Ad Fatigue or Shopping Frenzy? Assessing the Perceived Attitude and Perception of Shopee Sellers' Retargeting Ads on Facebook among Malaysian Youth Shoppers

Tan, Sze Ni (2024) Ad Fatigue or Shopping Frenzy? Assessing the Perceived Attitude and Perception of Shopee Sellers' Retargeting Ads on Facebook among Malaysian Youth Shoppers. Final Year Project (Bachelor), Tunku Abdul Rahman University of Management and Technology.

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Abstract

In the fiercely competitive landscape of Malaysia's thriving e-commerce industry, advertising strategies have become paramount for businesses seeking to stand out and thrive. In this fast-paced environment, retargeting advertisements have emerged as a pivotal tool for reaching potential customers and driving sales. However, the impact of retargeting ads is not uniform, as they have the potential to create two distinct groups of consumers: those who appreciate the tailored content and those who find the approach intrusive. This dichotomy underscores the dual nature of retargeting ads as a double-edged sword for advertisers. At the heart of this challenge lies Shopee's retargeting ads, which employ tracking pixels to monitor and understand users' online behaviours. While this technology can undoubtedly enhance ad targeting and effectiveness, it can also foster negative attitudes and perceptions, including feelings of intrusiveness among consumers. This raises critical questions about the delicate balance between the benefits of retargeting ads and the potential alienation of audiences. This research study seeks to shed light on this complex landscape by conducting a comprehensive survey among Malaysian youth shoppers. The primary objective is to gain a comprehensive and in-depth understanding of these audiences' attitudes and perceptions towards retargeting advertisements by Shopee. By employing a structured survey questionnaire, this study identified that Malaysian youth shoppers perceive Shopee retargeting ads as relevant, personalised, and helpful reminders, but also as intrusive, lacking in trust, and causing ad fatigue. To address these negative attitudes and perceptions, it is suggested that advertisers should offer customisable ad preferences, enhance the content to be more interactive, engaging, and visually appealing, as well as applying frequency capping and appropriate time gap for the retargeting campaign. Besides that, this study unveils Gen Z's discerning nature in perceiving ads, suggesting that advertisers must adopt transparency and authenticity in their advertising approach. Moreover, the findings indicate that Shopee retargeting ads excel in the awareness and consideration stages of the marketing funnel. Keywords: Retargeting ads, e-commerce, Facebook, Shopee, youth shoppers, consumer attitudes, perceptions