December 2010 Copyright 2010
2 Online privacy is a burning hot issue. With ubiquitous media coverage, a hit movie (The Social Network) and, most recently, a federally-proposed Do Not Track system, web users are more aware than ever that what they do online and how they do it is most likely tracked in one form or another. To gauge consumer sentiment on Internet privacy and behaviorally-targeted web advertising, we asked more than 1,600 online U.S. adults aged 18 or older for their thoughts on common online marketing practices and how such practices impact their perceptions of Internet advertising, as well as their perceptions of the brands that are behind the ads. Our survey ran in late November 2010. Key Findings: Age matters: one-third (35.2%) of 18-34 year-old respondents who have seen tailored online ads say they like them, but 36.1% of 35-54 year-olds and 44.0% of those 55 or older say they don t like them Behaviorally-targeted ads can impact (positively or negatively) web user opinions about the specific companies or products being advertised Three-in-five (60.9%) respondents think it s likely websites and advertisers know non-personal information about them; more than half (54.5%) think websites and advertisers know personal information While personal privacy overall is a concern for the majority of web users, men and women feel differently about relevant online ads and the use of nonpersonal information: 37.3% of men say they wouldn t mind web tracking if it increased ad relevancy, vs. just 19.8% of women Online privacy concerns aside, one-third (33.5%) of respondents follow or like companies and brands on platforms such as Facebook and Twitter Online In December 2010
3 Insight #1: Younger Web Users are More Likely to Like Tailored Online Ads than Older Generations Our study found that 78.2% of all respondents have seen behaviorally-targeted online ads (i.e., ads for a product or service that seems tailored based on previous visits to advertiser websites). Of this group, one-quarter like the ads (27.7%), one-third don t like the ads (34.2%) and 38.1% have no opinion either way. However, age makes a difference (see chart #1). At 35.2%, younger respondents (18-34 years old) are more likely than older users (25.1% for 35-54 year-olds; 16.7% for those aged 55+) to like tailored ads. Not surprisingly, older respondents are more likely than younger users to dislike the ads: 44.0% of those 55 or older and 36.1% of 35-54 year-olds don t like such ads; only 28.0% of 18-34 year-olds feel the same way. Interestingly, at 46.8%, young men aged 18-34 are the demographic most likely to say they like tailored ads. But their female counterparts don t feel the same way: only 23.6% of 18-34 year-old women like such ads. Reasons respondents don t like tailored ads include: they re annoying and distracting (54.9 %), they re infringing on my privacy (33.4 %), I m usually not interested in the product (38.2%) and they seem to follow me everywhere I go (27.5%). Online In December 2010
4 Insight #2: Tailored Online Ads Impact Brand Perceptions Behaviorally-targeted ads can positively or negatively affect consumer opinions about brands. When asked what is the impact ads that seem to be tailored for you based on your previous visit to an advertiser website have on your opinion of the company or product being advertised, 17.4% of respondents overall say they have a better impression of the company or product. A smaller percentage, 10.4%, says they have a worse opinion of the company or product. More than one-third (37.8%) say their opinion doesn t change and 17.3% indicate they re not sure. In splitting gender responses (see chart #2), men are more likely than women (23.2% vs. 11.6%) to have a better impression of the company or product. Women are more likely than men (40.9% vs. 34.5%) to have no change in opinion. Both men and women are relatively equal (10.4% vs. 11.4%) to indicate they have a worse opinion. Online In December 2010
5 Insight #3: The Majority of Web Users Assume They re Being Tracked Two-thirds (67.7%) of all web users think it s either very or somewhat likely websites collect analytics-related information (e.g., click paths, page visits, advertising click through rates, etc.). Not surprisingly, three-quarters (73.5%) of users 55 or older are more likely than younger users (65.3% of 18-34 year-olds; 67.3% of 35-54 year-olds) to think they re being tracked in this regard. Three-in-five (60.9%) respondents overall think it s either very or somewhat likely websites and advertisers know non-personal information about them, including geographic location, kind of Internet connection or other websites they visit. Again, there s a difference between young and old: 57.3% of 18-34 year-olds think websites and advertisers know non-personal information vs. 62.6% of 35-54 year-olds and 65.8% of those 55 or older. When it comes to personal information (e.g., age, gender, income, etc.), slightly more than one-half (54.5%) of all respondents think websites and advertisers know such facts. Once again, older web users think they re more susceptible than younger respondents: nearly two-thirds (64.2%) of those 55 or older say websites and advertisers know personal information vs. 58.2% of 35-54 year-olds and 47.0% of 18-34 year-olds. Online In December 2010
