Shoppers Are Receptive to Location-based Advertising

Valassis, the leader in marketing technology and consumer engagement, today released new research highlighting consumer sentiment about today’s advertising landscape, as well as how advertising impacts purchases. Stemming from a survey of more than 1,000 U.S. consumers, the findings help marketers better understand consumers’ thoughts regarding data privacy in terms of personalization, location-based targeting, how promotions and offers are impacting their deal-seeking habits and their perception of advertising overload.

“These findings present a big opportunity for marketers”

Nearly half (48%) of consumers surveyed expressed concern about data privacy and noted they are uneasy about brands using personal information to cater advertisements. However, 69% of consumers are willing to share some type of information to receive relevant, personalized offers and promotions. This number is even higher among the 18-34 age group, with 76% willing to share at least one of the following types of information: demographics, previous purchases, future purchase plans, home residence location and/or real-time location.

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“These findings present a big opportunity for marketers,” said Michelle Engle, senior vice president, marketing, Valassis. “Consumers find personalized offers extremely valuable, and are willing to share information to receive them – despite having privacy concerns. Marketers must find the right balance by focusing on transparency and ensuring consumers stay in control of their privacy while simultaneously delivering highly relevant and location-based offers.”

Working with partners that have advanced consumer insight and a deep understanding of shoppers’ preferences – as well as a strong commitment to ensuring consumer privacy – creates the opportunity to build trust and loyalty. Brands that more fully understand their target consumers and deliver personalized deals will win their business. Survey findings revealed more than two-thirds (68%) of respondents noted they find it helpful to receive personalized offers for nearby stores.

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Additional findings include:

• Brands can spur impulse purchases with personalized offers:
  • 64% of consumers have made an impulse purchase based on a personalized offer.
  • Consumers are more likely to make impulse purchases from a personalized offer or promotion received in the mail (29%).
  • 23% have made an impulse purchase based on a personalized offer or promotion for a local store while in the vicinity, with 22% saying the same for offers received while actively shopping in a store.

• Consumers aren’t unhappy with advertising, but there are improvements to be made:
  • When it comes to the number of digital advertisements received on an average day, consumers are split: 27% say they are overwhelmed and receive too many, while 34% agree they receive too many but it doesn’t bother them.
    • 32% note the amount is just right, and the remaining 7% wouldn’t mind receiving more – as long as the advertisements are personalized.
  • Consumers’ biggest frustrations with digital advertisements are that they are: too intrusive and interfere with online experiences (39%); received on channels that aren’t preferred (20%); received after already making a purchase for an item (17%); not personalized (14%).

Valassis’ panel at Advertising Week on Sept. 23, “Hello to Good-buy: Marketing Approaches to Drive the Evolving Consumer Journey,” will provide more insights about how brands can effectively engage shoppers.

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