Analysis of The Influence of Paid Advertising and Affiliate Marketing with Instagram Social Media Intermediation on Purchase Decisions in Lazada E-Commerce
DOI:
https://doi.org/10.55927/ijems.v4i1.39Keywords:
Paid Advertising, Affiliate Marketing, Instagram, Purchase Decicions, LazadaAbstract
The rapid growth of Indonesia’s e-commerce industry has intensified competition among platforms. Lazada, despite being an early pioneer, has experienced a decline in traffic and consumer interest compared to its competitors, indicating the need for more effective digital marketing strategies. The purpose of this study is to look at how paid advertising and affiliate marketing influence consumers' purchasing choices, both directly and through Instagram as a mediating factor. The findings, which used a quantitative approach with PLS-SEM analysis through SmartPLS 4 on Lazada consumers in Jakarta, demonstrate that paid advertising has a positive and significant direct impact on purchase decisions but does not have a significant indirect effect through Instagram. On the other hand, affiliate marketing has a big impact on Instagram and uses social media to indirectly affect purchasing choices, rather than directly influencing them. According to these findings, Instagram has a greater mediating effect on improving affiliate marketing performance than sponsored advertising
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