Social Networks, Personalized Advertising, and Privacy Controls

This article investigates how Internet users’ perceptions of control over their personal information affect how likely they are to click on online advertising on a social networking website. The analysis uses data from a randomized field experiment that examined the effectiveness of personalizing ad text with user-posted personal information relative to generic text. The website gave users more control over their personally identifiable information in the middle of the field test. However, the website did not change how advertisers used data to target and personalize ads. Before the policy change, personalized ads did not perform particularly well. However, after this enhancement of perceived control over…