How Do YouTube Ads Shape Consumer Decisions? (Empirical Study on Gen-Z)

This research investigated the influence of YouTube Advertising (YouTube ads) on the intention to purchase, with awareness, knowledge, and liking as mediators. Additionally, the study examines how intention to purchase impacts the purchase decision, with preference as a moderator. A structured online survey using stratified random sampling was conducted with 251 Generation Z respondents, using a quantitative research approach and Structural Equation Modeling (SEM) to analyze data on awareness, liking, knowledge, intention to purchase, preference, and purchase decisions. The findings emphasized that while YouTube ads effectively increase awareness and knowledge among Gen Z, these cognitive factors do not substantially drive the intention to purchase. Liking emerges as the critical emotional factor, significantly impacting the intention to purchase and subsequently leading to the purchase decision. This suggests that Gen Z's purchasing choices are strongly motivated by their emotional responses to advertisements rather than more informational content. Liking surpasses awareness and knowledge as a primary predictor of purchase behaviour for Gen Z. This finding is aligned with research suggesting Gen Z values authentic and relatable content, which captures their attention more effectively than information alone. Thus, the results imply that marketers aiming to engage Gen Z should prioritize creating ads that inform and emotionally resonate, as Liking drives the progression from ad exposure to actual buying behaviour. This insight underscores the importance of emotional engagement in digital advertising strategies tailored for Gen Z. The research was robust to endogeneity and multilevel issues.