ADSERCH

Phenomenon Behind a Successful Social Networking Sites

by

Maria Samantha R. Abalos

Thea R. Flores

Eden Rose V. Mendoza

Kolynne Allison E. Ocampo

Table of Contents

1. Introduction

1.1. Background of the Study

1.2. Conceptual Framework

1.3. Statement of the Problem/Hypothesis

1.4. Objective of the Study

1.5. Significance of the Study

1.6. Assumption of the Study

1.7. Scope and Limitations

1.8. Definition of Terms

2. Methodology

3. Results

4. Conclusion

5. Recommendation

6. Bibliography

7. Appendices

Introduction

This research paper aims to know the phenomenon behind the social networking sites. Social

networking site dates back to 2002, when Jonathan Abrams created the first social networking

site, Friendster. After a few years, it was closed to become a gaming site because the site did not

have a strong connection which means that users of the site were not as linked together, they

only ‘add’ people or users whom they know. Lastly, the users were burdened with learning new

interface since social networking site was a new experience for them, and the loophole and errors

were not fixed immediately (Mcmillan, 2013).

In contrast, the leading site Facebook is in its tenth year of enjoying $1.5 Billion of profit last

quarter of 2013 and an estimated 1.23 Billion active users every month by the end of January

2014 (Rushe, 2014). According to Business Insider, Facebook’s secret to success is that they

made it simple and keep on focusing on its long term value (Blodget,2012). Twitter currently

ranks second with 310 million unique monthly visitors. The site also gained popularity with its

easy-to-use interface.

This occurrence is what the researchers ask: What makes Facebook so popular and how do these

types of websites stay in the market? Researchers will be assessing the situation by means of

survey deployments to college students and data analysis of these results for the purpose of

correct formulation of the key variables, which would create the perfect social networking site.

Background of the Study

Social networking sites (SNS) is considered as a global revolution where communities are built

online. SNS builds online communities for the purpose of staying in touch with friends and

sharing experiences through photos, videos, blog posts, and many more. This revolutionary

community is fairly young at age where Friendster, being the first site to be the closest to

resemble the SNS that we know today, was only released on the year 2002 (Dugan, 2012). With

SNS being such a young industry, the anatomy behind a successful social networking site still

remains a mystery. Especially since the success of these SNS are solely dependent on their users.

The purpose of this study is to gather as much information as possible from university students in

the Philippines which would allow the group to discover the key variables which contribute to

the success of a social networking site and to formulate the perfect balance between these key

variable which would create the perfect social networking site. This would be done by means of

asking three (3) particular questions that revolves around the concept behind the user’s

motivation drivers, intrusion tolerance, and interests retainers. These three (3) particular

questions are: (1) what motivates a person to use/not to use a particular SNS; (2) how can SNS

make money through ads without being intrusive to their users; (3) and what are the key features

that users look for and stay for in a SNS.

Conceptual Framework

MECCA or Means-End Conceptualization of Components for Advertising Strategy would be

used as framework for analysis of the descriptive study about the popularity of social networking

site. It would enable the group to identify the input and output variables by means of looking at

the product attribute features, consumer benefits, leverage points, personal values and

executional framework.

The first variable which is the product attribute features which pertain to the features offered in

social networking sites. For example, Facebook offers video and online chatting, photo and video

sharing, finding friends and family and help users get information and stay updated with recent

news through sharing of posts. In Twitter, users can follow other users online; they can even

follow their favorite artists and/or celebrities and tweet to them. Twitter also has this feature,

which shows what the trending topics are, and with this users are able to stay up to date with

recent news and events.

The second variable is the consumer benefits. Consumer benefits are the advantages that

consumers believe they get from purchasing or using the product. In this case the consumer

benefits of using social networking sites are being connected with friends and family as well as a

tool for being updated with school projects and organization activities. Users get to socialize

with friends and family conveniently through online chatting and photo sharing and posting

messages; these social networking sites help people stay connected everyday especially those

who live far from the other.

The third variable is the leverage points. Leverage points refer to ‘the hook’ that is linked to the

benefits. In this case the leverage points of the users when they use social networking sites are

the satisfying feelings they get when using social networking site. An example is that when they

use social networking sites like Facebook and Twitter; it can give them gratification because they

may feel popular and appreciated with all of their followers and friends or may feel more

confident because of all the likes they get from their posts and photos.

