Dynamic Logic: Beyond the Click

This issue of Beyond the Click highlights more findings from Dynamic Logic's AdReaction 5 Survey, which gauges consumers' opinions towards advertising.

Research Trends Suggest Web Users Are Growing
More Accepting of Over-Content Ads

As part of the AdReaction 5 Study on consumer perceptions of specific forms of advertising, Dynamic Logic research shows that consumers continue to feel that the "appropriate" number of ads that appear over the content of the Web pages they are browsing is two per hour. This number is consistent with the results for the same question asked in the previous AdReaction 3 & AdReaction 4 surveys, conducted in 2003 and 2005, respectively.

Certainly, there continue to be people who feel that over-content – or "intrusive" ads – are never appropriate, even to support free Web content, but this amounts to roughly one in four people (21%). The majority of U.S. respondents feel that some over-content ads are appropriate to support free content and that number centers around two over-content ads per hour (a calculation based on median number).

The most promising finding for advertisers and online publishers from this research is that the percentage of people who feel that no over-content ads are appropriate has dropped from 32% in 2003 to 21% in this latest study, suggesting that people may be more willing to accept some advertising in exchange for viewing free content.

Q. How many online ads that appear OVER Web content (such as pop-ups, out-of-frame ads, floating ads, etc.) PER HOUR, do you think are appropriate for a FREE Web site that you use?

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Source: Dynamic Logic's AdReaction Studies; AdReaction 5 (2007), n=933 respondents; AdReaction 4 (2005), n=2,988 respondents; AdReaction 3 (2003), n=425 respondents)

This AdReaction study also highlighted that two-thirds of respondents felt advertising on the Web sites they visit has increased over the past six months. Compared to the results of this question back in 2005, more people – 66% – say online advertising is increasing compared to 57% three years ago.

Based on prior research conducted around clutter, we believe that there are two main reasons why consumers perceive an increase in online advertising. Firstly, over the last few years Web surfers have begun to broaden the number and types of Web sites they visit. Someone who used to visit a major portal to check mail and news now may go to a variety of sites – their social networking site, a local newspaper site and various sites particular to their hobbies and interests. The so-called "long-tail of the Web" is getting fatter. Some of the less recognized sites attract less popular brands and have less strict ad policies. Thus, on these sites, you are more likely to see a greater percentage of intrusive ad formats and a larger number of ads in general. So, while the major portals and other large sites have likely maintained or even decreased their ad clutter (because they have greater access to ad effectiveness and user experience data), consumers' usage of a wider variety of sites may be resulting in their perception of increased overall clutter.

Secondly, as more and more big brands come online, people "see" more advertising than they used to. Online ads are more noticeable than before and this adds to the perception that clutter is increasing.

While it is safe to assume that consumers want less advertising rather than more, many consumers understand advertising's role in supporting the content they like. Finding the right balance between the amount of advertising that produces positive impact for brands and what consumers feel is fair and appropriate in exchange for valuable content is important.

NOTE: A median was used as opposed to mean since the distribution curve is asymmetrical. Median is calculated by finding a number where 50% of the population is below that number and 50% is above. Field dates: Sept 2007, sample size: 933 U.S. respondents.