Behavioral Ad Targeting Mostly OK - If Privacy, Security Safeguards Instituted

Most U.S. adults are uncomfortable that some websites use information about one’s online activity to customize website content or ads - but, if site privacy and security policies were improved, most would be comfortable with the practice, according to a new study, writes MarketingCharts.

Specifically, the Harris Interactive survey found as follows:

• Six in ten (59 percent) are not comfortable when sites like Google, Yahoo and Microsoft (MSN) use information about a person’s online activity to tailor advertisements or content based on a person’s hobbies or interests: 25 percent are not at all comfortable, 34 percent are not very comfortable - see table.
• The remaining 41 percent who say they are comfortable with websites’ tailoring content is split between 7 percent who are very comfortable and 34 percent who are somewhat comfortable.

To study also sought to determine whether U.S. adults would alter their views if various policy and security policies were adopted, based on possible self-regulatory principles for online behavioral advertising outlined (pdf) by the Federal Trade Commission.

Among the findings:

If four privacy/security policies were introduced, most U.S. adults would become more amenable to being served content and ads based on their online behavior. (View table of users’ comfort level with customized ads/content.)

• By a 55 percent to 45 percent majority, U.S. adults indicate that they would be more comfortable with companies’ using information about a person’s online activities to provide customized advertising or content.
• Interestingly, once the privacy/security policies were presented, the percentages of those who are very comfortable increases only slightly to 9 percent, from 7 percent. The percentage who are somewhat comfortable given the privacy/security policies increases more significantly, to 46 percent from 34 percent.
• Similarly, the proportion of those who are not at all comfortable declines to 19 percent from 25 percent, and of those who are not very comfortable declines to 26 percent from 34 percent.

Analysis of the by age indicates a difference of views among generations. Those who are younger Echo Boomers (age 18-31) and Gen Xers (age 32-43) are initially more comfortable with the notion of websites’ customizing content than older Baby Boomers (age 44-62) and Matures (age 63 or older).

After being presented with the privacy/security policies, all generations’ level of comfort increases:

• Echo Boomers’ increases to 62 percent from 49 percent. Gen Xers’ increases to 56 percent from 45 percent. Baby Boomers’ comfort increases to a majority (52 percent) from 34 percent.
• Only Matures remain uncomfortable with the websites’ customizing advertising and content, though the level of support rises to 46 percent from 31 percent.

The nationwide survey was designed in collaboration with Dr. Alan F. Westin, Professor of Public Law and Government Emeritus at Columbia University.

Dr. Westin commented: “The failure of a larger percentage of respondents to express comfort after four privacy policies were specified may have two bases - concerns that web companies would actually follow voluntary guidelines, even if they espoused them, and the absence of any regulatory or enforcement mechanism in the privacy policy steps outlined in the question.”

About the study: The Harris Poll was conducted online within the United States March 11-18, 2008, among 2,513 adults (age 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the online population. Respondents were selected from among those who have agreed to participate in Harris Interactive surveys. The data have been weighted to reflect the composition of the adult population.