Monday, October 27, 2014

Retargeting can discourage some customers

Over half (55%) of consumers are put off buying products or services if they see the same ad online multiple times, according to a study by InSkin Media and RAPP Media that surveyed over 1,600 people aged 20 to 60.

Only 10% of consumers are more likely to buy something after seeing the same ad served repeatedly because of their previous web surfing behaviour (known as retargeting). 
People are nearly four times more likely to be encouraged than discouraged to buy something if they see a relevant ad during their research on it. However, as an ad is seen up to five times, it becomes ‘annoying’ and ‘intrusive’. Once it hits 10 times, ‘angry’ becomes the dominant reaction (see chart below).
In contrast to the positivity for a relevant ad being seen during research, one seen after research is over is 15% more likely to discourage than encourage a purchase.
  • If seen after the product is purchased, its nearly four times more likely to discourage future purchases.
  • Ads seen multiple times are 40% more likely to be received positively if they’re served on a website related to the ad content (e.g. a hotel ad appearing on a holiday website).  
  • Ads served on unrelated sites are over 11 times more likely to discourage than encourage a purchase. 
  • The quality of a site also has a big impact on how advertising is perceived; people are 37% more likely to click on an ad if it’s on a site they trust.
  • Almost one in four (23%) people are unaware that advertisers collect personal information to serve relevant ads.
retargeting chart
  

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