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THE IMPACT OF DIGITAL ADVERTISING ON CONSUMER PURCHASE DECISIONS

Conference Paper · June 2014

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 The Impact of Digital Advertising on Consumer Purchase Decisions
Ebru Enginkayaa and Dilaysu Cinarb
a
Department of Business Administration, Faculty of Economics and Administrative Sciences
Yıldız Technical University, Turkey
engink@yildiz.edu.tr

b
Logistics Department , Economics and Administrative Programs,
Beykent University, Turkey
dilaysucinar@beykent.edu.tr

Abstract
Today, companies and brands use different media channels and different offers to consumers to promote their
products and services, to differentiate from their competitors and to increase their purchasing preference.
Technological developments create new mediums that consumers get different and various information.
Before consumers buy the products and services, they can view the product reviews, they can make price and
feature comparison between products through the online environment and they can able to choose
accordingly these. Today, digital advertising is one of the current, rapid and remarkable method that create
to purchase desire as a result of the different and various offers through ads. The main purpose of this study
is to examine consumer attitudes towards digital ads that is rapidly advancing in today's world of advertising
and to investigate the factors which effect consumers by digital ads. The data were collected through an
online questionnaire with a sample 478 people and SPSS used for the evaluation of the data.
Keywords: Digital advertising, Consumer attitudes, Purchase decision.

Introduction
The rapid and widespread expansion usage of internet and social media has changed the company insights,
brand communication and consumer purchasing reactions. New advertising formats affect consumer
responses and play role on purchase decisions. In today’s consumption world, more and more consumers
getting information and other requirements online and begin to realize their needs more quickly through
internet. New technological developments create new delivery platforms to both marketers and advertisers.
In parallel with technological changes digital advertising has grown rapidly throughout the years as it is
virtually used in all sectors.
Digital advertising is a effective way to deliver promotional customized offerings and relevant marketing
messages to targeted consumers. Digital advertising play an important role to effect consumer preferences,
build a positive consumer attitude and influence their purchase decisions about the products/services offered
in advertisements. Digital ads are increasingly appealing marketing communication tools to reach targeted
consumers in different ways and in different locations. Digital advertising not only include search or display
advertisements, but also any type of marketing communication that executed with the use of web, social
media and/or mobile technology (Takemura,2012). Advertisements play a major role in changing the
behavior and attitude of consumers towards the products shown in the advertisements.
The advertisements not only change the way of product is consumed by user but alter the attitude with which
they look at the product. Consumer attitude and behavior hugely influenced by advertisements. Purchase
attitude and behavior is influenced by variety of advertisements which cover product evaluation and brand
recognition (Rai,2013). As the advertising format landscape continues to change, marketers and advertisers
must gain insights into what types of advertising work better to reach and gain consumers.
Digital Advertising Concept
Digital advertising is a form of promotion that uses the internet for the expressed purpose of delivering
marketing messages to attract customers (Kim, Park, et al., 2012). According to Miller (2012) digital
advertising has various kinds with various technologies. Digital advertising can contain video, animation and
audio and is at least as compelling as television ads. Today as consumers use digital tools and networks more

