Engaging Engagement

I was stunned to read last week that mobile users are actually willing to "engage" with ads in order to get free content (/sarc).  And to get them to do this, advertisers/content providers offer Virtual Currencies (sort of like gold sovereigns in the Kingdom of Azeroth only not so geeky) in exchange for personal information.  The currencies measured include airline miles, loyalty points, coupons, online rewards and credit card points. A mix of old and new loyalty incentives.

All this news was contained in a Yankee Group survey report titled Redefining Virtual Currency sponsored by Tapjoy, a SF-based mobile ad/publishing platform company.  Now, I'm not critical of the report, as it shows the extent of the give and take between consumers and marketers and how they value "content," but some of the results are not a surprise:

"Mobile device owners have demonstrated that they're willing to interact with a brand by exchanging their time (ad-views) and personal data for free digital content," said Jordan McKee, an analyst with Yankee Group and author of the report.

"Since users choose to take part in this exchange, the engagement can be far more meaningful and powerful than pop-up, banner or television advertisements," he added.

Specifically, 54% of smartphone users and 41% of tablet users had paid for in-app premium content. But given the option of receiving the same content for free in exchange for advertising, both sets overwhelmingly preferred engaging with advertising.

Respondents also demonstrated a willingness to engage with advertising to receive digital content. For example, 77% were prepared to engage with ads to earn a tablet app, 73% to get tablet in-app premium content, 73% to receive music and 67% to get smartphone in-app premium content. 

Enduring an ad in exchange for programming has been the quid pro quo of television and radio since their inception—though these days digital viewers must surrender some privacy to get it—my worry is the quid is likely not worth the quo and that the practice of collecting and retaining personal information will get trumped by privacy rights in the next few years.

What I wanted to see from Yankee Group was a breakdown of the 2,000 mobile users surveyed.  I wanted to see basic demographics (age, sex, location, profession, income etc.) and the kind of personal information requested for each denomination of currency. I also wanted to see what the demographics reveal as to the currency each age group values and how users' choices vary with age and service provided.  I emailed Jordan McKee asking him for more information and if the usage of the word "engagement" can be quantifiably measured.  Anyway, I haven't heard back. (Jordan, these aren't trick questions—I really would like to know this stuff.) If I do, I'll update.