeley study (Americans Reject Tailored Advertising, September 2009), which reported that, contrary to what many mar- keters claim, a majority of US Internet Users reject tailored advertising due to a fact that their need for online privacy and security are greater than their desire for relevant advertising messages (i.e. ads that are tailored to your interests.) This PreferenceCentral research study was executed in late May of 2010 in collaboration with Survey Sampling International (SSI), which administrated the online questionnaire and provided the random sample of 1,050 U.S. Internet users aged 18 to 64 years. The survey was designed by Dr. Karl Lendenmann, a 30-year research veteran, former partner at KPMG and current VP of marketing and analytics for PreferenceCentral parent company Datran Media. Q: how was the survey conducted? tell me about the methodology… A: Survey Sampling International (SSI) randomly assigned Internet users, selecting 50% from existing panel members and 50% from real-time online recruitment. Respondents were screened for age and gender to assure a proportionally-represen- tative sample. Further, the survey was administered across all days of the week and day-parts to prevent potential timing biases. For this sample of 1,050 U.S. Internet users 18 to 64 years of age, the error estimates at the 95% confidence level are +/- 3%. Survey participants were asked a series of questions in each of the following stages: • Current-State – Obtain current-state attitudes toward online advertising at start • Behavioral Targeting Education – Determine impact of awareness of behavioral targeting on consumers’ attitudes • Consumer Control Solution Presentation – Assess interest in a consumer control solution and how its avail- ability affects consumers’ attitudes • Audience Data Education – Determine relative comfort regarding different types of audience data collected online, as well as education on the fact that these data are totally anonymous, non-personally identifiable information By framing our core preference questions within the context of real-world trade-off options, we were able to gain a much more accurate, complete view of how consumers feel about targeted advertising in their everyday lives. Specifically, for this research, consumers were asked to indicate what proportion of their time online would they prefer to spend among each of the three options below? To indicate their preferences they were asked to allocate 100% of their time online between these three alternatives: preferencecentral . reproduction prohibited.
  41. 41. consumer perspectives on online advertising - 2010 41 • I prefer to receive free online information and services in exchange for relevant advertising targeted to me • I prefer to pay for online information and services in exchange for no online advertising • I prefer to receive free, but somewhat limited online information or less functional services in exchange for untargeted and less relevant advertising Q: how is this methodology different/better than what has already been done? A: In an effort to contribute to a more informed and balanced course of action for the online advertising industry and con- sumers, this PreferenceCentral study is the first that asked consumers to state their preferences for tailored online advertis- ing within a behavioral economic context of real-world trade-off options. And with their value-for-value preference deci- sions, we found that a majority of consumers prefer relevant targeted online ads as a trade-off for access to free content. By contrast, prior research on consumers’ attitudes toward behavioral targeting has largely employed simple, single-option preference questions, and, as mentioned, this approach taken in prior research has provided an incomplete and misleading view of consumers’ real-world perspectives on online advertising, and has misinformed public discourse on this topic. For example, in prior studies when consumers are asked simply, “Do you want websites you visit to show you ads tailored to your interests?”, and provided with only a “Yes or No” option, it’s not surprising that past researchers concluded that most consumers have negative attitudes toward behavioral targeting. In fact, after our first trade-off preference question, we asked this same question, and we got this same result. However, this simple, single-option scenario is not realistic for assessing consumers’ preferences for tailored online advertis- ing. In the real world, the trade-off consumers take for access to free content across the Web is targeted advertising, and our study found that, when presented in this trade-off context, the majority of respondents preferred relevant targeted advertising in exchange for continued access to free content. Q: but the annenberg-berkeley study reported that the majority of consumers they surveyed are concerned with privacy – right? A: Actually, as mentioned, after our initial trade-off preference question, we also included the simple, single-option preference question used in the Annenberg-Berkeley study – “Do you want websites you visit to show you ads tailored to your interests?” -- and our results were similar to what they obtained – only a minority of respondents indicated that they wanted to receive tailored online ads. Largely based on this result, the core conclusion in the Annenberg-Berkeley report is that consumers reject tailored advertis- ing because their concerns for privacy are stronger than their desire for relevant advertising messages. However, in our study, we also asked consumers, “Why?” And our results show that the primary stated reason for their negative responses is that they don’t want to see advertising because they find it annoying. Privacy concerns came in a preferencecentral . reproduction prohibited.