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than before, digital advertising is the most suitable way to reach and effect them. Digital advertising has
distinguishing features and advantages: (Gao, Sheng et all, 2013).
 Digital advertisements provide dual communication between advertisers and users that makes these
advertisements more effective.
 Digital advertising supplies a direct connection to products.
 To promote both static and dynamic advertisement choice, representment and display, digital
advertisers can use to customer targeting methods.
 The other distinctive feature of digital advertisements is related to globally accessible and available
in 24/7/365.
 Digital advertisements can be easily transmitted, exhibited, preserved and modernized because of
their online nature.
 Digital advertisements are extremely monitorable and evaluable.
Types of Digital Advertising
In today’s digital environment, digital advertising formats rapidly emerging and target consumers in different
ways. Although digital ads have many different types, the most basic and common five of them discussed
here.
Banner Advertising
Banner is an advertising type on www, delivered by an ad server. Banners entail embedding an advertisement
into a web page. The aim of the banners are to attract traffic to a website by linking to the website of the
advertiser. There are different kinds of banner applications and their occurrence can be different from static,
animated and interactive. Banners differ in that the results for advertisement campaigns may be monitored
real-time and may be targeted to the viewer's interests. Banner ads offer several advantages. They are often
less expensive than traditional forms of advertising. Second, when a consumer clicks on the ad, the
consumer’s web browser goes directly to the advertiser’s web pages where a variety of products and services
may be presented (Li & Bukovac, 1999). According to some researches (Briggs & Hollis, 1997; Luo, Cook,
& Karson, 2011), banner advertising types create brand awareness. Drèze and Hussherr (2003) report that
while click-through rates (the percentage of times an ad was clicked upon divided by the percentage of times
the ad was shown) are low and consumers often avoid looking directly at banner ads, ads still have effects
on brand awareness and brand recognition. Briggs and Hollis (1997) stated that exposure to banner ads for
clothing increases the appeal of the clothing brand as well as its perceived value. Consumers also report that
they are more likely to look for the brand when they shop for type of product next time. These studies suggest
that banner ads may affect consumer attitudes. (Flores, Chen & Ross, 2014).
E-Mail Marketing
E-mail marketing messages are delivered using a range of approaches – such as web page in the mail box,
product catalog, and newsletter – and depending on the chosen format, the e-retailer may elect to include a
broad range of interactive features and hyperlinks in order to sustain prospective customers' attention.
Developing sustained attention or "engagement" with an e-mail message, personalization, interactive
features, and hyperlinks to web pages seem to be the most effective tactics. Comparatively, the verbal text,
especially the body copy, seems to be less important for e-mail marketers who choose to adopt a catalog
approach, where body-copy text is often reduced to a brief description of each product. Personalization also
influences the style and layout of e-mail marketing messages. Some retailers design short, snappy,
anonymous promotional messages designed to elicit an immediate response, whereas others develop long,
complex, sender-identified messages aimed at engaging the prospective customer in a more involving
interaction. (Chadwick & Doherty: 2012). Contact and protect closer relationships with consumers, e-mail
marketing is a substantial tool of marketing communication. Companies deliver any knowledge about to their
services, newscasts and proposals to existing and potential customers quickly and gather consumer
information on new product development process (Chaffey et al., 2003,Pavlov 2008).
Social Media Advertising
Social media have become a major factor in influencing various aspects of consumer behavior including
awareness, information acquisition, opinions, attitudes, purchase behavior, and post-purchase
communication and evaluation. Consumers are more like to buy something that is recommended to them,

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rather than when it is marketed to them; this is even more likely when the recommendation comes from
someone that they trust. While the economy has changed the way consumers shop, and how they spend, what
has not changed is that consumers trust the opinions of friends and family, as well as people they do not
know, usually more than anything the retailer has to say about the company or their products. The challenge
for retailers is to identify how this digital word of mouth influences, as well as who the influencers are (Kunz,
Hackworth & Osborne, 2011).
Social networks have become a new place for online advertising. Businesses can lead to greater recognition
with products and brands of network user and with the acquaintances advice by applying more than viral
marketing (Zuckerberg, 2007, Hensel and Deins, 2010). The rise in social media advertising, marketers
establish more intimate relationships with their customers. Many social networking sites give consumers the
ability to personalize their preferences and information, thus segmenting consumers for marketers. Social
Media allow companies to engage in timely and direct end-consumer contact at relatively low cost and higher
levels of efficiency than can be achieved with more traditional communication tools. This makes social media
not only relevant for large multinational firms, but also for small and medium sized companies (Kaplan &
Haenlein, 2010). Companies are leveraging social media not only for digital advertising and promotions, but
also to handle customer service issues, innovation ideas, and engage with customers. There is considerable
diversity across the types of social media, which compasses formats such as blogs, social networking sites
and content communities. User-generated content is an important means through which consumers express
themselves and communicate with others online; it is what is produced in the moment of being social, as well
as the object around which sociality occurs. User-generated content takes on many different forms, such as
Twitter tweets, Facebook status updates, and videos on YouTube, as well as consumer-produced product
reviews and advertisements. Importantly for marketers, much user-generated content across various media is
brand-related and has the potential to shape consumer brand perceptions. Better understanding these
differences is potentially important for marketers who are concerned with the co-creation of their brands in
different social media platforms (Smith, Fischer & Yongjian,2012).
Mobile Advertising
The rapid expansion of the use of all kinds of mobile devices, developments in mobile technology and
increase in mobile penetration have created new delivery platforms to both marketers and advertisers.
Consumer adoption of digital mobile telecommunications has in most countries been even faster than that of
the Internet. New mobile applications and services linked to mobile phones, such as multimedia messaging
(MMS), games, music, and digital photography, have emerged and are already being used by marketers. As
the popularity of mobile devices increases, Short Messaging Service (SMS) has become more important to
access potential customers. SMS messages were the dominant format of mobile marketing communication.
The main disadvantage of SMS is its 160-character text-only format, while MMS messages can include
pictures or video clips. Nevertheless, both SMS and MMS channels can have positive effects on consumers'
brand relationships. Since mobile phones are very personal devices, mobile advertising can often be regarded
as intrusive, although relevance and added value (e.g., discounts or special offers) can increase consumer
acceptance. Consumers carry their mobile phones almost everywhere, which creates new opportunities for
marketers. This can be useful to both marketers and consumers. It has been suggested that when using mobile
services or receiving mobile advertising messages, consumers perceive value in relation to the utilization of
time and place. For example, with location-based mobile services, the location of a single consumer at a
given time can be identified and mobile advertising made contextually valid can provide more value for the
consumer (Merisavo et al,2007, Bauer et al, 2005).
The high penetration rate of mobile phones has resulted in the increasing use of mobile devices to deliver
advertisements for products and services. Mobile advertising is the transmission of a message related to
products, services and opinions for promotional purposes via mobile devices (Li and Brian, 2007, Yang,
2007). Mobile advertising is interactive and can be used to target an individual. Since the mobile phone is a
very personal device that allows an individual to be assessed virtually any time and anywhere, mobile
advertising must be more personalized and may take different forms. Based on different strategic
applications, wireless marketing can be permission-based, incentive-based, or location-based. Permission-
based advertising differs from traditional advertising in that messages about specific products, services, or
content are sent only to individuals who have explicitly indicated their willingness to receive the message.
Consumers often impatiently ignore the message when interrupted by an advertisement. Incentive-based

