An investigation of performance-based advertising on customer engagement: A study of a retail chain in Kano, Nigeria.
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- NGN 5000
Background of the study:
Performance-based advertising, which emphasizes measurable outcomes, has become a fundamental strategy for retail chains seeking to enhance customer engagement in Kano. This study investigates how performance-based advertising tactics—such as targeted ad placements, dynamic creative optimization, and real-time bidding—affect customer engagement levels. As consumer interactions increasingly move online, retail chains are leveraging performance metrics to tailor their advertising efforts and maximize engagement (Afolabi, 2023). The research explores the connection between advertising performance indicators and consumer participation in promotional activities, highlighting how data-driven adjustments can lead to higher interaction rates and improved customer loyalty. With an ever-evolving digital landscape, the ability to engage customers effectively is essential for sustaining competitive advantage. This study provides a comprehensive analysis of performance-based advertising initiatives and their role in driving customer engagement through iterative campaign refinement and responsive marketing strategies (Ibrahim, 2024).
Statement of the problem:
Retail chains in Kano face significant challenges in converting advertising efforts into high levels of customer engagement. Ineffective targeting, misaligned messaging, and insufficient use of performance data often result in low engagement rates and diminished return on advertising investments (Obi, 2023). The lack of a cohesive framework for performance-based advertising further complicates the ability to track and optimize customer interactions. This study aims to identify the obstacles that limit the impact of performance-based advertising on engagement and to propose solutions for achieving better customer participation (Chinwe, 2023).
Objectives of the study:
To evaluate the effect of performance-based advertising on customer engagement.
To identify key performance indicators that drive engagement in retail advertising.
To recommend strategies for optimizing advertising campaigns to enhance customer participation.
Research questions:
How does performance-based advertising influence customer engagement?
What performance metrics are most effective in predicting engagement levels?
How can retail chains improve their advertising strategies to boost customer participation?
Significance of the study
This study is significant as it sheds light on the role of performance-based advertising in enhancing customer engagement for retail chains. The insights will enable marketers to better align their advertising strategies with customer interests, thereby improving overall engagement and loyalty. The research offers practical recommendations for optimizing digital advertising efforts in the competitive retail sector (Adeniran, 2023).
Scope and limitations of the study:
The study is limited to the performance-based advertising practices of a single retail chain in Kano. It focuses exclusively on customer engagement and does not address other marketing outcomes.
Definitions of terms:
Performance-Based Advertising: An advertising model where payment is based on measurable outcomes such as clicks or conversions (Uche, 2023).
Customer Engagement: The level of interaction between customers and marketing content (Ijeoma, 2023).
Retail Chain: A group of retail outlets operating under a unified brand (Oluwaseun, 2023).
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