User Perceptions of Targeted Advertising on Social Media

Social media has become an integral part of everyday life, influencing how users engage with content and encounter advertisements. Despite the widespread adoption of targeted ads, research has largely focused on business outcomes, while user perceptions is a less explored area. This study examines how Instagram users perceive the relevance, frequency, and search alignment of targeted ads. It is based on a controlled browsing experiment with 20 participants, followed by a survey rating ad relevance and alignment with recent searches. Behavioral variables, including daily Instagram usage and online shopping frequency, were also collected. Analysis using descriptive statistics and nonparametric tests revealed distinct patterns: Android users rated ads as more relevant than iOS users, and users with moderate Instagram engagement experienced the highest ad exposure. Search-targeting turned out to be consistent across gender, device type, and usage levels suggesting that Instagram’s algorithm delivers a uniform targeting experience. These findings indicate that user experience with targeted ads is influenced by platform and engagement patterns, highlighting opportunities for refining ad algorithms to enhance relevance, satisfaction, and user trust in data handling practices. This study contributes novel empirical evidence on the user perspective of targeted social media advertising which is a critical consideration for marketers and platform designers.