Submitted to- Prof.

Archana Singh

19IB303 | Bimtech
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Assessing the effectiveness of various factors of YouTube advertisements

Ajay Karan Bhardwaj
PGDM-IB, Birla Institute of Management Technology
The use of YouTube advertising by companies to communicate with their customers is
increasing nowadays, along with the increasing number of YouTube audiences. But only a
few scholars have examined the effectiveness of YouTube advertising. This study aims to
analyse the factors of YouTube advertising (e.g. entertainment, informativeness and
irritation) and their impact on perceived YouTube advertising value; and to evaluate the
effect of YouTube advertising towards customers’ Brand awareness. A sample of 69
participants ranging from 18-30 years was selected through purposive and convenience
sampling. Regression analysis using SPSS v 25 was used to further analyse the data. The
results of the present study reveal that the more entertaining and the more informative the
YouTube advertising, the higher the YouTube advertising value. However, there was no
significant impact of irritation on YouTube advertising value. And lastly, no significant
impact of advertising value was found out on customer's brand awareness.
Keywords- Advertising value, YouTube, social media, Brand awareness, YouTube
advertising
1. Introduction
In today's expensive and cluttered marketing environment, accurate message and
information on ads are crucial. Irrespective of the budget proposed, ads will only work if it
gains mass attention. Social networking is becoming popular day by day and this interests
several marketers. The social media budget is expected to be over double that of 2018 (Social
Media Survey 2015; Nielsen2012), reflecting approximately 5% of overall global advertising
expenses which further decides the future of expenditure on online advertisements. The
advantage of this research area is therefore that a significant part of the world's population is
connected to or at least well exposed to the social media and its predominance in
contemporary fact. One of the most sensational social media in today’s time, YouTube was
created in 2005 to allow users to post, access, comment and link to videos on the website. It
has more than one billion users every month, who view more than six billion hours of content
annually and are actively interested in watching and analysing videos on YouTube, and
posting 100 hours of new content per minute to this site. It is the 3rd most visited site in the
world (Bradshaw &Garrahan, 2008). The younger generation aged 18 and 34 are now the
most active viewers of this channel, driving two-thirds of YouTube, watching YouTube
rather than cable Television. YouTube is a source of business and demand knowledge and
perspectives. A regional version of YouTube was available to 20 cities and two countries, as
were other mobile phone providers, such as iPhones and blackberry, which enabled users to
access YouTube videos on their handheld devices. The extensive use of this social media tool
affects the nature of advertisers ' ad strategy. In fact, YouTube runs an affiliate project, which
allows online video creators to develop a new platform material or make use of investing
YouTube's income. In fact, YouTube runs an affiliate project, which allows online video
creators to develop a new platform material or make use of investing YouTube's income.
The abundance of video ads on YouTube has drawn the interest of advertisers to invest as
a brand engagement and successful online promotional tool in this shifting medium.
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YouTube advertising as a social forum appear on the homepage of the Website containing
elements that are released or chosen by users (Ad age). They may also appear, usually in the
form of a banner, on the video sharing list. The advertiser can therefore require that the
suggested ad be tailored to the contents of the advertisement, so the prices are higher. To
accomplish this aim, new advertisements for mat shave (Ad Age Survey) were made. There
are essentially two types of YouTube video ads. Two different forms of exposure are
available from YouTube: stream video advertisement and in-play ads. In stream
advertisements, viewers will watch or miss brand advertisements after at least 5 seconds. Ads
will be up to 15 s as Premium In-Stream Ads. Video advertisements are the ones normally
shown on the lower portion of the video of the product. Usually, such advertisements run for
15 seconds, which the user will skip or reduce if desired. Although Television remains the
dominant media medium and has a fairly steady influence, social media platforms such as
YouTube continue to rise and the pattern of commercial spending is increasing dramatically
(Adage; Bellman, Schweda&Varan, 2009; Clancey, 1994). Therefore, it has emerged the
question that marketers who feel the consequences of ad replacement between YouTube and
other media should exploit this new world with the aid of YouTube ads in order to achieve
the maximum return on investments. While it is important for YouTube to explore all facts as
a new advertisement medium, the advertisement strategy for corporations is not well