  42. 42. consumer perspectives on online advertising - 2010 42 distant second with only 10 percent of the responses.. This being said, when educated that tailored ads are based on following their online behavior, 29 percent of respondents became less comfortable with the trade-off of free content for targeted ads. However, when subsequently informed that behavioral targeting information is anonymous, non-personally identifiable, 35 percent of these Internet users became more comfortable. This indicates a real need for consumer education on this topic. Q: what other factors play a role in consumers’ comfort level with targeted ads? A: As I mentioned, when educated about behavioral targeting, 29 percent of respondents became less comfortable with the trade-off of free content for targeted ads. The introduction of behavioral targeting education now resulted in the ma- jority of survey respondents favoring the trade-off of limited content in exchange for untargeted ads. However, when subsequently presented with the option of a solution that would give them more control over their expo- sure to targeted ads and transparency into the audience data used by advertisers, 70 percent of Internet users expressed interest in using such a control solution, with 33 percent stating they are very to extremely interested. In fact, 41 percent of consumers became more comfortable with behavioral targeting in general and were 27 percent more willing to receive targeted, relevant ads in exchange for free content if they were given a control solution. This tells us that educating consumers is not enough, and in fact, could be a step backwards for the online advertising in- dustry. If we want to truly strengthen consumer trust, it is going to be essential to put the power in their hands – give them control over how they are targeted, what types of ads they want to see and what types they don’t, control over how their data is used, etc. This kind of control is exactly what PreferenceCentral provides, and we are thrilled to find out that consumers are interested and willing to use a control solution to shape their ad experiences online. By stating their preferences and controlling which brands and products they want to interact with, consumers are going to feel a lot more comfortable sharing their anony- mous data in exchange for access to free content (and hopefully they will find the ads a little less annoying!). These con- sumers are going to be a lot more valuable to advertisers and publishers. On this fact, the Network Advertising Initiative (NAI) recently released their own research that shows behaviorally targeted ads are more than twice as valuable in terms of prices advertisers pay, and more than twice as effective in converting con- sumers who click on ads into buyers than normal run-of-network ads. preferencecentral . reproduction prohibited.
  43. 43. consumer perspectives on online advertising - 2010 43 Q: but if consumers had control over which ads they see and which they do not, wouldn’t the big risk be that they would just opt-out of all targeted advertising? A: Based on our research study, within the context of making a trade-off, only 12 percent of consumers opt out of all targeted advertising. It’s important to note that if they opt-out of targeted advertising, they will increase their exposure to random, untargeted ads, and thereby increase the “annoyance factor” of the ads they see, as our study also reveals that almost 60 percent of consumers are more annoyed by online ads that are not relevant to their interests. Additionally, if more and more publishers begin to offer multiple content-access models based on the audience data con- sumers are willing to share, then the consumers who opted-out of targeted advertising might find that they suddenly have more limited access to the content they previously enjoyed for free. Lastly, our survey found that across all trade-off exercises, only about 10 percent of consumers expressed a preference for paying for content with no advertising. Another reason publishers need to offer multiple content-access models to optimize appeal and monetization. Q: what are some other interesting findings from your survey? A: • Approximately half of consumers state prior awareness of behavioral targeting, and, somewhat surprisingly, they have more positive attitudes about relevant targeted online ads and have more interest in a solution to control their online advertising experience. • Those interested in a control solution are also very positive about relevant targeted online advertising. • Consumers expressed the most concern over behavioral, attitudinal and contextual data collected about them online. • In contrast, consumers are more comfortable about the use of geographic, psychographic and demographic data by advertisers. • The primary reason for consumers’ interest in a control solution was to control which ads they want to see and those they do not. Their secondary reason was to have more control over the behavioral information collected about them online. • A slight majority of Internet users feel they have lost control of how their information is collected and used, however, it is interesting that these consumers were just as receptive to receiving relevant targeting advertising as those who did not agree that they feel that they have lost control. preferencecentral . reproduction prohibited.
