THE INFLUENCE OF SOCIAL MEDIA ADVERTISING TOWARDS PURCHASE INTENTION OF E-COMMERCE: A STUDY AMONG INDONESIAN MILLENIAL

Abstract. Nowadays, the number of people who spend enormous amounts of time on social media has grown continuously. This study was designed to understand what factors motivate customers to accept e-commerce advertising on social media. Three dimensions towards social media advertisement were investigated which comprise informativeness, personalization, and entertainment that may have an impact on advertising value as well as brand awareness, and accordingly on customers’ purchase intention. For this study, data were collected from 232 Indonesian millennials respondents in Jakarta and Bandung through an online questionnaire and tested using a partial least squares (PLS) estimation. The results show that entertainment, informativeness, and personalization are significant related to social media advertising. Among the three dimensions, entertainment has the strongest significant relationship with social media advertising value. Besides, the advertising value of social media affects both e-commerce brand awareness and purchase intention of customers accordingly. The study provides results that allow e-commerce marketers to understand how social media advertising contribute to purchase intention of e-commerce customers.Keywords: Advertising value, Informativeness, Personalization, Entertainment, Brand awareness, Purchase Intention.