Record: oai:ARNO:641703

AuteurM. Eisenga
TitelThe effect of different levels of personalization on ad effectiveness
BegeleiderH. Gungor
FaculteitFaculteit Economie en Bedrijfskunde
OpleidingFEB MSc Business Administration
SamenvattingOnline advertising is booming. Due to the information overload, consumer empowerment and ad blocking software there is a pressing need to make advertising relevant again. The use of personalization as a marketing technique is seen as the future of advertising. However, still many brands lack knowledge in personalization and do not sufficiently succeed in its usage. Especially the lack of knowledge of the effects of privacy concerns may be a possible explanation for inadequate personalization efforts. Understanding what level of personalization is most effective in terms of consumer behaviour is crucial in order to design successful personalized advertisements. Besides privacy concerns, consumer behaviour also appears to depend on the type of device that is used to process an advertisement. Therefore, this study tested the effects of different levels of personalization of email advertisements on click-through and conversion, and the moderating effects of privacy concerns and type of device. In a field experiment 7200 participants were assigned to one of four personalization levels: non-personalized, slightly personalized, moderately personalized or highly personalized. First, it was investigated whether these four levels of personalization induced different consumer behaviour and whether the type of device on which the ad was exposed had an impact on the relationship between personalization and consumer behaviour. The results indicated that personalization is always more effective than non-personalization of ads. Furthermore, the two highest levels of personalization generated the most favourable outcomes compared to non-personalized and slightly personalized ads. The field experiment also showed that the type of device has an impact on the relationship between levels of personalization and ad effectiveness. Second, the moderating effect of privacy concerns was tested in an online experimental vignette study in which 153 participants were analysed. The results indicated that privacy concerns do moderate the relationship between levels of personalization and ad effectiveness.
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