The influence of perceived ad relevance on social media advertising: An empirical examination of a mediating role of privacy concern

Todays, in order to break out of cluttered ad environment, advertisers provide customized ad messages for an individual consumer based on personal information. The targeting technique is a successful way for advertisers to increase advertising effectiveness, but it also causes privacy concern. Using an online survey, the current study examines the influence of perceived ad relevance and privacy concern on social media ads. The results confirmed that perceived ad relevance influences advertising effectiveness such as increased attention to ads and decreased ad avoidance. However, perceived relevance also increases privacy concern which ultimately raises ad avoidance in social media. Theoretical and practical implications of findings are discussed.