Exploring the Effects of Personalized Advertising on Social Network Sites

Abstract

With the advancement of social media and information technology, the number of people using social commerce has highly increased in recent years. Through the AI models, sellers can promote personalized advertisements base on consumers’ browser history or behavior preferences. This study will investigate how advertising perceptions will influence advertisement effectiveness. We used online survey to collect 1215 participants from Facebook. The relationship between advertising perception, consumer engagement, and purchase intention will be verified through partial least square (PLS). The finding shows that when consumer perceive interactivity and intimacy, will increase consumer engagement. Furthermore, consumer engagement can influence purchase intention. The result is not only verified that perception of relevance, intimacy, and likeability can increase perceived personalization advertising, also verify that relevance and likeability can increase consumer engagement or purchase intention through increasing perceived personalization advertising. These results confirmed that personalized advertisement can enhance advertising effectiveness.