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Abstract

Date: 21/01/2019

Level: Bachelor thesis in Business Administration, 15 cr

Institution: School of Business, Society and Engineering, Mälardalen University

Authors: Sebastian Verrone (94/06/24), Nicholas Kasimis (96/07/31), Victor Petros (96/03/09)

Title: Dynamic Retargeting: External Re-connection on social media – A study about the effect of personalized advertisements on consumer purchase intentions in Sweden

Tutor: Andreas Pajuvirta

Keywords: Dynamic retargeting, Consumer purchase intention, The Consumer purchasing process, Ad-design, Native ad, Banner ad, Ad blindness, Private data usage, Personalization, Social media, Digital marketing

Research question: “How does the usage of personal data in dynamic retargeted ads, shown on Facebook and Instagram, affect consumer purchase intention?” & “How does ad-design, in relation to ad-blindness, in dynamic retargeted ads affect consumer purchase intentions when shown on Facebook and Instagram?”

Purpose: The purpose of this paper is to gain a general understanding about the effect dynamic retargeting advertisements have on purchasing intentions of Swedish online consumers.

Method: The primary data was gathered by using a quantitative approach by using a self- created questionnaire. All secondary data was retained from electronic and physical literature about consumer purchase intentions and dynamic retargeting. The findings were afterwards analyzed using a qualitative approach and with the help from SPSS (statistical software)

Conclusion: The findings of this paper showed that consumers have a generally negative attitude towards personal data usage and are therefore leading to a decreased purchase intention. Also, the more consumers are aware about personal data usage, the lower their purchase intentions get with personalized ads. Native ads received the highest degree of general interest and are shown to be the most effective, in terms of increased purchase intention and in counteracting ad- blindness, compared to banner ads on Facebook and/or Instagram.