434
advertising provides specific financial rewards to individuals who agree to receive promotions and campaigns
(Chowdhury, et al, 2006, Tsang, Ho & Liang, 2004).
Driven by the ongoing evolution in mobile technologies and the high penetration rate of mobile handhelds,
the popularity and importance of mobile advertising has increased rapidly. Mobile advertising is unique in
terms of establishing direct, pervasive, and individualized links with customers due to several inherent
characteristics of mobile handsets such as being ‘‘exceptionally personal,’’ ‘‘always on,’’ ‘‘always
connected,’’ and ‘‘always with the user’’. Its relative novelty, unique features, and growing business
potential have made mobile advertising a stimulating area of interest for both practitioners and researchers.
(Varnalı, et al, 2012)
Advergaming
Branded entertainment is becoming more popular as the effectivenes of traditional advertising formats
declines. Advergames are, digital games specifically designed to function as advertisements to promote
brands, service or products through entertainment. Advergaming is defined as, the use of interactive gaming
technology to deliver embedded advertising messages to consumers (Cauberghe&Pelsmacker, 2010, Chen
& Ringel, 2001). Advergaming is a branded entertainment and includes both featuring brand in the gaming
environment and creating more elaborate virtual experiences with that brand (Wallace & Robbins, 2006).
Most advergames, specifically designed to promote a company's brand or products, are created with fun as
the main objective to build consumer relationships with the game and the brand. Researches on advergames
have found an overall positive influence of playing the game on brand attitudes (Waiguny, Nelson &Marko,
2013). Industry experts call the online advergames a form of “immersive advertising” and they are becoming
more prevalent as broadband access becomes more accessible. These interactive brand-centered games
reinforce a brand image and can be tailored to the needs and capabilities of different target markets, such as
by age and gender (Mallinckrodt & Mizerski, 2007). Firms take advantage of the advergames, which are
usually created customized, for the unique aim of promoting their brands and they are also reached via their
corporate or brand websites brand. Game context captivates and keeps customers and for that reason positive
relations and feelings earned from game play should transfer to the sponsored brand (Okazaki and Yagüe,
2012). When compared to other web types, games are less irritating that is why customers undertake them
for entertainment, social gathering, social relationship and relaxation.

