Personalization vs. Privacy: Consumer Perception of Targeted Advertising on Social Media Platforms

This study investigates the evolving consumer perceptions of targeted advertising on social media platforms, emphasizing the nuanced trade-off between the appeal of personalization and the increasing concerns surrounding privacy. As digital platforms leverage user data to deliver customized content, a tension emerges between user convenience and data vulnerability. To explore this balance, a mixed-methods approach was adopted involving 415 active social media users from five major cities in Tamil Nadu, India. Data were collected through structured questionnaires and analyzed using statistical tools including descriptive statistics, t-tests, chi-square tests, correlation analysis, and regression models. The results revealed that 68% of respondents prioritize privacy over the benefits of personalization, with younger participants showing a relatively higher inclination towards personalized advertisements. Despite initial assumptions, education level did not significantly influence privacy concerns. Furthermore, the frequency of social media use demonstrated minimal predictive power regarding acceptance of targeted advertising. These findings suggest that while personalization remains a valued feature for some demographics, heightened awareness and discomfort around data usage are growing across user groups. This study addresses a critical research gap by integrating demographic variables, psychological attitudes, and user behavior to evaluate how these factors collectively shape consumer trust and acceptance of targeted ads. The implications are especially relevant in the current context of increasing digital surveillance and evolving regulatory frameworks. Recommendations call for enhanced transparency in data usage policies, development of user-centric privacy controls, investment in digital literacy campaigns, and the adoption of ethical, non-intrusive advertising strategies. Ultimately, this research contributes actionable insights for marketers, platform developers, and policymakers seeking to design responsible advertising systems that align with user expectations and safeguard personal data.