Purpose: This study examined the relationship between perceived personalization and positive electronic word of mouth, as well as the mediating impact of online advertising engagement and the moderating effect of online users' modes on that relationship. The theory of presence serves as the foundation for the relationships among variables. Design/methodology/approach: A quasi-experimental research design was used to carry out the investigation. The analysis was performed on 865 valid responses from the treatment and control groups. Findings: Results showed no mediation for the control group and partial mediation for the treatment group. The treatment group's moderated mediation relationships were found as significant, but the control group's relationships were insignificant. The findings also supported the hypothesis that there is a significant association between perceived personalization and online advertising engagement for playful online users and a weak relationship for serious online users. On the mediation link of online advertising engagement between perceived personalization and positive electronic word of mouth, the conditional indirect influence of �online users' modes� has been specifically studied. Originality/value: This study is the first to examine online advertising through the lens of the theory of presence and offers a moderated-mediation model of Online Users' Modes and Online Advertising Engagement, which is a valuable addition to the marketing body of knowledge. © 2022, Emerald Publishing Limited.