  44. 44. consumer perspectives on online advertising - 2010 44 • Consumers’ attitudes toward targeted ads appear to be much more impacted by type of Internet user as defined by specific activities such as clicking on ads, online purchases, subscribing to newsletters, etc., than by their demographics. • Additionally, on this last point, those that are more positive about relevant targeted online ads are also more likely to be interested in a control solution, as well as are likely to be the more active, high-value consumers. It appears that they are actively using the Internet to both get value and to control their online experience. • Almost 60% of consumers agree that online ads are annoying if they are not relevant to their interests (This item received the highest percent of “strongly agree” ratings). • Further, only one in five respondents agrees that most online ads are relevant (one of the lowest levels of agreement obtained). • Only three in ten consumers currently agree that businesses handle personal information properly, as well as existing laws provide reasonable protection. Q: what are the next steps/takeaways for preferencecentral/the online ad industry? A: For us, this is the first of an ongoing series of research studies we plan to conduct in support of our mission to strength- en consumer trust and understanding of advertising through technology and education. We hope to establish benchmarks through our research to track and better understand consumers’ evolving perspectives on online advertising relevance and audience measurement. This type of intelligent research, which explores consumers’ real-world opinions and attitudes, will help to inform more balanced public discourse and guide policies for best practices and self-regulation. This has tremen- dous value for advertisers, publishers, and consumers. The key takeaways for the advertising industry are that it’s not enough to just educate consumers on targeted advertising; we must also provide meaningful choice and control over their online ad experience. For online publishers, these results mean that they should be offering multiple content-access models to optimize appeal and monetization. Continued message relevance, consumer engagement, and the viability of the ad-supported model will depend on the industry: • Reinforcing the trade-off reality and consumer benefits of free, quality content • Educating consumers on data anonymity • Providing a consumer-control solution • Complying with consumers’ preferences • Offering multiple content-access model preferencecentral . reproduction prohibited.
  45. 45. consumer perspectives on online advertising - 2010 45 Q: what other studies, besides the annenberg-berkeley study, did you look at when creating your survey? • Ad Targeting: Data and Privacy Issues (eMarketer, 2/10) • How Should Marketers Address Concerns about Audience Targeting? (eMarketer, 2/16/10) • Experienced Users Less Concerned with Security (eMarketer, 3/25/10) Q: anything else I should know about the survey? A: Yes, this study clearly demonstrates that all future research on consumers’ preferences regarding relevant targeted on- line advertising needs to ask these consumers to express their preferences within the context of real-world, value-for-value trade-off options. Q: tell me a little bit about preferencecentral… A: PreferenceCentral is a solution that enables companies (brands and publishers) to build a consumer preference center that, once live, enables consumers to easily control their multi-channel marketing preferences with a given brand (i.e. Email Newsletters, Alerts, Interest Based Ads, Mobile, and more…) The best brands will employ the solution based on their com- mitment to providing their customers with the best experience possible versus any law or industry best practice. Right now, PreferenceCentral is engaged in a soft launch which is providing several Fortune 500 advertisers with full access to the product in order to help determine the solution’s ultimate, look, feel and pricing structure. It is also providing the ac- countability feature of the product, the segment that the BBB RFP sought, to both agency and ad network partners for free. We are committed to providing advertisers and consumers with the best experience in the industry. preferencecentral . reproduction prohibited.
  46. 46. consumer perspectives on online advertising - 2010 46 questionnaire - part 1 - introduction & “current state” attitudes Survey Sampling International (SSI) is conducting a short survey to assess Internet Users’ attitudes and reactions to tailored online advertising. The results of this survey will only be reported as aggregate results. That is as summary data for groups of Internet Users – in no case will information provided by any given individual be reported or shared. This short survey can be completed in about 10 minutes. Your participation is greatly appreciated. Pre1. how old are you? Years old (allow 18 to 100) Pre2. are you…? Male, Female Q1: Please indicate your agreement or disagreement with each of the following statements. Strongly Agree (5), Agree Somewhat (4), Neither Agree Nor Disagree (3), Disagree Somewhat (2), Strongly Dis- agree (1), May/Don’t Know (9) • Most of the ads I see online are relevant to my interests • I find online advertising intrusive and annoying when the products and services being advertised are not rel- evant to my wants and needs • I am interested in receiving ads tailored to my interests • If given the option, I would choose to only see online ads from brands that I know and trust • I tend to have a more favorable view of those advertisers who send online ads tailored to my interests • I am more willing to pay attention to online ads that are relevant to me • I would be willing to click on more online ads if they were tailored to my interests • I trust the online advertising efforts for brands I recognize • I am willing to receive free online information and services in exchange for relevant advertising targeted to me • I am willing to pay for online information and services in exchange for no online advertising • I am willing to receive free, but somewhat limited online information or less functional services in exchange for untargeted and less relevant advertising Q2: what proportion of your time online would you prefer to spend among each of the options below? Please allocate 100% of your time online between these three alternatives. • I prefer to receive free online information and services in exchange for relevant advertising targeted to me • I prefer to pay for online information and services in exchange for no online advertising • I prefer to receive free, but somewhat limited online information or less functional services in exchange for untargeted and less relevant advertising [ Note: If Q2 does not add up to 100% then please indicate to the respondent it must add up to 100% ] preferencecentral . reproduction prohibited.
