Effects of Traditional Advertising and Social Messages on Brand-Building Metrics and Customer Acquisition

Abstract

This study examines the relative effectiveness of traditional advertising, impressions generated through firm-toconsumer (F2C) messages on Facebook, and the volume and valence of consumer-to-consumer (C2C) messages on Twitter and web forums for brand-building and customer acquisition efforts. The authors apply vector autoregressive modeling to a unique data set from a European telecom firm. This modeling approach allows them to consider the interrelations among traditional advertising, F2C impressions, and volume and valence of C2C social messages. The results show that traditional advertising is most effective for both brand building and customer acquisition. Impressions generated through F2C social messages complement traditional advertising efforts. Thus, thoroughly orchestrating traditional advertising and a firm's social media activities may improve a firm's performance with respect to building the brand and encouraging customer acquisition. Moreover, firms can stimulate the volume and valence of C2C messages through traditional advertising that in turn influences brand building and acquisition. These findings can help managers leverage the different types of messages more adequately.

Investigating the Impacts of Brand Social Media Posts’ Linguistic Styles on Consumer Engagement

“…One possible explanation is that, like, share, and comment are three engagement behaviors with different levels of involvement [7]. While brand posts' linguistic characteristics can impact all of the three engagement behaviors, their effects are not large enough to greatly change highly-involving engagement behaviors (i.e., share, comment).…”

“…To digital marketers, enhancing consumer engagement with brand posts on social media is both vital and challenging [2][3][4]. Consumer engagement with brand posts is positively related with: brand awareness, preference, and consideration [5][6][7][8]; brand equity [5,9]; and brand performance (e.g., sales, new customer acquisition, brand value, etc.) [2,7,10].…”

“…Consumer engagement with brand posts is positively related with: brand awareness, preference, and consideration [5][6][7][8]; brand equity [5,9]; and brand performance (e.g., sales, new customer acquisition, brand value, etc.) [2,7,10]. Alternatively, social media marketers are struggling with designing creative brand posts that maximizes consumer engagement [11].…”

An Optimization-Simulation Approach to Chance Constraint Programming

“…This particular opinion was formed due to concerns that advertising might have no effect on sales. But, since [10,30,43,14,23] confirmed that advertising has a positive influence on sales, all suspicions on the effectiveness of these models and its application in decision making were dismissed. Naturally, significant effort was put into developing models that could optimize the allocation of an advertising budget, which is also the task of this paper.…”

Consumer Engagement with Brand Posts on Social Media: Current State and Research Agenda

“…For marketers, consumer engagement with brand posts is crucial because it is essential for creating social contagion effects, whereby a brand's message reaches non-subscribers or those not participating in a conversation with the brand [4]. Research has also shown that consumer engagement with brand posts is positively related with: brand awareness, preference, and consideration [3,[5][6][7]; brand equity [8]; and brand performance (e.g., sales, new customer acquisition, value, etc.) [3,7,9].…”