Effectiveness of online behavioral targeting: A psychological perspective

Abstract

The practice of online behavioral targeting in advertising is one of the hottest issues of contemporary debates about data privacy in the information age. Drawing upon the theory of regulatory focus and the ad value model, the present research focuses on the psychology of the recipient in explaining the effectiveness of online ads customized using behavioral targeting. Results of the present research suggest that the promotion focus level of a consumer has a significant effect on perceptions regarding informativeness and entertainment of a customized online ad, whereas perceived security risk associated with clicking customized online ads has a directly inverse effect on these two constructs, in addition, it increases the irritation caused by behavioral targeting. Further, the effect of ad value dimensions on behavioral ad responses is mediated by the attitude toward the ad and brand attitude. Implications of findings and future research directions are discussed.