Press Releases

Half of UK Consumers Happy to Opt-in to Behavioural Targeting

Windsor, UK., April 1, 2009 – Despite wide spread industry opinion to the contrary, almost half of UK consumers are happy for marketers to use behavioural targeting to track their online behaviour. New research commissioned by leading online marketing and business optimisation company, Coremetrics, has revealed that 45 per cent of the British public are, in fact, open to marketers using behavioural targeting to send them relevant offers, provided they have the ability to opt-out of being tracked.

Behavioural targeting allows marketers to target consumers based on their previous behaviour. The technique means that relevant advertising and website content can be tailored to a particular user based on their past online activities.

Richard Sheppard, VP, EMEA, Coremetrics, said: “Behavioural targeting has courted wide spread debate over privacy concerns, despite data being collected anonymously. Educating consumers about the technique remains key, however our research suggests that efforts to do this are making an impact. More consumers in the UK now realise that behavioural targeting can benefit them and feel favorably towards it provided that they have opt out control.”

Nick Stringer, head of regulatory affairs, Internet Advertising Bureau, adds: “Behavioural targeting can make online advertising more relevant to consumers, improving overall web user experience as well as everyday choices. Coremetrics' research supports this but also shows that – as industry – we need to clearly explain to consumers what it is, the benefits and how privacy is protected. It is potentially a 'win-win' for consumers, advertisers and publishers."

Coremetrics’ survey has also found that marketers seriously misunderstand consumer attitudes towards this controversial marketing tactic. The survey revealed:

• Two thirds believe that consumers are not happy to be targeted in this way
• Almost half felt that consumer opinion towards behavioural targeting is so negative that the marketing tactic needs to be renamed with a less aggressive sounding term
• A more optimistic 33 per cent stated that they thought behavioural targeting would come to be accepted eventually

Interestingly, consumers responded more positively:

• 45 per cent felt behavioural targeting brought offers and promotions to
  their attention
• 35 per cent thought it helped them to discover new and relevant products
• 34 per cent said it could help save them time
• 29 per cent believe it makes online shopping easier
• 28 per cent felt it could help them save money

The survey revealed that 60 per cent of marketers have used behavioural targeting in the past 12 months and 50 per cent said that reduced budgets mean that they have abandoned the technique altogether despite the promise of higher conversion rates and improved marketing performance.

The main reason for this abandonment is that a huge 65 per cent of marketers do not measure behavioural targeting return on investment. As new technologies are adopted to enable marketers to improve response rates and conversions, it is essential that their success is carefully measured within the marketing mix.

“Behavioural targeting is one of the most effective ways to gain a competitive edge,” continues Sheppard. “The credit crunch has changed consumer buying behaviour. Customers are driven by price and a need-to-have rather than nice-to-have attitude. Behavioural targeting provides marketers with valuable data and facts about how customers’ spending and decision making processes are changing. Rather than abandoning behavioural targeting, they should be using it to garner intelligence, adjust their strategies and survive the tough economic climate.”

Coremetrics takes the guesswork out of digital marketing with a range of applications and services to get inside customer’s heads and provide targeted marketing strategies. For example:

• Coremetrics Analytics™ captures every click of every web visitor in
  LIVE¹ Profiles.
• Coremetrics Benchmark™ accurately measures marketing results against
  the competition.
• Coremetrics Explore™ provides insights into business trends, such as
  visitor engagement.
• Coremetrics LIVEmail™ data fuels the engine that powers your outbound
  email campaigns.
• Coremetrics Intelligent Offer™ drives product promotions, based on
  visitor behaviour.
• Coremetrics Search™ guides marketers in PPC search by tying bids to
  specific metrics.

About the Research
‘The Eyes & Ears of Digital Marketing Survey’ was conducted by Dynamic Markets, on behalf of Coremetrics in November 2008. The survey examined the effectiveness of the digital marketing formulas adopted by European online retailers, as well as the effectiveness of those campaigns in the eyes of consumers. The digital marketing survey was conducted amongst middle and senior marketing managers responsible for e-commerce sites of large retail and wholesale companies with more than 250 employees. 100 respondents were surveyed in the UK, France and Germany, totaling 300 respondents. The consumer survey was conducted among 1,000 adult consumers, aged 18+, in the UK, France & Germany, totalling 3,000 respondents.

About Coremetrics
Coremetrics is the leading provider of online marketing and business optimisation solutions. Its products help businesses increase revenues and find and retain their most profitable customers by maximising every online interaction. More than 1,500 online business sites globally, transacting more than $15 billion this year, use Coremetrics’ Software as a Service (SaaS) to optimise their online marketing. Coremetrics’ solutions encompass advanced online analytics and integrated precision marketing applications, including search engine bid management, email targeting and cross sell recommendations to acquire customers more cost effectively, increase conversion rates, and increase lifetime customer value. Coremetrics is consistently recognised by industry analysts and thought leaders, and in 2008 was named to Deloitte's Technology Fast 50 Program for Silicon Valley Internet, Media, Entertainment and Communications companies. The company is privately held with funding from 3i, Accel Partners, FTVentures, and Highland Capital Partners. Coremetrics Europe is headquartered in Windsor, Berkshire and corporate headquarters is located in San Mateo, California. To learn more about Coremetrics, visit www.coremetrics.co.uk or call 01753 272 220.

Coremetrics has strongly supported online privacy since its inception. To learn more, visit http://www.coremetrics.co.uk/company/privacy.php.

For more information please contact:
Louise Greeves / Nina Howse
Midnight Communications
Tel: 01273 666200
Email: coremetrics@midnight.co.uk

¹LIVE = Lifetime Individual Visitor Profiles

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