New Report on Trends in Behavioral and Contextual-Based Advertising Shows Consumers Accepting of Targeted Advertising
DALLAS – Creation of the Digital Advertising Alliance (DAA) is an important step for the $26 billion U.S. online advertising industry, according to Parks Associates’ new report Trends in Behavioral and Contextual-based Advertising.
The international research firm reports 17% of U.S. broadband households are willing to provide personal information for relevant online ads and 10% with a mobile phone service are willing to submit for relevant mobile ads. Parks Associates analysts say to foster continued consumer interest in targeted advertising, the market needs self-regulatory programs that provide transparency and give consumers a choice to opt-out of targeted online advertising.
“While current data show online consumers are amenable to advanced advertising practices, privacy concerns, if not properly addressed, could negatively impact future growth in this market,” said Heather Way, Research Analyst, Parks Associates. “Our research shows formation of organizations such as the DAA is the right approach for online publishers, ad networks, and industry trade organizations to show their commitment to full transparency and consumer empowerment.”
Young broadband users are willing to provide personal information to receive customized Internet ads. Over 50% of adults 18-34 and approximately 40% of adults 25-54 are positive or indifferent to advanced advertising practices. These targeting tactics stoke privacy concerns by delivering ads to specific consumers based on individual online behavior, but these concerns are less intense when consumers are given opt-out management tools.
“The keys to assuaging consumer privacy fears are in providing education, transparency, and control,” Way said.
About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.
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