established. Consequently, the current work seeks to overcome these discrepancies by
exploring how and how YouTube commercials impact the meaning of advertisements and
client expectations. The previous researches have given very few empirical evidences that
have found predictors for these variables or the relationship between YouTube's marketing
influences on the impact of ads and the sales. The goal of this analysis therefore is to include
and evaluate a full integrated model of YouTube publicity, by overcoming the constraints of
previous research on social media.
In light of the above aim, our research questions are:
1. Which are the affective factors influencing YouTube Value in ads?
2. Can you make a valuable contribution to enhancing impacting consistency on
advertisement performance by the customisation of YouTube ads?
2. Literature review
1) Wijanto, W., & Halim, R. E. (2015) focuses on Facebook Ads and explores the
efficacy of the advertising in raising the buying interest of consumers in 2015. Five
Build of this article are Social Media Ads, Market Loyalty, Brand Identity, Word of
Mouth, and Plan to Buy. This study's analysis could require social media ads to
predict customer's potential buying intent. The statistical demographic would be the
consumers of social media in the University of Indonesia, which included all
undergraduate students. This paper show the different result from the previous
researches that Social Media Advertising does not have a positive effect to firms’
brand equity and also electronic word of mouth does not have a positive impact on
purchase intention, this study shows that the students in University of Indonesia have
minimum income level as it one of the factors of lowest buying power. They like to
share the advertisement just for themselves.
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2) Duffett, R. G. (2015). The purpose of this paper is to analyze the impact on South
Africa's Millennials (SA) of behavioral attitudes towards the most influential social
media in the world Facebook and to assess the influence of different uses and
demographic factors on purchasing and purchasing preferences. The results confirmed
that Facebook advertising has a positive impact on the behavioural attitudes of
millennia residents in SA (intention to purchase and purchase). Facebook ads has
gathered a deeper understanding of the use characteristics, period and profile change
effect as well as demographic effects by ethnic orientation.
3) Hahn, J., &Kovashka, A. (2019). Ads offer an extra pool of revenue to businesses and
industry as a whole for allocating capital to alternate market motivations. They are
attractive to companies, and are almost unavoidable for customers. This paper
explores the combination of human-annotated features and common video processing
techniques to predict effectiveness ratings of advertisements collected from YouTube.
They present the first results on predicting ad effectiveness on this dataset, with binary
classification accuracy of 84%.
4) Aziza, D. N., &Astuti, R. D. (2019, March). This research aims to examine YouTube
advertisement variables (e.g. content, informativeness, usability, and irritation) and
their effects on perceived YouTube advertisement value; and to determine the
influence of YouTube ads has on consumer buying intention. This was a closing
longitudinal study comprising 261 respondents aged 18–29. This analysis finds that
the higher the rating of YouTube ads the more fun and insightful the YouTube
advertisement is, However, the influences of flexibility and frustration expected to
affect the appeal of YouTube ads have not been established. Finally, the YouTube
commercial interest had a major positive impact on the purchasing intention of the
consumers and was partly influenced by brand recognition.
5) Kim, J. U., Kim, W. J., & Park, S. C. (2010). The key aim of this analysis was to
explore the mediating and moderating impact of product engagement and trust in
websites in relation to the influence of online marketing attributes on the purchasing
intentions of consumers. They gathered data consisting of a total of 264 answers from
individuals with prior experience with online shopping mall sites buying goods and
used the PLS (partial least squares) approach to evaluate the data collected. The
results found that consumers with higher interest in the product preferred to buy in
shopping centres where they could gain more knowledge about goods and that
consumers with a small participation in the product appeared to be more likely to seek
entertainment. In comparison, consumers with a larger confidence in websites tend to
be affected by perceived content and therefore remain at shopping sites; in turn,
consumers with a limited degree of trust in websites prefer to agree that knowledge is
interpreted as a reduction in environmental uncertainty. Based on our observations,
online buying centers should show the inner characteristics of goods in order to draw
highly engaged customers and to give customers of improved quality a benign
corporate profile. Findings also revealed that it could be reasonable to combine
entertainment elements with product details for less-involved users who choose to
