With the increasing availability of user data, comes opportunities for marketers to employ new techniques to attract consumer’s attention. Among them is a technique called synchronized advertisements, advertisements that are tailored based on the user's current online and offline media consumptions rather than past behaviors. IoT plays an important role not only as a medium for these advertisements, but effectively collecting user’s real time data. Previous studies have explored the effects of synchronized advertisements on the chilling effect, the self-restriction of digital communication, however, there have been little studies that address how IoT specifically plays a role in this phenomenon. This paper investigated the functionality of IoT devices alongside privacy and security and its impact on user's trust. It also examined fatigue as a moderating factor affecting privacy and security on trust. Furthermore, the research explored the relationship between trust, perceived surveillance, and its influence on the chilling effect. To examine these relationships, a questionnaire was employed and structural equation modeling utilizing the partial least squares (PLS) method served as the primary data analysis for hypothesis testing.

Our study found that IoT diversity and connectivity, along with users’ perceptions of privacy and security, positively affect users’ trust in IoT devices. However, scalability was found to be insignificant in influencing users’ trust in IoT devices. Users' trust negatively impacts perceived surveillance, particularly when they experience synchronized advertisements, which in turn decreases the chilling effect. Lastly, the moderating effect fatigue was found to be insignificant on privacy and security

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