Customer Engagement and Advertising Effectiveness: A Moderated Mediating Analysis

Abstract

Marketing communications are witnessing a historic change in current times with online digital video advertising becoming a trend. Marketers are spending a significant pie of advertising budget on such video advertising on YouTube as it is a prevalent digital video channel among Generation Y. Purchasing decisions of this generation are influenced by YouTube advertising. Thus, understanding the perceived value of YouTube advertising becomes imperative for global marketers, especially in India which consists of 440 million millennials to target them. In this backdrop, the current study supplements to the extant literature by adding new linkages in the field of advertising by investigating attitude toward advertising as a mediator, mediating the relationship of perceived advertising value with purchase intentions. The study applies moderated mediation to examine the role of customer engagement. The mediation and moderated mediation were tested using PROCESS macro v3.5 by Andrew F. Hayes after collecting responses from 374 millennials. Implications for marketers are discussed in the end.

Keywords:

• Customer engagement
• generation Y
• YouTube advertising
• PROCESS macro
• moderated mediation