The Impact of Users’ Privacy Perception on the Effectiveness of

Social Media Advertising

Zhanhao Qiu

School of Economics, Hunan Agricultural University, Changsha, Hunan, 410128, China

Keywords: Privacy Policy, Privacy Data Control, Transparency of Data Usage Rules, Ad Fit and Relevance.

Abstract: This article focuses on the impact of users' privacy perception on the effectiveness of social media advertising.

With the development of social media, advertising push relies on the collection of user data, while users'

concerns about privacy issues are increasing. This article analyzes users' attitudes towards factors such as

understanding privacy policies, advertisement matching, data usage transparency, and privacy control options

through a questionnaire survey, revealing the impact of users' privacy perception on advertisement acceptance.

Research has found that clear and transparent privacy policies, along with highly relevant advertisements, can

significantly enhance users' acceptance of advertisements while alleviating their privacy concerns. Based on

this, the article suggests that advertising platforms should improve data usage transparency, enhance users'

control over their privacy, optimize the relevance of ad delivery, and reduce the occurrence of negative user

emotions, thereby achieving better advertising effectiveness and user experience while protecting privacy.

These findings not only enrich the theories of privacy perception and advertising communication but also

provide optimized recommendations and strategies for advertising platforms.

1 INTRODUCTION

With the rapid development of social media, the vast

amount of personal data shared by users on online

platforms has become an important basis for targeted

advertising. However, it is precisely through the

collection of user data for precise advertising that

incidents of privacy breaches have become frequent

in recent years, leading to widespread concerns

among users regarding privacy issues (Jung, 2017).

The increase in data regarding the attention to

"privacy" on social media demonstrates users' high

concern for privacy issues, and users are also actively

seeking protective measures for online privacy

(Boerman et al., 2021). The governments of various

countries have successively introduced relevant

regulations to standardize the data usage behavior of

enterprises. Against this backdrop, users' perceptions

and attitudes toward privacy gradually influence their

behavior on social media, thereby affecting the

effectiveness of corporate advertising (Quach et al.,

2022). Current research indicates that users' privacy

perceptions primarily involve the degree of trust and

acceptance regarding data collection, usage, and

protection, which directly influences users' attitudes

toward advertising content and their interactive

behaviors (Bleier et al., 2020). The relevant research

primarily focuses on the direct relationship between

privacy policies and advertising push, with less in-

depth exploration of the specific impact mechanism

of privacy perception on advertising effectiveness.

This study aims to delve into the influence of user

privacy perception on the effectiveness of social

media advertising push and to provide optimization

suggestions for advertising platforms. Studying the

impact of different dimensions of user privacy

perception on advertising acceptance can enrich the

theories of privacy perception and advertising

communication, deepening the understanding of user

privacy attitudes in subsequent research.

Understanding how privacy perception influences

users' attitudes towards advertisements can assist

advertisers in optimizing the content, format, and

delivery scenarios of advertisements, thereby

providing users with a more personalized advertising

experience that does not intrude on their privacy and

enhancing users' overall acceptance of social media

platforms.

538

Qiu, Z.

The Impact of Users’ Privacy Perception on the Effectiveness of Social Media Advertising.

DOI: 10.5220/0014138800004942

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on Applied Psychology and Marketing Management (APMM 2025), pages 538-542

ISBN: 978-989-758-791-7

2 METHOD

2.1 Case

Currently, there are numerous privacy issues related

to advertising push notifications. According to a

report by Reset Tech in 2023, it was found that

Australians' personal information is shared up to 450

times a day through real-time bidding systems

without their consent. Such extensive involvement of

users' sensitive information will expose users to fraud

and security risks, increasing their anxiety and

concerns about personal safety. Users are generally

worried about privacy issues in advertising push

notifications (Nouwens et al., 2020).

2.2 Study Design and Findings

2.2.1 Design

Based on the above issues, this study adopts a

questionnaire survey format, designing the survey

from aspects such as users' privacy perception ability,

users' level of concern about personal privacy, users'

understanding of platform privacy policies and data

usage statements, the impact of the match between

advertisements and user interests on users, the

influence of the transparency of data usage rules on

users' acceptance of advertising push, and the

operability of privacy data control options. This study

collected questionnaires using a random sampling

method, gathering a total of 211 valid questionnaires.

According to the reliability analysis conducted using

SPSS, the reliability coefficient of the questionnaire

is 0.928, indicating that the reliability quality of the

questionnaire research data is very high.

2.2.2 Findings

This study employs descriptive statistical analysis on

the collected questionnaire results, examining factors

such as users' understanding of the platform's privacy

policy and data usage statement, the impact of the

match between advertisements and user interests on

users' privacy perceptions, the influence of the

transparency of data usage rules on user acceptance,

and the operability of privacy data control options on

the marketing development of advertising platforms.

