9. OBA
Personalizing advertising is seen as the future of
advertising.
Advertisers say click through rates increase with 670%
and doubles conversion.
(Beales, 2010, Chen & Stallaert, 2014)
10. OBA: privacy debate
OBA has also received a lot of attention of
regulators, lawmakers, consumer protection
organizations, and scholars.
12. Aims of our literature review
1) Define OBA;
2) Provide an overview of the empirical findings regarding OBA
by developing a framework that identifies and integrates all
factors that can explain consumer responses towards OBA;
3) Provide an overview of the theoretical positioning of OBA
by placing the theories that are used to explain consumers’
responses to OBA in our framework;
4) Develop a research agenda.
12
13. Literature review
Databases: PsycINFO, Web of Science, Communication &
Mass Media Complete, Academic Search Premier, database
of the World Advertising Research Center
Search terms: “online behavioral / behavioural advertising”,
“online behavioral / behavioural targeting”, “customized /
customised advertising”, “personalized / personalized (online)
advertising”, “online profiling”
15. Aim 1. Define online behavioral
advertising
“The practice of monitoring people’s online
behavior and using the collected information to
show people individually targeted advertisements”
16. Aim 2. Overview of empirical research
Relationships with empirical support
Find all variables that are of importance to
understand responses to OBA
Group variables into main factors
17. Aim 2: Overview of empirical research
17
Advertiser-controlled factors Consumer-controlled factors Outcomes
20. Advertiser-controlled factors
Ad characteristics
Level of personalization (type and amount of information used)
and accuracy influence
• consumer-related factors (e.g., feelings of intrusiveness,
perceived usefulness, reactance, and privacy concerns)
• OBA outcomes (e.g., click-through intentions and rates)
23. Consumer-controlled factors
Knowledge and abilities
Consumers have little knowledge about OBA and hold
misconceptions.
A minority of consumers do want to protect their
personal data but often do not know why and how.
24. Consumer-controlled factors
Perceptions
Some see the benefits of OBA
But majority seem to be skeptical towards OBA, and find it
invasive and “creepy”.
Privacy concerns and trust play important role in consumer
acceptance and effects of OBA.
25. Consumer-controlled factors
Consumer characteristics
Responses to OBA differ between consumers based on
• Levels of privacy concerns
• Desire for privacy
• Decision stage, needs
• Education
• Age
• Online experience
27. OBA Outcomes
Advertising effects
OBA can increase click through intentions
and rates, purchase intentions and actual
purchases.
Transparency appreciated and positive
influence on brand recall and ad
relevance
28. OBA Outcomes
Advertising effects
OBA can increase click through rates and
purchases.
depending on various moderators and
mediators (e.g., experienced vulnerability,
feelings of intrusiveness, trust in retailer)
You can go too far, leading to negative
feelings such as privacy concerns,
perceived vulnerability, reactance.
29. OBA Outcomes
OBA acceptance and resistance
People’s acceptance and avoidance of OBA depend on
• Privacy concerns
• Skepticism
• Perceived personalization
• Transparency
31. Aim 4: Research Agenda
1. Theoretical Advancement
2. Understand Acceptance of and Resistance toward OBA
3. Empower the Consumer
4. Novel Methodological Approaches
31
33. Understand Acceptance of
and Resistance toward OBA
Why do people like or dislike OBA?
Tipping point: What levels of personalization are acceptable?
Who is more likely to accept?
33
34. Empower the Consumer
Knowledge is limited: How can we educate people about OBA?
How can we learn them to protect their online privacy?
How can we make transparency approaches more effective?
34
35. Novel Methodological Approaches
Now: mostly scenario-based experiments, but also field
experiments, surveys, content analysis, focus groups
Combine data sources, big data
Tracking consumers’ online behavior
Implicit, unobtrusive measures to gain insights into
processing (e.g., eye tracking)
Longitudinal studies to examine changes over time
35
36. Take away
OBA seen as the future of advertising
Academic research adds nuance
Yes, OBA can positively influence click through rates
and purchases
But you can go too far
People have privacy concerns and find it ‘creepy’
Transparency appreciated and beneficial for advertisers
37.
38. Thank you!
dr. Sophie Boerman
s.c.boerman@uva.nl
@sophieboerman
personalised-communication.net
