Nic Peters on “Cookies should be a staple of the digital diet”

Posted by Nic Peters
on 31st August 2010
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Recent research by Connect Insight shows that only 17 percent of internet users think that online advertising is appealing and has impact.  General opinion is that ads are intrusive, repetitive, unappealing and cheap.

This is particularly interesting given the continuing heated discussion over the ethics of behavioural targeting and advertising, following recent articles in national US and UK newspapers.

To my mind there is a clear link between these two stories.  In a nutshell, behavioural targeting enhances the online experience for consumers, who see adverts that relate to their specific interests.  And surely, if this took place on a regular basis, opinion would be much more favourable towards online ads?  (Of course, this is an over-simplified argument as there are various other elements, such as engaging creatives, that also need to be present to enable an ad to ‘work’).

The problem seems to centre round misconceptions about cookies, whose list of ‘crimes’ culminates around their ability to allow ‘online stalking’.  (More research, this time from TNS, shows that 65 percent of consumers think that targeted advertising is an abuse of their privacy).

This adverse opinion is in direct contrast to the popularity enjoyed by offline store loyalty cards, which also rely on companies harvesting customers’ personal data to provide relevant offers.  However, this is rarely perceived as an intrusion of privacy precisely because it is offset by a tangible value to the consumer.

This would suggest that there is also the potential for cookies to become a staple of the digital diet, and this is reinforced by 64 percent of the TNS survey responds also saying that they would welcome ads tailored to their tastes.

Desktop Wallpaper · Gallery · Nature  Big waveSo how does the digital marketing industry go about turning the tide of negative opinion?  First, it is essential to communicate exactly what we are doing and explain clearly how this benefits online users. Second, we must deliver on those promises with relevant, targeted advertising.

A good place to start would be a clear explanation of the advantages already enjoyed as a result of cookies – many of which are probably unbeknown to most consumers.  For example, in addition to preventing the same advertisement being repeated continuously, they are the driving force behind the personalisation of much-loved online retailers such as Amazon and eBay.  They also remove the need for users to remember the countless passwords required for today’s ubiquitously digital lifestyle.

No-one in the online advertising industry would deny that behavioural targeting is advantageous for publishers and advertisers.  But if we are committed to ensuring that it enables the sector to reach its potential, we must not for one minute take our eyes off the needs of the all-important consumer.

Nic is managing director at Improve Digital UK.

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