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An investigation of how personal sensitive information impact the effectiveness of targeted online advertising

Nickel, Nadia (2024) An investigation of how personal sensitive information impact the effectiveness of targeted online advertising.

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Abstract:In today’s advertising world, the method of targeting customers to effectively place ads to relevant customer groups is a common tool. However, when customers are targeted, this happens based on personal information that advertisers use to define their target groups. In this context, the issues of biases concerning gender, age, or ethnicity arise, which can impact the advertising in terms of privacy concerns or discrimination, which can be seen in Google Ads. This study researched how effective target online advertising can remain, when attributes like age or gender, are excluded. Therefore, these attributes are considered as protected attributes, which are used as mitigation strategy to test the effectiveness of targeting. In more detail, a dataset provided by the company IBM was used, that contained information of 1,443,140 observations with nine different variables that characterize each customer, like age, politics, or income. The analysis of the data has shown that target advertising with sensitive information is more effective than without them, however, it indicated that target advertising is still possible for marketers but gets less precise. Hence, this shows that the targeting strategies do not have to violate data protection regulations and privacy desires of customers, to conduct successful ad placements.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:https://purl.utwente.nl/essays/100173
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