How AdChoices affect PPC?

Marketers use data to reach out to a wide range of audiences. This data is mostly in the form of ads. If you think from the perspective of a consumer, targeted advertising is something no one likes. Based on a research conducted by the Pew Research Center, four in five Americans are worried about the risks posed by data collection as the brands do not reveal what they are doing with the data.

While brands expect consumers to be excited at the prospect of seeing relevant ads, consumers are worried about being unable to control their personal information. At this point, we can start thinking of AdChoices.

Do you need help with advertising? Or if you think your ads are failing to convert, we can help. Seattle New Media is a PPC management services agency based out of Seattle, offering all kinds of digital marketing and advertising solutions for businesses worldwide.

In this article, we will discuss AdChoices in detail.

Let us first understand AdChoices. People started using AdChoices in 2010.

History

In the year 2007, it was found that an average city resident was shown 5,000 ads in a day. Since then, the number kept growing.

In the year 2009, the U.S. Federal Trade Commission (FTC) began investigating consumer data collection. Till then, there was no practice in place to curb or track the implications of marketers collecting consumer data.

The investigation revealed that a stricter system should be in place to protect consumer privacy that might be breached during data collection. The FTC suggested the ad industry adhere to stricter policies and control the way it collects and uses consumer data, without violating people’s privacy.

This resulted in some of the world-famous brands joining forces under the banner of Digital Advertising Alliance. Together, these brands established the Self-Regulatory Program for Online Behavioral Advertising – responsible for overseeing the launch of AdChoices, starting October 2010.

The main intent is to make it easier for consumers to identify whenever online advertising data is being collected, thereby empowering people to manage their data and gain some level of control over the varieties of ads that are displayed to them.

Today, the ads that people see are part of AdChoices. The AdChoices program’s main members include ad networks, such as Google, Facebook, Microsoft, AT&T, Yahoo, and others.

The AdChoices icon, within the behavioral ads, appears with a lowercase “I” inside a triangle. You might have noticed it in the top-right corner of behavioral ads that you see based on your data.

Why should you use AdChoices?

With PPC campaigns that are done right, undoubtedly the business will flourish and reach great heights. Would you still want your people to switch off your ads?

Reach out to our team of PPC management services experts for help with strategizing PPC ads and to learn about AdChoices.

Why should you give control and choice to your customers?

1.   AdChoices makes it easier for marketers to target users

With AdChoices, marketers can target users with relevant ads. Not everyone wants to continue seeing your ads. Are you paying on a CPM basis? In that case, any impression that reaches the wrong user will cost you money.

When you pay per click, the same rule applies if these ads are served to people who don’t like seeing them. Some people might start clicking these ads with no intention to buy – costing you money, which is not what you want.

So, if you give consumers the choice to decide, there is a greater chance that your ads would reach the right set of people. This would help generate results for your campaigns.

2.   Building trust with consumers

As discussed earlier, not many people like being shown ads – regardless of whether they are relevant or irrelevant to them. People end up blocking ads on their connected devices. This could jeopardize brands and advertisers.

With AdChoices, people might not keep blocking ads. AdChoices would act as a solution to raising awareness and familiarizing consumers about how data is collected for ad-specific reasons. This will help consumers understand and trust the online ad industry better.

Also, when the consumers know better about AdChoices, they would not think of adblocking.

3.   Running more effective campaigns

With AdChoices and allowing your consumers to block your ads, you are automatically improving your campaign’s performance. When you are open about why you are collecting data, you will help people understand how these ads are effective and they would not block the ads.

Based on a study published by the Journal of Consumer Research after analyzing the impact of transparency on the performance of campaigns, the following points were observed:

  • Transparency doesn’t always mean success
  • Platform trust leads to enhanced performance
  • Consumers are happy to share the data rather than being inferred by the advertiser

Summary

  • Advertising networks, such as Google, have embraced AdChoices.
  • AdChoices act as a self-regulatory program, encouraging online advertising platforms to include an ad icon on any ads, which collect data for behavioral advertising.
  • Google would share the collected data with advertisers so that they can improve the quality of ads.

Are you looking for help with strategizing your PPC campaigns? Seattle New Media is a PPC management services provider, offering services to clients across the globe. Contact us today for a consultation.