A comparative study of performance-based advertising on consumer behavior: Evidence from a tech startup in Kaduna, Nigeria
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- NGN 5000
Background of the study
Performance-based advertising has emerged as a pivotal strategy for influencing consumer behavior by linking ad expenditures to measurable outcomes. For tech startups in Kaduna, where resources are limited and competition is fierce, adopting advertising models that reward successful engagements is critical (Okoro, 2023). This study compares various performance-based advertising strategies—such as pay-per-click (PPC), cost-per-acquisition (CPA), and conversion-based models—to determine their impact on consumer behavior. These strategies allow startups to target specific audiences and adjust campaigns in real time, ensuring that each dollar spent is tied to a defined consumer action (Adeniyi, 2024). Evidence suggests that when implemented effectively, performance-based advertising can alter consumer purchase decisions, increase brand engagement, and ultimately drive revenue growth (Ibrahim, 2025). However, differences in execution and market dynamics create variability in consumer responses. By comparing different approaches, this research aims to identify the conditions under which performance-based advertising most effectively shapes consumer behavior in the tech startup sector of Kaduna.
Statement of the problem
Tech startups in Kaduna face challenges in determining which performance-based advertising models most effectively influence consumer behavior. Inconsistencies in campaign outcomes, due to fluctuating market conditions and varied consumer preferences, lead to uncertainty in optimizing ad spend (Chinwe, 2023). Moreover, a lack of comprehensive comparative studies makes it difficult for startups to identify best practices. This gap hinders the efficient allocation of limited marketing budgets, potentially stalling consumer engagement and revenue growth. Therefore, a systematic analysis is required to compare performance-based advertising strategies and to establish clear guidelines that enhance consumer responsiveness and overall campaign efficiency.
Objectives of the Study:
To compare different performance-based advertising models in terms of consumer behavior impact.
To identify key factors that drive consumer engagement through performance-based ads.
To propose best practices for optimizing advertising strategies for tech startups.
Research Questions:
How do various performance-based advertising models affect consumer behavior?
What factors contribute to successful consumer engagement in these models?
Which advertising practices can optimize consumer responsiveness for tech startups?
Significance of the study (100 words):
This study offers vital insights into how performance-based advertising influences consumer behavior in tech startups. The findings will assist startups in Kaduna in refining their advertising strategies, ensuring optimal allocation of marketing budgets, and enhancing consumer engagement. Moreover, the study contributes to academic knowledge on performance marketing, providing a comparative framework for future research in dynamic digital markets.
Scope and Limitations of the Study:
This study is limited to analyzing performance-based advertising strategies and their effect on consumer behavior for a tech startup in Kaduna. It does not cover other advertising methods or industries, and findings are specific to local market conditions.
Definitions of Terms:
Performance-Based Advertising: Advertising where payment is contingent on measurable outcomes like clicks or conversions.
Consumer Behavior: The actions and decision-making processes of individuals when interacting with digital advertisements.
Tech Startup: A newly established technology-based company with innovative products or services.
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