Commentary

Personal Bind: Most People Find Tailored Ads Scary, Want Transparency

Publishers might see at least a slight decline in ad revenue if consumers get their way. Most people want to see tougher laws regarding personal data. 

For instance, 78% would support a law requiring advertisers to disclose the personal and identity data used to target ads, according to a new study from contextual advertising firm GumGum.

And contrary to the idea that consumers want personalization, 67% see personalized ads as “unnerving” or “a violation.” 

Moreover, 62% are uneasy about the online tracking used for identity-based advertising. Some 43% compared it to having “an unwanted shadow,” and 19% say they feel “completely violated.” Only 22% are comfortable with personalized advertising.

This is in line with a recent study by YouGov, showing that 54% of all Americans say personalized ads creep them out.

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With regard to the "creep" factor, 42% participants in the GumGum survey would fine it “creepy” if a first date knew as much about them as identity-based ads do. 

Perhaps more alarming, GumGum reports that 38% of consumers use ad blockers (compared to 44% in the YouGov study). And 30% have rejected cookies to avoid over-personalization. 

Of course, these numbers do reflect a major paradox: that consumers want personalization but don’t like the way it is achieved.

A recent study by researchers at San Jose State University found that 82% of consumers are very concerned about privacy. Yet 67% opt into personalization when there is a clear value proposition.

Still, 40% of consumers in the GumGum study find it unnerving when they encounter ads that seem to know too much about them. And 27% consider this a violation, while only 14% view these ads as helpful. 

Are programmatic advertisers paying attention to findings like these? Are publishers helping to educate them?

“The new findings continue to drive home the point we already know: advertising strategies that track consumers across the internet are not the way forward,” says Kerel Cooper, chief marketing officer at GumGum. “Consumers are telling us they feel violated and unnerved by these practices, blocking these ads, and are considering no longer interacting with brands that try to reach them this way.”

As the San Jose study posits, the key to ethical use of data is informed consent based on transparency. 

GumGum surveyed 1,500 consumers. 

 

 

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