Effect of Social Media Personalization on Brand Strength: A Study of the Brand Advertised on Facebook

Abstract

Personalization is now used at every corner and position of social media sites. Using Personalization in marketing communication is an effective communication strategy for many businesses to improve customer satisfaction, increase sales in a reduced advertising budget. This research is an attempt to measure the impact of personalized advertisement on customers' social media account. This empirical research develops and tests a conceptual model using the structural modeling technique of the data collected from Facebook users, who have seen any personalized advertisement of the preferred brand on their Facebook account. Results suggest that personalized advertisement of the brand in customers' social media accounts is positively related to brand experience. Brand experience is also positively related to brand equity and mediates the relationship between perceived personalization and customer-based brand equity. Both brand experience and brand equity collectively enhance the brand strength of the brand advertised on Facebook.