‘Highly targeted online ads don’t work: Stanford researchers’ – Econsultancy
Patricio Robles says, “According to researchers at Stanford, highly targeted ads may not be all they’re cracked up to be.
Based on a mathematical model they built based on game theory, the researchers instead suggest that advertisers “prefer to remain in a state of partial willful ignorance so as to preserve communication credibility.”
Eilene Zimmerman explains…
In this case, the researchers were looking at cheap talk in retail, for example, an ad promising ‘Lowest Prices in Town’.
That can be credible when it’s used to draw in appropriate customers; in this case, those who are price sensitive.
At the same time…
They found that the most personalized ads were less effective because consumers worried they were being exploited”.
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