As per a new research, online adverts that target users based on their web browsing habits and other personal information have a negative impact on the person's intent to purchase the product.
Ithaca College's study suggested that the fact that users find this practice "creepy" runs counter to conventional wisdom among online marketing professionals.
Researcher Lisa Barnard said that her experience was that consumer's reactions to it were not good. They found it to be really creepy. They would get hate mail back when they realized what was happening.
The practice of tailoring ads to individuals is so prevalent because online marketers are relying on older research about the effectiveness of tailored ads and failing to consider how newer technologies can keep detailed tabs on a specific consumer's activity. That combination has led to creepy advertising.
Barnard found that marketers are correct there is a direct, positive affect on a consumer's intent to purchase a product after viewing an ad tailored to them, but she also confirmed there is an indirect and negative effect based on the "creepiness factor" that comes from being targeted individually. That indirect effect accounts for a 5 percent reduction in intent to purchase an advertised product.
Targeted ads are nothing new, Barnard said, and are proven effective. Now, with personal information scattered across databases, it's not hard for marketers to assemble more specific consumer descriptions.
Barnard encourages online marketers to recognize consumers' sense of violation when ads are too specifically tailored.