Social networks and online advertising: should companies promote their brand fan page or their brand...

Social networks and online

advertising: should companies

promote their brand fan page or

their brand website?

Jean-Eric Pelet LEMNA, IAE-IEMN – Nantes University, France

Saïd Ettis Higher institute of Management, Gabès University, Tunisia

Salma HammamiFaculty of Economic and Management Sciences of Tunis

Alexandre Schwob Aalto University School of Business

Agenda

• Introduction• Research model• Metholodogy• Results• Discussion and Implications• Contributions• Limitations• Future Ways of Research

32014 AMS World Marketing Congress - Lima, Peru

Some facts: Social media & Advertising

• Facebook accounts for 90% of all time spent on social media sites

• In 2012, Facebook earned a total of 4.3 billion U.S. dollars in worldwide advertising revenue (Statista, 2013b)

• Our interrogation: Understanding what drives consumers to appreciate or reject advertisements on social network sites


Some facts: Advertising & Fan Page

• Advertising can be done through banners that can either promote a brand fan page or a brand website

• The fan page is a page located in the social media that is managed by a brand and that enables brands to communicate with their fans directly


Brand Website or Fan Page?

• Companies can either choose – banners bringing consumers to the fan page– banners that promote the brand website

• Research objective: which of these two options will best support the perceived credibility, liking and originality of the advertising, and will minimize irritation?


Stakes in online Advertising on Social Networks

• Consumers already exchange their experiences and share their impressions and feelings about brands (Mangold and Faulds, 2009)

• Companies now have to deal with an interactive conversation in which consumers take control (Wheeler, 2009)

• First stake: validating consumers preference for fan pages


The Advertising Efficiency on the Social Networks

• Evaluating the efficiency of the advertising towards Brand Websites vs. Fanpage on:

• Perceived originality, • Perceived credibility, • Irritation, • Attitude toward the advertising and • Liking

– And…• Intention to purchase the brand• Willingness to recommend the brand


Research Model


Consumers’Attitude Towards Advertising

• Attitude toward the advertising (AA) = relevant indicator of advertising efficiency

Hypothesis:• AA that brings consumers to the "fan page" is

more positive than the one toward the ad bringing consumers to the brand website – No interruption of the browsing experience on

social media


Credibility• A source perceived as very credible is more

effective than a source with poor credibility– It improves the attitude to the brand, its image and

purchase intention

Hypothesis:• The consumer who faces the ad that brings him

to the fan page is more willing to elaborate in a way or another and be persuaded– The ad in this situation is judged as more credible


Irritation• Increase in the level of irritation can lead to a

general reduction of the efficiency of the advertising

• Irritating ad: provoking, causing displeasure and momentary impatience

Hypothesis:• Users obliged to visit the Website of the brand

are more irritated than users who can stay on Facebook


Originality• « The element that is rarely met by users when

considering other products that have the same function »

• Advertising efficiency depends on the perceived originality of the advertising

Hypothesis:• The importance of feeling a sense of belonging to

Facebook• Sense of belonging is explainable through

potential “friends” that could include connection to companies on the network


Liking• Consumers are more likely to like an ad when

they are in comfortable psychological states• Psychological states are more likely to occur with

potential or existing Facebook friends (increase of self esteem)

Hypothesis:• Consumers are more likely to like an ad when

they are brought to a fan page of a company on the social media than when they are brought to a brand website


Intention to Purchase the Brand

• Significant relationship between credibility, originality, liking, attitude toward the advertising and intention to purchase the product

Hypothesis:• Perceived irritation when facing an ad can

have a negative impact on the intention to purchase the related product


Willingness to Recommend the Brand

• The great majority of purchase decisions are influenced by the direct recommendation of a close relation: the Word-of-mouth communication (WOM or e-WOM)

Hypothesis:• The exchanging information among

consumers about the visited brand will be encouraged if the ad is positively evaluated


Metholodogy

• Convenience sampling of social media users• Invitation sent on Facebook• Online questionnaire• Instruction

– Click an advertisement on Facebook and pay attention to whether the advertising brought you to visit the fan page of a brand or to its website;

– Return then to the survey invitation and click the link to the questionnaire


Metholodogy

• Distinction between respondents who had visited the fan page of the brand and the ones who had visited the brand website made thanks to a filtering question


Results and Discussion• Sample size: 154 participants• Test hypotheses:

– H.1 to H.5: series of tests of comparisons of means• H.1 (Consumers'Attitude Towards Advertising); H.3

(Irritation); H.4 (Originality) and H.5. (Liking ) Confirmed• H2 credibility : test of comparison of means: T = 2.496; p >

0.1) Rejected– H.6 (Intention to Purchase the Brand) and H.7

(Willingness to Recommend the Brand), two multiple linear regressions

• Partially confirmed


Discussion and Implications• Advertising bringing consumers to a brand Fan Page

is perceived as being less irritating than advertising bringing consumers to the related brand website

• Perceived credibility, originality, liking, attitude toward the advertising: positively affect behavioral intentions – Which encourages purchase intentions and brand

recommandation

• Conversely: intentions are negatively influenced by the irritation when being exposed to the ad


Discussion and Implications

• For consumers who are heavy social media users, companies should rely primarily on advertisements bringing consumers to a brand fan page

• By allowing consumers to easily reach a Fan Page from their phone or their tablet, companies can craft higher purchase or recommendation intentions


Contributions, Limitations and Future Ways of Research

• Theoretical: Criteria such as attitude, perceived credibility, irritation, originality and liking toward the ads are relevant dimensions to investigate advertising on social media

• Managerial: Practitioners can develop some techniques to generate more traffic on their websites (contextualized APIs?/mini Casino)


Limitations

• Respondents were in a situation where they did not decide by themselves to choose to click banners

• Small sample of convenience can also affect the validity of the results

• Measure of the credibility and the liking were estimated with a low number of items


Future Ways of Research• Achieve a higher representativeness of Internet users• Improving the measures of credibility and liking by

using other measurement scales• Examine the role of other independent variables

such as the intrusive aspect, the attention and the memorization of advertisements

• Examine moderating variables such as demographics and familiarity with the social media


Thank you

• For your attendence• If you have any questions…


Jean–Eric PeletSaid Ettis

Salma HammamiAlexandre Schwob

Social networks and online advertising: should companies promote their brand fan page or their brand...

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