Study finds consumers want more targeted ads and less intrusive clutter.

Consumer frustration over online ad clutter is at an all time high, but the majority of these consumers hold a strong preference for targeting advertising, a new study has found.

According to "The 2004 Survey on Internet Ads," conducted by the Ponemon Institute and co-sponsored by Chapell & Associates and Revenue Science, consumers want more relevant ads while maintaining their privacy.

The study reported that online consumers found pop-up ads to be the "most annoying" marketing technique. Telephone marketing followed second to pop-up ads in terms of intrusive advertising.

But that doesn't mean that all banner ads were seen as bad; in fact, the study found that 52 percent of those polled said they would be more likely to click on targeted ads than on others. Forty-five percent said they would be willing to provide additional personal information if they would receive more targeted ads to their individual interests; 55 percent favored targeted ads without the collecting of personal information.

"Consumers want more relevant ads, and many consumers are even willing to part with their personal information if that helps to enhance their online experience. But overall, consumers would prefer using a privacy enabling technology over other methods in order to increase relevance and reduce ad clutter," says Alan Chapell, president of Chapell and Associates.

The study also found that consumers are unwilling to pay for unwanted Web ads and unsolicited messages. Sixty-five percent of those surveyed said they are not willing to pay for Internet Service Provider services that block unwanted ads.

"Although online advertising continues to grow at a significant rate, marketers are still searching for an approach that is both effective and agreeable to consumers who are bombarded by advertising messages and concerned about privacy. The results of this study provide strong evidence that more relevant ads present an enormous opportunity for marketers to run more effective campaigns. Once consumer privacy issues are addressed in a meaningful way, online ads will fulfill their true potential," says Omar Tawakol, senior vice president of marketing at Revenue Science.

The study surveyed 1,074 adults in the United States in early August 2004.