Personalized advertising on the Tiktok platform and consumer purchase intention

Abstract

Along with the strong development of e-commerce all around the world, Vietnam is considered to be one of the fastest-growing markets in Southeast Asia. Vietnamese companies use the TikTok platform, a popular and widely used platform here, as an effective marketing channel with an extremely low cost. Through this study, the author examines the relationship between the perception of personalization in advertising and the purchase intention of customers, considering additional aspects of advertising value and users' attitudes towards advertising and brands. The author used the PLS-SEM model to analyze 295 samples collected from the actual survey. The outcomes of this study indicate that personalization perceived by customers can increase their positive attitudes toward that advertisement, either directly or by increasing the value of the advertisement. This will have a significant positive impact on customers' attitudes towards the brand, thereby forming their intention to purchase the advertised product. From the obtained results, the author draws conclusions and proposes managerial implications in order to contribute to improving the effectiveness of companies’ marketing strategies on the TikTok platform in Vietnam.