Social Information in Facebook News Feed Ads: Effects of Personal Relevance and Brand Familiarity

The current research examined effects of the “social information” feature in Facebook news feed ads, in relation to personal relevance and brand familiarity. Ads with social information did not always lead to more favorable advertising and brand perceptions. However, interaction effects were found among social information, personal relevance, and brand familiarity, in terms of attitude-toward-the-ad and purchase intention. Social information could help create more favorable advertising responses for unfamiliar and low-relevance brands.     

Social media marketing: Comparative effect of advertisement sources

This study was conducted to conceptualise advertising value and consumer attitudes towards advertisements. The research was developed to reveal the effect of the source of advertisements on credibility perception through the theoretical framework of Ducoffe's (1995) advertising value model. The research objective is to identify source derogation in terms of credibility to create advertising value and a positive attitude towards advertisements launched through the Facebook social network. In this regard, the study used three distinct sources to generate and introduce product promotional messages: an associative reference group, an aspirational reference group and marketers themselves. This research revealed significant differences in developing advertisement value and forming a favourable attitude towards advertisements when the product-related message was developed by these three distinct groups, who have different source derogations.     

Targeting college students on Facebook? How to stop wasting your money

While Facebook usage has seen explosive growth, scant research has explored returns on advertising dollars marketers invest in this emerging medium. Our two-stage study of 18- to 25-year-old college students suggests that many of the advertising dollars consumer goods firms spend on Facebook are likely wasted. This study highlights that, in addition to staying in touch with friends and relatives, Facebook users are primarily motivated by three desires: (1) to voyeuristically peer into others’ lives, (2) to create a distinctive identity for themselves, and (3) to act on their inner narcissistic tendencies. These motivations also make them poor prospects for advertisers, as users seem disinterested in Facebook ads and disengaged from marketers’ attempts to build brands. Herein, we discuss challenges for marketers, as well as opportunities for building brands and driving sales via Facebook.     

On the Value Relevance of Retailer Advertising Spending and Same-store Sales Growth

In response to recent calls to study factors that determine a retailer's stock price, this study draws on signaling theory to examine the impact of two key marketing metrics that are widely disclosed by retailers to investors, advertising spending and growth in same-store sales (COMPS), and highlights the moderating role of various firm- and sector-specific factors. Using a stock-response model estimated on a sample of 1,646 observations for 257 retailers, the authors find that the value relevance of advertising spending and COMPS depends on the financial condition of, and the competitive pressures faced by, the retailer. In addition, the positive effect of COMPS on stock returns is found to be stronger in the presence of decreases in advertising spending.     

College Student Attitudes Toward Advertising's Ethical, Economic, and Social Consequences

Little research has focused on college students' attitudes toward advertising's ethical, economic, and social consequences over the last two decades. Exploring and tracking the attitudes of college students toward advertising is important, however, for several reasons. College students represent an important segment of consumers for many marketers, negative attitudes toward advertising on the part of college students could lead to their support for restrictive regulation in the future, and there are potentially negative consequences concerning the effects of advertising that college students uniquely share with other youth markets. The results of this study – a differentiated replication of an earlier study of college students in the late 1970s – indicate the salience of various beliefs that help determine attitudes toward advertising and provide a useful benchmark for future studies. The implications of the study's findings for advertising practice and future regulation are discussed.     

A Factor Analysis of College Student Attitudes toward Advertising

Eighty college students were administered 26 Likert-type statements designed to measure their attitudes toward advertising along four different dimensions: 1) economic effects of advertising, 2) social effects of advertising, 3) ethics of advertising and 4) regulation of advertising. Analysis of the responses revealed five clusters or “types” of individuals based on their attitudes. While all five types exhibited some negative feelings toward advertising the degree of, and basis for, their criticisms varied considerably. Findings such as these indicate the need for a better understanding of the reasons for student dissatisfaction with the activities of the advertising community and a more comprehensive program for the dissemination of information about advertising and its activities to a wider cross-section of the college student today.     

Attracting Comments: Digital Engagement Metrics on Facebook and Financial Performance

Many companies are now using social media such as Facebook for advertising and marketing purposes. To understand how using social media affects a company's business performance from a digital engagement perspective, this study examines how user comments on company Facebook posts influence company revenue. S&P 500 companies' revenue information in a five-year time span (from 2010 to 2015) is collected, and this information is matched to more than 24 million user comments directed at these companies' Facebook posts. The hypotheses are tested using static (fixed effects [FE] and random effects [RE]) as well as dynamic (generalized method of moments [GMM]) panel data analyses in econometric methods. The estimation results indicate that digital engagement volume, defined as the total number of Facebook comments a company received, has a significant and positive effect on revenue. In addition, digital engagement valence, defined as the average tone of Facebook comments directed toward a company, also has a significant and positive effect on revenue. Implications and directions for future research are discussed.     

