Social networks
and online
advertising:
should companies
promote their
brand fan page or
their brand
website?
Jean-Eric Pe...
Agenda
• Introduction
• Research model
• Metholodogy
• Results
• Discussion and Implications
• Contributions
• Limitations...
Some facts: Social media &
Advertising
• Facebook accounts for 90% of all time spent
on social media sites
• In 2012, Face...
Some facts: Advertising & Fan Page
• Advertising can be done through banners that
can either promote a brand fan page or a...
Brand Website or Fan Page?
• Companies can either choose
– banners bringing consumers to the fan page
– banners that promo...
Stakes in online Advertising on Social
Networks
• Consumers already exchange their
experiences and share their impressions...
The Advertising Efficiency on the
Social Networks
• Evaluating the efficiency of the advertising towards
Brand Websites vs...
Research Model
92014 AMS World Marketing Congress - Lima, Peru
Irritation
Promote
advertising the
Brand Fan page
Versus
Pr...
Consumers’Attitude Towards
Advertising
• Attitude toward the advertising (AA) =
relevant indicator of advertising efficien...
Credibility
• A source perceived as very credible is more
effective than a source with poor credibility
– It improves the ...
Irritation
• Increase in the level of irritation can lead to a
general reduction of the efficiency of the
advertising
• Ir...
Originality
• « The element that is rarely met by users when
considering other products that have the same
function »
• Ad...
Liking
• Consumers are more likely to like an ad when
they are in comfortable psychological states
• Psychological states ...
Intention to Purchase the Brand
• Significant relationship between credibility,
originality, liking, attitude toward the
a...
Willingness to Recommend the Brand
• The great majority of purchase decisions are
influenced by the direct recommendation ...
Metholodogy
• Convenience sampling of social media users
• Invitation sent on Facebook
• Online questionnaire
• Instructio...
Metholodogy
• Distinction between respondents who had
visited the fan page of the brand and the ones
who had visited the b...
Results and Discussion
• Sample size: 154 participants
• Test hypotheses:
– H.1 to H.5: series of tests of comparisons of ...
Discussion and Implications
• Advertising bringing consumers to a brand Fan Page
is perceived as being less irritating tha...
Discussion and Implications
• For consumers who are heavy social media
users, companies should rely primarily on
advertise...
Contributions, Limitations and Future
Ways of Research
• Theoretical: Criteria such as attitude,
perceived credibility, ir...
Limitations
• Respondents were in a situation where they
did not decide by themselves to choose to
click banners
• Small s...
Future Ways of Research
• Achieve a higher representativeness of Internet users
• Improving the measures of credibility an...
Thank you
• For your attendence
• If you have any questions…
252014 AMS World Marketing Congress - Lima, Peru
Pelet
Ettis
...
Social networks and online advertising: should companies promote their brand fan page or their brand website?
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Social networks and online advertising: should companies promote their brand fan page or their brand website?

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

  1. 1. 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
  2. 2. Agenda • Introduction • Research model • Metholodogy • Results • Discussion and Implications • Contributions • Limitations • Future Ways of Research 32014 AMS World Marketing Congress - Lima, Peru
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. 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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