Editorial Articles

Two recent surveys looking at consumer’s attitudes to the online marketplace revealed some surprising results – principally that UK web users are not fundamentally opposed to behavioural targeting, at least when they understand what it is and how it works.

Straight branding campaigns no longer generate the desired results for advertisers and to maximise returns it’s increasingly necessary to provide consumers with a much more individualised experience. Online this means the use of targeting, a topic that has come in for some criticism from both the media and the public.

Online privacy is perceived as a serious issue by consumers, however the capture and use of consumer data is key to delivering the sophisticated forms of targeted advertising users will actually value. The “What the customer wants ” survey of 1,000 UK web shoppers by web content management firm SDL Tridion indicated that three quarters of respondents felt that tailored deals/discounts are desirable. It’s clear that marketers need to work more closely with consumers to provide services they will actively want to engage with.

When it comes down to the bottom line there is one easy way to convince shoppers of the benefits of behavioural targeting; that’s to save them cash. Research by Hitwise highlights that searches for vouchers increased by 47.5% between July 2008 and July 2009, this corresponds with SDL Tridion’s findings that 31% of respondents are shopping online more regularly since the recession began. The rising popularity of money-saving online services such as Cashback and Voucher sites point to the next stage in the evolution of online marketing. Consumers are actively seeking out the best offers online using the tools available to them.

Marketers must think beyond traditional display and ask how they can save consumers time and money, rather than marketing to them. If you enhance users’ online shopping experience they are much more likely to voluntarily opt-in to receive individually targeted deals. Opt-in will become a crucial factor for European advertisers if the mooted EU privacy proposals become law during 2010 - the new regulations dictate that advertisers and publishers will need to gain a user’s permission to place a cookie on their computer.

The results of the SDL Tridion survey indicated that 66% of those polled expected to see content specific to their needs. However research released by the IAB and Olswang highlighted that only 28% of a very similar UK sample of web users actually understood what behavioural targeting is. Of the 78% that hadn’t heard of it only 23% found it initially non-threatening, citing fears such as advertisers storing personal data, however when concerns were allayed and users understood their right to opt-out the figure for those that saw its potential went up to 74%.

Therefore if online revenues are to grow significantly the current levels of misinformation and mistrust around targeting between the advertising community and consumers need to be addressed. By offering web users guarantees of privacy, control and an enhanced online experience it will be possible to change attitudes to targeting over time. This does mean that marketers need to work harder to educate web users of the benefits of behavioural targeting to gain and maintain their trust.

In the UK this year online advertising spend outstripped TV ad spend for the first time, a sign of what’s to come since television cannot compete with the relevancy and interactivity offered by the web. Once standard regulations come into place to reassure the public of their rights we’ll see a new maturity in the online marketing landscape that will enable consumers to recognise and come to value the benefits of targeting. 

Author: Vincent Labey, Founder, Aedgency