The fourth variable is personal values. Personal values refer to what is important to the audience.

To the users of social networking sites their personal values can be socializing, fulfilling a need

to be up to date with things, get information or to just stay connected.

The fifth and final variable for the MECCA model is the executional framework. Executional

framework refers to what material or in this case what social network the users use, which

conveys their personal values. An example would be some might prefer Facebook over Twitter

because a lot of their friends and family are on Facebook. On the other hand, some might prefer

Twitter over Facebook because they can say whatever they want to since their family or parents

are not on Twitter.

DMP or The Decision Making Process would be used as a framework for the analysis of the

descriptive study of social networking sites and the paradox relationship between popularity and

profitability. This framework would enable the group to identify the input and output variables

by means of recognizing the need, defining the parameters or the need/solution, searching for

information, evaluating alternatives, determining the terms of purchase and determining the

purchase. There is a need to change the perceptions of users towards advertisements in social

networking sites because advertisements are the sources of profit for these social networking

sites but users perceive them negatively they see these ads as forms of hindrances in their

browsing. The parameter of the solution is to make the advertisements as less intrusive and

relevant as possible to its users or viewers. By doing this users would not feel irritated and

bombarded with the ads because it would actually be relevant to them. The search for

information would be done by means of using secondary online research and by conducting a

302 respondents online survey to university students of the Philippines. Alternatives to the initial

solution of lessening the advertising intrusion to SNS users is to make these advertisements as

interesting and appealing as possible to the individual users. To determine the terms of purchase

is to find the balance between making profit with advertising fees and make these advertisements

relevant so that users would not feel intruded by irrelevant ads. Purchase, in this case, is the

current chance of answers that users would click an ad or buys a product from advertisements

that they see on social networking sites.

Statement of the Problem

In order for social networking site (SNS) to develop the perfect environment for building online

communities, it needs to be able to satisfy the preferences and interests of billions of users. The

satisfaction of billions may be difficult to attain due to the diversity in interest and preferences of

human beings. Failure to win over the taste of the masses may lead to the death of the SNS since

popularity is one of the main factors of its continuous growth.

Aside from popularity, social networking site persist to exist because of investors; and investors

only invest when social networking sites are profitable. But the profitability of these social

networking sites depends on two inversely related factors. These factors are popularity and

profitability. These factors are inversely related because popularity of SNS attracts profit-making

advertisements because of the view counts generated; while profitability dissuades social

networking users to continue on using the site because profit-making advertisements are

intrusive (Strickland, n.d). The success and perfection of social networking site depends on this

paradox.

Objective of the Study

With social network being a popular source for online communications, the growth of social

networking has expanded immensely. The factors of growth for popularity are what this paper

aims to explore. This can be done by means of analyzing the preferences, opinions, and sources

of motivation of University students in the Philippines who use social network site.

Aside from popularity, the balance and paradox between popularity and profitability would also

be analyzed and understood. Since social network requires to cater to billions of users, these sites

require huge amount of capital and profit in order to continue. These site gain money by means

of advertising fees which may or may not jeopardize the sites popularity because of the fact that

these advertisements may or may not annoy people. Yet these advertisements are sort of a

contradiction in order for these social networking sites to continue and to cater to the wants and

needs of its users.

Significance of the Study

The importance of this study is to see what made these top social networks into market leaders.

According to Reader’s Digest survey, Philippines is the Social Networking capital of the world

where 93 percent of the population owns a Facebook account (PH is social networking capital of

the world, 2014). This could translate that Facebook and other sites as part of their daily lives.

With Philippines being the number one in social networking, the Philippines would then be the

best country to test out our objective since majority of it's citizens are composed of netizens. This

research paper can aid to social networking site and business-wise innovations. It is significant to

investigate and solve the paradox between investors that put advertisements on the site and the

Social Networking sites (SNS) users that does not want ads. It would be beneficial for

advertising agencies to know what factors can affect an effective advertisement placement on

social networking sites. It is a possible contribution of knowledge to the social network and

digital media industry by knowing what to have and avoid on creating SNS.

