Consumers Tolerate Web Advertising

It appears that Internet users don’t mind advertisements on the Internet because they think it keeps them from shelling out money for content. The majority of Internet users (53 percent) agree that advertising is needed on the Internet in order to keep the content free, according to research done by INTECO Corporation. [IC_ARTICLE_OBJECT [SHOW IC_Article_ID] “table1”]

Some forms of advertising, however, are more popular with consumers than others. IPSOS-ASI has conducted research in this area, and found that seven percent of web surfers find banner ads “irritating.” Fifteen percent feel that interstitials and banner ads with daughter or pop-up windows are irritating.

INTECO’s research, which was based on detailed interviews with 2,500 US adults, also found that 50 percent of the respondents agree that targeted ads are fine so long as the site or ISP doesn’t release names and addresses. The research also found that 43 percent find Web ads less obtrusive than TV commercials and direct mail, and 22 percent would pay extra to subscribe to sites without advertising.

INTECO’s research also showed that speedy downloads — along with reliable, up-to-date, and easy-to-find information — are by far the most important Web site features from a consumer perspective. Animation, sound, and video rated far down the chart.

The current Internet advertising expenditure per Internet-connected household in the US is $58, and is expected to increase to $113 by 2003, INTECO said. By comparison, current per-household expenditures are $455 for TV advertising and $513 for newspaper advertising, according to industry figures.