Digital advertising media adoption in consumer goods industry (An Indonesian perspective)

Abstract

Indonesia had 80 million netizen, but the spending of consumer goods companies for digital advertising media such as the one provided by Google, Youtube, Yahoo, and U-Ad was very low, only about 1% from total advertising spending. Especially for total spending of companies in U-Ad, a digital advertising media provided by Telkom Indonesia, was remain the lowest among those digital media advertising players. In order to increase the adoption of U-Ad, it is important to identify the key variables influenced Behavior Intention of advertisers to start using U-Ad as new alternative advertising media. This study identified and predicted the key variables influenced the behavior intention of Indonesian consumer goods companies, which is the biggest spender on advertising among other industries in Indonesia. This study used a Modified Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) model. There were 161 valid data out of 312 data from respondents in consumer goods companies in Indonesia. The valid collected data were analyzed by using Smart PLS 3.0 and the result showed that there were six variables in Modified UTAUT2 which positively significant influenced the Behavior Intention of consumer goods companies in Indonesia to adopt U-Ad as a digital advertising media. The influencing variables, ordered from the higest to the lowest effect respectively, are Facilitating Condition (0.324), Performance Expectancy (0.255), Hedonic Motivation (0.178), Social Influence (0.128), Price Value (0.1) and Habit (0.09). Meanwhile, Effort Expectancy had no significant effect to the behavior intention to adopt U-Ad.

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