Differences in consumer knowledge and perceptions of personalized advertising: Comparing online behavioural advertising and synced advertising

Abstract

ABSTRACT Due to technological advancements, an increasing number of messages are personalized through different sophisticated techniques, such as online behavioural advertising (OBA) and synced advertising (SA). Considering the increasing number of different types of personalization strategies that can be applied for personalization, the question rises whether consumer perceptions of these strategies differ when it comes to their knowledge about, and their perceived benefits and costs of these personalization strategies. A US national survey (N = 1,008) examined knowledge, benefits, and costs of OBA and SA. Whereas OBA has been extensively studied in the past, SA is a novel personalization strategy. Therefore, the current study updated what we know about OBA, provided new insights on SA, and was able to directly compare the two in terms of knowledge and perceptions. The results showed that consumers know more about online behavioural advertising than synced advertising. Furthermore, coding of open-ended questions provided further insights into perceived benefits and costs of the personalization strategies. Personal relevance and added advertising value were the most prevalent perceived benefits and privacy concerns are the most often prevalent perceived cost. The results inform the advertising industry, advertising literacy programs, and encourage ethical debates about the use of personalization strategies.