browse for items to present, and also to incorporate innovative web interface
implementations for more efficient browsing.
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6) Dehghani, M., Niaki, M. K., Ramezani, I., &Sali, R. (2016). We've been seeing an
growing number of people today who spend huge quantities of time on YouTube
around the globe. The reasons persuading consumers to consider YouTube ads as an
adsmedium are still not fully known to date. The present paper defined four
dimensions against YouTube ads (i.e., entertainment, informativity, flexibility and
irritation) that may influence advertisement appeal as well as brand recognition, and
ultimately customer buying intent. The empirical hypothesis hypothesizes that market
worth approaches are strongly related to brand recognition, which in effect affects
You Tube's perceived effectiveness and continued purchasing behavior. Data were
obtained for this thesis from students studying at the University of Rome at Sapienza.
To evaluate data for the factors, a minimum of 315 functional questionnaires were
collected. The findings reveal that the most beneficial factors are content,
informativeness and creativity, while frustration is negatively linked to YouTube ads.
On the other hand, promotional interest via YouTube correspondingly affects both
brand recognition and customer buying intent.
7) Husnain, M., & Toor, A. (2017). This paper discusses the effect of social network
advertising on the buying of customers and their effects on their mediating role. This
research is based on current studies in social networking by analysing the indirect
effect of consumer engagement in the specific relationship between social network
marketing and the plan to procure customers in Pakistan. Results reveal that
advertisement in social networks is closely linked to desire to buy an item. They also
demonstrate that customer engagement acts as a partial mediator of the effect on
customer buying intentions of social networks marketing.
8) Ducoffe, R. H. (1995). This paper proposes a new construct-advertising concept— a
reflection of advertising's perceived importance to customers. A computational model
is proposed and evaluated in a survey of mall intercepts. A part of the model is then
tested in an experimental analysis, based on how informativeness and entertainment
affect the advertisement interest. The findings of both experiments clearly affirm the
legitimacy of the partnerships suggested. It also addresses possible consequences and
uses of the model, as well as theoretical interactions with other variables.
3. Conceptual model and hypothesis
Throughout this section, we present our hypotheses and conceptual model based on the
previous literature review discussion on YouTube advertisement user interest and additional
related issues relating to our variables. This can be calculated in several ways by brand
recognition and brand perception, for example, how customers are influenced by various
media outlets to view the physical characteristics of brands. Such qualities support the brand's
importance or interest, for example, brand recognition.
Empirically, (Edwards et al., 2002a, 2002b) performed a study on the dimension of ad
interest frustration, which had a negative effect on the ad attitude. However, (Rao
&Minakakis, 2003) stated in a separate study that there is a negative association between
frustration and advertisement value, and a positive correlation between informativeness and
advertisement value, which consequently affects advertising attitude. Previous research also
found that advertisement interest is related to three factors: informativeness, entertainment,
and frustration, which in effect affects advertisement attitudes (Waters, Canfield, Foster, &
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Hardy, 2011). Nonetheless, the positive dimension of social media ads, reflecting affective
qualities and cognitive interest, is calculated by entertainment and informativeness (Lee &
Choi, 2005). On the other hand, another study found dissatisfaction has nothing to do with
advertisement interest, but it does indicate the negative reactions of consumers to inadequate
delivery of social media ads (Aaker & Bruzzone, 1985). The study of Cobb-Walgren et al
(Cobb-Walgren et al., 1995), a brand perception of consumers as created by advertisements,
influences purchasing intentions through the medium of social media (Dehghani&Tumer,
2015) Kim and Park (Kim, Kim & Park, 2010) performed an observational study to validate
this mechanism and concluded that the consumer's attitude towards ads had a positive impact
on purchasing intentions. Ultimately, these shape the total utility that user interest on social
media ads such as YouTube channel could have. And for our empirical study, we found the
following hypothesis:
H1: Consumers obtained Information via YouTube ads that affects the advertisement
value positively.
H2: Consumers obtained Entertainment via YouTube ads that affects the advertisement
value positively.
H3: Consumers obtained Irritation via YouTube ads that affects the advertisement
value positively.
H4: YouTube Advertising Value should have a positive impact on Brand Awareness.

