Frustration with Mistargeted Ads Lead Consumers to Disengage

Personalization/Targeted Ads

January 14, 2014 –  A new social login and personalization study reveals 96% of consumers acknowledge having received mistargeted promotional information.  And, based on this, 94% have taken steps to break off their relationship with the brand or service, including automatically deleting emails (68%) and unsubscribing from lists (54%).

In addition, the independently conducted 4th annual study commissioned by Janrain, a provider of user management solutions for the social web, finds the majority of consumers surveyed (88%) have encountered social login (the use of an existing ID from a social network such as Facebook, Google, Twitter, etc. to register at an unrelated site), with 51% saying they use it to register and sign in to other sites. 
 

Graphic source: Janrain, 2014

Yet, while the majority of online consumers (91%) are satisfied with social login -- for it's one less password to remember and a faster way to login -- and most report a preference for personalized communication, "brands have yet to seize the opportunity to improve online marketing as a result of the data they can collect in the social login process."

KEY FINDINGS:

MISTARGETED PROMOTIONS AND THEIR EFFECTS
 

• 71% of respondents have experienced a situation where a company has sent information, promotions, etc. that are not relevant.

• 41% say they have received communications with 'mistakes made about basic information about me.'

• 48% automatically delete or categorize as ‘junk’ emails after only being mistargeted twice.

• 29% say they are 'less likely to buy the products' due to mistargeted ads.

• 64% of consumers are more likely to return to a website that remembers them without a username and password, and instead uses social login.

• 60% find suggested products/promotions based on their social login profile information useful.

• 49% of respondents who use social login would allow mobile phone apps to offer special in-store offers.

• Social login users are 78% more likely versus non-users to download a mobile app from a site that is personalized.

• Among non-users of social login, the top barrier is lack of trust.  Almost half (49%) reported that they don’t trust a company to use their information appropriately.  Just over one third (33%) are concerned the company will post to their social network feeds. 

About:  This study conducted by Blue Research, an independent research consultancy, on behalf of Janrain, surveyed a nationally representative sample of nearly 600 U.S. social media consumers in October 2013. Respondent age ranges: 18-34 (26%), 35-64 (55%) and 65+ (19%); Gender: Female (54%), Male (46%); 71% earn less than $100k annually; 56% are college graduates.

Source:  Janrain, National Study Shows Consumers Abandon Brands Online Out of Frustration with Mistargeting, Jan.14, 2014 and 2014 Consumer Research: Social Login and Personalization study, accessed Jan. 14, 2014.