Consumers Want Personal Ads
The results of our annual survey on trends and perceptions in online personalization are in and there are some surprising findings that are particularly relevant to retailers investing in online display advertising.
In this year’s survey, we added questions to learn more about what consumers want from online advertising. Specifically, we measured the value of personalized advertising to consumers and how aware they are of advertising’s affect on their purchase decisions.
What we found was that online shoppers show a clear preference for personalized advertising that reflects their tastes and interests. And, we found that the more attractive a retailer’s prospect—e.g., the more money they spend online or the more frequently they shop—the greater their interest in personalized ads.
Overall, almost half of all consumers indicate that they are more likely to click on a personalized ad than a non-personalized one. Of frequent shoppers—i.e., those that shop online at least several times a month—that number climbs to 58%. And, 50% of the biggest spenders indicate that they are more likely to click on personalized ads than on non-personalized ones.
The message to display advertisers is pretty clear: make ads relevant and the customers they care about most will pay attention. We all know that relevance works for search advertising, and it will work for display advertising as well. And, the beauty of display advertising is that it hasn’t maxed out the way SEM has. (SEM will never be able to get the reach of display advertising; and the impressions that are available are getting more and more expensive as competition for quality search terms increases.)
There is plenty of display inventory out there. The key is to make that inventory more effective by personalizing it so that it speaks differently to each consumer and creates an occasion to purchase.
Look for future blog posts where I’ll reveal more of the survey results, particularly as they relate to online advertising.
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