Methodology
Measures
The variables for measuring the digital ads attitude used in the survey were collected from similar, previous
researches and developed according to aim of this research. Respondents were measured on a five-point
Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree). To measure attitudes about digital ads,
a 22 item scale was adapted from prior studies (Brackett & Carr, 2001; Ducoffe, 1996, Elliot & Speck, 2005,
Yang 2004, Mehta,2000). The scale consisted of different items for digital ads including informativeness,
annoyance, customization and motivator. Informativeness was defined as the ability to provide necessary
information to target customers, help online customers to make better decisions. Items for measuring
informativeness were adapted from previous studies (Ducoffe, 1996, Elliot & Speck, 2005, Ranganathan &
Ganapathy 2002). Annoyance is another variable which influences attitudes towards online advertising and
items for measuring annoyance were adapted from previous studies (Burns&Luts,2006, Ducoffe, 1996).
Customization items were adapted from the scales developed by Xu,2006.
The following hypotheses developed:
H1: There is a significant difference between consumer's gender and attitude toward digital ads.
H1a: There is a significant relationship between age and attitude toward digital ads.
H1b: There is a significant relationship between income and attitude toward digital ads.
H2: Attitudes towards digital ads have an impact on consumers' purchase decisions.
Data Collection and Sample
The research data were collected through an online questionnaire with a sample 478 people. A survey method

435
was used to collect data for this study. Total 22 variables were measured by questionnaire. In the first part of
the survey, the respondents were asked about the factors about digital ads and their reactions on purchase
decisions. In the second part of the survey, the respondents were asked about their demographics and other
personal information. First a pilot test was conducted with 60 questionnaires to pretest the questionnaire.
SPSS software was used for the evaluation of the data for the research.

Findings
In order to understand the consumer preferences and effects of consumers' purchase decisions by digital ads,
online surveys was conducted in March 2014. 478 respondents participated in the online survey.
The study was designed to investigate the effects of digital ads. The demographic characteristics were
measured in terms of gender, age, education and income level. Table 1 presents the demographic profile of
respondents in this study. Out of 478 usable surveys, 53,8% of the sample was female and 46,2% of the
sample was male. 43,5% of the sample was between 29-40 years old and more than half of the respondents
who answered the survey indicated education as university degree (52,1 %). According to the income level
distribution, 64 % of respondents have monthly income between 1000-4999TL.
Table 1. Demographic Characteristics of the Sample
N %
Male 221 46,2
GENDER Female 257 53,8
Total 478 100

18-28 168 35,2

AGE 29-40 208 43,5
41 and older 102 21,3
Total 478 100

Primary School 8 1,7

EDUCATION High School 177 37,0
University 249 52,1
Graduate 44 9,2
Total 478 100

Below 999 TL 57 11,9

1000-2999 TL 157 32,8
INCOME 3000-4999 TL 149 31,2
LEVEL
5.000-6999 TL 74 15,5
7000 and above 41 8,6
Total 478 100
In this study, respondents were asked to mention the categories that digital ads prompt to unplanned
purchases. The results of the analysis for the top categories of product/service that are purchased by
consumers after they got /saw digital ads are different for female and male consumers.
Female consumers stated that they make unplanned purchases mostly for fashion/ apparel items, cosmetics
and discount coupons. Male consumers stated technological products, food and tickets for sport and
entertainment.
Respondents were asked to list the most effective contents that digital ads lead them to make unplanned
purchases. These contents are; Real-time offers (34,7%), Price Discounts (28,8%), Location-based
campaigns (19,2%), Customized e-mails and SMS (17,3%).

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 Table 2. Independent samples t-test for female and male consumers' digital advertising attitude
Levene's test for
equality of variances T-test for equality of means
F Sig. t. df Sig. Mean Std. error 95 confidence
(2- Difference difference internal of
tailed) difference
Lower Upper
Digital Equal ,076 ,814 2,241 452 ,008 ,316 ,132 ,079 ,481
Ads variances
Attitude assumed
H1 hypothesis explored whether there is any significant difference between female and male consumers
attitude towards digital ads. Independent samples t-test was conducted to compare digital ads attitude of men
and women. Levene's test results shows that there are equal variances between the two groups, F=0,076 ,
sig= 0,814. As shown in Table 2, Sig=0,008 < 0,05 and H 1 hypothesis accepted, there is a significant
difference between female and male consumer attitudes towards digital ads. Gender is a significant factor
towards digital ads and female consumers are more effected by digital ads than male consumers.
The hypothesis H1a was proposed a relationship between age and attitude towards digital ads. Correlation
analysis results states that (r=0,682, p=0,006<0,05) there is a positive relationship between age and digital
age attitude and H1a accepted. The hypothesis H1b also accepted, (r=0,577, p=0,00<0,05). All of the two
results for H1a and H1b hypothesis indicates that there is a significant relationship between age and income
level and digital ads attitude.
Factor Analysis and Reliability
To determine the independent variables that the factors effecting purchase decisions of the study, factor
analysis was used. Factor analysis is used for the validity and cronbach alpha scale is used to estimate the
reliability of the scales. Attitude towards digital ads scale Cronbach Alpha value was measured as 0,873. For
the scale reliability Cronbach Alpha value (0,873) for the attitudes scale is greater than 0,70, this proved the
scale to be reliable. KMO value was determined as 0,819 and significance value (p=0.00) shows that our
sample is suitable for the factor analysis. Principal component by varimax rotation performed to figure out
the factor structure. Some variables were below 0.50 or are having collinearity with more than one factor. 5
items were removed, rest of the items revealed 4 factors. The factor analysis resulted with 22 items
categorized under 4 factors. Respondents' attitudes towards digital ads' features presented in Table 3.

