New research from the Internet Advertising Bureau, the UK industry body for digital marketing, and business law firm Olswang confirms that consumers need more information and education about online privacy and online behavioral advertising (OBA).

Consumers confident when they know the facts

• 72% of internet users are unaware of online behavioral advertising – the practice used to deliver relevant advertising based upon previous web browsing activity
• 81% of internet users do not know the control they have over behavioral advertising, in particular their right to opt-out
• 74% of internet users are comfortable with behavioral advertising when given further information about what information is collected and how it can be controlled

The study of over 1000 internet users, conducted by Basis research agency, found that appeal of behavioral advertising increased from 23% to 75% once consumers were given further information, such as what information is actually collected and used and their right to opt-out.

Attitudes to online privacy

The research also examined consumers’ general attitudes to online privacy.  It found that:

• 50% of respondents said they trusted the internet as a medium (in terms of it being safe and secure) more than five years ago.
• The younger demographic (16 – 24 year olds) are far more comfortable with the internet. 65% of this age group claimed to find the internet a trusted medium, compared to five years ago.
• 90% of respondents have shared their personal data (ie name, email, street address) with at least one type of website, with shopping sites (73%) and banking sites (71%) being the most popular.
• Almost a third of respondents (28%) of respondents have shared their personal data with social networking sites, such as Facebook and MySpace, and were comfortable in doing so.
• Only 1% of respondents believed the personal data they shared online was not secure at all, with 94% who were happy to do so and felt it was secure.

The research also qualitatively investigated what negative views people had about online behavioural advertising, in order to inform future communications and address any misinformed myths surrounding it.  Of those respondents who initially found online behavioural advertising unappealing (20%) before understanding how it works and the benefits, reasons included that it feels invasive, that people are concerned that personal data will be stored permanently without their knowledge, and also that other companies would somehow have access to their personal data.  

Marc Dautlich, a technology partner at Olswang said: "The survey results underline the fact that to make OBA a positive experience for consumers, advertisers need be fully acquainted with the legalities involved.

"We're increasingly advising clients on issues relating to OBA and how to position online advertising. The survey shows consumers are willing to engage, but on their terms."

Nick Stringer, head of regulatory affairs at the IAB, said: "As online becomes more about the internet user and ads become more targeted, it’s never been so important to consider and respect consumers in order to keep digital marketing popular, and effective. That’s why investment in attitudes and levels of understanding are key to the development of the online behavioural advertising industry.

This research highlights the need for further education and supports our approach in providing greater reassurance about behavioural advertising.  We know that once internet users are presented with all the facts the appeal of targeting advertising increases, and the IAB and its members are dedicated to making this happen.”

In March, the IAB published a set of self-regulatory industry Good Practice Principles to govern the practice and recently launched an educational website for consumers: www.youronlinechoices.co.uk. The website provides consumers with simple and easy-to-understand information about the practice, how it works and how privacy is protected. It also includes a ‘one-stop’ opt out page. The IAB Good Practice Principles were widely welcomed by Ofcom, the Information Commissioner’s Office – the UK data protection regulator – and featured in the Government’s Digital Britain Report.

Methodology
Basis conducted a 10 minute online survey of 1004 respondents who were recruited from a panel.  Quotas were set on age, gender and social grade so as to ensure a nationally representative sample.  They also set quotas on hours spent using the internet so that we could receive a spread of light, medium and heavy internet users. 

The questions asked throughout the survey were dependant on how certain questions were answered, i.e. ‘do you know what online behavioural advertising is’ so Basis were able to delve deeper into consumers’ understanding of the concept, and their reactions to knowing the process involved.  Those respondents who had no understanding of what online behavioural is were given a formal explanation.