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Can less intrusive ads be more profitable? an experimental investigation

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Personalized ads that target online users based on their search history are now used by most online companies. While these ads have been found to be more relevant by users, many users also care about their online privacy and do not like to be targeted. This thesis studies if less intrusive but still personalized ads could be more successful. To isolate the real impact of different types of ads, I conducted an online experiment with three treatment groups: non-personalized control, standard personalization, and less intrusive personalization. I found that personalized ads performed better and found no difference between less intrusive and standard personalized ads. Users who have online privacy concerns slightly prefer less intrusive ads, but they also do not enjoy personalization in general.

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Behavioral targeting Personalized advertising Privacy Advertising effect Consumer behavior

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Licença CC