  47. 47. consumer perspectives on online advertising - 2010 47 questionnaire - part 2 - impact of behavorial targeting Q3: would you want the websites you visit to show you ads that are tailored to your interests? Yes, I would, No, I would not, Maybe, I’m not sure/I don’t know [ Note: Ask Q4 to those who answered punch ‘2’, No, I would not, at Q3] Q4: Why do you not want the websites you visit to show you ads that are tailored to your interests? [ Note: Ask Q5a through Q5c to those who answered punch ‘1’, Yes, I would, at Q3] Q5a. Would it be OK or not OK if these ads were tailored for you based on following what you do on the website you are visiting? Ok, Not Ok, Maybe/Don’t Know Q5b. Would it be OK or not OK if these ads were tailored for you based on following what you did on other websites you have visited? Ok, Not Ok, Maybe/Don’t Know Q5c. Would it be OK or not OK if these ads were tailored for you based on following what you do offline – Like purchases in a store? Ok, Not Ok, Maybe/Don’t Know Q6. Were you aware that online ads are commonly tailored for specific consumers based on tracking their online behavior? Yes, No, Not Sure/Don’t Know [ Note: Show the below description as a header for Q6a, Q7, & Q8] Online ads are commonly targeted to specific individuals. Websites that use this method of marketing will show particular advertisements to each visitor based on that person’s online behavior. Q6a. Does this fact change your attitude towards the use of behavioral information to target relevant online ads? Yes, it makes me more comfortable, Yes, it makes me less comfortable, No, I feel the same, Maybe/Don’t Know Q7: Given that online ads are commonly tailored for specific consumers based on tracking their online behavior, please indicate your agreement or disagreement with each of the following statements. Strongly Agree (5), Agree Somewhat (4), Neither Agree Nor Disagree (3), Disagree Somewhat (2), Strongly Dis- agree (1), May/Don’t Know (9) preferencecentral . reproduction prohibited.
  48. 48. consumer perspectives on online advertising - 2010 48 • I feel that I have lost all control over how information about my online behavior is collected and used by companies • Most businesses handle the personal information they collect about consumers in a proper and confidential way • Existing laws and organizational practices provide a reasonable level of protection for consumer privacy today • I am interested in receiving ads tailored to my interests • I tend to have a more favorable view of those advertisers who send online ads tailored to my interests • I trust the online advertising efforts for recognized brands • I am willing to receive free online information and services in exchange for the use of my data to target rel- evant advertising to me • I am willing to pay for online information and services in exchange for no online advertising • I am willing to receive free, but somewhat limited online information or less functional services in exchange for untargeted and less relevant advertising that does not use my data Q8: Now, what proportion of your time online would you prefer to spend among each of the options below? Please allocate 100% of your time online between these three alternatives. • I prefer to receive free online information and services in exchange for relevant advertising targeted to me • I prefer to pay for online information and services in exchange for no online advertising • I prefer to receive free, but somewhat limited online information or less functional services in exchange for untargeted and less relevant advertising [ Note: If Q8 does not add up to 100% then please indicate to the respondent it must add up to 100%] questionnaire - part 3 - interest & reactions to preferencecentral Now we would like you to read a brief description of a new free service called PreferenceCentral. PreferenceCentral is a free service that provides consumers with complete control of what targeted advertising they receive online and complete visibility into what information advertisers use to target the advertisements. More specifically, Prefer- enceCentral provides consumers: • Complete Control: Consumers will now be able to select what online advertising they will get – Selecting the categories, brands, or advertisers they are interested AND those they do not want; • Complete Transparency: Consumers will now know what information is being used by specific advertisers to target advertising to them AND have that specific advertiser stop use of that information for targeting. This will happen through a notification in every targeted ad that links to an account where a consumer can exercise control; • Monitoring & Enforcement: PreferenceCentral will also monitor online advertising to assure that consumers’ preferences and industry best practices are being used by advertisers. preferencecentral . reproduction prohibited.
