Comparative Impact of Social Media Ads on Brand Loyalty Across Generations

Thesis Abstract

This study investigates how social media advertising differentially influences brand loyalty across generations in a digitally saturated consumer landscape, addressing the gap where cross-generational responses to social media creative and targeting remain underexplored despite rising ad spend on platforms like Instagram, TikTok, and Facebook. The aim is to determine whether, and to what extent, generational cohorts (Gen Z, Millennials, Gen X, and Baby Boomers) exhibit variations in brand loyalty outcomes triggered by social media ads, and to identify mediating and moderating factors such as perceived relevance, trust, and ad fatigue. Specific objectives are (1) to compare the impact of social media ad exposure on brand loyalty across the four generations; (2) to assess the relative influence of ad content quality, platform type, and engagement cues on loyalty metrics; (3) to examine the mediating roles of perceived relevance and trust, and the moderating roles of digital literacy and prior brand loyalty; (4) to develop a parsimonious predictive model linking ad attributes to loyalty outcomes. The study adopts a cross-sectional, multi-country survey design, employing a stratified sampling approach to recruit 1,200 respondents (300 from each generation) aged 18–75 across the United States, United Kingdom, and Germany to ensure cultural comparability. Data collection is conducted via a structured online questionnaire administered through a reputable panel provider, incorporating validated scales for brand loyalty (attitudinal and behavioral), perceived ad relevance, trust in advertising, and ad fatigue, alongside demographic and digital literacy measures. In addition, a subset of 200 respondents participates in in-depth semi-structured interviews to enrich understanding of generational nuances and contextual interpretations of ad cues. The study employs an integrated analytical framework combining quantitative and qualitative methods. Quantitative data are analyzed using multivariate regression to estimate the direct effects of ad exposure on brand loyalty, hierarchical regression to test mediation by perceived relevance and trust, and moderated regression to assess the influence of digital literacy and prior loyalty. ANOVA is used to compare effect sizes across generations. Structural equation modeling (SEM) validates the measurement and structural relationships of the theoretical model. Qualitative data are analyzed using thematic analysis to identify cross-generational patterns and distinctive narratives regarding ad interpretation, platform expectations, and loyalty drivers. The theoretical foundations draw on the Elaboration Likelihood Model (ELM) to explain central versus peripheral processing of ad content, and Toggle Theory of Media Use to interpret generational differences in platform preferences and engagement styles. Expected findings indicate that perceived relevance and trust fully mediate the relationship between ad exposure and brand loyalty for younger generations, while for older cohorts, direct brand experience and source credibility exert stronger influence, with ad fatigue dampening loyalty gains among heavy social media users. Platform effects are anticipated to vary, with image- and video-centric formats driving stronger loyalty among Gen Z and Millennials, whereas informational and testimonial formats resonate more with Gen X and Baby Boomers. Digital literacy is expected to moderate effects, attenuating reliance on seductive cues for digitally fluent cohorts and strengthening the impact of informative content on loyalty. The study contributes to knowledge by articulating a cross-generational model of social media ad effectiveness on brand loyalty, integrating SEM with experimental-like insights from moderation analyses, and offering a nuanced understanding of how ad design, platform choice, and consumer capabilities shape loyalty trajectories in a multi-generational marketplace. Practical implications include guidance for marketers on tailoring creative, format, and platform strategies to different age groups while maintaining a cohesive brand equity framework across generations. The conclusion underscores the necessity of generation-aware advertising practices and continuous measurement of loyalty outcomes beyond immediate engagement. Recommendations include segment-specific creative guidelines, investment in credibility-enhancing elements for older audiences, strategies to mitigate ad fatigue through frequency capping and content diversification, and further research using longitudinal designs to capture evolving generational effects over time.