Impact of Personalized Social Media Advertisements on Consumer Purchase Intention

Abstract

The prime objective of this paper was to understand how personalized ads on social media platforms, influence consumer’s purchase intention. Increased interaction with personalized ads influence the consumer’s psyche and behaviour to make a purchase in absence of an internal stimulus. Special emphasis is thus laid upon studying the direct impact of personalized ads (frequency of display, relevance and usefulness of advertisements) encountered on social media platforms and the consumers’ intent of purchase in conjunction with their perception of personalized ads and privacy controls. The data was collected from 110 respondents through an indirect admission of questionnaire. Our findings suggest that the frequency of personalized ad exposure, ad’s perceived relevance and usefulness to consumers, concerns with respect to privacy controls and, cognitive and affective attitude significantly impact the perception and subsequent purchase intention of consumers.