Assumption of the Study

The respondents are university students in the Philippines, male and female, who use social

networking sites with an age ranging from 15 years old to 35 years old. These respondents were

chosen for the study because we assume that they have more reliable knowledge and

understanding about the subject matter having been alive when online sites were developed and

popularized. The respondents were exposed to the technology at a young ages which would have

made it easier for them to understand the modern technology. Thus these respondents would

belong to the age group of active online world users.

The psychographic segmentations of the respondents are those who have a social grade of AB

and broad C. We assume that the respondents who belong in AB and C have regular and daily

access online through their laptops, desktops, smartphones and tablets. While the behavioral

segmentation of the respondents are those who use the internet regularly to go to social

networking sites in order to socialize and stay in touch with their friends and family. We assume

that these people constantly check their accounts in social networking sites to chat, share photos,

and stay updated and connected.

Online articles were used as secondary data since the study is based on a modern topic that is

about social networking sites; relevant data and information that are needed are more readily

available and accessible online as well as up to date. Google forms were used as a form of

questionnaire because the survey is intended to reach 300 respondents across the Philippines and

it would be more convenient to reach out to a large amount of people online. To add to that, by

using an online tool for the survey also filters the respondents; if the respondent was able to

answer the online survey we can assume that he or she also owns accounts on social networking

sites.

We assume that the statistical data gathered are reliable, valid and accurate because the

respondents are students who are in a university (15-35 years old) that are assumed to use social

networking sites at a daily basis as a form of communication with friends for organization

announcements, school projects, and other reasons for online communication. As university

students in a modern world, it means that they have been exposed to the technology earlier and

therefore have better knowledge and understanding about the subject matter.

Scope and Limitations

The group used Google forms to construct an online survey. This survey was then distributed to

300 respondents, 21 of these are graduates while there rest are undergraduates. These

respondents are Filipino university students, male and female, who use social networking sites

with an age ranging from 15 years old to 35 years old. The psychographic segmentations of the

respondents are those who have a social grade of AB and broad C. Through Young and

Rubrican’s Cross Cultural Consumer Characterization, the lifestyle classification of the study is

characterized as an ‘explorer’. The target audiences are those who often use social networking

sites and are updated by the trends. They are those who are aware and knowledgeable about its

privileges. The survey also manages and examines the division of the respondents on how well

will they respond and react on a certain type of a survey question, which is then being studied

and analyzed by means of diagrams, tables, charts, and other graphs. The data collecting was

done in the span of three weeks and the sources of information are based on online researches

and answers of the respondents.

Definition of Terms

1. Social networking sites (SNS) is a web-based platform to provide and build user’s

networks with same backgrounds, interests, or real-life connections.

2. Motivation drivers are reasons, which instigates a person to try something or to stay with

something.

3. Intrusion tolerance is the capacity to endure the continued and deliberate placement of an

unwelcomed object at oneself.

4. Interests retainers are factors, which secures or keeps a person’s state of curiosity and

attention.

5. Add or adding is by allowing or requesting other users to join your social network link.

6. Feature is a service or good that sets apart each social networking sites.

7. Netizens is a person who interacts with another through the internet.

Methodology

The group used secondary online research to gather background information on social

networking sites such as its history and some factors for its success. After gathering enough

information, the group decided to conduct an online survey using Google forms that targets

university students of the Philippines who uses social networking sites. The sampling method

was done by means of non-probability quota method where the group decided to gather 302

respondents from different universities. The statistical treatment of the data would be descriptive

research since the study describes the characteristics of target respondents; estimates the

magnitude of the target respondents in the population exhibiting certain preferences, interests,

and motivations; determines the relationship between profitability and popularity; and facilitates

a prediction on how to remedy the paradox relationship between profitability and popularity.

Results

According to the survey results of 302 respondents, most of the respondents are in ages 18 year

old (37%), 19 year old (29%) and age 17 year old (14%) [Appendix 1] with an academic degrees

of mostly undergraduate (93%) while the rest are graduate (7%) [Appendix 2]. Most if not all of

these respondents own a social networking account. Where 99.66% out of the 302 respondents

owns a Facebook account, and 81.45% owns a Twitter account [Appendix 3]. The survey also

showed in Appendix 4-9 that these two sites are the most visited site among the rest of the

choices, where Facebook is voted as the most voted site while Twitter is voted as the second.

