Analysis of The Effect of In-Game Advertising on Purchase Intention for Generation Z with Flow Theory

Abstract

This study analyzes the effect of in-game advertising on purchase intention for game players among generation Z in Indonesia. The Z's is the generation most familiar with the internet. Research on advertisements on digital games was based on flow theory, which explains when gamers are immersed in their enjoyment of playing games. The antecedent of Flow is widely discussed with the object of advergame research. This study aims to evaluate whether flow antecedents - such as skills, challenges, interactivity, focused attention, and telepresence - also occur in in-game advertising. Data was collected using a survey method using structured questionnaires distributed online. We processed the data using descriptive statistical methods and SEM with the help of SPSS and AMOS software. The data collected consists of 244 respondents from Generation Z in Indonesia who have actively played games for at least six months. The most widely played digital game is Mobile Legends, and they mostly play games via smartphones than through PCs. We found that challenge variable and focused attention were not prerequisites on the occurrence of Flow.