Inside 1to1:Privacy

Research Update

May 1, 2010

A survey of marketers has revealed that privacy fears are slowing adoption of behavioral targeting methods, The New York Times reports.

The Ponemon Institute surveyed 90 marketers for the independent study. Nearly all of the respondents indicated that privacy concerns had them restricting their use of the method, despite the fact that 70 percent feel the method is more effective and despite estimates on how much more lucrative it is than traditional advertising.

"Privacy fears are definitely having an economic impact," said Ponemon Institute founder, Larry Ponemon, CIPP. While the advertising industry has increased its efforts to ease privacy fears, economists say "information asymmetry" is at least partially to blame for their persistence.

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