Understanding drivers of brand love - the role of personalized ads on social media

Abstract

PurposeThis paper aims to test a theory-driven model reflecting the effects of perceived personalization on consumer–brand relationships on social media.Design/methodology/approachThe conceptual model is empirically tested through two studies using partial least squares-structural equation modeling. Other techniques, such as common method bias, multigroup comparison, mediation analysis and model fit comparison, are also used to give more insights into the analytical process.FindingsData from two studies show that perceived personalization is positively related to brand-related outcomes including brand self-expressiveness, consumer–brand engagement and brand connection. While consumer–brand engagement and brand connection are positively related to brand love, brand self-expressiveness is not.Research limitations/implicationsThe paper contributes to the advertising and brand management literature by shedding light on a better understanding of the impact of personalization in the digital world.Practical implicationsManagement could learn important lessons from personalization. If a strategy of promoting personalized ads is implemented successfully, those ads could change customer perceptions of brands which ultimately strengthens brand love.Originality/valueThis research provides an empirical model that helps marketers better understand the factors affecting brand love with personalized ads on social media.