Habitus,doxa, and ethics: insights from advertising in emerging markets in the Middle East and North Africa

The advertising industry influences culture through its pervasive messages that reflect and shape culture and through the role that advertising practitioners play as cultural intermediaries. As such, the manner in which advertising practitioners confront ethical issues is important. Drawing on Bourdieu's theory of practice, this paper examines how the perceptions, practices, and discourses of advertising practitioners in the Middle East and North Africa influence the advertising field's habitus and doxa. It demonstrates that understanding ethical problems is enhanced by examining them as macro, meso, and micro phenomena. However, that is not enough. Understanding how factors at the three levels interrelate, interact, and reinforce one another is critical to understanding the habitus. Underlying biases that shape the doxa can be explained by ideas central to behavioral ethics. A better understanding of the forces that shape the habitus and doxa with respect to ethics is key to moving toward a culture that encourages ethical advertising practices.     

Ethics in Advertising Decisionmaking: Implications for Reducing the Incidence of Deceptive Advertising

A survey of 206 advertising professionals assessed the relative influence of four factors (ethics, legal considerations, business considerations, and anticipated approval of management/peers) on decision-making about advertising content and policy. Most professionals were influenced only by legal considerations; ethics exerted a relatively minor role. Age and length of professional experience were related to the factor that exerted the dominant influence on an individual's decisionmaking. Those who were youngest and had least professional experience were most influenced by business considerations. Professionals who were slightly older with slightly more experience were most influenced by legal considerations. Finally, those professionals who were the oldest and had the most experience were primarily influenced by ethical considerations. The results are used as basis for identifying specific actions in professional training, advertising agency management, and advertising regulation which have potential to reduce the incidence of deceptive advertising.     

Courting Women Using Sports Marketing: A Content Analysis of the US Open

As surprising as it may sound, sales to the female sports market are almost equal to sales to the male sports market. Also, an increasing percentage of viewers of various broadcast sports events consist of females, even in male-dominant sports like football and baseball. Couple these with the increasing role that females play in purchasing decisions for a variety of products, and sports marketing emerges as an effective vehicle to reach this lucrative market. To investigate the extent to which marketers are taking advantage of this promotion strategy, a two-step project was conducted. First, gender differences with regard to advertising were delineated based on an extensive literature review. Second, a content analysis of commercials shown during the men's and women's tennis final in the 1990 US Open was performed. The results of the content analysis were contrasted with the expected findings indicated by the literature review. Only one product was found to be specifically targeted to women. Moreover, very few differences were found between the advertising strategy in both finals. The results indicate that to a large extent, marketers are not taking advantage of sports marketing targeted to women, and continue to use sports marketing to target the traditional male sports fan.     

Mobile Advertising: An Empirical Study of Temporal and Spatial Differences in Search Behavior and Advertising Response

Using clickstream panel data from an automobile ad campaign conducted on a mobile platform, we investigate the relevance of mobile advertising, the interrelationships between ad content, information search behavior, and advertising response. Temporally, we compare mobile users' search behavior and advertising response before and during a focal campaign event of an automobile show. Spatially, we examine their search behavior and advertising response in relation to their proximity to the show's location. Estimation results from individual-user random effects binary Logit and Poisson count models show that users' responses to mobile advertising are related to the depth and breadth of search and the ad content. While informative and persuasive ad content exhibits differential non-linear effects on the depth and breadth of search, they have similar effects on advertising response. Interestingly, spatial and temporal proximity of mobile ad campaigns may not lead to increased relevance of mobile campaigns; it depends on the type of ad content and the type of measure used to assess relevance.     

Does telic/paratelic user mode matter on the effectiveness of interactive internet advertising? A reversal theory perspective

Drawing on reversal theory (Apter, 2007), the current research proposes that internet users' metamotivational state (telic vs. paratelic) determines advertising interactivity's effectiveness. An online field experiment involving 141 Facebook and Twitter users tests this proposition. Research findings support telic state consumers form more positive attitudes toward a low-level interactive ad, whereas paratelic state consumers form more positive attitudes toward a high-level interactive ad. Further, this research shows that an arousal seeking tendency mediates the metamotivational state's impact on ad attitude.     

Factors affecting attitudes and behavioural intention towards social networking advertising: a case of Facebook users in South Korea

This study examined factors (e.g., ad values and social networking advertising characteristics) influencing consumers' attitudes and behavioural intention towards three types of social networking advertising (SNA) on Facebook – home page ad, social impression ad, and organic impression ad. Findings demonstrate that peer influence had the most significant impacts on attitude and behavioural intention across all types of SNA. The significant interaction term of invasiveness and privacy concern indicates that both attitude and behavioural intention were diminished, particularly when perceived invasiveness and privacy concern were high simultaneously. In addition, results suggest that attitudes towards the ad played a mediating role between SNA characteristics and behavioural intention. Lastly, among the types of SNA, consumers preferred organic impression ads that featured friends' names on their newsfeed more than paid ads located on the sidebar of their Facebook pages.     

The Interaction Effects of Social Norms and Dissatisfaction toward Drinking on Willingness to Visit and Comment on Binge Drinking Prevention Facebook

This study examines motivational factors (Facebook prevention-social norms and dissatisfaction with drinking experiences) to encourage college students to visit and comment on a binge drinking prevention Facebook page with an experimental design. The study found that when college students were lowly dissatisfied with drinking experiences, they significantly changed their willingness to visit and comment on the Facebook page promoted in the binge drinking prevention PSAs based on prevention-social norms. However, those who are highly dissatisfied with alcohol drinking did not change their willingness to visit and comment on the Facebook page based on the levels of prevention-social norms. This study discusses the role of prevention-social norms and dissatisfaction with alcohol drinking in engaging with binge drinking prevention Facebook page, guided by the Uses and Gratification model and elaboration likelihood model (ELM).     

