“Too Close for Comfort”: The Negative Effects of Location-Based Advertising
The expanding presence of mobile devices offers marketers a new advertising channel for reaching consumers. Whereas both real-world practice and academia hail the advantages of personalizing advertising messages with location information, this research probes its negative effects. An exploratory field study that places ads on a social network reveals a sharp drop in advertising effectiveness when an online ad includes location information. To explain these results, a subsequent experimental study demonstrates how location-based personalization can trigger feelings of vulnerability, which hamper online advertising effectiveness.
KeywordsMobile Device Privacy Concern Online Advertising Mobile Market Advertising Effectiveness
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