DMA Survey Finds That the Majority of Web Users Prefer the Current Model of Online Advertisements

DMA Survey Details Benefits of the Internet that Consumers Love

New York, NY, November 1, 2007 — On the first day of the Federal Trade Commission’s (FTC) workshop on "Online Behavioral Targeting," the Direct Marketing Association (DMA) indicated that providing relevant marketing materials to consumers online is fueling the unprecedented growth in the Internet.

"The Internet revolution goes on and we are proud that our members continue to be the leaders in providing relevant marketing materials to consumers at the very time they are interested in knowing more about particular products and services,” said DMA President & CEO John A. Greco, Jr. “The verdict is in — consumers have overwhelmingly responded to an open Internet supported by relevant advertising."

Consumer response to a national survey of more than 1,000 adult consumers, which was conducted during the weekend of October 26-28 on behalf of DMA by ORC International of Princeton, NJ, found the following:

When given a choice about how Web content should be paid for, the vast majority (72 percent) of Web users preferred that websites not charge them, and instead be funded by advertising.

Further, 86 percent confirmed that they usually visit free websites where the content they use is paid for by advertisers; only 10 percent said that the websites they access either charge them a subscription or pay for each download or use.

81 percent stated that the Internet made their lives better by making it easier to gain access to products, services, and content such as news, video, or music.

When asked about their Internet shopping habits compared with two years ago, the overwhelming majority (86 percent) of Web users confirmed that they were doing the same amount of shopping or more.

Finally, when all respondents, both online and offline, were asked whether they were aware that Internet companies were collecting information regarding their Web browsing, it was clear that consumers were aware of this practice. In fact, only 30 percent indicated they were not aware of it, and a significant portion of those who were not aware had not yet used the Internet.

In response to calls by certain groups for a “do-not-track” list, DMA Executive Vice President for Government Affairs and Corporate Responsibility Steven K. Berry said, “Such a list would significantly undermine the successful business model of the Internet by limiting benefits to consumers, stifling innovation, and eliminating the valuable and effective marketing supported content. It is overwhelmingly clear that the great majority of Americans embrace relevant marketing. This is a ‘solution in search of a problem.’ ”

About Direct Marketing Association (DMA)

The Direct Marketing Association (www.the-dma.org) is the leading global trade association of businesses and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. DMA advocates standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the end-to-end direct marketing process. Founded in 1917, DMA today represents nearly 3,600 companies from dozens of vertical industries in the US and 50 other nations, including a majority of the Fortune 100 companies, as well as nonprofit organizations.

In 2007, marketers — commercial and nonprofit — are forecast to spend $173.2 billion on direct marketing in the United States. Measured against total US sales, these advertising expenditures will generate approximately $2.025 trillion in incremental sales. In 2007, direct marketing will account for 10.2 percent of total US gross domestic product. Also, there are today 1.6 million direct marketing employees in the US alone. Their collective sales efforts directly support nearly 9.0 million other jobs. That accounts for 10.6 million US jobs.

The Power of Direct: Relevance. Responsibility. Results.

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