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Advertising has a crucial role in increasing visibility, building consumer image and trust in the brand or product offered. This research aims to investigate the effect of product advertising on purchasing interest mediated by product knowledge among Small and Medium Enterprises (UKM) owners in Palembang City. A survey method with a cross-sectional design was used to collect data from 201 randomly selected respondents using probability sampling techniques. A Likert scale-based questionnaire from 1 to 5 was used to collect data on product advertising variables, product knowledge, product quality and purchase interest. The data analysis technique uses Structural Equation Modeling (SEM) with Partial Least Square (PLS) to test the relationship between variables. The findings show that there is a significant influence of product advertising on buying interest and product knowledge. Apart from that, product quality also has a significant influence on buying interest. Mediation effect analysis shows product knowledge does not mediate product advertising with buying interest. This research provides important insights into the importance of product advertising and product knowledge in shaping consumer buying interest in the SME sector. The practical implications of these findings can be used to improve marketing and promotional strategies for SMEs in Palembang City.
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