The Effect of Social Media Advertising on Brand Value: An Application on Instagram Ads

Abstract

Purpose – The purpose of this study is to determine the effect of social media advertisements on brand value. With this purpose in mind, the effect of social media advertisements, perceived value determinants (informativeness, entertainment, credibility, and irritation) on customer-based brand equity is investigated. Design/methodology/approach – The research was carried out in the relational survey model, which is one of the general survey model types that aims to determine the relationship and interaction between two or more variables. Within the scope of the study, an online survey was conducted with 332 participants who have an active Instagram account. The obtained data were analyzed using the AMOS 23 program. Findings – According to the findings obtained from the study Instagram ads have an effect on the advertising value by informing, entertaining, and providing credibility for users. But however, it was found that the irritation of advertisements did not have a significant effect on the advertisement value. Furthermore, the study findings indicate that advertising value has a significant effect on customer-based brand equity. Discussion – The content of Instagram ads affects consumers' perceptions of ad value. Informative, entertaining and credible advertising contents of brands shape the perception of value for the brand. This result emphasizes the importance of using social media in order to enhance brand value of products.