Owing to the phenomenal growth of online social networks and the resulting interest of marketers in this new medium, this thesis investigates user perception of targeted advertisements on Facebook, the world’s largest and fastest growing social network. Based on a critical literature review, results of previous research studies, and expert interviews with social media practitioners, the author develops a conceptual framework consisting of seven factors that are theorised to impact on how users perceive personalised ads in a social network environment. This framework is partially verified on an empirical basis by means of an online survey among 97 Facebook users. The results provide novel and useful insights into user perception of targeted ads on Facebook that could be used as guidelines for practitioners and as a starting point for further studies.
Table of Contents
1 Introduction
1.1 Background and Importance of the Topic
1.2 Problem Statement and Disposition of This Paper
2 Social Media
2.1 Social Networks - Real vs. Virtual Networks
2.2 Online Social Networks
2.3 Typology of Online Social Networks
2.4 Profile Visibility and Information Disclosure
2.5 Privacy and Data Security in Online Social Networks
2.6 Facebook
3 Online Advertising
3.1 Types of Online Advertising
3.1.2 Targeted vs. Non-Targeted Online Advertising
3.1.2.1 Behavioural Targeting
3.1.2.2 Social Targeting
3.2 Social Media Marketing
3.2.1 Features of Social Media Marketing
3.3 Advertising on Online Social Networks
3.3.1 User Perception of Targeted Ads in Social Networks
4 Recapitulation
5 Empirical Study
5.1. Methodology
5.1.1 Data Collection
5.1.2 Survey Structure
5.1.3 Organisation, Execution, and Sample Group
5.1.4 Data Analysis
5.2 Survey Results
5.2.1 Socio-Demographic Factors
5.2.2 Internet and Online Social Network Usage
5.2.3 Privacy and Data Security
5.2.4 Advertising
6 Discussion of Results
6.1 Privacy and Data Security (Hypotheses 1 & 2)
6.2 User Perception of Advertising on Facebook
6.2.1 Hypotheses 3 & 4
6.2.2 Hypotheses 5 & 6
6.2.3 Hypothesis 7
7 Conclusion and Future Work
Objectives and Research Themes
This thesis aims to investigate how users perceive targeted advertisements on online social networks, specifically using Facebook as a case study. By identifying key factors that influence user perception, the research seeks to provide evidence on whether such advertising effectively reaches target audiences or if it generates negative perceptions due to privacy and data security concerns.
- The impact of personal information disclosure on targeted advertising.
- Privacy and data security concerns within social network environments.
- The relationship between ad relevance and user acceptance.
- User perception of "inattentional blindness" regarding site content versus ads.
- The potential for user control over ad serving to improve advertising efficacy.
Excerpt from the Book
3.1.2 Targeted vs. Non-Targeted Online Advertising
The number of advertisements and the magnitude of information that consumers see every day are immense; this flood may lead to information overload or advertising avoidance. Hermes (2007) found that most consumers try to avoid traditional, non-targeted advertisements. Seventy percent of respondents try to opt-out of such advertisement by switching TV channels. A similar development can be observed on the Internet: Adtech (2007) found that the average click-through-rates for banner ads decreased from 0.33% in 2004 to 0.18% in 2007. This phenomenon is often described as “banner-blindness” in the literature. Some researchers believe that the habitualisation of Internet usage makes users focus on the content that is relevant to them while ignoring everything else (Alby, 2008). The involvement of users becomes more likely if ads are targeted to the information that is known about the recipient (Hamm, 2000; Goldhammer & Fölsch, 2002). In a survey of eighty-three media experts, 88% of respondents saw the main benefit of targeting methods in its cost-efficiency. Moreover, the experts believe that targeting will be one of the most important aspects of media planning in the forthcoming years (InteractiveMedia, 2006).
Targeting can be defined as “(…) a means of planning, which is based on user data, in order to deliver personalised ads to a predefined group of users with the goal to increase relevance and minimise waste circulation” (Smalla, 2008: 46). Targeting is supposed to increase the value of advertising for both users and advertisers: users see ads that are relevant to them, and advertisers achieve a better ROI (Skibicki, 2010; Mughal, 2010). Because advertising is not free and consumers are heterogeneous in their responses to it, advertisers strive to focus their efforts on a subset of the great multitude of consumers, suggesting that an enhanced ability to target ads may be highly valuable. This may be especially true for niche firms that otherwise find themselves locked out of traditional marketing channels, unable to reach their target groups efficiently. The idea that improved targeting is especially important to niche firms is often referred to as the “long tail of the Internet” (Johnson, 2009).
Summary of Chapters
1 Introduction: Provides the background of online social network growth and defines the problem statement regarding the lack of empirical research on user perception of targeted ads.
2 Social Media: Explores definitions of social media, online social networks, and the specific dynamics of privacy, data disclosure, and the platform features of Facebook.
3 Online Advertising: Examines types of digital advertising, targeting mechanisms (behavioural and social), and the current state of social media marketing.
4 Recapitulation: Consolidates literature review findings and establishes the conceptual framework and research hypotheses.
5 Empirical Study: Outlines the methodology of the online survey conducted among 97 Facebook users and presents the statistical breakdown of the collected data.
6 Discussion of Results: Analyzes the survey data in relation to the established hypotheses and compares the findings with previous literature.
7 Conclusion and Future Work: Summarizes the thesis findings, offers implications for practitioners, and suggests areas for further academic research.
Keywords
Facebook, Social Media, Targeted Advertising, User Perception, Online Privacy, Data Security, Social Targeting, Behavioural Targeting, Ad Blindness, Digital Marketing, Return on Investment, User Participation, Social Network Analysis, Online Marketing, Consumer Behavior
Frequently Asked Questions
What is the primary focus of this research?
The work focuses on investigating how users of Facebook perceive targeted advertisements, balancing the need for relevant marketing against privacy and data security concerns.
What are the key thematic areas covered?
The research covers the growth of social media, the evolution of online advertising techniques, privacy and data security issues in social networks, and the empirical analysis of user behavior toward ads.
What is the primary objective of this thesis?
The study aims to identify and validate factors affecting user perception of targeted ads to provide actionable guidelines for practitioners and a baseline for future research.
What research methodology was employed?
The author utilized a standardized online survey among 97 Facebook users, combined with a critical literature review and expert interviews with industry practitioners.
What topics are discussed in the main body of the work?
The main body treats the evolution of social networks, the mechanics of targeting technologies, social media marketing strategies, and a detailed empirical assessment of user attitudes on Facebook.
Which keywords best characterize this research?
Keywords include Facebook, Social Media, Targeted Advertising, User Perception, Online Privacy, Data Security, and Social Targeting.
Why did the study specifically focus on Facebook?
Facebook was chosen as the subject because it is the largest and fastest-growing online social network, making it the most significant platform for current and future advertising research.
How does this study address the concept of "inattentional blindness"?
The study tests whether users ignore ads on Facebook because they are too focused on the actual social content, a phenomenon the author examines through empirical data on ad perception.
What is the "privacy paradox" discussed in the text?
It refers to the disconnect between a user's stated desire to protect their privacy and their actual behavior of sharing sensitive information in an online social network environment.
- Quote paper
- Timo Beck (Author), 2010, User Perception of Targeted Ads in Online Social Networks, Munich, GRIN Verlag, https://www.grin.com/document/167190
