Entrepreneurship & organisations: influences and organizations
The impact of social media marketing communications on consumers perception of brands kayode adeola
1. The Impact of Social Media Marketing Communications
on Consumers' Perception of Brands.
by
Kayode Adeola Olakunle
(www.adeolakayode.com ~ @delola)
Advertising Practitioners Council of Nigeria
(APCON)
March 2012
1
2. CERTIFICATION
This is to certify that this project; The Impact of Social Media Marketing
Communications on Consumers' Perception of Brands by Kayode Adeola (S/0006112
~ 01/PDA/0055 ) was undertaken under my supervision as a prerequisite to obtaninig a
Professional Diploma in Advertising from the Advertising Practitioners Council of Nigeria
(APCON).
________________________
Mr. Uche Aligbe, frpa
Project Supervsor.
2
3. AKNOWLEDGEMENT
In the beginning God... without him there's no beginning. You are my competitive advantage. 2011
was huge, let's make 2012 greater.
To my late Dad, Otunba Z. O. Kayode you have always been a source of encouragement. I'll work
to raise the bar higher. To my Mum, G.A. Kayode, thank you for your support especially in times of
drought. On the day of harvest, you won't be missing.
My siblings; the Famous Five, Tola, Dolapo and Folake; also Funmilola who went through the
impossible to get the hard-bound copies of this project ready. To Teekay, Sisinmi and Aunty Yinka,
may our tomorrow speak volumes.
I ackowledge the support of alI staff in the Career Matters division of APCON. Thank you for the
advice, attention and support especially when I come barging in. I am proud to recognize the
contributions of my indefatigable supervisor, Mr. Uche Aligbe frpa. He gave me all the attention
and support I needed to get this project done well and in good time. The advertising profession
needs more like you.
Finally to my wife Martha, thank you for your support. Thank you for letting me abscond during our
wedding to get my exams done. Thank you for being a great cheerleader, support and booster.
May we have greater opportunities to rejoice.
Thanks for being there.
3
4. Table of Contents
i. Acknowledgement
ii. List of Figures
iii. Chapter 1: Introduction
iv. Chapter 2: Review of Related Literature
v. Chapter 3: Research Methodology
vi. Chapter 4: Data Presentation and Analysis
vii. Chapter 5: Conclusion and Recommendation
4
5. Table of Charts
i. Figure 1: Pie Chart showing if respondents respond to online advertisement (%)
ii. Figure 2: Pie Chart showing respondents' responses to their membership
of Brands' social pages (%)
iii. Figure 3: Bar Chart showing respondents' responses to their motives
for enlisting on Social Media pages (%)
iv. Figure 4: Bar Chart showing their propensity to share brand experiences (%)
v. Figure 5: Bar Chart showing respondents' motive for sharing brand experiences (%)
vi. Figure 6: Bar Chart showing the significance of others' experiences on their buying
decision (%)
vii. Figure 7: Bar Chart showing which information platforms influence their buying
decision on brands (%)
viii. Figure 8: Pie Chart showing gender ratio of the respondents (%)
ix. Figure 9: Doughnut Chart showing the gender of the respondents from Social
Bakers Analytics (%)
x. Figure 10: Bar Chart showing the age range of the respondents (%)
xi. Figure 11: Doughnut Chart showing the age range of the respondents Social
Bakers Analytics (%)
xii. Figure 12: Bar Chart showing income range of the respondents (%)
xiii. Figure 13: Bar Chart showing social presence of the respondents (%)
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6. xiv. Figure 14: Pie Chart showing daily hours spent online by respondents (%)
xv. Figure 15: Pie Chart showing daily hours spent on social media platforms by
respondents (%)
xvi. Figure 16: Pie Chart showing why respondents joined social networks (%)
xvii. Figure 17: Pie Chart showing why respondents joined social networks (%)
xviii. Figure 18: Pie Chart showing if the respondents have ever responded to online
advertisements (%)
xix. Figure 19: Pie Chart showing how respondents feel about online advertising (%)
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7. Chapter 1:
Introduction
Background of the Study
Social Media Marketing (SMM) refers to the process of disseminating messages, gaining
internet traffic or attention through social media websites [1] in order to promote a
personality, cause or business. It involves all methods, strategies, channels and platforms
aimed at using social media platforms to communicate and engage a defined target
audience in order to met a defined marketing objective .
The convergence of technology and Social Media have changed the way people interact
with one another and businesses can no more ignore these digital communities. The
Internet has simplified business communication thereby improving the way companies
sell, promote products and services. Product distribution has been made global and
communication instantaneous; news travel within seconds making today‘s newspapers
good only for yesterday‘s information. The effect on brands can be either extremely
positive or negative depending on the perception of consumers. The purpose of this study
is to examine the effect of Social Media Marketing messages and how they have
influenced consumer's perception of brands.
Social Media Marketing Communications typically centres on efforts by an individual or
organisation to create media content (music, article, video) that communicates marketing
messages that attract attention and encourage its target audience to experience, interact
and share information with their social networks (either online or offline) to meet a business
objective. A corporate message on social media spreads from user to user and
presumably resonates because it appears to come from a trusted, third-party source, as
opposed to the brand or company itself [2]. This form of paid marketing is therefore an
7
8. earned media rather than paid media because of the degree of trust earned by those who
share it.
