ADVERTISING on TV continues to be far more influential than ads online, with many people complaining about the intrusiveness of digital ads and their potential to invade privacy.
According to research by Deloitte, which surveyed people in eight countries, television advertising was the most influential on consumer decisions in Australia, followed by newspaper ads and online.
But online advertising is catching up to traditional media with the fast-growing influence of online reviews. The survey found that 56 per cent of people learnt about a new product online for the first time and 43 per cent bought something based on an online review or recommendation.
The report also found that many shoppers, 41 per cent, checked competitors’ prices on their smartphones while in a shop. Dubbed ”word of mouth in the 21st century”, the researchers concluded that checking prices online had become everyday behaviour.
The survey results provide an interesting dilemma for advertisers, with people concerned about the potential for invasion of privacy with online ads, but also interested in more targeted online marketing. Many of those surveyed said they would click on more ads if they were targeted to their needs.
Researchers said that the online advertising community needed to provide more reassurance to consumers regarding the collection, use and security of personal information, in order to overcome people’s privacy concerns and boost effectiveness.
Among the types of advertising available online, Australians preferred search engine advertising, interactive advertising and advertising on apps on mobile phones. But video-based pre-roll and post-roll ads were not very influential on buying decisions, ranking fifth and 10th in terms of influence.
Deloitte Technology, Media and Telecommunications partner Clare Harding said the research also showed that while TV was the preferred form of entertainment for most Australians, 60 per cent of those surveyed were multitasking on other electronic devices.
”Opportunities exist for newspaper publishers and advertisers to connect with consumers across multiple platforms and provide an integrated content or brand experience. Advertisers should also take the opportunity to rethink ad design and incorporate the ‘small screen’ of smartphones, tablets and laptops into the ‘big screen’ viewing experience of the TV,” Harding said.
The report, undertaken between November 2011 and March 2012, surveyed around 2000 consumers in each of the eight countries surveyed, with those interviewed spanning four generations. This is the first year Australia has participated.
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