Online Behavioral Advertising Avoidance: Young People Perceptual Factors towards Banner Advertisement

Authors

  • Tom Majiid Hariputra School of Business and Management, Institut Teknologi Bandung
  • Reza Ashari Nasution School of Business and Management, Institut Teknologi Bandung

Abstract

This study investigates whether young people's perceptual factors (i.e. privacy concern, prior negative experience, and perceived ad clutter) exert a formative influence on market outcomes namely advertising avoidance. Current research focuses on online behavioral advertising (OBA), a form of advertising whose collects consumer online activities to show relevant and targeted ads. Self-completion online survey (n = 142) are analyzed using partial least square structural equation modelling (PLS-SEM) to comprehend how such underlying factor creates an avoidance driver for targeted banner ads in the website, mobile application, and shopping site. The empirical findings reported a positive and significant relationship with an occurrence of advertising avoidance as demonstrated in its predictors. Moreover, prior negative experience is found to be the most significant antecedent explaining OBA avoidance.

Keywords: Advertising avoidance, online behavioral advertising, behavioral targeting, privacy concern, prior negative experience, perceived ad clutter, banner advertisement

Submitted

2021-10-08

Issue

Section

Articles