Impact of Personalized Advertising on Consumer Ordering Decisions: A Study of Food Delivery Apps in Delhi-NCR

Abstract

Leveraging the advancements in digital technologies, marketers are increasingly relying on personalized ads to reach their target customers. In the realm of food delivery apps, targeted ads are being used to tempt users into ordering more and more meals. According to Statista, the food delivery market in India was valued at USD 7.4 billion in 2023 and is expected to reach approximately USD 24 billion by 2026.This study aims to understand the impact of personalized advertisements by food delivery apps on the purchase decisions of consumers in Delhi-NCR, which is the second-largest regional market in India for this sector. Employing a mixed-methods approach, the research methodology integrates surveys and focus group discussions to identify the specific elements influencing the food ordering decisions of the respondents. The study's primary objective is to discern the extent to which personalized advertisements wield influence on user behaviour, including preferences, decision- making processes, and ordering tendencies. Elaboration Likelihood Model will provide the theoretical framework for this study to understand how individuals process persuasive information.The findings of the research can potentially offer actionable recommendations for the stakeholders in their efforts towards optimization of marketing strategies and elevate the effectiveness of advertising endeavours in this digital realm.