Social Networks, Personalized Advertising, and Privacy Controls
This article investigates how Internet users' perceptions of control over their personal information affect how likely they are to click on online advertising on a social networking website. The analysis uses data from a randomized field experiment that examined the effectiveness of personalizi...
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Format: | Article |
Language: | en_US |
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American Marketing Association
2015
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Online Access: | http://hdl.handle.net/1721.1/99170 https://orcid.org/0000-0002-1847-4832 |
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author | Tucker, Catherine Elizabeth |
author2 | Sloan School of Management |
author_facet | Sloan School of Management Tucker, Catherine Elizabeth |
author_sort | Tucker, Catherine Elizabeth |
collection | MIT |
description | This article investigates how Internet users' perceptions of control over their personal information affect how likely they are to click on online advertising on a social networking website. The analysis uses data from a randomized field experiment that examined the effectiveness of personalizing ad text with user-posted personal information relative to generic text. The website gave users more control over their personally identifiable information in the middle of the field test. However, the website did not change how advertisers used data to target and personalize ads. Before the policy change, personalized ads did not perform particularly well. However, after this enhancement of perceived control over privacy, users were nearly twice as likely to click on personalized ads. Ads that targeted but did not use personalized text remained unchanged in effectiveness. The increase in effectiveness was larger for ads that used more unique private information to personalize their message and for target groups that were more likely to use opt-out privacy settings. |
first_indexed | 2024-09-23T11:03:56Z |
format | Article |
id | mit-1721.1/99170 |
institution | Massachusetts Institute of Technology |
language | en_US |
last_indexed | 2024-09-23T11:03:56Z |
publishDate | 2015 |
publisher | American Marketing Association |
record_format | dspace |
spelling | mit-1721.1/991702022-09-27T16:51:35Z Social Networks, Personalized Advertising, and Privacy Controls Tucker, Catherine Elizabeth Sloan School of Management Tucker, Catherine Elizabeth This article investigates how Internet users' perceptions of control over their personal information affect how likely they are to click on online advertising on a social networking website. The analysis uses data from a randomized field experiment that examined the effectiveness of personalizing ad text with user-posted personal information relative to generic text. The website gave users more control over their personally identifiable information in the middle of the field test. However, the website did not change how advertisers used data to target and personalize ads. Before the policy change, personalized ads did not perform particularly well. However, after this enhancement of perceived control over privacy, users were nearly twice as likely to click on personalized ads. Ads that targeted but did not use personalized text remained unchanged in effectiveness. The increase in effectiveness was larger for ads that used more unique private information to personalize their message and for target groups that were more likely to use opt-out privacy settings. National Science Foundation (U.S.) (CAREER Award 6923256) 2015-10-06T19:19:01Z 2015-10-06T19:19:01Z 2014-10 Article http://purl.org/eprint/type/JournalArticle 0022-2437 1547-7193 http://hdl.handle.net/1721.1/99170 Tucker, Catherine E. “Social Networks, Personalized Advertising, and Privacy Controls.” Journal of Marketing Research 51, no. 5 (October 2014): 546–562. https://orcid.org/0000-0002-1847-4832 en_US http://dx.doi.org/10.1509/jmr.10.0355 Journal of Marketing Research Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf American Marketing Association SSRN |
spellingShingle | Tucker, Catherine Elizabeth Social Networks, Personalized Advertising, and Privacy Controls |
title | Social Networks, Personalized Advertising, and Privacy Controls |
title_full | Social Networks, Personalized Advertising, and Privacy Controls |
title_fullStr | Social Networks, Personalized Advertising, and Privacy Controls |
title_full_unstemmed | Social Networks, Personalized Advertising, and Privacy Controls |
title_short | Social Networks, Personalized Advertising, and Privacy Controls |
title_sort | social networks personalized advertising and privacy controls |
url | http://hdl.handle.net/1721.1/99170 https://orcid.org/0000-0002-1847-4832 |
work_keys_str_mv | AT tuckercatherineelizabeth socialnetworkspersonalizedadvertisingandprivacycontrols |