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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Main Author: Tucker, Catherine Elizabeth
Other Authors: Sloan School of Management
Format: Article
Language:en_US
Published: American Marketing Association 2015
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.
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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