iPerceptions - Customer Satisfaction Measurement

Analysis of user-generated feedback from 14,000 visitors to leading media sites shows that video ads are unpopular; consumers are more likely to click on traditional text or banner advertisements

NEW YORK, NY – October 6, 2008 –– iPerceptions Inc. (TSX.V:IPE), a leading provider of web-focused Voice of Customer analytics, today announced the results of a new study that delivers accurate insights into which types of online ads are popular with consumers. iPerceptions collected user-generated feedback from over 14,000 visitors to leading media sites during the month of August 2008 to paint a detailed picture of consumer advertising preferences based on their likelihood to click on different types of online ads.
    
The study found that, despite current buzz around video ads, marketers do not need to spend on fancy interactive ads in order to reach consumers. In fact, consumers are most likely to click on simple text ads (25% of respondents). Display ads follow in popularity, with 20% of respondents likely to click on right banners and 12% likely to click on top banners. A surprising finding of the study is that video ads are not very popular among most consumers; only 11% of consumers said they were likely to click on video ads. And 25 to 34 year-olds show no special affinity for video, being just as likely to click on video ads as text, right and top banners. The only consumers who seem to be engaged by video ads are young people under the age of 25, a group that accounts for nearly one-third of the video-ad viewing audience.

“Retail groups are predicting the toughest holiday season since 1991, so marketers need to make sure every dollar spent on advertising delivers an end result,” said Jonathan Levitt, vice president of marketing at iPerceptions. “Our research shows that inexpensive banner and text ads are still preferred among web consumers. By having a direct dialog with consumers, we are able to know – with certainty – what consumers want and expect from their online experience.”

The iPerceptions study also unearthed some important data about how income level and frequency of visits impact consumer ad preferences. As advertisers plan key media buys to boost sales during the upcoming holiday season, they would do well to plan marketing messages and targeting tactics around the study’s finding that the likelihood that a person will click on an ad goes down as their income rises. On average, 40% of consumers likely to click on any ad make less than $50K a year – and only 15% make over $150K. The income gap is most pronounced with video ads, with 49% of consumers likely to click on video ads making less than $50K a year – and only 13% making over $150K.

Web marketers and publishers should also note that clicks come from loyal audiences. Across the board, 65% of consumers likely to click on online ads are weekly or daily browsers, and only 15% are first-time visitors and 6% are sporadic visitors.

“Our research clearly shows that media sites that offer consumers compelling content and features - encouraging repeat visits - generate much better ad clickthrough rates than less engaging sites,” said Levitt. “Marketers that want to reach high quality audiences should focus ad placement on sites that deliver the highest customer loyalty and repeat visitor traffic.”

iPerceptions’ technology goes beyond traditional web analytics to collect customer-generated feedback during actual web sessions to help websites understand who is visiting their site, why they are there, whether they are having a good experience, and what changes in site content or design would provide a better experience. By measuring metrics such as task completion and purpose of visit, iPerceptions can tell with certainty what consumers are doing on a site – and what they really want to do but are unable to – so that websites can pinpoint which marketing and merchandising strategies will deliver the best return.

More details on the iPerceptions research methodology and perceptual framework can be found at http://www.iperceptions.com.

About iPerceptions

iPerceptions is one of North America's leading web-focused Voice of Customer analytics providers. Its webValidator Continuous Listening solution and Proprietary iPerceptions Satisfaction Index (iPSI), turn thousands of data points into easy-to-understand strategic and tactical decision support for website marketers. iPerceptions' clients include such well known brands as InterContinental Hotels, General Motors, Dell Computers, Hyundai, LG Electronics, Choice Hotels International, BMW and Monster Worldwide. iPerceptions has offices in New York, Toronto, Montreal and London.