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A Meta-Analysis of the Effects of
Brand Owned Social Media on Social
Media Engagement and Sales
Do owned social media pay off?
How can we maximize this impact?
Brand Social Media
Owned Social
Media
Social Media
Engagement
Sales
• Firm-initiated content shared on social
media
• Consumer reactions to firm-initiated
communication such as likes,
comments, shares, retweets, and posts
on brand-controlled channels
• Sales, the number of categories sold,
sales rank, etc.
Are Owned Social Media Effective?
1. Yes, owned social media do create
social media engagement
2. But the elasticity for sales is even larger
(p < .001)!
.137***
.353***
Social Media
Engagement
Owned Social Media
Sales
Social media generate engagement but do not necessarily lift sales
Popular belief
Key findings
Which content to use…
…to stimulate social media engagement?
Emotional content is more effective than other
types of content, most likely because it creates
emotional arousal that fosters message liking and
sharing
…to affect sales?
Informational content is more effective than
emotional and deals content, as it aids consumers
in their purchase decisions
Key finding
Key finding
Popular belief
Popular belief
Communicating deals are one of the top three
reasons for firms to use social media
“End your posts with questions” and other
social content advice can help secure social media
engagement
Does Context Matter?
Brand Industry Platform Country
The effect of owned social
media on sales is stronger
in smaller brand
communities than in
larger ones
Implications
Key
findings
It is more important to
focus on the quality rather
than quantity of followers.
This helps managers to
better address consumer
needs and create more
authentic interactions
The effect of owned social
media on sales is stronger
for new products than
mature products
Managers can benefit
from creating content
about new products on
social media
Owned social media are
weaker on microblogs for
social media engagement
than on social networks
given closer ties
Managers need to
address the platforms that
are most appropriate by,
for example, relying on
social networks
(Facebook) to stimulate
social media engagement
Owned social media are
more effective for sales in
countries with higher
mobile phone
penetration and
higher power distance
Because many platforms
are international, using
one global social media
strategy is tempting, but
managers cannot count on
the same type of response
across countries

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Liadeli, Sotgiu, and Verlegh (2022).pptx

  • 1. A Meta-Analysis of the Effects of Brand Owned Social Media on Social Media Engagement and Sales Do owned social media pay off? How can we maximize this impact?
  • 2. Brand Social Media Owned Social Media Social Media Engagement Sales • Firm-initiated content shared on social media • Consumer reactions to firm-initiated communication such as likes, comments, shares, retweets, and posts on brand-controlled channels • Sales, the number of categories sold, sales rank, etc.
  • 3. Are Owned Social Media Effective? 1. Yes, owned social media do create social media engagement 2. But the elasticity for sales is even larger (p < .001)! .137*** .353*** Social Media Engagement Owned Social Media Sales Social media generate engagement but do not necessarily lift sales Popular belief Key findings
  • 4. Which content to use… …to stimulate social media engagement? Emotional content is more effective than other types of content, most likely because it creates emotional arousal that fosters message liking and sharing …to affect sales? Informational content is more effective than emotional and deals content, as it aids consumers in their purchase decisions Key finding Key finding Popular belief Popular belief Communicating deals are one of the top three reasons for firms to use social media “End your posts with questions” and other social content advice can help secure social media engagement
  • 5. Does Context Matter? Brand Industry Platform Country The effect of owned social media on sales is stronger in smaller brand communities than in larger ones Implications Key findings It is more important to focus on the quality rather than quantity of followers. This helps managers to better address consumer needs and create more authentic interactions The effect of owned social media on sales is stronger for new products than mature products Managers can benefit from creating content about new products on social media Owned social media are weaker on microblogs for social media engagement than on social networks given closer ties Managers need to address the platforms that are most appropriate by, for example, relying on social networks (Facebook) to stimulate social media engagement Owned social media are more effective for sales in countries with higher mobile phone penetration and higher power distance Because many platforms are international, using one global social media strategy is tempting, but managers cannot count on the same type of response across countries