Crossing personal boundaries or enhancing engagement? The effect of personalized advertisements on consumer’s response
Advertisement personalization is a popular marketing tool used by marketers. Personalizing advertisements seems to create efficiency for consumers and platforms as the right ad is shown to the right person. However, previous literature is not unanimous on the effects of personalized advertisements and whether it is a good tool for marketers. Therefore, there is reason to believe that the effect on consumers is not favorable for advertisers and consumers. These differences in results from previous research could be blamed on the existence of mediators and moderators that were not considered. Therefore, this research aims to create a complete framework for advertisement personalization and consumer response. How consumers respond to personalized advertisements can be divided into behavioral and attitudinal responses. Their behavioral response is seen in their intent to click the advertisement, and their attitudinal response is expressed through their brand attitude. Perceived relevance is necessary for perceived personalization to influence consumer’s response. Thus, perceived personalization influences how the relevance of an advertisement is perceived, which in turn influences the consumer’s response. Therefore, perceived relevance is suggested to have a mediating effect. Furthermore, the attitude a consumer has towards the platform portraying the advertisement seems to interact with and influence both perceived personalization and the consumer’s response. On top of that, the type of information used in the personalized message from an advertisement is suggested to have a similar effect. Thus, both platform attitude and the information type used are considered to be moderators in the theoretical framework. Using an experimental survey design the hypotheses from the conceptual framework were tested. All respondents were randomly assigned to one out of three groups. One group was exposed to an advertisement without personalization and the other two groups were exposed to an advertisement with different levels of personalization. The regressions used in this research showed a partial mediation effect of perceived relevance between perceived personalization and consumer’s response. Next, this study concludes that perceived personalization positively affects consumers’ responses. Also, only a negative platform attitude is a moderator for perceived personalization and brand attitude. Finally, there does not seem to be a difference in consumers’ responses when exposed to different types of personalization.
|, , , , , ,|
|Dr. Serge Rijsdijk|
|Media & Business|
|Organisation||Erasmus School of History, Culture and Communication|
Sanne Linders. (2022, June 27). Crossing personal boundaries or enhancing engagement? The effect of personalized advertisements on consumer’s response. Media & Business. Retrieved from http://hdl.handle.net/2105/65014