New research from contextual advertising company GumGum has suggested that consumers have a preference for contextually relevant advertisements over traditional tracking-based alternatives.

The report, titled ‘Digital Advertising Pulse Check’, delves into Australian consumer preferences regarding digital advertising. Findings included that 62% of respondents stated they pay more attention to contextually relevant ads compared to other forms of advertising, while 70% expressed a greater level of trust in contextually relevant ads than in ads that rely on tracking-based methods.

The survey, conducted by Censuswide, involved 1,003 Australians aged 18 and above, and took place between 25 October 2024 and 28 October 2024. The findings also underscored a growing concern among consumers about privacy, with 82% of respondents considering the protection of their personal data as extremely or somewhat important when engaging with advertisements.

Country Manager for Australia at GumGum, Matt Coote, said: “This discomfort reflects consumers’ heightened awareness of privacy issues, as people now expect brands to prioritise data protection and respect people’s boundaries.”

The report found 63% of respondents would be inclined to reduce or stop using a brand’s services if its advertisements were perceived as too intrusive, while 69% described traditional tracking-based ads as either ‘invasive’ or ‘unsettling’, and 78% viewed ads that reflect recent shopping habits or browsing history in a negative light.

“Advertisers need to meet consumers where they are, using advanced contextual advertising that aligns with the content people are viewing rather than relying on personal data. It’s about creating a respectful and relevant experience that builds trust,” said Coote.

Ads targeting personal relationships or health topics were found to be particularly off-putting, with 61% of respondents expressing discomfort and 41% considering such ads a violation of privacy.

“The repercussions for brands are substantial. If an ad feels too intrusive, nearly two-thirds of Australians say they’d be likely to reduce or even stop using that brand’s services. This shows just how important it is for advertisers to strike the right balance—effective targeting must go hand-in-hand with a strong respect for consumers’ privacy,” said Coote.

General Manager for JAPAC at GumGum, Niall Hogan, said: “Overall, these findings clearly reveal that contextual advertising resonates more effectively with Aussie consumers. Marketers absolutely have to build trust by delivering ads that are relevant and impactful without compromising privacy. By prioritising trust and creativity, brands can forge stronger, more meaningful connections with their audiences without crossing the line into invasiveness.”