A new study by IAB Europe, conducted by leading research firm Kantar, reveals fresh insights into how European consumers perceive online advertising, data privacy, and the trade-offs that sustain free digital services. 

As debates around privacy regulation and the future of digital advertising continue, the research highlights a key reality: while consumers want control over their data, they also recognise the value of an ad-supported internet.

The study surveyed internet users aged 16 and above across 12 European markets to ensure a representative sample of EU consumers. A total of 10,500 interviews were conducted—1,000 in Germany, France, Italy, Spain, Poland, Sweden, the Netherlands, Czechia, and Belgium, and 500 in Denmark, the Republic of Ireland, and Norway.

The research findings revealed that the average European consumer receives €212 (£181.79) worth of free online services per month, including essential tools such as search engines, email, and news platforms. While privacy is a top concern, 60% of consumers believe a “pay or consent” model is reasonable when they understand the value exchange involved.

Commenting on the findings, IAB Europe’s CEO, Townsend Feehan said, “This study highlights that, seven years after the GDPR went into effect, EU consumers show good levels of awareness that the law gives them rights and choices, places obligations on the companies that process their data, and provides for sanctions in case of non-compliance. This is how GDPR was supposed to work – empowering users to make choices on the basis of information, with a high baseline level of data protection. This said, the survey shows frustration with the daily experience of trying to exercise choice, concern about whether the rules are being effectively enforced, and a gap between consumers’ abstract preference for relevant ads and their recall of ads that actually were. So clearly, there are some important go-dos for both industry and regulators.”

A digital economy built on value exchange: Digital services are deeply embedded in everyday life, with millions relying on ad-funded online services for communication, entertainment, and information. It is no wonder that consumers would miss these services if they were no longer available to them for free. However, many consumers are unaware of the economic model that sustains these services.

The research shows that consumers appreciate the benefits of free access, they also recognise the potential downsides if personalised advertising were restricted - such as paywalls, reduced content quality, and limited accessibility. Moreover, when consumers learned that advertisers pay more for personalised ads - helping to keep these services free - more of them saw consent as a fair value exchange. 

The role of personalised advertising: Consumers have clear expectations when it comes to digital advertising: ads should be relevant, non-intrusive, and add value to their online experience. The study finds that:

• 80% of consumers say online ads can be useful and prefer fewer, more relevant ads
• When consumers encounter an ad that is helpful to them, over 70% described this as a positive experience
• Over half agree that fewer personalised ads are less intrusive than many irrelevant ones

However, when personalised ads miss the mark - such as showing ads for products consumers have already purchased - they quickly become a source of frustration. 

Policy recommendations: To translate the findings of this study into actionable change, IAB Europe has developed a series of policy recommendations outlined in the report. 

Key recommendations include: 

1. Safeguard free access to a wide range of high-quality services for consumers
2. Encourage collaboration to better inform consumers about digital advertising and empower their online choices
3. Preserve the existing legislative framework for personalised advertising 
4. Develop regulatory incentives and address barriers to consumer-friendly consent banners
5. Revisit barriers to business continuity and the consumer experience
6. Prioritise effective implementation over new legislation

The full report can be viewed on IAB Europe’s website here. For more information, join the IAB Europe & Kantar Webinar on 15th April at 15:00 CET where industry experts will discuss the implications of the study’s findings for the EU’s digital future. Register here to secure your spot.

IAB Europe

IAB Europe is the European-level association for the digital marketing and advertising ecosystem. Through its membership of media, technology and marketing companies and national IABs, its mission is to lead political representation and promote indus...

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