Consumer Attitudes toward Online Behavioural Advertising: The Social Media Involvement

In digital environment nowadays, data about Internet usage can be used to tailor content and advertisements to users’ interests. Interactive advertising allows customers to become more involved because they initiate most of the action. Social media allows customers and prospects to communicate directly to the brand representative or about the brand with their friends. Experiences during this interaction will drive brand attitudes. Since online behavioural advertising uses a targeted approach and the advertisement of the retailer is directed to the most appropriate and interested consumer and online retailers interact with online consumers for their transactions, online behavioural advertising becomes a very important tool especially for online retailers. However, online behavioural advertising programs through social media, which target consumers based on their interests and preferences, still raises debate concerning consumer privacy interests in connection with business data collection, transfer and use. This article aims to explain the influence of online behavioural advertising (OBA) on attitude and their purchase intention. This type of research is explanatory with quantitative approach. Facebook as one of the popular social media was chosen as the research site. Population in this research are Facebook users in Indonesia who have seen impression of OBA aged above 18 years old and ever conducted online shopping in past six months. The sample used in this research was 145 people chosen with purposive sampling technique. Self-administered questionnaire via online was employed as data collection methods in this research. The result of path analysis shows that OBA significantly influences the attitude, OBA significantly influences the purchase intention, and attitude significantly influences the purchase intention. Based on the research’s result it was suggested that users’ privacy should be considered carefully especially related to the tracking and profiling for OBA purpose, the display of OBA must be improved to attract attention and reach high click-through-rate.