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Purpose

This paper aims to investigate the role of five highly relevant advertiser- (i.e. personalization and ad placement) and consumer-controlled (i.e. privacy concerns, perceived relevance and Facebook motives) factors in the evaluation and perceived outcomes of personalized Facebook advertising as well as how these factors interrelate.

Design/methodology/approach

Twenty-eight semi-structured interviews, in which elicitation techniques were used, were carried out among 25- to 55-year-old Facebook users.

Findings

The findings point to a complex tradeoff between the risks and benefits of personalized Facebook advertising, in which perceived relevance and Facebook use motives play a vital role.

Research limitations/implications

This study focused on the general Facebook advertising experience, yet the elicitation techniques were applied only on the desktop website. Future research should look further into mobile advertising formats.

Practical implications

Personalization and retargeting algorithms could be improved and ads should be designed with the customers’ interests in mind to improve their effectiveness and reduce privacy concerns.

Originality/value

Social media advertising innovates at a high pace. Yet, the literature shows an urgent need for research into which ad formats and characteristics appeal to users and why (or why not). Qualitative studies into the determinants of advertising outcomes are scarce but highly needed because they can uncover complex interactions between factors and thus provide a deeper understanding.

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