The effects of targeted political advertising on user privacy concerns and digital product acceptance: A preference-based approach
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In: Electronic Markets, Vol. 33, No. 1, 46, 12.2023.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - The effects of targeted political advertising on user privacy concerns and digital product acceptance
T2 - A preference-based approach
AU - Baum, Katharina
AU - Abramova, Olga
AU - Meißner, Stefan
AU - Krasnova, Hanna
N1 - Funding Information: Open Access funding enabled and organized by Projekt DEAL. This work has been partially funded by the Federal Ministry of Education and Research of Germany (BMBF) under grant no. 16DII131 and grant no. 16DII116 (“Deutsches Internet-Institut”). Publisher Copyright: © 2023, Institute of Applied Informatics at University of Leipzig.
PY - 2023/12
Y1 - 2023/12
N2 - Online businesses are increasingly relying on targeted advertisements as a revenue stream, which might lead to privacy concerns and hinder product adoption. Therefore, it is crucial for online companies to understand which types of targeted advertisements consumers will accept. In recent years, users have been increasingly targeted by political advertisements, which has caused adverse reactions in media and society. Nonetheless, few studies experimentally investigate user privacy concerns and their role in acceptance decisions in response to targeted political advertisements. To fill this gap, we explore the magnitude of privacy concerns towards targeted political ads compared to “traditional” targeting in the product context. Surprisingly, we find no notable differences in privacy concerns between these data use purposes. In the next step, user preferences over ad types are elicited with the help of a discrete choice experiment in the mobile app adoption context. Our findings suggest that while targeted political advertising is somewhat less desirable than targeted product advertising, the odds of choosing an app are statistically insignificant between two data use purposes. Together, these results contribute to a better understanding of users’ privacy concerns and preferences in the context of targeted political advertising online.
AB - Online businesses are increasingly relying on targeted advertisements as a revenue stream, which might lead to privacy concerns and hinder product adoption. Therefore, it is crucial for online companies to understand which types of targeted advertisements consumers will accept. In recent years, users have been increasingly targeted by political advertisements, which has caused adverse reactions in media and society. Nonetheless, few studies experimentally investigate user privacy concerns and their role in acceptance decisions in response to targeted political advertisements. To fill this gap, we explore the magnitude of privacy concerns towards targeted political ads compared to “traditional” targeting in the product context. Surprisingly, we find no notable differences in privacy concerns between these data use purposes. In the next step, user preferences over ad types are elicited with the help of a discrete choice experiment in the mobile app adoption context. Our findings suggest that while targeted political advertising is somewhat less desirable than targeted product advertising, the odds of choosing an app are statistically insignificant between two data use purposes. Together, these results contribute to a better understanding of users’ privacy concerns and preferences in the context of targeted political advertising online.
KW - Advertisement
KW - DCE
KW - Online privacy
KW - Targeting
KW - Business informatics
KW - Informatics
UR - http://www.scopus.com/inward/record.url?scp=85169566531&partnerID=8YFLogxK
U2 - 10.1007/s12525-023-00656-1
DO - 10.1007/s12525-023-00656-1
M3 - Journal articles
AN - SCOPUS:85169566531
VL - 33
JO - Electronic Markets
JF - Electronic Markets
SN - 1019-6781
IS - 1
M1 - 46
ER -