The respondents’ social networking habits reflects that 25% of the 302 respondents log in to their

social networks about 2-3 hours a day (77 respondents) and 3-4 hours a day (75 respondents)

[Appendix 11]. Where 96% answered that they last visited these sites “yesterday” in Appendix

10, and mostly through laptops (52%; 158 respondents) and mobiles. (29%; 89 respondents) as

can be seen in Appendix 13.

The survey also shows the top three (3) motivational drivers of the users to try out a social

networking site in Appendix 14. These motivational drivers are: friends & family (29%; 211

people), entertainment (26%; 189 respondents), and school (28%; 203 respondents). While

interests are retained because of the same reason as what motivates them to try. The top interests

retainer was schoolwork, which has 239 response, as can be seen in Appendix 16.

Aside from finding out the motivational driver and the interest retainers, the survey also gathered

what made these users discourage to try a site; and what made them delete or deactivate an

account. 41% respondents are discouraged to try because the site looks unappealing and even

delete/deactivate an account because 20% got bored [Appendix 15 and 17]. Thus most of the

respondents (62% respondents) prefer social networking sites that have a lot of features similar

to Facebook than site that are simple such as Twitter, Pinterest, and Instagram [Appendix 18].

Majority of the users value features such as photo sharing (24%) and chat enables (22%) and

only 14% stated that they valued sites that had a nice layout [Appendix 19].

After knowing the motivational drivers and interest retainers, the survey further inspects the

aspect, which provides as the sustaining power of these sites-- advertising. According to

appendix 20, 64% of the respondents prefer sites that don’t have ads, and 2% prefer to have a lot

of ads. Where 75% of the respondents notice the ads on the sites but 78% don’t take time to look

or click on the ads [Appendix 21-22]. Survey results shows that 47% rarely click on an

advertisement on their profile and only 3% answered most of the time [Appendix 24]. It also

shows that only 66 respondents out of the 302 agree that they may have purchased a product

because of the appeal of the advertisement, while 113 out of 302 respondents strongly disagree

[Appendix 27]. The low intrusion tolerance to advertisements may be because of their perception

of advertising. Only 3 out of 302 respondents feel that advertisements presented to them are

almost always relevant to them [Appendix 25], while only 2 out of 302 respondents strongly

agrees that ads in social networking sites are interesting [Appendix 26]. These low positive

response to advertisements may also change, so long as these negative perception of advertising

of being irrelevant and uninteresting change. According to appendix 23, 54% of the respondent

are willing to respond positively and click on an advertisements so long a it is relevant to them.

Conclusion

The primary objectives of the research, which are to distinguish the factors of popularity of

social networking sites through analyzing different perceptions of University students and

analyze the balance and paradox between popularity and profitability, was achieved using

MECCA or Means-End Conceptualization of Components for Advertising Strategy and DMP or

the Decision Making Process.

Social networking sites have reached a massive growth of popularity because majority are

involved to features such as photo sharing. This photo sharing, according to the survey

conducted, has been a leverage point of the social networking industry. Three motivational

drivers of an effective SNS are associates, households, entertainment, and school. Within it,

users develop high personal values with SNS because they can be socialized, informed, and

connected. The top interest retainer is schoolwork that is identified through leverage point. The

SNS then gave them feature that allows the student to be productive without being physically

present in group negotiations. Correspondingly, executional framework generates the relevance

of users to the SNS by getting their personal interests, that leads to an immense usage like the

Facebook being the most visited and the Twitter being the second.

In the scrutinizing the balance and paradox between popularity and profitability of an SNS,

because of its massive users and visitors, more advertising and marketing companies are now

associating with them. Conversely, very rare respondents agree that advertisements in social

networking sites are stimulating. Users have a very low intrusion tolerance as more than half of

the respondents indicated that they prefer sites that do not use advertisements. The relevance of

the advertisements does not usually meet the user’s perception. The chance that users would

click an advertisement is infrequent thus the purchasing control may be significantly affected.

