The effect of trust and personalization in programmatic advertising on consumers' purchase intention

As a result of increased use of smartphones and computers, consumers / users create an excessive amount of data on the internet. Personal and behavioral data can be easily collected in the digital environment. Programmatic advertising, one of the artificial intelligence applications, also try to use this data in a useful way for marketing. Artificial intelligence technologies are adapted to programmatic advertising applications to improve the overall service provided. Thanks to programmatic advertising applications, personalized messages are shown to consumers. Although programmatic advertising has become an important subject in academic literature recently, it is a slowly progressing research area in terms of its effects on consumer behavior. In this study, the effects of programmatic advertising on consumers' purchase intention is examined as well as the effects of two factors in programmatic advertising –trust and personalization– on purchase intention. Furthermore, the differences in purchase intentions according to the demographic variables and other variables are also investigated. The data is obtained from 388 participants using an online questionnaire and SPSS and AMOS programs are used in the analysis of the collected data. As a result of the analyses, it is found that trust in programmatic advertising has a significant effect on purchase intention. On the other hand, it is determined that personalization in programmatic advertising does not have a significant effect on purchase intention. Additional analyses revealed different effects of demographic variables and perceptions of programmatic advertising practices on purchase intention. It is believed that the findings will both contribute to theoretical literature and provide insight to businesses that use programmatic advertising applications in marketing.