Personalization vs Privacy: Consumer Perceptions in Targeted Advertising

ABSTRACT This study investigates consumer perceptions of targeted advertising, focusing on the balance between personalization and privacy. In an increasingly digital world, advertisers use personal data to deliver relevant ads, but this practice raises concerns about user privacy, control, and trust. The research explores how consumers respond to personalized ads, the extent of their privacy concerns, and how factors such as age and digital literacy influence their attitudes. A survey of 50 respondents revealed a clear personalization–privacy paradox. While many users find personalized ads helpful and engaging, they simultaneously express discomfort with the data collection involved. Most respondents felt they lacked control over how their data is used, which directly influenced their level of trust in digital platforms. The findings show that consumers want relevance in advertising but not at the cost of their privacy. Younger users tend to be more accepting, while older individuals exhibit stronger concerns. The study concludes that ethical advertising should prioritize transparency, user consent, and data control. Ultimately, businesses and policymakers must work together to ensure responsible data practices. Striking a balance between personalization and privacy is not only a regulatory requirement but also key to long-term consumer trust and engagement.