Personalized Advertising on Social Media: Is it Building Desired Customer Attitude?

Abstract

A rising number of researchers have exhibited their efforts to analyse the effects of personalized advertisements on conventional media channels, web pages and mobile phones. Still, there exists a paucity of studies focusing on their influence on social networking sites. To navigate the crowded landscape of advertising, marketers employ personalized messaging tailored to individual consumers using their personal information. However, there remains a notable dearth of understanding regarding the impacts of personalized advertising within the realm of social networking sites. Filling this gap, the present study proposed and investigated a comprehensive model of personalized advertising, assessing its impact on eliciting favourable responses. Based on responses from 427 respondents, the findings reveal that perceived ad personalization positively influences perceived ad novelty, perceived relevance, advertising value and consumer brand engagement. However, the relationship between perceived personalization and perceived intrusiveness couldn’t be established. Furthermore, the role of privacy concern as moderating variable was noted to be significantly high on the relationship between perceived relevance and consumer attitude. The research provides significant contributions both in theoretical as well as practical aspects in social media marketing domain.