437
 Table 3. Factor Analysis
Factor Loads % of
Variance
Factor 1: Informativeness 21,419
Digital ads provide updated information ,811
Digital ads offer time based campaigns ,782
Digital ads remind sales promotions ,764
Digital ads offer instant deals ,641
Recommends new product ,628
Provides a competitive advantage ,570
Leads to search on the internet ,563

Factor 2: Annoyance / Invasive 20,293

Give unwanted information ,844
Give information at inconvenient times ,737
Become irritating ,693
Distract attention ,674
Offer irrelevant content ,629
Not reliable, deceptive ,613
Do not provide any benefits ,546

Factor 3: Motivator 12,510

Digital Ads persuade to buy ,875
Comments in Social Media influential ,855
Location based apps are interesting ,721
Provide cross selling/different discounts ,698
Individual/Customized ads trigger to purchase ,664
Short-term campaigns evoke purchase request ,610

Factor 4: Customization 9,034

Personalized/Customized digital ads would be impressive ,788
Personalized ads draw attention ,772
As shown on table 3, there are 7 items for Informativeness, 7 items for Annoyance /Invasive, 6 items for
Motivator and 2 items for Customization. The factor analysis shows that four factors captured %63,256 of
the total variance.
Multiple Linear Regression
In order to determine the most important factors of digital ads in purchase decision, multiple linear regression
model constructed. The four independent variables (informativeness, annoyance, motivator, customization)
and the dependent variable (purchase decision) were analysed using multiple regression analysis to test the
hypothesis H2. The value of is R2 = 0.612 and illustrates that 61 % of the variation of purchase decision is
explained by the variation in the independent variables. 3 independent variables (Informativeness, Motivator,
Customization ) are positively associated with the dependent variable.

438
 Table 4. Multi linear regression results for purchase decisions
Unstandardized coefficients Standardized
Model Coefficients t Sig.
β Std.Error Beta
Informativenes ,398 ,060 ,262 6,258 ,000
s
Annoyance ,083 ,074 ,058 0,027 ,711
Motivator ,261 ,082 ,246 1,379 ,000
Customization ,184 ,041 ,153 4,522 ,000
R2 =0.612 Dependent Variable: Purchase Decision
As shown in Table 4, according to regression coefficient indicate a significant relationship for only three of
four variables. Informativeness, motivator, customization features of digital ads have an impact on
consumers' purchase decisions. Based on overall analysis H2 accepted. (sig=0,000<0,05). A comparison of
the values clearly indicates that the factor informativeness has the most influence on purchasing decision,
followed by motivator and customization.

Conclusion
Digital advertising is rapidly increasing worldwide. Newspapers and television ads used to be dominant
mediums for reaching consumers but now internet and digitalization changes mediums to reach consumers.
Digital ads are one of the important information tools for sharing news, informing consumers about new
products, services or campaigns. They can reach consumers anytime, anywhere with different contents.
Consumers’ beliefs and attitudes toward ads are important indicators of advertising effectiveness.
This purpose of this study is to determine consumers' evaluation about digital ads. The results of this study
show what consumers think about digital ads and the effect of digital ads on consumer purchase decisions.
In this research most of the consumers evaluate digital ads as informative tool, but at the same time they
evaluate digital ads annoying and distracting. The demographic variables (age, income, gender) had a
significant influence on consumers' attitude toward digital ads. Especially in comparison to gender
differences, female consumers have more positive attitude toward digital ads, they affected by ads and they
buy much more products/services after they saw or got digital ads then male consumers.
Limitations
This study and their results have several limitations. The primary limitation of this research is that it aims to
explore digital ads as a whole. Further research should focus on each of the digital ads consequences. Also,
the factors investigated were limited to informativeness, annoyance, motivator, customization. Future
research should be conducted to focus on to examine the other impacts of digital ads, additional measures
should be developed.

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