Aussies favour privacy-friendly contextual advertising

New research from GumGum reveals that Australian consumers show a preference for contextually relevant advertising due to increasing privacy concerns.

The report, titled "Digital Advertising Pulse Check", indicates that 62% of respondents pay more attention to ads that are contextually relevant compared to other forms. Notably, 70% of those surveyed indicated greater trust in these ads over those based on tracking technologies.

Conducted with 1,003 Australian participants, the survey highlights a growing cautiousness about personal data usage in digital advertising. A significant 82% believe that the protection of personal data while engaging with online ads is highly or somewhat important.

Reflecting the negative perception of traditional tracking-based advertisements, the report found that 69% of respondents view such advertising methods as either "invasive" or "unsettling". This highlights a broader awareness of privacy issues among Australian consumers.

"This discomfort reflects consumers' heightened awareness of privacy issues, as people now expect brands to prioritise data protection and respect people's boundaries," said Matt Coote, Country Manager for Australia at GumGum.

The report underscores the need for advertisers to adopt contextually relevant strategies, aligning with content and not personal data, to avoid awkward interactions with audiences. Over three-quarters, or 78%, of respondents had negative impressions of ads seen as overly personal, drawing on recent shopping behaviours or browsing history.

Additionally, 61% found ads targeting sensitive personal areas like relationships or health to be unpalatable, with 41% considering these ads a breach of privacy.

Coote emphasised the potential business risks associated with intrusive advertising, stating, "The repercussions for brands are substantial. If an ad feels too intrusive, nearly two-thirds of Australians say they'd be likely to reduce or even stop using that brand's services. This shows just how important it is for advertisers to strike the right balance—effective targeting must go hand-in-hand with a strong respect for consumers' privacy."

Niall Hogan, General Manager, JAPAC, at GumGum added, "Overall, these findings clearly reveal that contextual advertising resonates more effectively with Aussie consumers. Marketers absolutely have to build trust by delivering ads that are relevant and impactful without compromising privacy. By prioritising trust and creativity, brands can forge stronger, more meaningful connections with their audiences without crossing the line into invasiveness."

The insight was collected by Censuswide, using a sample of 1,003 Australians over the age of 18, from 25 October to 28 October 2024. The research methodology adheres to the standards of the Market Research Society and follows ESOMAR principles, ensuring the reliability and accuracy of the findings.