The value of retargeted advertisements : an empirical study on young people

Abstract

Young people are growing up in a digital era where the Internet permeates all aspects of daily life, making online advertising increasingly pervasive. Advertising has become more targeted, automated, and personalised due to advancements in AI technology. Retargeted advertisements are a key example of this evolution, as they specifically target individuals who have visited a retailer’s website but left without completing a purchase. This study uses the Advertising Value Model to investigate the relationship between six advertising factors, the perceived value of retargeted advertisements, and young people’s attitudes towards them. Despite extensive studies on online advertising, limited attention has been given to factors influencing young people’s attitudes towards retargeted advertisements. A self-administered online survey was conducted with 480 respondents, and data were analysed using PLS-SEM. The findings indicate that interactivity and entertainment positively influence both perceived value and attitude towards retargeted advertisements. Informativeness, credibility, and personalisation were only positively associated with advertising value, while irritation showed negative relationships with attitude. Interestingly, irritation had a more pronounced adverse effect on men compared with women. The findings contribute to the literature on retargeted advertisements, perceived value, and young people’s attitudes, offering practical and social implications for young people, advertisers, policymakers, and parents/guardians.