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Go With the Flow: Effects of Transparency and User Control on Targeted Advertising Using Flow Charts

Targeted advertising reaches users based on various traits, such as demographics or behaviour. However, users are often reluctant to accept ads. We hypothesise that users are more open to targeted advertising if they can inspect, control and thereby understand the process of ad selection. We conducted a between-subjects study (N=200) to investigate to what extent four key aspects of ads (Quality, Behavioural Intention, Understanding and Attitude) may be affected by transparency and user control using a flow chart. Our results indicate that positive effects of flow charts reported from other domains may also be applicable to advertising: Using flow charts to provide transparency together with user control is found to have more positive effects on domain-specific quality measures than established, text-based approaches and using either of the techniques in isolation. The paper concludes with recommendations for practitioners aiming to improve user response to ads.