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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 Hammami
Faculty 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
42014 AMS World Marketing Congress - Lima, Peru
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
52014 AMS World Marketing Congress - Lima, Peru
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?
62014 AMS World Marketing Congress - Lima, Peru
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
72014 AMS World Marketing Congress - Lima, Peru
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
82014 AMS World Marketing Congress - Lima, Peru
Research Model
92014 AMS World Marketing Congress - Lima, Peru
Irritation
Promote
advertising the
Brand Fan page
Versus
Promote
advertising the
Website of the
brand
Originality
Liking
Credibility
Attitude toward
advertising
Intentions to
purchase the brand
Willingness to
recommend the
brand
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
102014 AMS World Marketing Congress - Lima, Peru
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
112014 AMS World Marketing Congress - Lima, Peru
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
122014 AMS World Marketing Congress - Lima, Peru
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
132014 AMS World Marketing Congress - Lima, Peru
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
142014 AMS World Marketing Congress - Lima, Peru
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
152014 AMS World Marketing Congress - Lima, Peru
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
162014 AMS World Marketing Congress - Lima, Peru
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
172014 AMS World Marketing Congress - Lima, Peru
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
182014 AMS World Marketing Congress - Lima, Peru
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
192014 AMS World Marketing Congress - Lima, Peru
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
202014 AMS World Marketing Congress - Lima, Peru
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
212014 AMS World Marketing Congress - Lima, Peru
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)
222014 AMS World Marketing Congress - Lima, Peru
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
232014 AMS World Marketing Congress - Lima, Peru
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
242014 AMS World Marketing Congress - Lima, Peru
Thank you
• For your attendence
• If you have any questions…
252014 AMS World Marketing Congress - Lima, Peru
Pelet
Ettis
mami
hwob

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

  • 1.
  • 2. 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 Hammami Faculty of Economic and Management Sciences of Tunis Alexandre Schwob Aalto University School of Business
  • 3. Agenda • Introduction • Research model • Metholodogy • Results • Discussion and Implications • Contributions • Limitations • Future Ways of Research 32014 AMS World Marketing Congress - Lima, Peru
  • 4. 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 42014 AMS World Marketing Congress - Lima, Peru
  • 5. 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 52014 AMS World Marketing Congress - Lima, Peru
  • 6. 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? 62014 AMS World Marketing Congress - Lima, Peru
  • 7. 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 72014 AMS World Marketing Congress - Lima, Peru
  • 8. 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 82014 AMS World Marketing Congress - Lima, Peru
  • 9. Research Model 92014 AMS World Marketing Congress - Lima, Peru Irritation Promote advertising the Brand Fan page Versus Promote advertising the Website of the brand Originality Liking Credibility Attitude toward advertising Intentions to purchase the brand Willingness to recommend the brand
  • 10. 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 102014 AMS World Marketing Congress - Lima, Peru
  • 11. 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 112014 AMS World Marketing Congress - Lima, Peru
  • 12. 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 122014 AMS World Marketing Congress - Lima, Peru
  • 13. 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 132014 AMS World Marketing Congress - Lima, Peru
  • 14. 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 142014 AMS World Marketing Congress - Lima, Peru
  • 15. 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 152014 AMS World Marketing Congress - Lima, Peru
  • 16. 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 162014 AMS World Marketing Congress - Lima, Peru
  • 17. 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 172014 AMS World Marketing Congress - Lima, Peru
  • 18. 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 182014 AMS World Marketing Congress - Lima, Peru
  • 19. 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 192014 AMS World Marketing Congress - Lima, Peru
  • 20. 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 202014 AMS World Marketing Congress - Lima, Peru
  • 21. 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 212014 AMS World Marketing Congress - Lima, Peru
  • 22. 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) 222014 AMS World Marketing Congress - Lima, Peru
  • 23. 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 232014 AMS World Marketing Congress - Lima, Peru
  • 24. 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 242014 AMS World Marketing Congress - Lima, Peru
  • 25. Thank you • For your attendence • If you have any questions… 252014 AMS World Marketing Congress - Lima, Peru Pelet Ettis mami hwob