Entertainment

Advertisement Brand Awareness

Informativeness
Value

Irritation

Figure1:
Independent and dependent variables in the present study
4. Methodology
4.1 Sample and data collection
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4.2 Measurement

5. Result and discussion

Dependent Independent Unstandardized Standardize t- Significanc
Conclusion
Variable Variable(s) Coefficient d Coefficient value e
  Informativenes
0.503 0.419 2.804 0.007* sig
s
Advertisin
g Value Entertainment 0.222 0.28 1.868 0.037* sig
  Irritation 0.005 0.005 0.037 0.971 not sig
Brand Advertising
0.148 0.179 1.385 0.171 not sig
Awareness Value
Table 1. Regression Analysis Results
Before we did the multiple regression analysis, we conducted the classical assumption test
that consisted of residual normality test and validity/reliability of the questionnaire. The
significance value of Kolmogorov-Smirnov was 0.200 for residual normality test, which
could be said that the residual value of the variables was normally distributed. The
Cronbach's alpha coefficient was used in order to validate the reliability of the questionnaire.
The reliability coefficient of the questionnaire was 0.82 through Cronbach's alpha coefficient.
From the classical assumption test results, we concluded that the data could be analysed
further using regression analysis. The result of the regression analysis could be seen in
Table1.
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As we could see in table 1, the t value of Informativeness variable to advertising value was
2.804, sig 0.007 (sig le 0,05). This indicates that H1 was accepted. It indicates there was a
significant influence with a positive direction from entertainment to advertising value and
indicates that Consumer has perceived informativeness through YouTube advertising, which
is positively affecting advertising value.
The t value of Entertainment to advertising value was 1.868, sig 0.037 ((sig ≤ 0,05), H2 was
accepted. This means that the respondents perceived the ability to inform consumers about
the benefit of the product and service is important. It made the respondent have a positive
attitude on the value of those YouTube advertising.
The t value for irritation variable was 0.037, sig 0.971 (sig ≤ 0,05), which show that H3 was
rejected. It means the respondents did not perceive that consumer has perceived Irritation on
YouTube advertising, which is negatively affect advertising value.
Moreover, the t value of Advertising Value variable to Brand Awareness value was 1.385, sig
0.171 (sig ≤ 0,05), which show that H4 was rejected. It means the respondents did not
perceive that Advertising value through YouTube ad will positively effect on brand
awareness.
6. Conclusion
The findings revealed in this analysis that entertainment and informativeness have a positive
impact on the brand interest by ads on YouTube. It shows the consumers felt they could
experience the satisfaction and happiness of watching YouTube ads. That also means that the
consumers viewed the advertisements with the potential to provide the consumer information
of alternate goods or services so that consumers may be pleased. Irritation as a negative factor
has little effect on the importance of ads. This suggests that the commercial was not viewed
by the clients as irritating and misleading advertising.
Depending on the findings of this report, businesses who want to place advertisements on
YouTube will pay greater attention to the educational dimension because it has a higher
impact than other factors in determining the advertisement impact. Besides that, the
entertainment element will also attract more consideration from the corporations. To get the
attention of consumers, they can produce an amusing and informative ad, and also provide
strong and appropriate product or service facts. It could be achieved by producing preview
material or mini-series filled with humour but also with straightforward details. In fact, the
ads must have appropriate content settings and changes to the needs of the user in order to
achieve a successful consumer assessment. It can be achieved by monitoring the cookies of
consumers that make the details easy to customise. The commercials do need to mitigate
annoyance, which is a detrimental indicator of the performance of consumer advertisements.
This can be achieved by using YouTube's automation tools such as skip or other, and users
can tailor the advertisements they want to see and don't want to see.
The findings of this analysis support many preceding studies in the sense of traditional
advertisement and the very limited digital advertising science. Based on these findings, the
importance of both traditional and interactive advertisements was determined by the attitude
of the consumers of the ads themselves, whether it was exciting and insightful. At the other
hand, frustration also needs further research, in particular in the digital advertising sense.
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Finally, drawbacks should be known of this work. First, in this analysis, sample size does not
