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Kartik Hosanagar
Advertising Content and Consumer Engagement on Social Media:
Evidence from Facebook
- Lee, Hosanagar, Nair
2
Outline1. Introduction & Motivation
2. Data
3. Empirical Strategy
4. Findings
Introduction & Motivation
3
Social Media Scale
• Social Networks reach over 3 BILLION users
• Most major consumer-focused firms have social media presence
Introduction & Motivation
4
No Points for Showing UpOpportunity:
• Establish a relationship with consumers
• Instantaneously spread word about promotions & sales
• Virally spread information on customer engagement through Likes, Comments & Shares
Introduction & Motivation
Challenge:
• Only 1% of FB fans engage with brands
• Only about 0.2% of total possible status updates reach users (FB’s Filtering algorithm)
• Engineering content for right reach and engagement is essential
5
Research Question
What content attributes of social media messages elicit greater consumer response & engagement?
E.g. how does brand, product and price information influence response? Emotion, humor? Differences across industries?
Introduction & Motivation
6
Outline1. Introduction & Motivation
2. Data
3. Empirical Strategy
4. Findings
Introduction & Motivation
7
Data• Post-level panel data on messages posted by several companies from
Sep 2011 to July 2012• Message content• Likes, comments, and Shares on a daily basis
• After Cleaning: 106,316 unique messages posted by 782 companies from Sep 2011 to July 2012.
• Daily Likes & Comments: 1.3 million rows of post-level snapshots recording about 450 million page fans’ responses.
Data
Sample Messages from Walmart(Dec 2012 -https://www.facebook.com/walmart)
• Rollback with Vizio. Select models have lower prices ranging from $228 for a 32" (diagonal screen size 31.5") LCD TV to $868 on a 55” (diagonal screen size 54.6") LED TV. http://walmarturl.com/10oZ6yS (Product Advertisement + Price info + Brand Mention + Link)
• Maria’s mission is helping veterans and their families find employment. Like this and watch Maria’s story. http://walmarturl.com/VzWFlh (Philanthropic Message + Explicit Like solicitation + Link)
• On a scale from 1-10 how great was your Christmas? (Smalltalk + Question + Holiday)• Score an iPad 3 for an iPad2 price! Now at your local store, $50 off the iPad 3. Plus, get
a $30 iTunes Gift Card. Offer good through 12/31 or while supplies last. (Product Advertisement + Deal + Product Location + Product Stock Availability)
• Many posts above have attached photo
8Data
Content Labels• Based on econ, psychology & marketing lit
– Informative (shifting beliefs about product existence or prices) or brand personality (human characteristics associated with a brand )
– Informative• Resnick and Stern (1977) based on informational cues• Product-oriented facts, brand and product mentions
– Brand personality content • Humor, emotion, remarkable facts (Berger 2012)
Data
Finer Classification
Controls and content-related patterns also included
Data
Tagging of Content
• 9 different workers per message + Majority vote• Used to train tagging algorithm to tag remaining posts
– Greater than 99% accuracy for most variables of interest
11Data
• Worker Eligibility Criteria– Must have > 97% accuracy – Must have > 100 previously
approved tasks– Location: US only – Embedded question for
detecting if the worker is paying attention
NLP Algorithm Diagram
Data
NLP Algorithm Performance
Data
Descriptive Graphics
Celebrity
ConsumerProduct
Entertainment
Organization
PlacesBusiness
Websites
rem
fact
emot
ion
emot
icon
holid
ay
hum
or
phila
n
frien
dlike
ly
smal
ltalk
bran
dmen
tion