Consequently, it is needed to make these advertisements as remarkable as possible since more

respondents are willing to associate positively as long as these advertisements are relevant to

them.

Thus popularity is gained by factors such as friends & family, school, and entertainment since

these are the top three (3) interests retainers and motivational drivers. While the low intrusion

tolerance to advertisements, in the gathered results, can be countered by changing the perception

of account owners by means of making advertisements in social networking sites more relevant

thus treating individual SNS users as individuals. Where advertisements would become more

personal and would cater to the individual interests, preferences, and values.

Recommendations

• Identify the motivational drivers and interest retainers of account user

• Provide features that would cater and satisfy them.

• Create ways to keep account users engaged by exploiting their key preferences

• Change perception of advertisements by providing them with relevant ads

• Exploit the information’s placed by user on their account profiles to create a system for

advertising to target their interest

Bibliography

Dugan, L. (2012). The ultimate timeline of social networks 1960-2012 [infographic]. Retrived

from https://www.mediabistro.com/alltwitter/social-media-1969-2012_b45869

Strickland, J. (n.d.). How do social networking sites make money. Retrieved from

http://computer.howstuffworks.com/internet/social-networking/information/how-social-

networking-sites-make-money1.htm.

Rushe, D. (2014). Facebook posts record quarterly results and reports $1.5bn profit for 2013.

Retrieved from http://www.theguardian.com/technology/2014/jan/29/facebook-record-

quarterly-results?CMP=EMCNEWEML6619I2 [Accessed: 22 Mar 2014].

MST Lifestyle. (2013). PH is social networking capital of the world. (2014). [online] May 21,

2013. Retrieved from: http://manilastandardtoday.com/2013/05/21/ph-is-social-

networking-capital-of-the-world/ [Accessed: 22 Mar 2014].

Mcmillan, R. 2013. The Friendster Autopsy: How a Social Network Dies. Wired, [blog]

February 27, 2013, Available at:

http://www.wired.com/wiredenterprise/2013/02/friendster-autopsy/ [Accessed: 24 Mar

2014].

Blodget, H. 2012. The 13 Secrets To Facebook's Success. [online] May 17. Available at:

http://www.businessinsider.com/secrets-to-facebooks-success-2012-5?op=1 [Accessed:

24 Mar 2014].

Appendices

Appendix 1: Age group

Appendix 2: Academic Degree

Appendix 3: What social networking account do you own?

Appendix 4: Facebook [Which social network do you visit the most? Pick one for each

row]

Appendix 5: Twitter [Which social network do you visit the most? (Pick one for each row)]

Appendix 6: Instagram [Which social network do you visit the most? (Pick one for each row)]

Appendix 7: Tumblr [Which social network do you visit the most? (Pick one for each

row)]

Appendix 8: Google + [Which social network do you visit the most? (Pick one for

each row)]

Appendix 9: Pintrest [Which social network do you visit the most? (Pick one for each

row)]

Appendix 10: When was the last time you logged-in to these accounts?

Appendix 11: How many hours in a day do you usually consume with those sites?

Appendix 12: I use social networking account to...

Appendix 13: Which medium do you use the most when visiting those sites?

Appendix 14: What are the top 3 reasons that motivates you TO TRY a new social

network site?

Appendix 15: What discourages you to try / use a social networking site?

Appendix 16: What are the top 3 reasons that motivate you keep on using a social

network site?

Appendix 17: What are the top 3 reasons for deleting/deactivating an account?

Appendix 18: Which do you prefer the most?

Appendix 19: What are the top 3 features you look for when using a social network?

Appendix 20: Which do you prefer the most?

Appendix 21: I take time to watch / look at advertisements on social networking site.

Appendix 22: In your last visit, do you notice any advertising on social networking

websites?

Appendix 23: What may be the main reason for you to click an ad?

Appendix 24: How often do you click advertisement in your profile?

Appendix 25: [Most of the social networking sites which I use present ads that are

relevant to me.]

Appendix 26: [I think ads on social networking sites are interesting.]

Appendix 27: Some ads were appealing enough that I tried to buy the product (or

service) that was advertised.