refer directly to the whole community of consumers on YouTube because we performed the
work focused on a limited number on populations. College students are the population to be
questioned. Collecting data from only the respondent, though, does not encompass the full
spectrum of YouTube subscribers, which reduces the generalizability of results. In addition,
another constraint deals that users may consider YouTube ads as beneficial if its presence is
compatible that their opportunities to use the video on YouTube channels. Last but not least,
this research focused on and through the Judgmental quota selection, which makes it
impossible to generalize the results with improvements happening in all consumers ' attitudes.
Therefore, further studies will examine the use motives correlated with YouTube videos and
include objective evidence in comparison to the use motives of the media.
7. References
Aaker, D. A., & Bruzzone, D. E. (1985). Causes of irritation in advertising. Journal of
marketing, 49(2), 47-57.
Aziza, D. N., &Astuti, R. D. (2019, March). Evaluating the Effect of YouTube Advertising
towards Young Customers’ Purchase Intention. In 12th International Conference on
Business and Management Research (ICBMR 2018). Atlantis Press.
Bradshaw, T., &Garrahan, M. (2008). Rival forecast to catch YouTube. Financial
Times, 16(11).
Choi, S. M., Lee, W. N., & Kim, H. J. (2005). Lessons from the rich and famous: A cross-
cultural comparison of celebrity endorsement in advertising. Journal of
advertising, 34(2), 85-98.
Cobb-Walgren, C. J., Ruble, C. A., &Donthu, N. (1995). Brand equity, brand preference, and
purchase intent. Journal of advertising, 24(3), 25-40.
Dehghani, M., Niaki, M. K., Ramezani, I., &Sali, R. (2016). Evaluating the influence of
YouTube advertising for attraction of young customers. Computers in human
behavior, 59, 165-172.
Dehghani, M., &Tumer, M. (2015). A research on effectiveness of Facebook advertising on
enhancing purchase intention of consumers. Computers in Human Behavior, 49, 597-
600.
Ducoffe, R. H. (1995). How consumers assess the value of advertising. Journal of Current
Issues & Research in Advertising, 17(1), 1-18.
Duffett, R. G. (2015). Facebook advertising’s influence on intention-to-purchase and
purchase amongst Millennials. Internet Research.
Hahn, J., &Kovashka, A. (2019). Measuring Effectiveness of Video Advertisements. arXiv
preprint arXiv:1901.07366.
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Husnain, M., & Toor, A. (2017). The impact of social network marketing on consumer
purchase intention in Pakistan: Consumer engagement as a mediator. AJBA, 10(1),
167-199.
Islam, S., & Mahmood, M. I. (2018). A Qualitative Study on the Outcomes of Social Media
Advertising.
Kim, J. U., Kim, W. J., & Park, S. C. (2010). Consumer perceptions on web advertisements
and motivation factors to purchase in the online shopping. Computers in human
Behavior, 26(5), 1208-1222.
Lai, Y. F., Lai, C. Y., & Chiang, H. S. (2015). The Advertising Effectiveness of Advertising
Message and Product Placement on Video Advertisement. Recent Researches in
Applied Computer Science, 113.
Rao, B., &Minakakis, L. (2003). Evolution of mobile location-based
services. Communications of the ACM, 46(12), 61-65.
Waters, R. D., Canfield, R. R., Foster, J. M., & Hardy, E. E. (2011). Applying the dialogic
theory to social networking sites. Journal of Social Marketing.
Wijanto, W., & Halim, R. E. (2015). THE EFFECTS OF SOCIAL MEDIA ADVERTISING
ON ENHANCING PURCHASE INTENTION: AN EMPIRICAL STUDY OF
FACEBOOK ADVERTISING. JurnalBisnis dan Manajemen (Journal of Business and
Management), 15(2), 49-56.
Zote, J. (2020, March 12). 55 critical social media statistics to fuel your 2020 strategy.
Retrieved from https://sproutsocial.com/insights/social-media-statistics/
8. Appendix
Questionnaire
Demographic details
1) Age group
2) Gender
3) Occupation
4) Do you use YouTube on a daily basis?
5) How much time do you spend on YouTube in a day?
Likert Scale Questions
1-Strongly Disagree 5-Strongly Agree
Informativeness
Q1. YouTube advertisement provide relevant product information.
Q2. YouTube advertisement provide latest product information.
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Q3. YouTube advertisement provide accurate product information.

Entertainment
Q1. Sometimes YouTube advertisements are more enjoyable than other content on YouTube.
Q2. Sometimes I take pleasure in thinking about what I saw or heard in YouTube
advertisement.
Q3. YouTube Advertisements contains catchy visual and audio content.
Irritation
Q1. YouTube advertisements can be irritating.
Q2. Advertisements sometime create stereotype in the minds of people.
Q3. There is too much advertising.
AD Value
Q1. Advertising is valuable.
Q2. Advertising is useful.
Q3. Advertising is important.
Brand Awareness
Q1. I know the brands in advertisements.
Q2. When it comes to (product/service), I can immediately recall the brand.
Q3. I can distinguish between different brands being promoted in advertisements.