Native Advertising on Social Media: An Empirical Analysis Among Millennials

Annchristin Theres Nienhaus & Veronique Kathrin Nienhaus

Student thesis: Master thesis

Abstract

In today's advertisement environment it gets constantly harder to catch consumers attention, especially the one of millennials. One promising form of online advertising is native advertising on social media. Therefore, the aim of this study is to investigate native advertising on social media and provide insights on the antecedents of native media advertising value as well as attitude towards the advertising, and the effect of this attitude on online purchase intention for millennials. This study takes a quantitative research approach, testing a structural equation model. The proposed structural equation model draws upon the Web Advertisement Model developed by Ducoffe (1996) and its extensions by Brackett and Carr (2001), Xu (2006), and Lee et al. (2017), as well as the Theory of Reasoned Action by Ajzen and Fishbein (1980). Demographic factors, social media platforms, as well as product involvement are further added as possible moderating variables. An online survey (N=419) with an integrated experiment, containing six different stimuli to manipulate the variables product involvement and social media platforms, was used to collect data. The model was estimated using Partial Least Squares. Results show four factors having a positive significant influence on the native advertising value; entertainment, informativeness, personalization and credibility. Further, the factors entertainment, personalization, and value do positively influence the attitude towards the native advertising. Informativeness and credibility do not show a significant effect. In both cases entertainment has the highest positive influence. Additionally, the attitude towards native advertising shows a positive significant effect on purchase intention. With a path coefficient of 0.654 this is the strongest relationship in the model. The relationship of informativeness to advertising value was significantly higher for the social networking sites, showing a moderating effect for social media platforms. For consumers with low product involvement, the effect of credibility to advertising value and personalization to advertising attitude is stronger than for the high product involvement group, which in turn showed a greater relationship for attitude towards the native advertising to purchase intention. Nevertheless, demographics did not show a moderating effect on the proposed relationships. By taking a closer look at native advertising on social media this study provides important implications for managers to create successful native advertising on social media and overcome the challenges of traditional online advertising. Additionally, this study can be used by other researchers to further investigate the area of native advertising on social media.

EducationsCand.merc.smc Strategic Market Creation, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2018
Number of pages164