Social media advertising effectiveness

1. SSoocciiaall MMeeddiiaa AAddvveerrttiissiinngg
Henna Bakshi, Sarah Dyke, Alexandra Griffin Video 1:38

2. TThheeoorreettiiccaall DDeeffiinniittiioonnss
The return on investment
of a campaign – the
amount of money that is
made
What size audience the
campaign reaches
Whether or not the
campaign reaches a well-defined
target audience

3. OOppeerraattiioonnaall DDeeffiinniittiioonnss
• ROI is measured in dollar amounts
and the amount of influence the
campaign has on consumer
behavior.
Size of audience reached is
measured by the number of people
who saw the advertisements.
Quality of audience reached is
measured by things like audience
interaction and audience loyalty
using polls and surveys.

4. PPrreevviioouuss FFiinnddiinnggss
Facebook is the most popular social
media website with 310 million daily
unique visitors in 2011
75% of Brand ‘Likes’ came from
advertisements in 2011
71% of companies used Facebook in 2011
Huffington Post

5. RReesseeaarrcchh QQuueessttiioonnss
 RQ 1: Is a person’s age related to the number
of social media accounts he or she has?
 RQ 2: Is a person’s age related to his or her
income level?
 RQ 3: Is a person’s gender related to the
frequency that he or she clicks on a social
media advertisement?
 RQ 4: Is a person’s gender related to the
likelihood that he or she will purchase
something advertised on a social media
account?
 RQ 5: Is the likelihood that a person will
purchase something online after clicking on a
social media advertisement related to the
number of social media accounts he or she
has?
 RQ 6: Does the number of social media
accounts a person has affect the amount of
time he or she spends on social media, per
day?

6. HHyyppootthheesseess
 H1: A person’s age affects the number of
social media accounts he or she has.
 H2: A person’s age is related to the amount
of yearly income he or she makes.
 H3: A person’s gender is related to the
frequency he or she clicks an ad on his or her
social media account.
 H4: A person’s gender is related to the
number of times he or she makes a purchase
after clicking an ad on a social media account.
 H5: The likelihood of someone purchasing
something online after clicking an ad on his or
her social media account is correlated with
the number of social media accounts he or
she has.
 H6: The amount of social media accounts one
has affects the amount of time he or she
spends using social media, per day.

7. MMeetthhooddss:: SSaammppllee
N = 50 Males (50%); Females (50%)
Age range = 13-65
49% of interviewees were in the 20-29 age group.

8. MMeetthhooddss:: PPrroocceedduurree
Convenience
volunteer
sampling
• We handed out
50 tangible
surveys to our
friends and
family.

9. HH11:: AAggee aaffffeeccttss tthhee nnuummbbeerr ooff ssoocciiaall mmeeddiiaa
aaccccoouunnttss yyoouu hhaavvee..
Result: Yes it does.
Sig. level: .012 = 98.8%
confidence
The older you are, the fewer
number of social media accounts
you have.

10. Age affects the nnuummbbeerr ooff ssoocciiaall mmeeddiiaa
aaccccoouunnttss yyoouu hhaavvee..

11. HH22:: AAggee aaffffeeccttss yyoouurr iinnccoommee..
Yes it does.
Sig.: .004 = 99.6% confidence
Positive correlation= the older
you are, the more money you
make.

12. HH22:: AAggee aaffffeeccttss yyoouurr iinnccoommee..

13. RReellaattiioonnsshhiipp BBeettwweeeenn
HH11 aanndd HH22
Younger people own more social media
accounts, but older people have more
money to spend. Therefore…

14. RReellaattiioonnsshhiipp bbeettwweeeenn HH11 aanndd HH22
Social media ads are targeting a younger
audience, when in actuality people with more
income are not using social media as much.

15. HH33:: GGeennddeerr aaffffeeccttss tthhee ffrreeqquueennccyy tthhaatt aa ppeerrssoonn
cclliicckkss oonn aann aadd wwhhiillee uussiinngg aa ssoocciiaall mmeeddiiaa aaccccoouunntt..
• Result: Gender affects frequency, but not at a high significance.
• Sig. Level: .145 = 85.5% confidence
• Males tend to click on ads more than females, but not by a lot.

16. GGeennddeerr aaffffeeccttss tthhee ffrreeqquueennccyy tthhaatt aa ppeerrssoonn cclliicckkss
oonn aann aadd wwhhiillee uussiinngg aa ssoocciiaall mmeeddiiaa aaccccoouunntt..

17. HH44:: GGeennddeerr aaffffeeccttss tthhee nnuummbbeerr ooff ttiimmeess aa
ppeerrssoonn mmaakkeess aa ppuurrcchhaassee aafftteerr cclliicckkiinngg oonn aann aadd
vviiaa aa ssoocciiaall mmeeddiiaa aaccccoouunntt..
Yes, gender does affect online purchases via social media
ads.
•FSeigm. aLleevse ml: a.0k3e4 m = o9r6e. 6p%ur ccohnafsiedse nvciae
social media ads than males.

18. Gender affects the nnuummbbeerr ooff ttiimmeess aa ppeerrssoonn
mmaakkeess aa ppuurrcchhaassee aafftteerr cclliicckkiinngg oonn aann aadd oonn
tthheeiirr ssoocciiaall mmeeddiiaa aaccccoouunntt..

19. RReellaattiioonnsshhiipp BBeettwweeeenn HH33 aanndd HH 44
 Even though males clicked on social media ads more
than females, females made significantly higher
number of purchases via social media ads than males.

20. H5: The number of ssoocciiaall mmeeddiiaa aaccccoouunnttss
oonnee hhaass iiss ccoorrrreellaatteedd wwiitthh tthhee nnuummbbeerr ooff
ppuurrcchhaasseess tthheeyy mmaakkee..
Yes, the more social media accounts one has, the
more likely it is that they make a purchase via social
media ads.
Sig: .011 = 98.9% confidence

21. m The moorree ssoocciiaall mmeeddiiaa aaccccoouunnttss yyoouu
hhaavvee,, tthhee mmoorree lliikkeellyy yyoouu aarree ttoo mmaakkee aa
ppuurrcchhaassee vviiaa aa ssoocciiaall mmeeddiiaa aadd..

22. H6: The number ooff ssoocciiaall mmeeddiiaa aaccccoouunnttss oonnee
hhaass aaffffeeccttss tthhee aammoouunntt ooff ttiimmee oonnee ssppeennddss oonn
ssoocciiaall mmeeddiiaa..
Yes, the more social media accounts you have, the
more time you spend on social media.
Sig: .000 = 100% confidence

23. m The moorree ssoocciiaall mmeeddiiaa aaccccoouunnttss yyoouu
hhaavvee tthhee mmoorree ttiimmee yyoouu ssppeenndd oonn
ssoocciiaall mmeeddiiaa..

24. RReellaattiioonnsshhiipp BBeettwweeeenn HH55 aanndd HH66
Individuals who have a greater number of social
media accounts spend more time on those
accounts and are exposed to a larger number of
advertisements on those social media sites and
are more likely to be persuaded to make a
purchase.