Opinions expressed by Forbes Contributors are their own. And in general, consumers have shown a fair amount of receptivity to these personalized ads. John Koetsier Senior Contributor. First and foremost, the money. My views on digital advertising have appeared in Adweek and Medium, and I have written on a variety of subjects for Wired, Esquire and many major publications. It’s really that simple. During the Dark Ages, consumers didn’t get personalized recommendations based on their past purchases. Social ads, like those found on Facebook and YouTube, are dominating the industry and account for roughly 40% of global ad spending. In fact, to watch their favorite TV shows, people had to “tune in” at specific times. Facebook, Google, Amazon and all the other players responded by investing in this business and wouldn’t be reaping the rewards if users didn't engage. Websites that had been customized for the consumer also saw interest from 37% of consumers. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation BrandVoice, personalized ads are actually not more effective. "In such a difficult situation the user’s choice cannot be referred to as voluntary consent,” said Germany’s Federal Cartel Office president Andreas Mundt. In an August 2012 survey from ChoiceStream, 35% of US internet users said they would like to receive personalized ads or recommendations online. much as anyone, by voting with their clicks and engagement. Personalization is getting smarter and smarter, all the time opening up the possibility of hyper-effective, and hyper-pleasing, ads. "In the months of the GDPR being implemented, German attitudes shifted in favor of stricter data privacy expectations, with 42 percent wanting to protect location data in 2018 versus only 29 percent in 2017," says RSA. Depending on the format, consumers may have even come to expect a certain degree of personalization. You may opt-out by. Beyond that, there’s now a rhyme and reason for exactly which ads to publish and when. Consumers just want better. Sure, getting ads for a product after you’ve bought it is maddening, and reflects that we are in the early and still relatively unsophisticated days of retargeting. Of course not. Opinions expressed by Forbes Contributors are their own. As most consumers know, advertising relevant to their interests gives them a better experience online. You've never experienced research like this. Tailored advertising also benefits marketers. In 2014, I was named to Folio's top 100 of the media industry's "most innovative entrepreneurs and market shaker-uppers.” I live in Vancouver, Canada with my family, where I coach baseball and hockey, though not at the same time. The question isn’t whether relevant advertising is the future—it’s how enhanced privacy capabilities can respect user preferences and how marketers and publishers both can continue to build on the meaningful steps they’ve begun to take that will earn them the user trust they want. I built the VB Insight research team at VentureBeat and managed teams creating software for partners like Intel and Disney. Over the last 10 years, the compounded annual growth rate of advertising revenue has been an average of 16.8%, on a base of billions of dollars, per the IAB Internet Advertising Report, full year 2018. Consumers demand relevance in their marketing communications and, according to our survey, prefer that brands reach them via email above all other channels. As Deborah Wahl, CMO at Cadillac, who has played similar roles at McDonald’s and other major brands, has said, “getting the right vehicle, right benefit, right offer, to the right person at the right time, is incredibly productive and we continue to see huge growth in optimization of those [ads].” A global survey by Econsultancy and Adobe of 12,815 of “marketing, advertising, ecommerce, creative and IT professionals working for both brands and agencies” found that “data-driven marketing that focuses on the individual” is the single most exciting opportunity for their organization this year. They changed advertising as ... [+] much as anyone, by voting with their clicks and engagement. Consumers blame the company, not the hacker, the report says. However, this type of personalization was almost as likely to turn the consumer off, with 31% saying this was the type of personalization they were least interested in. But before marketers rush to personalize every digital ad they buy and every email they send, it’s also notable that not every consumer embraces targeted ads or marketing messages. According to the study, 71% of consumers said they would prefer ads tailored to their personalized interests and shopping habits, with the biggest perceived benefits being: Drilling it down to what publishers are earning, a study by Johnson et al. I hardly recall a moment when publishers honestly said tailored ads, which earned them multiples more than untargeted ads even with the middlemen, were crushing their businesses, and that they needed to be stopped. Corrected the percentage in the headline as well as the first paragraph after receiving updated information from RSA. Lately however, as frequently happens among the self-appointed digital intelligentsia, a number of articles have popped up that seem to call ads personalization into question. Just according to one recent study, ... and hyper-pleasing, ads. I deal in insider insights on digital ads, challenging common wisdom. So, let’s look at some facts. I forecast and analyze trends affecting the mobile ecosystem. I was particularly surprised to see this WSJ article that questioned the value of interest-based advertising for publishers and the wider ecosystem, claiming, among other dubious assertions, that its value only obtains to ad tech companies or the so-called "duopoly." "Less than half (48 percent) of consumers believe there are ethical ways companies can use their data," RSA, a fraud prevention and security company, said when releasing the survey results. Ad targeting today is at the foundation of a massive wave of innovation that may finally get marketers to the oft-cited holy grail of right person, right place, right time. I’ve been lucky to learn from and can call on a wide variety of industry contacts, wiser than I am, in marketing, publishing, agencies and ad tech. Advertising creative is malleable, and ad content can now be adjusted to match consumers’ mindsets at the moments that they are receiving the messages. I have special expertise in the changing digital landscape and its impact on consumers’ lives from many years in the industry, having been most recently the CMO of IAB. It may well be that today's digital giants will have to return to some level of contextualization in lieu of personalization. In Germany, only 43% agreed. And in general, consumers have shown a fair amount of receptivity to these personalized ads. Some industry experts, including the "Ad Contrarian," believe that personalized ads are actually not more effective. In an August 2012 survey from ChoiceStream, 35% of US internet users said they would like to receive personalized ads or recommendations online. A Responsys survey conducted by Ipsos Observer in April 2013 found that more two-thirds of US web users thought it was important that marketing emails be personalized.