Tergeted Advertising, pros and cons or is it just inconclusive research.

Most consumers choose not to opt-out of behavioral targeting

Marketers who feared opt-out icons on targeted advertising would lead to a mass uptake can relax. Recent analysis has shown that, when given the option to opt-out of behavioral tracking, many consumers don't bother.

Earlier this year, the Digital Advertising Alliance, representing thousands of advertising and trade companies, announced details of a program designed to give consumers more control over how their Internet browsing habits are used to target ads.

Advertisers that collect Internet user information for behavioral targeting of ads were encouraged to implement an "Advertising Option Icon" on websites, or near ads, where behavioral tracking has been used.

But, as ClickZ reports, recent analysis from Better Advertising shows few consumers are choosing to opt out. An average of one in 700,000 who were served an ad with the icon chose to opt out - a rate of about 0.00014%.

Of those that clicked on the icon and were presented with information about tracking, only 5% decided to continue the process and fully opt out.

This is great news for marketers who depend on targeted advertising to hone their response and conversion rates.

"There's always a chance the number of users opting out could go up as more advertisers implement the icon... It's early days, but there's no indication the opt out rate will go up dramatically," said Better Advertising CEO Scott Meyer.

"Whatever the [opt-out] rate is, it's so small that it's not going to destroy the business."

Web users say targeted advertising not justified

As discussion surrounding Do Not Track and behaviorally targeted ads continues, new research has surfaced that shows most consumers don't think targeted advertising is justified, even if they do get free access to content in return.

We recently reported on analysis from Better Advertising that came to the conclusion consumers, when given the option to opt-out of targeted advertising, choose not to.

New insights from a poll conducted by Gallup and USA Today appear to contradict Better Advertising's findings.

The poll found that while the vast majority claimed to pay little or no attention to online advertising, 61% did admit to having seen ads they felt were directly targeted at them based on their browsing history - and they don't like it.

In fact, almost 70% are opposed to behaviorally targeted ads and believe them to be unjustified. Nearly as many (61%) said that behaviorally targeted ads aren't even justified if it means they can access online content free of charge.

Ultimately, consumers want more control. If given a choice, just under half of respondents said they would accept targeted ads from networks specifically chosen by themselves. Thirty-seven percent said if they had the option they wouldn't allow any ad networks to target them.

by Helen Leggatt

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These two articles above have made me think of the difficulties involved in turning research into reliable market intelligence.

Two recent studies into the same subject have come up with diametrically opposed findings. The truth in my opinion is consumers have never liked advertising. People who realise that they will be advertised to no matter what they do, would probably rather they got adverts that were targeted at them offering things that may be of some interest.

If you have for instance had a day off work, ill perhaps and needed to watch a lot of day time telly.

It is unlikely that you would have found any of the advertising applicable and it may have even been rather annoying, stealing minutes of your life showing you things you have no need for or even dislike.

at least the internet is not this way. Id rather have track days, hosting deals and e-commerce tools flashed in front of me regularly than sanitary products, denture paste and train to be a plumber courses.

I think the best way to manage expectation is to ensure that the adverts are of high quality, not just "Male 30 UK we want you to try our sneakers" and not intrusive either, stay away from the pop ups that get in the way of content. There is a lot of good stuff on the net that is free but it does have to be paid for somehow so advertising will continue and I for one would rather it be relevant.