Siti Nurhidayah, I Made Bayu Dirgantara

The Effect of Personalized Advertising on Attitude towards Advertising and Click- Through Rate

Introduction

The effect of personalized advertising on attitude towards advertising and click- through rate. Analyze personalized advertising's effect on ad attitudes & click-through rates, considering privacy concerns, for AXIS users in Semarang. Highlights privacy's role in effective marketing strategies for telecom providers.

Abstract

This study aims to analyse the effect of Personalized Advertising on Attitudes towards Advertising and Click-Through Rate, with Privacy Concerns as a mediating variable, focusing on AXIS card users in Semarang City. The research addresses the challenge faced by AXIS Company, a telecommunications service provider, in attracting and retaining users amidst intense market competition. The population for this study comprises AXIS Provider card users in Semarang City, with a sample size of 160 individuals who have made at least one purchase through the AXISNET application. A quantitative approach was employed, utilizing the SEM- PLS method with Smart PLS version 4 software. The analysis included testing the validity and reliability of measurement instruments and conducting hypothesis testing through bootstrapping procedures. The findings reveal that personalized advertising significantly and positively influences attitudes towards advertising and the click- through rate, with privacy concerns acting as a significant mediating variable. These results highlight the importance of privacy concerns for users and the effectiveness of personalized advertising in enhancing user attitudes towards advertising and increasing the click-through rate. This study underscores the need for effective marketing strategies that address privacy concerns to improve advertising outcomes for AXIS Company.

Review

This study investigates the intricate relationship between personalized advertising, attitudes towards advertising, and click-through rates, with privacy concerns identified as a crucial mediating variable. Focusing on AXIS card users in Semarang City, the research directly addresses the competitive challenges faced by AXIS Company in user acquisition and retention. Utilizing a quantitative approach with SEM-PLS on a sample of 160 AXISNET application users, the authors conducted rigorous validity and reliability testing alongside hypothesis testing through bootstrapping. The core findings reveal a significant positive influence of personalized advertising on both attitudes towards advertising and click-through rates, crucially demonstrating that privacy concerns act as a significant mediator in these relationships. The research's strength lies in its practical relevance, providing actionable insights for telecommunications companies operating in competitive markets. By specifically targeting AXIS users, the study offers a contextually rich understanding of consumer behavior within a defined user base. The employment of SEM-PLS methodology is appropriate for dissecting the complex interplay between the variables, lending credibility to the statistical conclusions. The clear identification of privacy concerns as a significant mediating factor is a valuable contribution, underscoring its pivotal role in determining the effectiveness of personalized advertising campaigns and user engagement. While providing valuable insights, the study could benefit from further elaboration on certain aspects to enhance its contribution. The abstract, for instance, could offer more specifics regarding the types or modalities of "personalized advertising" examined, which would allow for a deeper understanding of the mechanisms driving the observed effects. Moreover, while its specific geographical and user focus ensures high relevance for AXIS Company, it inherently limits the direct generalizability of the findings to broader populations or other industries. Future research could explore qualitative dimensions to unpack user perceptions of privacy and personalization more thoroughly, or investigate the differential impacts of various privacy concern facets (e.g., data collection vs. data usage) on advertising outcomes. Nonetheless, this study effectively highlights a critical balance for modern marketers: leveraging personalization while meticulously safeguarding user privacy.

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