6 Insight #4: Men are More Likely than Women to Trade Non- Personal Information for Better Online Ad Relevancy Male and female respondents have differing opinions about the non-personal information websites track and its impact on how relevant online advertising is. When asked if they agreed or disagreed with the statement I wouldn t mind if a website tracked and stored non-personal information about me if it meant I would see ads that are more relevant to my interests, 37.3% of all men say they either strongly or somewhat agree and 19.8% of women concur a 17.5% difference in opinions. There s also a large spread between men and women who disagree with the statement: 39.9% of men strongly or somewhat disagree and a majority (55.5%) of women feel the same way. Not surprisingly, older respondents overall are more likely than younger respondents to disagree (58.1% of those 55 or older; 46.6% of 35-54 year-olds; 45.1% of 18-34 year-olds) with the statement. Online In December 2010
7 Insight #5: Brands and Companies are Widening Their Social Footprints Online privacy concerns aside, one-third (33.5%) of respondents overall say they like or follow companies or brand-name products/services on social media such as Facebook and/or Twitter. As expected, younger web users are more likely to engage with social platforms than older ones: 42.1% of 18-34 year-olds, 32.2% of 35-54 year-olds and just 15.8% of those 55 or older say they follow brands or companies on Facebook, Twitter and/or other social media. Interestingly, among 18-34 year-old respondents, men are more likely than women (46.4% vs. 37.7%) to follow brands or companies on social media. How You Can Use This Information Two-in-three (67.5%) web users say it s likely they re being watched in one form or another when they visit websites. Throw in increased media and government attention towards online privacy and Internet security, and an even larger share of consumers in 2011 and beyond are poised to think twice as they browse online content, follow brands in the social realm or click on advertising creative. Online advertisers must ensure their messages are relevant to their target audience with not only standard display campaigns, but behaviorally-based methods such as remarketing, Online In December 2010
8 creative retargeting, intent/interest retargeting and contextual/keyword targeting. When an audience gets an advertising message at the right place, at the right time and in the most relevant context, brands are best positioned to foster and maximize relationships and build community with the most valued consumers and influencers. On the other side of the coin, web publishers must demonstrate a commitment to consumer privacy and make certain a fully-fleshed out privacy policy is current and relevant to the needs of the audience. Transparency is often the best policy: tell users what (and how) information is collected and what is done with the information. Burst Sites to Check Out Burst Media is always adding quality, content-rich sites to our networks. All sites are subject to a rigorous screening process and are regularly reviewed to ensure they continue to meet our standards. This continuous auditing process backed up by our commitments to brand safety and traffic quality ensure your advertising message is placed in a high quality content environment and receives the maximum exposure it deserves. With mid-winter and spring school vacations on the horizon, below are a few of the many interesting Burst sites geared towards traveling families and the parents who plan activities for their children: FamilyTravelForum.com contains expert and family-written travel stories, including first-hand reviews of tropical and ski resorts, reunion destinations, attractions, holiday weekends, family festivals, cruises and all kinds of vacation ideas. This site also offers a trip-planning consultation service, discounts from preferred vendors for individual families, content licensing to other media, and family travel consulting services to the travel industry. MousePlanet.com provides extensive travel-planning information, from reader-submitted reviews to theme park guides. For the avid Disney aficionado, MousePlanet is a reliable news outlet on the front lines, providing daily coverage of the most current news and analyses about the Walt Disney Company, from its parks, to its films and to its corporate activities. If you re looking for reviews of the hottest travel destinations, tips on budget travel or how to pack efficiently for your next trip, TheTravelersZone.com is the site to visit. This blog provides regularly updated content that any traveler can benefit from. Online In December 2010
9 About Burst Media An online media and technology company founded in 1995, Burst Media is a leading seller of vertically targeted audiences found in the long tail of the Internet. By working together with web publishers and advertisers, the company leverages the value of rich long tail content to enable brands to reach loyal, highly segmented audiences in a brand-safe and quality-assured environment. Through its media divisions Burst Network, Burst Direct and Giant Realm, the company represents one of the broadest and deepest offerings of interest-based websites. Burst also markets its ad management platform, adconductor, which empowers content websites, online ad networks and web portals to manage the complete process of ad sales and service. Burst Media is headquartered in Burlington, Massachusetts, with offices throughout the United States and in London. For more information, visit www.burstmedia.com or call 781.272.5544. About Online In Trends in Internet use and consumers online purchasing behaviors are constantly evolving and often difficult to detect. That s why Burst Media publishes Online In our monthly newsletter that highlights emerging trends in online media and ecommerce. Findings reported in Online In are based on an online survey fielded across its Network of more than 6,000 websites. Data from the survey is weighted based on age and gender to ensure findings are representative of the U.S. Internet audience. Online In December 2010