This document discusses the value of social media, specifically Facebook, as a marketing tool for organizations. It outlines different types of organizations and their objectives for using social media. It then describes various Facebook tools and how organizations can use them, including pages, ads, promoted posts, and open graph, to achieve objectives like brand awareness, customer acquisition and retention, and sales. The document concludes that the value of Facebook for an organization should be assessed relative to other social media platforms.

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The value of social media as a
marketing tool for third parties
PG Synoptic April 2015, Dr Sarah Quinton
Oxford Brookes University

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Agenda
• Some thoughts and ideas about the use of
social media as a marketing tool in relation to
organisations’ use of Facebook

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(Deloitte, 2014http://www2.deloitte.com/content/dam/Deloitte/uk/Documents/technology-media-telecommunications
/deloitte-uk-global-economic-impact-of-facebook.pdf,)

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Facebook can be viewed as
a connective tissue between
organisations and audiences

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The characteristics of social media
• Shareability
• Connectivity and extended reach
• Immediacy
• Multi-modal
• Text/image/sound based
• = Influence
• (Henig-Thurau et al., 2010, 2013; Dholakia et al., 2010)

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Strategy versus execution in use of Social Media by business

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Organisation types and objectives for
social media
• Types
• G2C –
• B2C –
• B2B –
• P2P –
• Non-profits
• Objectives
• Brand recognition
• Acquisition
• Retention
• Sales
• Call to action

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Impact of social media interaction for
an organisation
Like
Increase
followers
Company post
appears on
news feeds
Raised brand
awareness
Consideration
Set/FOM
ACTION

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Social media and Business Performance Capabilities

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Paniagua and Sapena 2014
• Social capital
• Revealed preferences
• Social marketing
• Social Corporate networking
• ‘Empirical evidence suggests that financial
performance is affected by user-generated
content in social media’ (Paniagua and Sapena,
2014:725)

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The marketing effects of
Facebook for business

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General Business use of Facebook
• To strengthen brand identity and brand
recognition
• To cut through competitor activity
• To humanise ‘Big’ corporations
• Lowers barriers for SMEs
• Use of user generated content/publishing as
micro-marketers
– Co-creation of ideas
(Deloitte, 2014)

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Increasing Targeting accuracy
• Ability to target posts to a subset of people
who like a page.
• Implications – greater efficacy in
communications
– e.g. Smart publishing – the use of popular news
feeds which resonate with subsections of people
• Reasoning- engagement activity

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Insight provided by analytics
• Who might be sharing a company’s URL
– Are they key influencers?
• Organic traffic versus paid for traffic
– Are you spending resources wisely?
• Which devices are used to access your
company’s website
– Are you optimised for these?

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B2C use of Facebook
• Increase and re-inforce Brand via fan pages
• Drive traffic to website for ecommerce
• Acquisition and retention of customers
• Data collection for insight

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B2B Use of Facebook
• Raise and reinforce Brand awareness
• Develop leads
• Through driving traffic to corporate website
• Data collection for insight

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Public sector use of Facebook
• Raise citizen engagement, e.g. voting
• Distribution channel for health information
• Acquisition strategy

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Specific Facebook tools

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Facebook Fan Page content, perceived
value –consumers’ perspective
• Relevancy
• Timeliness
• Credible
• Informative
• Increased attention to that brand
• Influence of referrals
• (Gaber and Wright, 2014)

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Facebook Ads - Marketplace
• Purpose
– Increase likes
– Drive website clicks
– New leads
• How
– Demographic targeting
– Fixed budget
– Ad testing
– Built in analytics

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Facebook Promoted Post
• Purpose
– Extending reach
– Improves chance of
being seen
• How
– Flat rate fee
– Single post to specific
number of users
– Time limited

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Sponsored Stories
• Purpose
– Encourage copy-cat
action
• How
– Which of your friends is
‘doing ‘ something, e.g.
gaming ,liking,
redeeming an offer
– Stories get higher
positioning

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Facebook Open Graph
• Purpose
– Brand reinforcement
• How
– Firm creates third party
app
– Any activity with app a
Facebook notice is
posted
– Very common in gaming

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Facebook Exchange (FBX)
• Purpose
– Prompted ad to encourage sale completion
• How
– Advertisers target audience based on e-
commerce uncompleted web history data

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The value of Facebook should be assessed relative
to the value and relevancy of other social media
platforms for a business.

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Thank you
Questions?
@quinton_digital
sequinton@brookes.ac.uk

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References
• Deloitte, 2014,
http://www2.deloitte.com/content/dam/Deloitte/uk/Docu
ments/technology-media-telecommunications/deloitte-uk-
global-economic-impact-of-facebook.pdf
• Gaber, H. R., and Wright, L. T. (2014), Fast food advertising
in social media: a case study on Facebook in Egypt, Journal
of Business and Retail management Research, 9,1, 52-63.
• Paniagua, J., and Sapena, J. (2014), Business performance
and social media: love or hate?, Business Horizons, 57,6,
719-728.
• Pozza, I. D. (2014), Multichannel management gets social,
European Journal of Marketing, 48,7/8, 1274-1295.