Delivery app `category advertisement`, 24% of consumers recognized as advertisement

Fair Trade Commission and Platform Operator (CG)

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It was found that only 24% of consumers know that the entire product in the category is an advertisement, although the display of advertisement is displayed only once at the top in delivery apps.

On the 20th, the Fair Trade Commission announced the results of a consumer perception survey on search advertisements in portals, open markets, price comparison sites, delivery/lodging apps, real estate information companies, etc.

As a result of the survey, in the case of’category advertisements’, which are frequently used by O2O operators, 24.4% of them recognize that all products in the category are advertisements. Representatively, the People of Delivery exposes two to three restaurants under the icon of’open list advertisement’, and instead of adding an advertisement icon to each restaurant, they only do it once at the top of the search results.

In the case of passively displaying information such as advertisements such as faint colors, pictures, or vague expressions, the advertisement recognition rate was about 30% lower than that of the case where advertisements were directly indicated. When Yanolja indicated that it was an advertisement in a blurry color, the recognition rate was 27.5%, and when the fact that Expedia was an advertisement in an ambiguous expression, the recognition rate was 33%. On the contrary, 48.8% of respondents answered that they could know that it was an advertisement for a product that Expedia directly expressed as an advertisement.

According to the FTC, the majority of respondents (55.6%) were aware that platform companies placed advertisement products at the top of search results, but only 35.8% knew that there were cases where advertisement products were placed between search results.

Consumers also recognized that it is more difficult to distinguish between pure search results and search advertisements in new platform types such as app market and O2O than portals.

80.1% of respondents thought that improvement measures for search advertising practices were needed, and 78.6% of all respondents said that they need clear guides on advertising, such as display format, font size, color, and display location.

The Fair Trade Commission said, “We plan to strengthen surveillance in the app market and O2O sectors that consumers are not clearly aware of whether or not search advertisements exist.” I will review it.”

The Fair Trade Commission surveyed 1,152 consumers who use the online platform from September to November last year for their use status, the degree of recognition of the classification of search advertisements, and opinions on future improvement plans.

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