March 2004 - Part 1 of 3   

This issue of Beyond the Click highlights recent findings from Dynamic Logic's annual AdReaction Survey, which gauges consumers' opinions towards advertising. We have highlighted the key findings in a special three-part BTC series.

Research Shows That Two Over-Content Ads Per Hour May Be "Appropriate"

As part of the annual AdReaction study on marketing effectiveness and consumer reactions to specific forms of advertising, Dynamic Logic released new research today that shows consumers feel that the "appropriate" number of ads that appear over the content on the pages they are browsing is 2 per hour.

This data is interesting for a number of reasons. Obviously, there are many people for whom over-content - or "intrusive" ads as they have been called - are never appropriate, even to support free Web content, but this amounts to roughly a third (32%) of respondents. Two-thirds of respondents feel that some over-content ads are "appropriate" to support free content and that number averages 2 over-content ads per hour (a calculation based on median number).

It is worth noting that this is in reference to ads that appear over-content, and does not reflect ads that appear in between pages or under pages.

The same research also highlighted the top three concerns of consumers with intrusive ads:

1. Too many of them (70% selected)
2. Requires me to close them (58%)
3. Blocks content (56%)

The top concern suggests that frequency, perhaps more than format, is the major challenge with intrusive ad units. The other aspect is that some require closing. Intrusive ads that have frequency caps of 2 and do not require closing may lessen these concerns.

While it is a safe bet to assume that consumers want less advertising rather than more, many consumers understand advertising's role in supporting content they like. It is important for the online publishing industry to find a line between assertive advertising and what consumers feel is a fair and "appropriate" exchange for valuable content. This research highlights an aspect of consumers' sensitivity towards publishers' costs and the need to subsidize content. In return, publishers could show sensitivity to consumers by limiting the usage of these highly powerful ad units. While many publishers have moved to block pop-ups altogether, there may still be an opportunity for the Web publishing community to reach a middle-ground where a controlled level can be established and enforced through frequency capping and more sophisticated ad serving.

NOTE: A median was used to calculate the average as opposed to mean since the distribution curve is not asymmetrical. Median is calculated by finding a number where 50% of the population is below that number and 50% is above. Field dates: Dec 2003, sample size: 425, Margin of error +/-2-5 depending on proximity of data points. The sample was randomly selected from a database of over 1 million respondents who had taken an online survey with Dynamic Logic sometime in the last 4 years. Many of these people - but not all - were recruited to participate in prior studies using a Web intercept model that utilized pop-ups. This may influence results.