When AI Advertising Gets Smarter: The Role of AI-Agencies in Forming Brand Loyalty.

Abstract:

This paper aims to theorize the fragmented connections found in the literature among AI, advertising, customer engagement (moderated by AI-agency), and brand outcomes as networking relationship rather than cause-and-effect relationship. This conceptual study seeks to predict these fragmented networking relationships and develop a new theoretical model based on Actor-Network Theory (ANT). Drawing from ANT, the study examines the effect of AI-advertising on AI-based customer engagement, moderated by AI-agency, to assess its impact on brand awareness, perceived quality, and brand loyalty. It involves identifying situations, objects, behaviors, or people using human versus non-human factors and revealing antecedents and outcomes. This is achieved by formulating propositions regarding the impact of AI-advertising on AI-based customer engagement humanized by AI-agency. The proposed theoretical model aims to pave the way for future researchers to empirically test these relationships.