ChoiceStream: Consumers Increasingly Guard Behavioral, Demographic Data

Consumers appear to have grown more protective of their online privacy, according to new research by Cambridge, Mass.-based personalization technology company ChoiceStream.

A May e-mail survey of 923 U.S. online adults revealed that just 32 percent were willing to allow Web sites to track their clicks and purchases in exchange for personalized content, down from 41 percent in 2004.

At the same time, less than half--46 percent--said they were willing to provide demographic data in exchange for personalized content, compared to 57 percent last year. And 59 percent said they would agree to provide information about their preferences in exchange for individualized content, down from almost two-thirds--65 percent--last year.

But--although less disposed to provide personal information--consumers indicated that they still want individualized content, such as recommendations for certain types of music, books, and DVDs.

Music recommendations were particularly appealing to younger adults ages 18 to 24, with 47 percent of respondents in that age range saying they were interested in music personalization, compared to 32 percent of respondents ages 25 to 34, 22 percent of 35- to-49-year-olds, and 14 percent of those older than 50.

The study also found that almost half--45 percent--of Web users had purchased music online in the last six months, while 53 percent plan to do so in the next six months.

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