Measuring the advertising value of personalised ads in smartphones based on consumer literacy and privacy concerns

Abstract

Because of the widespread use of smartphones in everyday life and advances in data analysis technology, brands are increasingly focusing on advertising via smartphone while collecting customer data. Advertisements are made to reach customers through two types of data collection: the first is using customer online behaviour to show personalised ads, which is known as online behavioural advertising (OBA), and the second is hearing out customer media usage and providing personalised ads, which is known as synced advertising (SA). The question here is whether personalised ads are useful and project a positive image to customers, which are reliable. The purpose of this paper is to provide a knowledge of how OBA and SA work and why it is vital to address personalised adverts in smartphones that are powered by AI algorithms due to privacy concerns. The purpose of this empirical investigation is to determine is purchase intention is accelerated based on the advertising value of personalised adverts, their literacy, and privacy concerns and to test the effect of personalised advertisement value on purchase intention.