Can data-driven precision marketing promote user ad clicks? Evidence from advertising in WeChat moments

Data-driven precision marketing (e.g. personalized online ads based on big data analysis or optimal personalized recommendation algorithms) has been regarded as a crucial way for manufacturers to improve the marketing effect. However, the current studies leave much to be further explored. This study constructed a conceptual model based on cue utilization theory focusing on the effects of consumer perceptions to the personalized online ads on click-through intention. Empirical results based on data from a survey of 446 WeChat moments users in China showed that: (1) consumer's ad click-through intention increased as a result of employing a higher extent of product involvement, brand familiarity, visual attractiveness and information quality to consumer; (2) trust played a role of mediation in the processes of visual attractiveness and information quality affecting click-through intention; (3) the higher product involvement also stimulated the consumer's privacy concerns, which played negative moderating effects on the positive impacts of product involvement, brand familiarity and trust on click-through intention. The findings contributed to the precision marketing literature by enriching an understanding of psychological mechanism underlying consumers' perception and cognitive factors toward the personalized online ads.