Algorithmic Advertising and Student Behaviour in Nigeria: Implications for Youth Enterprise and Digital Markets

Abstract

Purpose: AI is reshaping the world of digital marketing and changing the way consumers are engaging with personalized content. This research examines the influence of AI marketing knowledge, algorithmic recommendations, trust in AI-mediated advertising, type of institution and entrepreneurial involvement on student consumers’ behaviours.
Design/Methodology: Using a convergent mixed methods design, survey data on 327 students from six tertiary institutions in Southwest Nigeria was complemented with qualitative interviews.
Findings: Results of quantitative analyses (ANOVA, regression, PROCESS Macro) and qualitative analysis grounded in TAM, TPB, Effectuation, and Opportunity Recognition indicate that AI awareness (β = 0.19, p < .001), recommendations (β = 0.22, p < .001), and trust (β = 0.24, p < .001) are significant predictors of purchase frequency, impulse buying, and platform engagement. Entrepreneurial students from both groups responded more strongly, with student entrepreneurs use algorithmic cues to prompt micro-venture possibilities.
Practical Implications: The findings indicate that marketers and platform developers can leverage AI-powered persuasion with transparency to enhance consumer learning and youth-focused digital entrepreneurship in developing countries.
Originality/Value: This paper conceptualizes the consumer–entrepreneur dual identity as a boundary modifier, rethinking AI-enabled marketing as a persuasion tool and informal market-learning system.