Marketers Must Educate and Enlighten Concerned Consumers Regarding Ad Targeting

03/05/2010

Without access to consumer data, online advertising is unquestionably less effective. Data is critical when it comes to internet marketing. Successful internet marketing requires that accurate and relevant information be gathered from online audiences in order to offer high-quality, targeted advertising to consumers and value to the companies who place them.

It is only by obtaining this information that marketers can create ads that are creative, result in conversions, and return a sizeable return on investment. However, studies show consumers are conflicted when it comes to revealing personal data in regards to online advertising and many are becoming adverse towards internet marketing practices.

Consumer Concerns Are On the Rise

According to eMarketer’s senior analyst, David Hallerman, consumers are becoming increasingly leery of internet marketing tactics - particularly online advertising, and are concerned advertisers are gathering too much of their personal information online. In a recent survey conducted by the Future of Privacy Forum, more than 41% of individuals who were polled agreed that they were concerned about websites collecting too much personal information about them, while another 29.7% strongly agreed.

This mistrust has caused some to ask for regulations regarding data collection and online advertising, while some brands have opted to shy away from “behavioral targeting” all together. However, Hallerman did note that “spending on behaviorally targeted ads is up, and if understanding between advertisers and consumers improves, outlays will only increase.”

According to eMarketer predictions, behavioral online advertising in the US will reach $1.1 billion in 2010 and increase to $2.6 billion by 2014.

Marketers Have a Two-Fold Mission

While the fear of privacy invasion is strong, some suggest it is also misguided. Hallerman believes online audiences are “ignorant of current data protections” and as a result understand little about the online advertising and “how it may not really be a threat and what benefits they derive from websites supported by advertising.”

With this information in mind, it is important for marketers to see their jobs as two-fold: to inform and educate consumers of the positives of internet marketing and online advertising, as well as highlighting their benefits, some of which include:

• Free online content and services
• Relevant and valuable consumer offers
• Ad-supported content they depend on