The Ethics of Food Advertising Targeted Toward Children: Parental Viewpoint

The children’s market has become significantly more important to marketers in recent years. They have been spending increasing amounts on advertising, particularly of food and beverages, to reach this segment. At the same time, there is a critical debate among parents, government agencies, and industry experts as to the ethics of food advertising practices aimed toward children. The␣present study examines parents’ ethical views of food advertising targeting children. Findings indicate that parents’ beliefs concerning at least some dimensions of moral intensity are significantly related to their ethical judgments and behavioral intentions of food advertising targeting children as well as the perceived moral intensity of the situation.     

Unraveling the Personalization Paradox: The Effect of Information Collection and Trust-Building Strategies on Online Advertisement Effectiveness

Retailers gather data about customers’ online behavior to develop personalized service offers. Greater personalization typically increases service relevance and customer adoption, but paradoxically, it also may increase customers’ sense of vulnerability and lower adoption rates. To demonstrate this contradiction, an exploratory field study on Facebook and secondary data about a personalized advertising campaign indicate sharp drops in click-through rates when customers realize their personal information has been collected without their consent. To investigate the personalization paradox, this study uses three experiments that confirm a firm's strategy for collecting information from social media websites is a crucial determinant of how customers react to online personalized advertising. When firms engage in overt information collection, participants exhibit greater click-through intentions in response to more personalized advertisements, in contrast with their reactions when firms collect information covertly. This effect reflects the feelings of vulnerability that consumers experience when firms undertake covert information collection strategies. Trust-building marketing strategies that transfer trust from another website or signal trust with informational cues can offset this negative effect. These studies help unravel the personalization paradox by explicating the role of information collection and its impact on vulnerability and click-through rates.     

The Advertising of Legal Services to Small Business Executives

ABSTRACT

Providers of professional services have become more interested in advertising their practice as competition has increased in several areas. The author empirically analyzes the elements of professional service print advertisements that would most influence a client's selection and recommendation of a particular firm. The results indicate that displaying a high level of professional qualifications, many specific services targeted toward a particular segment, and a specific consultation fee have a positive impact on customer selection and recommendation decisions.     

Cross-Media Consumption: Insights from Super Bowl Advertising

When viewers engage in cross-media consumption—view television advertising and social media posts on another medium—how do stimuli from multiple screens influence their response? To address this question, we construct a comprehensive dataset to estimate the effects of Super Bowl advertising and the advertised brands' Facebook content on ad likability. The novel insights emerging from the analyses include that: both media directly and significantly impact the response, contributing 60% and 40%, respectively; thinking hurts liking; and an ad's serial position does not matter, which differs from the primacy and recency effects previously reported in advertising studies. This study contributes to the theory and practice by: (i) testing open research questions empirically regarding the complementary effects of two screens; (ii) extracting the formal, analytic, and narrative thinking styles from the actual words in social media comments; and (iii) demonstrating that divided attention across screens has negative consequences on viewer appraisals.     

Investment in online advertising and return on sales: Does it pay to outsource the services to an advertising agency?

Abstract

The effect of investing in online advertising on a firm’s financial outcomes can depend on whether or not the development and implementation of advertising campaigns are managed by advertising agencies. Agencies may have experienced professionals or workload to perform these jobs, but the costs are greater. This paper aims to investigate the effects of investments in digital marketing on the financial outcome of a company’s services, comparing whether or not it is outsourced to advertising agencies. The secondary data relates to services advertised and marketed by a firm. We tested the possible moderating effect of outsourcing the service in the relationship between investment in online advertising (Google and Facebook) and return on sales (profit margin), by controlling the effect of covariates. Through four regression analyses, the results showed that outsourcing the service moderates the relationship. Specifically, the higher the amount of advertising investment, the more it pays to outsource the service to an advertising agency in order to generate greater profit margin. But with a low investment value, it does not pay to outsource. This study helps to identify situations in which it pays to outsource digital marketing services to an advertising agency.     

How advertising in offline media drives reach of and engagement with brands on Facebook

ABSTRACT

Research investigating the drivers of consumers’ engagement with brands on social media is proliferating. However, little is known about how advertising outside social media drives engagement with brands on social media. This study aims to explore the relation between advertising spend in different offline media (TV, radio, newspapers, magazines, out of home), and reach of and engagement with brand pages on Facebook. The study uses a unique real-life data-set containing information about the Facebook pages of 45 brands for approximately three years combined with Nielsen Advertising Spend data. Results showed that while advertising in offline media influenced organic and viral reach, the number of page likes was directly influenced by advertising on Facebook only. It can be concluded that offline advertising is relevant in driving consumers’ online brand engagement; however, there is a unique set of drivers for organic reach, viral reach and likes.