No trespassing: exploring privacy boundaries in personalized advertisement and its effects on ad attitude and purchase intentions on social media

Abstract

Based on the Communication Privacy Management theory, we examined how two boundary conditions (information boundary and social boundary) and two relationship conditions (co-ownership relation and human-computer relation) contribute to perceived privacy and ad effectiveness in the personalized ad context on social platforms. With 349 survey responses, we found that personalized ads based on internal data source, perceived personification and co-ownership of Facebook are positively related to perceived privacy, which leads to better ad attitude and higher purchase intentions. Perceived personification and co-ownership further moderate the relationship between internal data source and embarrassment to perceived privacy.