  49. 49. consumer perspectives on online advertising - 2010 49 Q9: Based on this description of PreferenceCentral, how interested would you be in us- ing this free service? Extremely Interested (5), Very Interested (4), Somewhat Interested (3), Not Very Interested (2), Not At All Inter- ested (1) Q10a: Why are you [insert answer from Q9] in preferencecentral? [ Note: Ask Q10b only to those “somewhat”, “not very” or “not at all” interested (punches 1, 2, and 3 at Q9)] Q10b. what could be done to make you more interested in preferencecentral? Q11. how valuable is each of the preferencecentral key capabilities listed below? Extremely Valuable (5), Very Valuable (4), Somewhat Valuable (3), Not Very Valuable (2), Not At All Valuable (1) Complete Control, Complete Transparency, Monitoring & Enforcement Q11a. does the availability of preferencecentral change your attitude towards the use of behavioral information to target relevant online ads? Yes, it makes me more comfortable, Yes, it makes me less comfortable, No, I feel the same, Maybe/Don’t Know Q12. how, if at all, does the availability of preferencecentral change your attitude towards tailored online advertising based on tracking consumers’ online behavior? please either confirm or revise your agreement or disagreement with each of the fol- lowing statements. Strongly Agree (5), Agree Somewhat (4), Neither Agree Nor Disagree (3), Disagree Somewhat (2), Strongly Dis- agree (1), Don’t Know (9,) • I feel that I have lost all control over how information about my online behavior is collected and used by companies • I am interested in receiving ads tailored to my interests • I tend to have a more favorable view of those advertisers who send online ads tailored to my interests • I trust the online advertising efforts for recognized brands • I am willing to receive free online information and services in exchange for the controlled and transparent use of my data to target select relevant advertising to me • I am willing to pay for online information and services in exchange for no online advertising • I am willing to receive free, but somewhat limited online information or less functional services in exchange for untargeted and less relevant advertising that does not use my data preferencecentral . reproduction prohibited.
  50. 50. consumer perspectives on online advertising - 2010 50 Q13: Knowing that preferencecentral is available, what proportion of your time online would you prefer to spend among each of the options below? Please allocate 100% of your time online between these three alternatives. • I prefer to receive free online information and services in exchange for relevant advertising targeted to me • I prefer to pay for online information and services in exchange for no online advertising • I prefer to receive free, but somewhat limited online information or less functional services in exchange for untargeted and less relevant advertising questionnaire - part 4 - relative comfort with audience data types Advertisers use various types of consumer information to target relevant online advertising, such as: • Demographic: Age, gender, educational level, household income level, marital status,… • Psychographic : Interests, activities, hobbies, lifestyle characteristics,… • Geographic: ZIP code, area code, region, state, city, IP address,… • Contextual: Type of websites, specific sections, specific webpage content,… • Attitudinal: Interests, values, attitudes,…derived from information on blogs & social network sites,… • Behavioral: Ads clicked, website visits, search queries,…inferred consumer interests,… Q14. which types of consumer information are you least comfortable with advertisers using to target relevant online ads? Q15. which types of consumer information are you most comfortable with advertisers using to target relevant online ads? Q16. how comfortable are you with each of the following types of consumer informa- tion being used by advertisers to target relevant online ads? Very Comfortable (5), Somewhat Comfortable (4), Neither Comfortable nor Uncomfortable (3), Somewhat Un- comfortable (2), Very Uncomfortable (1), Don’t Know (9) Q17. finally, what if you could be totally confident that the behavioral and the con- textual consumer information collected online is totally non-personally identifiable information (information that could never be traced back to you)? The information collected would help marketers identify audiences of consumers of similar interests in aggregate, but would not allow them to connect this information with a single consumer’s name or address. does the fact that it’s not personally identif iable information change your attitude to- wards the use of behavioral and contextual information to target relevant online ads? please answer for both behavioral and contextual below: Yes, it makes me more comfortable, Yes, it makes me less comfortable, No, I feel the same, Maybe/Don’t Know preferencecentral . reproduction prohibited.
