The Pathway of Influence: How Digital Marketing Enhances Brand Equity Through Brand Awareness

Abstract

This study investigates the effect of digital marketing on brand equity with brand awareness as a mediating variable in the unique context of Khyber Pakhtunkhwa (KPK), Pakistan. As digital penetration accelerates across emerging markets, understanding how digital strategies build brand value in institutionally complex environments becomes critically important. Employing a quantitative, cross-sectional design, data were collected from 412 internet-active consumers across eight districts of KPK using a multi-stage sampling approach. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to test the hypothesized relationships. The findings reveal that digital marketing has a significant total effect on brand equity (β=0.182, p<0.05). Brand awareness partially mediates this relationship (β=0.487, p<0.05). Specifically, digital marketing significantly enhances brand awareness (β=0.694, p<0.05), which in turn positively impacts brand equity (β=0.702, p<0.05). The study contributes to digital marketing theory by validating and refining the mediation model in an under-researched regional context, offering practical insights for marketers navigating KPK's unique institutional and cultural landscape. It concludes that in emerging markets with institutional fragility, digital marketing must prioritize building legitimate, culturally congruent awareness as the primary pathway to sustainable brand equity.