Key Findings of 2008 AOL Consumer Survey on Behavioral Advertising

During the last week of January 2008, AOL conducted a survey of 1081 consumers (50% AOL users & 50% non-AOL users) to measure awareness of behavioral advertising and to determine the most important types of information that can be provided about such advertising.  The demographics were 33% each of 18-34, 35-54, and 55+, evenly split between male and female.

AOL’s research examined possible means for additional consumer education and notification about privacy.  In particular, the survey examined the specific types of consumer privacy concerns, and how various consumers would like to be informed about privacy and their choices.

The survey results underscore that “the consumer perspective” is not monolithic.  Rather, there is wide spectrum, not only in the depth of consumer understanding about privacy issues generally and behavioral targeting specifically:  there is also considerable variety among consumers in terms of a willingness to pursue additional privacy information; their willingness or likelihood of exercising an opt out; and the manner in which they would prefer to learn about privacy issues.

AOL’s research indicates that consumer attitudes are still evolving, and may depend on nature of the particular site or service that they use.  Thus, it continues to be critical for companies to experiment with varying modes of communication and privacy options in order to provide the best user experience.

Specific Data Highlights:

1. High Baseline Awareness of Privacy Policies:  Half of respondents claim to have read a privacy policy, and even larger numbers of users find privacy policies useful (79%) and easy to understand (62%).  However, among those who have read a privacy policy, 57% said the policy contained too much legalese or jargon, and 58% said the policy takes too long to read.  Only 42% of respondents said that they would stop what they are doing online to learn more about behavioral targeting, and even then only for a brief glance.

2. Additional Mechanisms for Privacy Education:  Some consumers prefer that Web sites use a variety of means to inform them about privacy.  They are interested in additional means of notice and education about behavioral advertising beyond privacy policy disclosures.  For example, 82% of respondents said they would like to see information about how a site uses behavioral advertising data in the form of “A paragraph describing behavioral advertising”, and 80% would like to see “a diagram of how behavioral advertising works.”  Younger consumers in particular were slightly more likely to prefer video, diagram, or cartoon information.

3. Propensity to Seek Out Privacy Information:  Overall, younger users in our survey appeared more likely to seek out privacy information, and more likely already to be knowledgeable about privacy issues.  Younger people (less than age 35) are slightly more knowledgeable about behavioral advertising than those age 35+.   The initial data suggest that younger people are possibly less likely to opt-out of behavioral advertising because of their greater awareness and understanding, but this area requires additional research.

4.  Specific Consumer Preferences for Privacy Information :  Users appear to be less interested in technical issues relating to behavioral targeting, or general policy issues related to these practices.  Rather, consumers appear to be more interested in learning specifically about whether personally identifiable or sensitive information is being used for behavioral targeting, and whether an opt-out is being provided to the sharing of their data across Web sites. Users identified the following as the most important piece of information that might be provided:

·        Whether behavioral targeting includes a person’s name or is anonymous (44%)

·        The sensitivity of the data collected (42%)

·        The ability for the consumer to opt out of sharing their data across websites (36%).