The Influence of AI-based Personalized Advertising on Consumer Perception and Purchase Intention: A Study of Instagram Users in Amravati City
Author 1: Shaikh Faizan Shaikh Akbar
MBA II Year , Marketing
Department Of M.B.A
P. R. Pote Patil Collage Of Engineering & Management , Amravati.
faizanshaikh3722@gmail.com
Author 2: Dr . P. B. Udasi
Assistant Professor
Department Of M.B.A
P. R. Pote Patil Collage Of Engineering & Management , Amravati.
Abstract
Artificial intelligence (AI) has become an important part of digital advertising, especially on social media platforms. Nowadays, Instagram uses AI algorithms to understand users’ interests, search history, and online behavior so that advertisements can be shown according to individual preferences. Because of this, users often come across ads that closely match their needs and interests. This study attempts to examine the effect of AI-based personalized advertising on consumer perception and purchase intention among Instagram users in Amravati City.
For the purpose of this study, a descriptive research design was used. Primary data were collected from 30 active Instagram users living in Amravati City with the help of a structured questionnaire. The respondents were selected using the convenience sampling method. The study mainly focused on factors such as relevance of advertisements, usefulness, visual appeal, trust in advertisements, privacy concerns, and their influence on purchase intention.
The analysis of the responses shows that most users have a favorable opinion about AI-based personalized advertisements on Instagram. Many respondents stated that these advertisements are relevant to their interests and visually attractive, which helps them in making better purchase decisions. It was also observed that repeated exposure to personalized ads increases user interest and improves brand recall. However, a few respondents expressed concerns related to privacy and the use of personal data for advertisement personalization.
The study concludes that AI-based personalized advertising on Instagram can be an effective marketing tool if used carefully. Transparency in data usage and responsible advertising practices are important to maintain user trust. The findings of this study may be useful for marketers and can also help future researchers who wish to study AI-driven advertising in greater detail.
Keywords: AI-Based Personalized Advertising, Instagram Advertising, Consumer Perception, Purchase Intention, Social Media Marketing.