Specifically, over 64% of respondents indicated

that they are aware of the privacy policies and data

usage statements of advertising platforms, yet

approximately 14% of respondents stated that they

are either completely or somewhat unaware. The

complexity of privacy policies and users' insufficient

understanding of the importance of this information

may be the primary reasons for this outcome.

Furthermore, users who are less informed about

privacy policies are more likely to develop doubts and

distrust towards advertising platforms, especially in

cases where advertisements closely align with users'

interests and behaviors; this lack of understanding

further intensifies users' concerns regarding personal

privacy issues.

When the content of advertisements is highly

aligned with user interests, 58.29% of respondents

indicated that their feelings of privacy infringement

would be reduced in such cases. This suggests that,

although some users have concerns about

advertisements infringing on personal privacy, there

remains a high level of acceptance for content that is

"strongly relevant" to them.

More than 76% of respondents indicated that if

advertising platforms could clearly state the rules for

data usage and offer a higher degree of

personalization, it would enhance the effectiveness of

advertising dissemination and the public's

acceptance. The higher the transparency of user data

usage in advertising pushes, the lower the perceived

privacy risks by users, making them more accepting

of advertisements. If advertising platforms do not

provide options for privacy data control, 69.2% of

respondents stated that they would feel "very

concerned" or "extremely concerned." Users who do

not feel they have control over their privacy data may

feel helpless, leading to negative emotions.

Therefore, if advertising platforms could provide rich

and easily accessible privacy settings for users, it

could help reduce users' concerns and the emergence

of negative emotions to some extent.

3 CAUSES AND EFFECTS

3.1 The Reasons and Impacts of the

Complexity of the Privacy Policy

and Data Statement

According to the previous text, the current privacy

policy of the advertising platform presents a complex

situation, which is often due to the lack of more

straightforward explanations for commonly used

terms in the privacy policy, such as "third-party

sharing" and "encryption algorithms," making it

difficult for users to fully understand the specific

implications of the privacy policy (Amos et al., 2021).

The data statement lacks the extraction of core points,

and the information within the content is relatively

The Impact of Users’ Privacy Perception on the Effectiveness of Social Media Advertising

539

fragmented, requiring users to search for key

information amidst lengthy content, which increases

their reading burden and fatigue. Privacy policies are

typically placed at the bottom of websites or in hidden

menus, with the font size of the privacy policy entry

being small and lacking intuitive prompts, making it

difficult for users to proactively understand the

implications. This situation can lead to a lack of trust

in the privacy policy among users, reducing their trust

in the enterprise, which in turn makes users less

inclined to interact with advertisements, resulting in a

decline in advertisement click-through rates and

significantly impacting the marketing performance of

the enterprise (Kilay et al., 2022). Once users feel that

their privacy has been violated, it may lead to a

negative perception of the brand image, causing users

to believe that the brand lacks transparency and social

responsibility, which will affect long-term user

loyalty.

3.2 The Reasons and Impacts of Users'

Preferences for High Relevance in

Advertisements

According to the previous text, when the content of

advertisements is highly aligned with user interests,

users' feelings of privacy infringement tend to

decrease. This is because users are more inclined to

focus on content that matches their interests and

needs when receiving information. When

advertisements are highly relevant to users' interests,

they perceive the information as having actual value,

which effectively reduces their sensitivity to privacy

violations (Zhu & Kanjanamekanant, 2021). Users

typically seek a balance between personal privacy and

convenience, with convenience being an important

consideration for their interests (Gashami et al.,

2016). Advertisements that are highly relevant to

users can effectively capture their attention,

increasing the likelihood of user clicks and

conversions. This optimizes the return on investment

for advertisements, benefiting businesses by

enhancing brand recognition and creating a positive

marketing impact.

3.3 The Reasons and Impacts of

Insufficient Transparency in

Advertising Data Usage Rules

Users generally have certain concerns regarding the

use of personal data. If advertising platforms can

clearly explain the rules for data usage and provide a

more transparent privacy policy, users will trust the

advertising platforms more (Saura et al., 2021). The

enhancement of users' trust in advertising platforms

effectively reduces their concerns about data misuse,

thereby making them more receptive to

advertisements. As users' attention to privacy issues

increases, the impact of privacy protection

regulations strengthens users' awareness of privacy

protection. Currently, users are more inclined to

support advertising platforms that can responsibly use

data. Greater transparency in data allows users to feel

a sense of control over their information, while

personalized advertisements can provide content that

better meets users' needs. This dual effect enhances

the overall user experience (Centobelli et al., 2022).

