Do big laughs and positive attitudes sell?
An examination of sponsored content on YouTube and how entertainment and attitude influence purchase intentions in millennial viewers.
Written by L. Hansson, N. Stanic
Business Administration>Marketing & Sales
Thesis: Factors affecting advertising effectiveness Due to the inherent potential of YouTube as a marketing platform suitable for marketing to millennials, it is interesting to investigate the effectiveness of influencer marketing on YouTube in reaching millennials. However, advertising effectiveness is not necessarily an easy-to-define concept. Previous studies mainly defined advertising effectiveness based on the factors that affect it (Dehghani, Khorran Niaki, Ramezani and Sali, 2016). Since the intended purpose of advertising is different, it is difficult to propose a central and objective definition of advertising effect that can be applied to all advertising. Therefore, advertising effect is usually defined and operated according to the factors that affect it, such as attitude and advertising recall ( Shao, Grace & Ross, 2015). Some of the more traditional measures of advertising effectiveness include ad retention; the percentage of viewers who can recall the ad and brand after exposure and assisted recall, and can recall the ad when prompted (Chandler & Munday, 2016). Advertising effect can be defined according to its determinants, this definition is very common in existing research, so this is the method that this article will use. Previous studies have determined that there are many factors that affect the effectiveness of advertising. The three factors that are particularly relevant to YouTube and influencer marketing are advertising attitudes (Dehghani et al., 2016; MacKenzie, Lutz and Belch, 1986), purchase intentions (Dehghani et al. , 2016; MacKenzie and Lutz, 1989; Lee and Hong, 2016; Ott, Vafeiadis, Kumble and Wadell, 2016) and perceptual entertainment in advertising (Teixeira and Stipp, 2013). Because these factors affect the effectiveness of advertising, they are considered as indicators of advertising effectiveness. Indicators such as these are often used to study advertising effectiveness, because the actual definition of advertising effectiveness is often quite vague. Advertising effectiveness can be defined as whether and to what extent an advertisement or advertising campaign has achieved their marketing goals. Most importantly, they reach and influence the effectiveness of their specific target market in the required way (Chandler & Munday, 2016 ). This definition depends to a large extent on the context, because it only states what is considered valid, and it depends entirely on the advertiser’s thinking. Therefore, if you do not pay attention to specific cases, it is difficult to objectively study advertising effects as a general concept. Therefore, this study will not directly study and measure the effectiveness of advertising. 2.2 Attitudes Attitudes can be seen as the integration of beliefs and values. In this integration, beliefs represent an individual’s understanding of the world around them; although this knowledge may be inaccurate. A person's values are their feelings about what is good, desirable, worthwhile, and vice versa (Gross, 2010). Previous studies have shown that attitudes towards advertising and attitudes towards brands or spokespersons will affect purchase intention to varying degrees (Dehghani et al., 2016; MacKenzie et al., 1986). MacKenzie et al. (1986) linked advertising attitudes with positive purchase intentions, and later research MacKenzie & Lutz (1989) once again linked advertising attitudes with brand awareness and purchase intentions. Similarly, Mehta (2000) proposed a link between attitudes towards general advertising and attitudes towards specific advertising. Attitudes can also affect information recall by affecting the psychological processing of recorded information (Eagly, Kulesa, Chen, and Chaiken, 2001). It should be noted that the research of MacKenzie, Lutz and Belch's and MacKenzie and Lutz has been advanced for more than 20 years on this point, and it can be said that it has little relationship with today's online marketing. However, since then, the results of these two studies have been confirmed and supported by new research (Dehghani et al, 2016), and these works are still cited by new research; indicating their lasting relevance. Attitudes towards advertisements can be divided into attitudes towards general advertisements and attitudes towards specific advertisements or brands. The formation of attitudes towards specific advertisements depends on several antecedents, all of which are summarized in their structural model of advertising attitude formation by MacKenzie & Lutz (1989). The model describes the formation of advertising attitudes as a network of perceptual and emotional structures and exogenous variables, and the relationship between them. There are five first-order determinants of advertising attitudes in this network: advertising credibility, advertising awareness, attitudes towards advertisers, attitudes towards advertising and emotions (MacKenzie & Lutz, 1989). Advertisement credibility is a perceptual structure, which is defined as "the degree to which consumers believe that the brand statement in the advertisement is true and credible" (MacKenzie & Lutz, 1989). Advertisement credibility is greatly affected by the perceived credibility of advertisers and perceived credibility of advertisements, that is to say, generally speaking, it is affected by consumers' perceived credibility of advertisements. Advertising perception is also a perception structure. Advertising perception is defined as a multi-dimensional array of consumers' perception of advertising, including various execution factors but not brand perception Read Less