Click intentions towards programmatic advertising: the moderating role of ai beneficial on the relationship between personalization and ad relevance

Abstract

As technology throws us into a whirlwind of constant evolution, marketers find themselves in a thrilling yet demanding position. Reaching and engaging an ever-wider audience while optimizing their strategies necessitates a diverse toolbox. Programmatic Advertising emerges as a near-universal weapon in this arsenal, bringing products closer to potential customers. Further enhancing the picture, personalized services and AI technologies have become game-changers, boosting click-through rates and bridging the gap between businesses and consumers. However, a dark cloud hovers over this seemingly ideal scenario: privacy concerns. Consumers often express discomfort with the targeted nature of programmatic advertising, raising ethical questions and demanding a delicate balancing act. This study embarks on a mission to shed light on this complex interplay. We investigate the moderating role of AI, conceptualized as a “beneficial variable” in the relationship between personalization and ad relevance. Specifically, we zoom in on a segment of young adults (18-35) residing in Ho Chi Minh City. To gather insights, we leverage quantitative methods through the Smart PLS 4.0 software. While a non-random sampling approach was employed, the study benefits from a substantial sample size of 252 participants