Prior studies have focused primarily on the issue of consumers’ privacy concerns in personalized advertising, but little is known about the effect of transparency awareness using data collection notifications on consumers. This study focuses on the relationship between consumers’ perceptions of the AI algorithms underlying online behavioral advertising (OBA) and the advertising effects. Our research model indicates that displaying data collection notifications regarding OBA and personalized ads increases favorable perceptions of AI systems, such as transparency. Moreover, the model suggests that personalized ads induce higher perceived surveillance than non-personalized ads.

• Sangwook Lee(Penn State University, USA)
• Y. Greg Song(The University of Texas at Austin, USA)
• Won-Ki Moon(University of Florida, USA)