Definition Online Behavioral Advertising
The practice of monitoring people’s online behavior and using the collected information to show people individually targeted advertisements
Effects OBA depends on…
- advertiser controlled factors
- consumer controlled factors
Advertiser controlled factors
- ad characteristics
- OBA transparency
Ad characteristics (advertiser controlled factors)
- level of personalization
- accuracy
OBA transparency (advertiser controlled factors)
- privacy statements and informed consent
- disclosure
Consumer controlled factors
- knowledge and abilities
- perceptions
- consumer characteristics
Knowledge and abilities (consumer controlled factors)
- consumers have little knowledge about OBA and hold misconceptions
- even less knowledge about legal protections
- consumers do not seem to understand tools to protect online privacy
- however, people do want to have control over data collection and use
Consumer perceptions (consumer controlled factors)
- Overall perceptions are mixed: OBA is relevant but also creepy
- privacy concerns and trust play important roles in consumer acceptance and the effectiveness of OBA
- privacy calculus: response to OBA is the outcome of process in which costs and benefits are assessed and weighted
Consumer characteristics (consumer controlled factors)
- low levels of privacy concerns and desire for privacy positively affect OBA responses
- also important: decision stage/ needs, age, online experience, education
Outcomes Proposed Framework of OBA
- Advertising effects
- OBA acceptance and resistance
Advertising effects (outcomes Proposed framework of OBA)
- click through intention and behavior
- purchase intention and behavior
- brand recall
- perceived relevance of add
OBA acceptance and resistance (outcomes Proposed framework of OBA)
- OBA acceptance
- advertising avoidance
Personalization Paradox
Personalization ads leads to more purchase intention, but also more skepticism and therefore to less purchase intention.
Skepticism is especially high for:
- adolescents with high privacy concerns
- when the practice of retargeting is explained
Psychological characteristics
- Openness
- Conscientiousness
- Extroversion
- Agreeableness
- Neuroticism
Definition Extraversion & outcome study
Definition: Personality trait reflecting the extent to which people seek and enjoy company, excitement and stimulation
Outcome: Users were more likely to purchase the product after viewing an ad that matched their personality
Definition Openness & outcome study
Definition: Personality trait reflecting the extend to which people prefer novelty over convention
Outcome: Users where more likely to install the app after viewing an ad that matched their personality (but not for high openness audience)
Synced advertising
Personalized advertising across media in real time
- based upon current media behavior
- increase chance of brand exposure
Effects on ad sequence on attention and memory
- no difference in brand memory
- more attention to TV commercial than tablet ad
- Attention to one message drives attention to the other
- TV commercial received more attention when tablet ad was placed before or simultaneously
- Tablet ad received more attention when it was shown after the TV commercial or simultaneously
Perceptions of Synced Advertising
- majority finds synced advertising unacceptable
pro: personal relevance and added value
con: privacy risks and intrusiveness
Conclusion Lio & Sundar (2021) (5 bulletpoints)
- Communication about nature (collaborative vs content-based filtering) and quality (accuracy) of recommendation is important
- Responses to RS differ between product types (search vs experience) and users (Need for Cognition)
- Collaborative filtering triggers bandwagon heuristic for search products
- Collaborative filtering also works well for experience products, if its highly accurate and only for those with low NFC
- Content Based filtering with high accuracy is preferred by those with high NFC because it is perceived as more transparent
