Reklaamikampaania tulemuslikkuse analüüs Ekspressreisid Tartu OÜ näitel Facebookis
Date
2011
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Tartu Ülikool
Abstract
ANALYSIS OF ADVERTISING CAMPAIGN PERFORMANCE IN THE FACEBOOK ON THE EXAMPLE OF EKSPRESSREISID TARTU OÜ. The question as to how to assess advertising effectiveness is one of the most long-standing issues in contemporary marketing. During the last century, communication technology has been changed enormously, especially last few decades, when the Internet continues to grow rapidly. Along with advertisements on the internet, there are new types of communication technology, social networks, which influence the advertising market. At the present time the fastest-growing internet-based social network is Facebook, which has turned to very attractive advertising channel. This means also ad expenses, accompanied by questions on their effectiveness.
Social networks provide a good advertising opportunity to small and micro enterprises due to the relatively low costs, compared to traditional channels. Unlike big local and international corporations, with stable and substantial advertising budgets, Estonian micro enterprises (almost 87% of all Estonian firms) can not afford such expenses, even relatively; also any setback or underperforming advertising could cause very unpleasant commercial consequences. Therefore could be very helpful to have a handy and easy to use tool that will give advertisers a quick and clear feedback on the likely outcome of the advertising campaign, preferably ex ante.
The aim of this Bachelor’s thesis is to study different indicators and their suitability (in the context of Facebook) to implement them in the model for evaluation and reflection of
advertising effectiveness, suitable for micro enterprises. To fulfill the aim of the thesis, following tasks were set:
1. to give an overview about social networks and their possibilities and forms of advertising
2. to give an overview about the models of marketing communications
3. to study and analyze different effectiveness indicators, used in social media
4. to carry out an advertising campaign in the Facebook and to analyze relationships between indicators and campaign results
5. Based on selected indicators, to compile a model for prediction and evaluation of advertising effectiveness, suitable for micro enterprises.
As a first task, author gave an overview of the evolution of advertising market, especially in the context of contemporary social networks. This overview includes some important applications of web-based media and their use as an advertising channel. Author notes that internet-based social media has an important and unique nature to combine together communication, transaction and distribution functions so to extend the functions of advertising far beyond what traditional media could offer. As a second task, author gave an overview about main marketing communication models. Communication between marketer and consumer is affected by many psychological, social and cultural aspects, so the results of an ad exposure are generally not precisely predictable. Practical value of particular model depends on the specific context of implementation. Author notes that there is no one unique model for every case. However, as a part of a common figure, cognitive, affective and conative dimensions are important for the direction the consumer to purchase decision. Third task was giving an overview about different effectiveness indicators in social media. Author notes that effectiveness of advertising is related to objectives of an ad, which is to create sale-ability. Ad has communication and commercial effects, whereby latter is impossible without former. Author explains the meaning and use of ROI, also difficulties in using it. Several possible effectiveness indicators were listed, for internet generally and for
Facebook particularly. As a task summary, author notes that advertising is not an exact science, so there are no precise relationships to predict commercial success of the ads. Fourth task was a case study, to carry out an advertising campaign in the Facebook and based to it, to analyze applicability of different indicators for effectiveness measurement. Case study consists of three ad campaigns. To assess communication impacts, Lavidge-Steiner model was selected. Based on analysis of campaign results and to accomplish next research task, following indicators were selected by author: impressions, reach, unique clicks, activity, request and buy. As a fifth task, author compiles a model, for evaluation and prediction ad effectiveness, based on MS Excel. Describing movements of consumers between the steps of the model, the probability theory was used. It turned out that this solution allows directly connect the likelihood of moving between steps to the effectiveness of these steps and to calculate the total communication effectiveness. In case of knowing ad expenses, commercial effects could be predicted, also the model allows several kinds of scenario analysis. According to the author opinion, the model is easy to learn and use, also almost costless and therefore suits for micro enterprises. Some guidance and instructions for possible model users are included. As a follow-up to the current study, the focus of a further research to be carried over a longer period would be the statistical relationship between the specific metrics of Facebook ad effectiveness and steps of Lavidge-Steiner model, to establish more reliable relationship between those metrics and business effects of advertising. If these relationships are confirmed, the possible applications of the model could be extended considerably.