Perceptions of Social Media's Relevance and Targeted Advertisements

ABSTRACT

American college students in the northeast and southeast were surveyed about Facebook's relevance and advertising. Latent class cluster analysis was used to segment respondents based upon: Facebook relevance; the value of Facebook advertising; and the ethics of Facebook's targeted advertising and demographic variables. Distinct segments were identified that are distinguishable by Facebook's relevance, the value of Facebook advertising; the ethics of Facebook's targeted advertising; hours spent on Facebook; residence while in college; and personality type. No segment found Facebook advertising, for example, useful, meaningful, and leading to purchase intentions. They viewed the advertising poorly and found it unethical to be targeted with advertisements based on their interests and those of friends.

KEYWORDS:

• advertising
• communication channels
• Facebook
• latent class cluster analysis