3.4 The Reasons and Impacts of Users'

Concerns About Control over

Privacy Data

With the increasing awareness of personal privacy

protection, users hope to have control over the use of

their data. When advertising platforms do not provide

options for privacy data control, users may feel that

their data could be misused, and the anxiety caused

by this sense of helplessness can lead to negative

emotions among users (Mir, 2024). If users are unable

to locate the privacy data control options on the

platform, they are likely to assume that the platform

is concealing information or engaging in improper

conduct, leading to a crisis of trust that may result in

users reducing their usage of the platform. Users

lacking privacy controls are more inclined to use ad-

blocking tools, significantly reducing ad exposure

(Sánchez & Viejo, 2018). Even if the advertising

placement is precise, it may still fail to successfully

reach the target audience due to users' interception

behaviors. When users feel a sense of control over

their data, their resistance to advertising content will

decrease, and this positive sentiment will help

improve the click-through and conversion rates of the

advertisements.

4 SUGGESTION

4.1 Enhance the Transparency of Data

Usage

The advertising platform should present the process

of data collection and usage to users clearly and

concisely, including how personal information is

collected, stored, and used. This helps users establish

a certain level of trust in advertising push

notifications, reducing their feelings of privacy

APMM 2025 - International Conference on Applied Psychology and Marketing Management

540

infringement. By enhancing data transparency,

companies can better comply with global privacy

regulations, mitigate potential legal risks, and avoid

negative public opinion resulting from data misuse.

High transparency and the establishment of trust may

encourage users to be more willing to share their data,

allowing companies to obtain more valuable

information to optimize products and services for

greater economic benefits.

4.2 Strengthen User Privacy Control

Rights

Provide privacy control settings that are easy for users

to find and operate, allowing them to freely choose

which of their data can be used for advertising

purposes. Ensure the discoverability and simplicity of

these setting options to reduce users' concerns about

complex operations. In this way, advertising

platforms that offer more comprehensive privacy

settings can establish a "user-friendly" image in the

market, attracting more high-value users who

prioritize privacy [14]. Under the current impetus of

privacy regulations and public concern, brands are

increasingly inclined to choose reputable advertising

platforms that prioritize privacy data control for

collaboration. Comprehensive privacy settings can

help platforms attract more influential partner brands,

thereby benefiting advertising platforms by

increasing advertising revenue.

4.3 Improve the Matching Degree of

Advertisement Delivery

Through more precise data analysis and matching

algorithms, advertising platforms can ensure that the

content pushed is more aligned with users' interests

and needs. Highly matched advertisements can

alleviate users' feelings of privacy invasion to some

extent, while also enhancing their advertising

experience. If the content provided by advertisements

can improve user experience or meet urgent user

needs, users will be more willing to accept a certain

degree of personal data usage. Highly matched

advertisement pushes contribute to the refinement

and personalization of corporate marketing strategies,

further enhancing customer loyalty and fostering

deeper brand-consumer interactions [15]. The

delivery of highly relevant advertisements will reduce

the ineffective advertising expenditure of enterprises,

allowing for more efficient utilization of corporate

resources. Through the accumulation of user interest

data, enterprises can better identify and predict the

demands of the target market.

4.4 Reduce the Probability of Negative

Emotions Occurring in Users

The advertising push should not only focus on the

degree of personalization but also consider the

moderate use of data to reduce the extent to which

users feel monitored. Advertising platforms can push

content that users genuinely care about based on their

interests, browsing history, and current usage

scenarios, thereby minimizing unnecessary

disruptions to users and avoiding excessive exposure,

while reasonably controlling the frequency of ad

displays. Especially concerning users' sensitive data,

advertising platforms should handle its use with

caution, ensuring that negative emotions towards

advertising pushes are minimized as much as

possible.

5 CONCLUSION

This paper explores the impact of user privacy

perception on the effectiveness of social media

advertising, finding that clear and transparent privacy

policies, highly relevant ad content, and rich privacy

control options can significantly enhance user

acceptance of advertisements while alleviating

privacy concerns. However, the current complex

privacy policies, insufficient data usage transparency,

and lack of user control can easily lead to user distrust

and negative emotions, thereby weakening the

effectiveness of ad delivery. In the future, advertising

platforms should further improve the transparency of

data usage, informing users more intuitively about

how their data is collected and used, thereby

enhancing user trust in the platform. At the same time,

platforms need to strengthen user privacy control,

designing convenient and prominent privacy settings

that allow users to autonomously choose how their

data is used. Additionally, by improving ad-matching

technology, platforms can more accurately deliver

content relevant to user needs, reducing sensitivity to

privacy violations and enhancing the advertising

experience. In terms of innovation, exploring

privacy-friendly advertising formats, such as more

interactive advertising models, will also become an

important direction for future development. These

efforts can not only improve user experience but also

promote innovation and development in advertising

communication theory and practice, thereby

facilitating the sustainable development of the

advertising ecosystem.

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