Predicting user response to sponsored advertising on social media via the technology acceptance model

Sponsored advertising has generated strong advertising revenues for Facebook in recent years. As sponsored ads are built on an interactive platform that could be seen as invasive to user privacy, the growth of this advertising platform has important implications for consumers, and advertisers alike. As little research is available on consumer response to sponsored advertising as an interactive technology innovation, the current study assesses the effects of user perceptions of privacy risk, intrusiveness concerns and utilities of sponsored advertising on consumer attitudes and purchase intent. Testing a model derived form the technology acceptance model (TAM), the study found that privacy and intrusiveness concerns are both valid antecedent variables to perceived usefulness but not perceived ease of use of sponsored advertising. While both antecedent variables also influence consumer attitudes toward sponsored advertising, only privacy concerns have an impact product purchase intentions. The hypothesized relations between perceived usefulness, ease of use, attitudes and purchase intentions were also validated.