The Influence of Digital Advertising on Digital Customer Trust on Instagram @otsky.store

Abstract

This study is elaborated the increasing business competition in the digital era which encourages companies to build consumer trust through Digital Advertising strategies. The purpose of this study is to determine the influence of Digital Advertising on Digital Brand Awareness and Social Media Engagement, as well as the influence of Digital Brand Awareness and Social Media Engagement on Digital Customer Trust. In addition, this study also aims to analyze the mediating role of Digital Brand Awareness and Social Media Engagement in the relationship between Digital Advertising and Digital Customer Trust. The hypothesis proposed in this study is that there is a significant influence of Digital Advertising on Digital Brand Awareness, Social Media Engagement, and Digital Customer Trust, both directly and indirectly through mediation variables. This study uses a quantitative approach with a survey method. Data was obtained through the distribution of questionnaires to 130 respondents who had seen Instagram ads from @otsky.store. The sampling technique using purposive sampling and data analysis was carried out using the Structural Equation Modeling (SEM) approach based on Partial Least Square (PLS) using the SmartPLS 4.0 application. The results of the study show that Digital Advertising has a significant effect on Digital Brand Awareness and Social Media Engagement. In addition, Digital Brand Awareness and Social Media Engagement also have a significant effect on Digital Customer Trust. Overall, Digital Advertising has been proven to have a positive influence on Digital Customer Trust both directly and through the mediation role of Digital Brand Awareness and Social Media Engagement.