ONLINE ADVERTISING AND PRIVACY PROTECTION
(A2019-9197)

AUTHORS

Bernd Skiera, Goethe-University Frankfurt, Germany; Klaus Miller, Goethe University Frankfurt

ABSTRACT

This session aims to assemble the latest research on online advertising and data privacy.

When The Data Are Out: Assessing Behavioral Changes Following a Data Breach
Turjeman, Feinberg

As the quantity and value of data increase, so do the severity of data breaches. To address social and behavioral effects of major breaches, we extend causal inference methodology to Temporal Causal Forests and measure behavioral changes following a disclosure of a major data breach. Tough the aggregate raw post-breach effect in number of most activities appears nearly negligible, our analysis reveals nontrivial individual-level reactions and heterogeneity in responses to breach announcements.

How Cultural Differences Across Countries Affect Data Sharing: Analyzing the Moderating Effect of Culture on Privacy Concerns and Perceived Benefits
Schumacher, Eggers, Verhoef, Maas

We determine how consumers’ willingness to share personal data and its main drivers are systematically moderated by cultural differences. We analyze data collected from 15,068 consumers from 24 countries using a hierarchical multilevel regression model and Hofstede’s value dimensions to assess cultural differences. Along with significant moderating effects, we find that perceived benefits and power distance increase the willingness to share data, whereas privacy concerns and long-term orientation have the opposite effect.

The Race to Data: The Tension Between Consumer Privacy Protection and Firms’ Interests in Practice
Schwab

This paper aims to analyze the effect of this tension on business growth and on the future of online advertising by first examining factors leading firms to think that more data is the path to growth and their actual experience implementing Big Data projects. Then, we look at the effects of implementing GDPR at firm level. Lastly, we reflect on the future of online advertising in a context of increased privacy awareness.

How Do Users React to Changes in Privacy Notices?
Schmitt, Miller, Skiera

Policy makers worldwide are drafting regulations to trade-off between user privacy and benefits of information collection. A range of implementations achieves compliancy to such policies but could different affect the attractiveness of websites. We analyze these effects by examining how the top 1,000 websites of 14 countries implement privacy notices due to the EU General Data Protection Regulation (GDPR) and how users react to them. Our findings help evaluate the impact of GDPR and companies and regulators to implement upcoming privacy regulations.