Commentary

Personalize Ads For Frequent Online Shoppers and Bigger Spenders

According to the 2008 Personalization Survey from ChoiceStream, 39% of consumers overall are more likely to click on an ad if it is personalized, while that number rises to 58% among those who shop online at least several times a month. The survey finds that the bigger the spender, the greater the interest in personalized ads. Half of those spending more than $250 online over the past six months indicate that they are more willing to click on ads that are personalized. This compares with only 32% of the smallest spenders.

Consumers More Willing to Click on Personalized Ad (% of spenders Online in previous 6 months)

Online Spending ($ in 6 mos.)

% More Willing to Click

$1-100

32%

101-250

39

Over 250

50

Total

39

Source: ChoiceStream Personalization Survey, 2008

The survey finds that consumers are surprisingly savvy about online advertising in terms of its effect on their behavior. 70% of consumers admit that their purchase decisions are at least sometimes influenced by having seen an ad for an item.

Purchasing Decisions Influenced By Advertising

Frequency

% Influenced

At least sometimes

70%

Rarely

25

Never

5

Source: ChoiceStream Personalization Survey, 2008

A smaller percent of consumers admit that they are influenced by brand advertising as well, with 39% admitting that they are more likely to buy from vendors or retailers that they have seen advertised than from unrecognized sources. In both cases, the bigger the spender, the more likely he or she is to admit to being influenced by advertising.

A full 60% of shoppers are aware that retailers use information about their online shopping behavior to target advertising to them, the study found. Additional survey findings include:

Overall, 78% of consumers are interested in receiving personalized content

The types of content consumers want personalized are consistent with the previous findings, with music, books and DVDs being the most popular categories.

Advertising Preferred Personalized (% of Online spenders)

Content

% Preferring Personalization

Music

40%

Books

32

DVDs

26

Apparel

20

TV/Movies

18

Electronics

18

Games

14

News

14

Travel

13

Source: ChoiceStream Personalization Survey, 2008

Cheryl Kellond, SVP at ChoiceStream, says "Advertisers that are spending premiums to target the biggest spenders and the most frequent shoppers should... note that those shoppers want intelligent ads that speak to their specific needs and shopping intent... "

Other personalization suggestions from the respondents include:

  • 71% of the consumers believe that personalization would improve their experience in social networking by introducing them to other members with similar interests and preferences.
  • Interest in personalized ads is strongest online and on television. A large majority 72% of consumers are interested in personalized advertising distributed through their television
  • 73% interested in Online distribution of personalized advertising
  • 35% are interested in personalization on their mobile device
  • 45% of consumers reported receiving personalized recommendations that were a poor match based on their tastes and interests in 2008

Respondents were US adult internet users, 95% of whom have made at least one online purchase within the past year, who were distributed across 4 age categories (18-24, 25-34, 35-49, 50+). They were 54% female and 46% male.

To access the PDF report on the Study, please visit ChoiceStream here.

 

Correction: We missed an update from comScore in yesterday's Job Search Online Brief that would have placed the data about Monster.com in the proper order in the first chart. The data has now been corrected on the website.

 

2 comments about "Personalize Ads For Frequent Online Shoppers and Bigger Spenders".
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  1. bug menot, February 6, 2009 at 12:17 p.m.

    The URL to access the PDF report is incorrect in the article. The correct URL is: http://www.choicestream.com/pdf/ChoiceStream_2008_Personalization_Survey.pdf

  2. Martin Russ from Freelance Technical Author, February 6, 2009 at 5:14 p.m.

    The underlying message here is interesting. It suggests that frequent, large spenders are becoming very efficient in using technology to refine their purchasing decisions, and as a result, they are becoming more influenced by advertising that exploits personalization.

    The results from our personalized online video advertising complement this research. We consistently find that there is a direct correlation between personalization and significantly increased conversion rates. Personalized video seems to be particularly effective at getting people’s attention because the viewer’s assumption is that the video just happens to resonate strongly with them. Whereas in fact, we are building that video frame by frame to specifically suit whatever is known about that individual viewer. In a world of expensive and wasteful 'scatter-gun' ads, we are delivering cost-efficient expert 'sniping' - and it seems that frequent large spenders love being targeted!

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