The Research On Advertising Performance Based On Personalizing And Socializing Of Online Advertising

According to the “43th Statistical Report on Internet Development in China” released by China Internet Network Information Center(CNNIC)in February 2019,as of December 2018,the number of Chinese Internet users reached 829 million,of which mobile phone users accounted for 98.6%;The number of netizens shopping reached 610 million,accounting for 73.6%.The huge size of the online advertising audience indicates that the development of online advertising will have more potential.On July 26,2018,Facebook lost about $120 billion in market value in a day due to the data breach.Data abuse makes consumer privacy protection come into people's vision again.In the era of big data and social networking,online advertising is increasingly moving towards personalization and socialization.However,the question is whether the more personalizing and socializing,the better the performance of online advertising is? What role do consumers' social preferences and privacy concerns play? These questions remain unresolved in existing studies.Based on social exchange theory and information boundary theory,this paper studies the effects of online advertising socialization and personalization on advertising performance at the company level and consumer level respectively by means of game theory and empirical method.The game study at company-level shows that,the impact of online advertising socialization and personalization on company revenue depends on the market coverage of commodities.When the market coverage of the commodity is high,the manufacturer can enjoy the whole advertising performance.The socialization of the online advertisement has a linear effect on the company's revenue.The personalization of the online advertisement has an “inverted U” effect on the company's revenue.When the market coverage of the commodity is low,the manufacturer will share the advertising performance with the retailer.The socialization of the online advertisement has a U-shaped effect on the company's revenue,and the personalization has a W-type effect on the company's revenue.The empirical results at the consumer level show that,the socialization of online advertising has a direct positive impact on the utility of consumers and is positively regulated by their social preferences.Online advertising personalization has an “inverted U” effect on consumer utility,and is negatively regulated by consumer privacy concerns.In addition,the influence mechanism of online advertising socialization and personalization on consumer utility has different characteristics on the two online advertising platforms of WeChat and Weibo.