The online ad industry is facing a problem. Digital advertising is simultaneously either targeting everyone (the spray and pray approach) or is ultra-focused on its target audience. Unfortunately, it is upsetting everyone as it does so.
According to two recent pieces of research, consumers feel ‘bombarded’ by ‘irrelevant’ ads as they browse online – but also find personalised ads tailored to their specific needs ‘creepy’. It’s the ultimate catch-22 situation.
The latest data from Bango’s ‘Missing Piece’ report found that as many as two-thirds (66%) of consumers dismiss the vast majority of online ads they see as irrelevant. A third of the 2,000 surveyed (32%) said ads they see are ‘random’, with more than one in four (27%) going as far as calling them ‘intrusive’.
The industry’s widespread failure in effective online ad targeting is actively damaging brand reputations, with more than half of those consumers (51%) unsubscribing from or even blocking the brands responsible for serving irrelevant ads.
To counteract this, many advertisers have made a strategic effort to create more tailored online ad experiences online. Unfortunately, a UK-based poll from Embryo found that two-thirds (66%) of its respondents said they felt ‘bombarded’ by the personalised advertising, with almost as many (57%) labelling those ads as ‘creepy’.
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More strikingly, Embryo’s research revealed that this disaffection with the industry has led consumers to develop a resistance to online ads, leading to a decrease in responsiveness. Less than a third (32%) now believe digital ads have any influence at all on their final purchasing decision.
The results of these surveys reveal the challenge faced by advertisers looking to strike a balance between personalisation, respecting user privacy and avoiding poor digital ad targeting altogether.
“Today’s advertisers face real challenges engaging consumers amid a cluttered digital landscape and restricted data access. With regulations limiting first-party data and platforms promoting broad targeting, many advertisers are forced to rely on poor quality, unverified third-party data sources,” said Bango CMO and co-founder, Anil Malhotra.
“This leaves them taking a ‘spray and pray’ approach in hopes of connecting with new audiences. But there has to be a better way. Let’s be clear: consumers don’t hate all ads. They just hate irrelevant ads.”
Embryo’s digital PR expert, Chloe Pryce agrees, pointing out that the fine line between personalised advertising and invasion of privacy is becoming increasingly blurred, giving consumers a sense of unease about how much of their personal information advertisers hold.
“Marketers need to recognise and empathise with these feelings,” she said.
“Advertisers use tracking tools to collect data on user behaviour, preferences, and demographics. While this data is used to tailor ads to individual interests, it often leaves users feeling like their every move is being watched.
“Finding a balance between targeted campaigns and respecting user privacy is not only ethical business practice but it also ensures there is no risk of deterring potential customers.”
