Evaluating The Effect of YouTube Advertising towards Young Customers’ Purchase Intention

Abstract

The use of YouTube advertising by companies to communicate with their customers is increasing nowadays, along with the increasing number of YouTube audiences. But only a few scholars have examined the effectiveness of YouTube advertising on customers’ purchase intention. This study aims (1) to analyze the factors of YouTube advertising (e.g. entertainment, informativeness, customization, and irritation) and their impact on perceived YouTube advertising value; and (2) to evaluate the effect of YouTube advertising towards customers’ purchase intention. This was a conclusive quantitative research with 261 respondents aged 18–29 years. This study found that the more entertaining and the more informative the YouTube advertising, the higher the YouTube advertising value. However, the customization and irritation factors that were assumed to influence the YouTube advertising value, were not proven. Finally, the YouTube advertising value significantly positively influenced the customers’ purchase intention and was partially mediated by brand awareness.