Abstract
Online behavioral advertising, on websites and in online applications, requires companies to make intricate trade-offs between promises of increased revenue and potential risks for alienation of consumers. To guide companies in making such trade-offs, we answer the research question: How do consumers perceive online behavioral advertising? We consolidate our findings in a process model linking consumer awareness of and knowledge about online behavioral advertising with their attitude towards online behavioral advertising, which shows that consumer perceptions of online behavioral advertising are not stable; instead, they constantly evolve, triggered by confrontations with online behavioral advertising. For consumers, online behavioral advertising is a feature until they get annoyed and it becomes a nuisance. This is a tight rope walk for providers of websites and online applications. Consumers want personalized content, but they do not want content that is too personal. Companies should aim to arouse positive consumer attitudes by creating added value and should revise their online behavioral advertising practices before consumer attitudes shift.
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