Collective-based ad transparency in targeted hotel advertising: Consumers’ regulatory focus underlying the crowd safety effect

Abstract

Facing transparency requirement of ad generation process, digital marketers need to design proper transparency messages to preempt consumer backlash. Based on crowd psychology literature and the regulatory focus theory, we proposed and tested the crowd safety effect of the collective-based (vs. individual-based) ad transparency strategy with two experimental studies in the context of online hotel booking. Results of two studies consistently demonstrate the crowd safety effect of the collective-based transparency on enhancing hotel booking intention and ad click-through willingness. Furthermore, we found that consumers’ trust toward the ad, rather than privacy concern, mediates this positive effect. These findings help us better understand how social dimensions in ad transparency messages shape consumer responses, as well as the role of consumer trust in promoting targeted ad effectiveness through promotion focused behaviors.