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Personalized ads on Facebook: An effective marketing tool for online marketers

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  • Tran, Trang P.

Abstract

A growing number of researchers have examined the effects of personalized advertising in traditional media, however, little has been known about personalized advertising on Facebook. The primary objectives of this research are threefold: (1) Develop a comprehensive model that captures the effects of perceived personalized ads on Facebook on customer attitudinal and behavioral reactions (ad credibility, ad avoidance, ad skepticism, ad attitude, and behavioral intention) to the ad; (2) Test hypothesized relationships using two data sets collected through an online survey; and (3) Develop appropriate customer segments based on personal views of personalized ads on Facebook. The paper reveals that eleven out of thirteen hypotheses are supported and that three market segments are identified including Ad Lovers, Ad Accommodators, and Ad Haters. The paper concludes with conclusion and discussions highlighting managerial and research implications.

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  • Tran, Trang P., 2017. "Personalized ads on Facebook: An effective marketing tool for online marketers," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 230-242.
    • Handle: RePEc:eee:joreco:v:39:y:2017:i:c:p:230-242
    DOI: 10.1016/j.jretconser.2017.06.010
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    Cited by:

    1. Shanahan, Tyler & Tran, Trang P. & Taylor, Erik C., 2019. "Getting to know you: Social media personalization as a means of enhancing brand loyalty and perceived quality," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 57-65.
    2. Hossain, Md Afnan & Akter, Shahriar & Yanamandram, Venkata, 2021. "Why doesn't our value creation payoff: Unpacking customer analytics-driven value creation capability to sustain competitive advantage," Journal of Business Research, Elsevier, vol. 131(C), pages 287-296.
    3. Tran, Trang P. & Lin, Chien-Wei & Baalbaki, Sally & Guzmán, Francisco, 2020. "How personalized advertising affects equity of brands advertised on Facebook? A mediation mechanism," Journal of Business Research, Elsevier, vol. 120(C), pages 1-15.
    4. Schreiner, Timo & Rese, Alexandra & Baier, Daniel, 2019. "Multichannel personalization: Identifying consumer preferences for product recommendations in advertisements across different media channels," Journal of Retailing and Consumer Services, Elsevier, vol. 48(C), pages 87-99.
    5. Hossain, Md Afnan & Akter, Shahriar & Yanamandram, Venkata & Strong, Carolyn, 2024. "Navigating the platform economy: Crafting a customer analytics capability instrument," Journal of Business Research, Elsevier, vol. 170(C).
    6. Bailey, Ainsworth Anthony & Bonifield, Carolyn M. & Elhai, Jon D., 2021. "Modeling consumer engagement on social networking sites: Roles of attitudinal and motivational factors," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    7. Pallant, Jason I. & Pallant, Jessica L. & Sands, Sean J. & Ferraro, Carla R. & Afifi, Eslam, 2022. "When and how consumers are willing to exchange data with retailers: An exploratory segmentation," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    8. Trish Dearlove & Andrea Begley & Jane Anne Scott & Gemma Devenish-Coleman, 2021. "Digital Marketing of Commercial Complementary Foods in Australia: An Analysis of Brand Messaging," IJERPH, MDPI, vol. 18(15), pages 1-12, July.
    9. Ivana Kursan Milaković & Mirela Mihić & Ivana Boljat, 2020. "Consumer Attitudes Towards Social Network Advertising: Predictors and Outcomes," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 32(SI), pages 83-97.
    10. Jungwoo Lee & Cheong Kim & Kun Chang Lee, 2021. "Investigating the Negative Effects of Emojis in Facebook Sponsored Ads for Establishing Sustainable Marketing in Social Media," Sustainability, MDPI, vol. 13(9), pages 1-15, April.
    11. Chen, Si & Wu, Yajun & Deng, Fengyi & Zhi, Kuiyun, 2023. "How does ad relevance affect consumers' attitudes toward personalized advertisements and social media platforms? The role of information co-ownership, vulnerability, and privacy cynicism," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    12. Jean-Éric Pelet & Saïd Aboubaker Ettis, 2022. "Social Media Advertising Effectiveness: The Role of Perceived originality, Liking, Credibility, Irritation, Intrusiveness, and Ad destination [Efficacité de la publicité sur les réseaux sociaux : l," Post-Print hal-04139083, HAL.
    13. Damir Dobriniæ & Iva Gregurec & Dunja Dobriniæ, 2021. "Examining the factors of influence on avoiding personalized ads on Facebook," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 39(2), pages 401-428.
    14. Jie Zhao & Jianfei Wang, 2020. "Health Advertising on Short-Video Social Media: A Study on User Attitudes Based on the Extended Technology Acceptance Model," IJERPH, MDPI, vol. 17(5), pages 1-21, February.
    15. Jorge Serrano-Malebran & Cristian Vidal-Silva & Iván Veas-González, 2023. "Social Media Marketing as a Segmentation Tool," Sustainability, MDPI, vol. 15(2), pages 1-16, January.
    16. Jean-Éric Pelet & Saïd Aboubaker Ettis, 2022. "Social Media Advertising Effectiveness: The Role of Perceived originality, Liking, Credibility, Irritation, Intrusiveness, and Ad destination [Efficacité de la publicité sur les réseaux sociaux : l," Post-Print hal-04139094, HAL.
    17. Jean-Éric Pelet & Saïd Aboubaker Ettis, 2022. "Social Media Advertising Effectiveness: The Role of Perceived Originality, Liking, Credibility, Irritation, Intrusiveness, and Ad Destination," International Journal of Technology and Human Interaction (IJTHI), IGI Global, vol. 18(1), pages 1-20, January.
    18. Hossam Deraz, 2019. "Factors Contributing to Consumers’ Assessment of Advertisement Value on Social Networking Sites: A Cross-Cultural Focus Group Study," International Review of Management and Marketing, Econjournals, vol. 9(1), pages 13-25.
    19. Palos-Sanchez, Pedro & Saura, Jose Ramon & Martin-Velicia, Felix, 2019. "A study of the effects of programmatic advertising on users' concerns about privacy overtime," Journal of Business Research, Elsevier, vol. 96(C), pages 61-72.
    20. Niu, Xingchen & Wang, Xuequn & Liu, Zilong, 2021. "When I feel invaded, I will avoid it: The effect of advertising invasiveness on consumers’ avoidance of social media advertising," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    21. Ibrahim Halil Efendioglu & Yakup Durmaz, 2022. "The Impact of Perceptions of Social Media Advertisements on Advertising Value, Brand Awareness and Brand Associations: Research on Generation Y Instagram Users," Papers 2209.13596, arXiv.org.

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