  51. 51. consumer perspectives on online advertising - 2010 51 questionnaire - part 5 - consumer prof iles - internet usage Q18. when did you first begin using the internet? Less than one year ago, One to five years ago, More than five years ago, but less than ten years ago, Ten to fif- teen years ago, More than fifteen years ago Q19. during the last week how many hours would you say you spent online either at home or at work? If you surfed for less than a whole hour please use decimals - for example:, 15 minutes = .25 hours, 30 minutes = .50 hours, 45 minutes = .75 hours Q20. how often do you participate in the following activities? At least once per week, A few times per month, Once a month, A few times a year, Once a year, Less than once a year, Never • Gather information online regarding products, services, offers, and specials. • Make an online purchase • Click on online ads • Delete your internet cookies • Read website privacy policies • Unsubscribe from an email list • Watch videos online • Register on websites to receive emails or newsletters with information of interest to you Q21. Have you ever experienced online identity theft? Yes, No Pre1. how old are you? Years old (allow 18 to 100) Pre2. are you…? Male, Female Q22. are you the parent of any kids under the age of 18 who live in your household? Yes, No Q23. which of the following describes the home in which you live? (Select one) Own or being bought, Rent, Neither Q24. what is the highest level of education you have completed? Some high school, High school graduate, Some college, Trade/technical/vocational training, College graduate, Some postgraduate work, Post graduate degree, Prefer not to answer preferencecentral . reproduction prohibited.
  52. 52. consumer perspectives on online advertising - 2010 52 Q25. Which of the following best describes your employment status? Full time employee, Part time employee, Student, Homemaker, Retired, Not employed, Prefer not to answer Q26. Which of the following best describes your occupation? Building, Grounds Cleaning, Maintenance, Construction and Extraction, Doctor/Surgeon, Engineer, Executive/ Upper Management, Farming, Fishing and Forestry, Food Preparation and Serving, Installation, Maintenance or Repair, IT/MIS Professional, Legal Occupations, Manager/Supervisor, Office and Administrative Support, Personal Care and Service, Production/Factory Worker, Sales, Small Business Owner, Teacher/Educator, Trans- portation and Material Moving, None of the above [ Note: Only ask Q26 to those who are employed at ‘Punch 1 OR 2’ at Q25 ] Q27. what is your race/ethnicity? White, African American, Asian, American Indian, Native Hawaiian or Other Pacific Islander, Hispanic, Other, Prefer not to answer Q28. what is your annual household income level before taxes? Less than $20,000, $20,000 - $49,999, $50,000 - $74,999, $75,000 - $99,999, $100,000 - $149,999, $150,000+, Prefer not to answer Q29. what is your current marital status? Single, Married, Divorced, Separated, Widowed, In a relationship (not married), Prefer not to answer Q30. which state do you live in? [ Note: Drop down list of U.S. states in alphabetical order– Later classified into four Census Regions ] preferencecentral . reproduction prohibited.
  53. 53. consumer perspectives on online advertising - 2010 53 category sample prof ile length of internet usage (years & hours) preferencecentral . reproduction prohibited.
  54. 54. consumer perspectives on online advertising - 2010 54 Internet users interviewed are diverse in terms of their online behavior. internet usage profile - frequency of online activities preferencecentral . reproduction prohibited.
  55. 55. consumer perspectives on online advertising - 2010 55 Sample is proportional to US population in terms of gender, age and region. demographic profiles - gender, age & region preferencecentral . reproduction prohibited.
  56. 56. consumer perspectives on online advertising - 2010 56 about preferencecentral contact us PreferenceCentral is a comprehensive solution that allows ad- PreferenceCentral vertisers and their partners to provide consumers with an easy 345 Hudson Street, 5th Floor way to control their own online advertising experience. Prefer- New York, NY 10014 enceCentral was developed by the proven compliance technol- ogy experts that created UnsubCentral, the industry standard Research Contact for blue chip companies dedicated to honoring consumer email Dr. Karl Lendenmann preference requests. klendenmann@datranmedia.com Phone: 212.706.4842 Learn more about PreferenceCentral Jeff Katz Media Contact jkatz@preferencecentral.com Lana McGilvray Phone: 212.706.4828 lana@preferencecentral.com Phone: 512.857.7303 preferencecentral . reproduction prohibited.

×