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This study investigates two important research questions. First, does YouTube advertising create value for customers to activate their inspired-by state (motivation), or does customer engagement in advertised brands have a mediating role? Second, does the inspired-by state influence customers’ inspired-to state (action) to purchase the advertised brand?

This study employs Ducoffe’s advertising value model to investigate how customers’ engagement mediates perceived advertising value and their inspired-by state. The authors split customer inspiration into two primary states: inspired-by (i.e. the early interest in taking action) and inspired-to (i.e. the intention to act), demonstrating that the latter is positively influenced by the former. The study employs SmartPLS V3.2.9 to analyze survey data from 360 respondents in Pakistan – an emerging market.

This study found that informativeness, entertainment, creativity and incentives exerted a significant positive impact on perceived advertising value. The perceived advertising value of YouTube ads fails to influence customers’ inspired-by state directly; however, customer engagement positively mediates the relationship between the perceived advertising value of YouTube and customers’ inspired-by state. Finally, the customers’ inspired-by state is successfully converted into an inspired-to state.

This study has numerous practical implications for advertisers and marketers seeking to optimize social media advertising and marketing performance.

YouTube ads shape consumer behavior, empowering informed choices; authentic engagement transforms the advertising landscape.

This study is the first to examine the perceived advertising value of YouTube ads for eliciting customers’ inspired-by state, assessing the mediating role of customer engagement as a mechanism. Moreover, the authors examine the role of customers’ inspired-by state as a predictor of the inspired-to state.