NEWS
April 17, 2003
Study Says Spam Affecting All Advertising

A recent PlanetFeedback survey of opinion leaders found that consumers increasingly are using spam and pop-up ad filters to control the flow of unsolicited advertising to their computer screens, and a growing percentage are simultaneously sympathetic to technologies that filter out television commercials.

Of the 13% who have access to ad-filtering technology (e.g., TiVo and Replay TV), 60% use it, amounting to a potential 8% overall loss in TV advertising effectiveness.

"Spam and intrusive online ad formats threaten the entire advertising space with a trust-eroding, acid-rain effect. We are also witnessing the emergence of a generation of well-trained ad skippers, aided by spam- and pop-up filtering programs," says Pete Blackshaw, founder and chief marketing officer of PlanetFeedback, a Cincinnati consumer intelligence company. "The combination of eroded trust in advertising and accelerated adoption of ad filters has significant financial consequences for advertisers and marketers."

According to the PlanetFeedback study, the more spam and pop-up ads that consumers encounter, the angrier they are about all forms of advertising -- online banner ads, pop-under ads, event sponsorships, even radio and television advertising. They also increasingly are more willing to take drastic action to control or outlaw unsolicited e-mails. More than one-third support "do-not-e-mail" regulations, 27% support taxes and fines on spam, and nearly 25% support outlawing spam. Less than 3% support no action.

Other findings from "Consumer Trust in Advertising: Spam, Pop-Ups, and ROI":

  • Spam is increasing dramatically, with more than 50% of panel respondents receiving more than 10 unsolicited e-mail messages (definition of spam) a day, and more than 30% of panel respondents receiving 25 every day. Of those who receive spam, 47% kill it immediately, 11% deploy spam-killer programs, and 24% read only the subject line without acting on the message.
  • Pop-up ads lead all ad forms in levels of annoyance and distrust, followed closely by spam and door-to-door solicitations. Nearly 90% of consumers indicated they are "very annoyed" with pop-up ads, while 97% of consumers feel "furious" or "angry" with pop-up ads that appear without warning on Websites as they search the Internet. Only 2% say they click on the ads.
  • Consumers rank word-of-mouth recommendations from others as the most trusted form of advertising, followed by TV, print-ads, and permission-based e-mail.
  • The more spam consumers receive, the more likely they are to download ad filters. One-fifth of consumers who receive more than 25 unsolicited e-mails a day use spam and/or pop-up filters. Of the 46% whose Internet Service Providers offer spam filters, 53% use the technology.
  • Spillover effect: Slightly more than 10% consider traditional ad forms -- TV, radio and ads, billboards, and event sponsorships --"annoying," but their level of annoyance increases with amount of spam received. Nearly 55% of consumers who receive more than 50 spam messages a day are more annoyed by TV ads than those who receive less spam.
  • Spam by association. While pornographers and gambling/casino companies are most associated with spam, more than 50% of panelists "strongly" associate financial services/credit cards, online travel services, and telecom/wireless players with spam. Industries not associated with spam include consumer packaged goods, online booksellers and government/elected officials. Blackshaw points out that government's slow migration to the Internet gives it a "last-mover advantage" in the eyes of consumers annoyed by spam from other sectors.

"What's striking is the sheer intensity of negative consumer emotion on this issue," says Blackshaw. "While marketers are obsessed with clicks, consumers are clearly ticked. Every marketer looking to maximize ROI on advertising effectiveness should be running in-depth studies or focus groups on this topic."

PlanetFeedback's survey focused on online "opinion leaders," the majority of them women and over half of whom have high-speed Internet connections -- influential consumers who are important, Blackshaw says, "because they tend to be the consumers first heard by regulators, elected officials, and company public relations departments."

PlanetFeedback will release quarterly updates to its "Trust in Advertising" study. An online webinar on the topic will be held on Thursday, May 8. For more information, visit www.planetfeedback.com/biz or call 1-800-333-3222.