The Impacts of Facebook Ads on Brand Image, Brand Awareness, and Brand Equity

Abstract

The advent of Facebook brought a new aspect for advertising since it allows ads to reach more targeted users on the internet. However, although the ads on Facebook have been found influential on consumers' purchase intentions, the possible impacts on brands have been relatively neglected. The purpose of this research is therefore to investigate the impacts of Facebook ads on brand image, brand awareness, and brand equity. With this purpose, a conceptual model was developed based on the advertising value model (AVM). The research model was tested by means of structural equation modelling (SEM) with the help of surveys applied for 194 university students. The results support the proposed model and confirm that Facebook ads play an important role on brand image, brand awareness, and brand equity. Theoretical and practical implications are discussed.