|
Archive@NYU >
Stern School of Business >
Economics Working Papers >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/29874
|
| Title: | Social Networks, Personalized Advertising, and Privacy Controls |
| Authors: | Tucker, Catherine - Sloan School of Business, MIT |
| Keywords: | Privacy, Online Advertising, Social Networks |
| Issue Date: | 2010 |
| Series/Report no.: | Net Institute Working Paper;10-07 |
| Abstract: | This paper investigates how internet users' perception of control over
their personal information affects how likely they are to click on
online advertising. The paper uses data from a randomized field
experiment that examined the relative effectiveness of personalizing ad
copy to mesh with existing personal information on a social networking
website. The website gave users more control over their personally
identifiable information in the middle of the field test. The website
did not change how advertisers used anonymous data to target ads. After
this policy change, users were twice as likely to click on personalized
ads. There was no comparable change in the effectiveness of ads that did
not signal that they used private information when targeting. The
increase in effectiveness was larger for ads that used less commonly
available private information to personalize their message. This
suggests that giving users the perception of more control over their
private information can be an effective strategy for
advertising-supported websites. |
| URI: | http://hdl.handle.net/2451/29874 |
| Appears in Collections: | Economics Working Papers
|
All items in Faculty Digital Archive are protected by copyright, with all rights reserved.
|