deal
pric
ecom
pare
pric
e
targ
et
prod
avai
l
prod
loc
prod
men
tion
Industry Category VS Message Content Appearance PercentageBiggest: Celebrity Smalltalk at 60.4% & Smallest: Celebrity PriceCompare at 0%
Data
15
Descriptive Graphics
Brand Content Informative Content
0
50
100
150
remfac
t
emoti
on
emoti
con
holida
yhu
morph
ilan
friend
likely
smallt
alk
brand
mentio
n
deal
price
compa
re
price
targe
t
proda
vail
prodlo
c
prodm
entio
n
Aver
age
Cou
nt
commentlike
Average number of likes and comments obtained over lifetime by message content
16
Outline1. Introduction & Motivation
2. Data
3. Empirical Strategy
4. Findings
17
VariablesEngagement Metric (Dependent Variable)
Variables that affect engagement (Independent Variables)
Informative Ad Content
• Brand and Product mention
• Price• Deals• Product
Availability• etc
Persuasive AdContent
• Emotion• Humor• Philanthropic• Emoticon• Small Talk• etc
Message Type
• Photo, Video, Status update, App, Link
Controls
• Impressions• Industry Type• Day since
post • Reading
Complexity • Message
Length• etc
Empirical Strategy
COMMENTS LIKES SHARES
Empirical Challenges
§ Firms do not post content at random
§ Facebook does not show posts to users at random
18
Outline1. Introduction & Motivation
2. Data
3. Empirical Strategy
4. Findings
Persuasive vs InformativePersuasive: Add up 8 persuasive (brand) content variables (ranges from 0 to 8)Informative: Add up 8 Informative content variables (ranges from 0 to 8)
19
−0.15
−0.10
−0.05
0.00
0.05
Persuasive Informative Persu X Inform
Logi
stic
Reg
ress
ion
Coe
ffici
ents
commentlike
Persuasive vs Informative Results (p−values < 0.001)
Only the statistically significant are graphed ( p-value mostly < 0.001)
20
COMMENTS
−0.15
−0.10
−0.05
0.00
0.05
remfac
t
emoti
on
emoti
con
holida
yhu
morph
ilan
friend
likely
smallt
alk
brand
mentio
nde
al
price
compa
re
price
targe
t
proda
vail
prodlo
c
prodm
entio
n
Logi
stic
Reg
ress
ion
Coe
ffici
ents
edgerankno edgerank
Logistic Regression Coefficients of Message Contents for Comments
Brand Content Informative Content
−0.2
−0.1
0.0
0.1
remfac
t
emoti
on
emoti
con
holida
yhu
morph
ilan
friend
likely
smallt
alk
brand
mentio
nde
al
price
compa
re
price
targe
t
proda
vail
prodlo
c
prodm
entio
n
Logi
stic
Reg
ress
ion
Coe
ffici
ents
edgerankno edgerank
Logistic Regression Coefficients of Message Contents for Likes
LIKES
21
Only the statistically significant are graphed ( p-value mostly < 0.001)
Brand Content Informative Content
22
Shares
−0.6
−0.4
−0.2
0.0
0.2
remfac
t
emoti
on
emoti
con
holida
yhu
morph
ilan
friend
likely
smallt
alk
brand
mentio
n
deal
price
compa
re
price
targe
t
proda
vail
prodlo
c
prodm
entio
n
Cro
ss−S
ectio
nal L
ogis
tic R
egre
ssio
n C
oeffi
cien
ts
Share
Logistic Regression Coefficients of Message Contents for Shares (Cross−Sectional
Brand Content Informative Content
23
Clicks
−0.4
−0.2
0.0
0.2
remfac
t
emoti
on
emoti
con
holida
yhu
morph
ilan
friend
likely
smallt
alk
brand
mentio
n
deal
price
compa
re
price
targe
t
proda
vail
prodlo
c
prodm
entio
n
Cro
ss−S
ectio
nal L
ogis
tic R
egre
ssio
n C
oeffi
cien
ts
Click
Logistic Regression Coefficients of Message Contents for Click (Cross−Sectional)
Brand Content Informative Content
24
Conclusions1. Message design (content and type) can help drive
engagement• Emotional and Philanthropic messages elicit
HIGHER levels of Likes & Comments• Product and price information (informative
advertising) elicit LOWER levels of Likes & Comments
• Clicks follow a similar pattern (caveat)• Informative content, when used, should be
combined with persuasive content2. Effects are clearly moderated by industry
Discussion