Monday, January 26, 2009

Personalized Ads Attract High-Value Customers

ChoiceStream, a recommendations service provider, has announced the findings of its 2008 Personalization Survey. According to the survey, retailers’ most attractive prospects -- those who spend the most money and shop most frequently -- are more likely to click on personalized ads than non-personalized ads.

Overall, 39 percent of consumers are more likely to click on an ad if it is personalized. Of those who shop online at least several times a month that number climbs to 58 percent. The survey also finds that the bigger the spender, the greater the interest in personalized ads with 50 percent of those spending more than $250 online over the past six months indicating that they are more willing to click on ads that are personalized.

The survey also finds consumers surprisingly savvy about online advertising in terms of its effect on their behavior. 70 percent of consumers admit that their purchase decisions are at least sometimes influenced by having seen an ad for an item. A smaller but still significant percentage of consumers admit that they are influenced by brand advertising as well, with 39 percent admitting that they are more likely to buy from vendors or retailers that they have seen advertised than from unrecognized sources. In both cases, the bigger the spender, the more likely they are to admit to being influenced by advertising.

Consumers are also aware of how shopping sites use data to target ads to them. A full 60 percent of shoppers are aware that retailers use information about their online shopping behavior to target advertising to them.
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