Social Media Advertising is gaining the attention of businesses and brands because of
basic advantages which include; it's relatively lower costs, targeted advertising,
measurement, personalised messages, and a great opportunity to drive traffic from
leading social networking sites to business and brand's personalised platforms (or
business websites).
Statement of Problem:
As with other countries around the world; social networks and blogs continue to dominate
times spent online by users. In the United States, social networking accounts for nearly a
quarter of total time spent on the Internet with nearly 4 in 5 active Internet users visiting
social networks than they do on any other U.S. website [3]. Nigeria has an internet
penetration of about 43.9 million representing a population that is 4 Million less the entire
population of South Africa; a combined internet population of Egypt, South Africa,
Morocco and Kenya [4]. The country also represents one of the fastest growing countries
on Facebook, the world's largest Social Networking website with about 4,312,060 people
in Nigeria [5].
While most businesses and top-level executives agree to the rise and rapid adoption of
social media as a platform for communication and digital conversations in Nigeria, there's
the usual reluctance of testing new ideas and understanding the impact of these platforms
on brands. Some have adopted the basic online strategies of setting up adverts through
mobile phones and major websites. According to InMobi 2011 report, Nigeria shows the
fastest mobile advertising growth in mobile markets in Africa from February to May 2011
representing 2 of every 5 mobile ads across the continent [6].
8
9. But beyond the ideas of push advertising, the online environment includes several distinct
factors that engender brand loyalty. As consumers become more savvy about the Internet,
the impact of their behaviour, perception and interactions will influence brand loyalty [7].
Social Media Marketing communication is beyond advertising on Facebook and Yahoo, it
involves a lot more. People can instantaneously respond to businesses' offline tactics,
online adverts, marketing policies and even rumors. The implications is not about when
brands willl adopt online platforms, it is about how.
The development, nurturing and maintenance of consumer brand trust on the internet
needs to be integrated into companies‘ marketing plans and promotion mix, Fournier, S.
and Yao, J. (1997) proposes it will become very important especially in the face of highly
competitive markets with increasing unpredictability and decreasing product
differentiation [8].
Research Objectives:
Because of the wide acceptance of Social Media platforms and its ability to enhance
communication and interaction both between brands and consumers on one hand, and
among consumers, it has become imperative that today‘s brands especially in Nigeria
take advantage of the opportunities that exist for constant communication, targeted
advertising, low cost per lead, customer engagement and interaction across these
platforms. Constant and consistent two-way communication will help brands not only
create superior products or services but build long-term relationships with consumers.
This increases brand equity and loyalty, which ultimately positively impacts the bottom line
and the competitive edge and sustainability of the brand.
In the light of the foregoing, the objectives of this Project include the following;
i. To ascertain the online social media habits of prospective media content consumers
9
10. ii. To measure how their online activities influence brand perception
iii. To measure the impact of their response to SMM messages
iv. To measure the effectiveness of SMM and engagement campaigns on consumer
perception
v. To explore how Nigerian agencies are engaging their target audience
vi. To examine their attitude towards messages received through SMM messages
vii. To measure the degree of reliability of SMM messages
Research Questions/ Hypothesis:
The research is designed to test the following hypothesis which tends to propose the
following concepts;
H1 – People find social media advertising as a very useful channel in getting information
about products and services.
Social Media and online advertising is supported by strong analytic and targeted metrics
such that adverts are seen by people who see the adverts as relevant to them. While it
may be intrusive, it is expected that people who see online adverts should see them as
relevant.
H2 – It is opined that social media is a veritable tool to nurture Brand Loyalty
With Social Media being unique through User-generated content (UGC) and two-way
communication, it is a veritable tool for building Brand Loyalty. The 2008 Cone Business in
Social Media Study found that of the 60 percent of Americans who use social media, 93
percent believe companies should have a presence in social media. 85 percent of this
population also believe a company should not only be present but also interact with its
consumers via social media and 56 percent of users feel both a stronger connection with
10
11. and better served by companies when they can interact with them in a social media
environment [9]. Steve Outing in his own book, Enabling Social Company opines that
―when companies listen to what the audience is saying—and build online venues that
encourage consumers to express themselves, they can innovate faster and more
intelligently.‖[10]
H3 - Conversations going on in social media platforms have a great influence on
consumer perception and buying behaviour
With technology is now aiding Word-of-Mouth Marketing, digital conversations, peer
comments, tweets, blog posts, and product reviews will have a huge impact on consumer
behaviour. According to Heinze and Hu [11] and the theory of impression management,
individuals can form impressions of organizations based on interactions with
organizations‘ websites. While examining customers‘ attitudes toward company Web sites,
Heinze and Hu evaluated the importance of competition and said that a company must
maintain pace with its industry. It should incorporate features and technology that
consumers deem important. Managers should focus on using the features that have the
greatest effects on customer perceptions [12].
Significance of the study
The significance of the study has various implications for different fields, analytics and
marketing communication strategy employed by organisations. The study aims to
determine the effectiveness for organisations and businesses using social media tools in
reaching their target audience and to increase their bottom-line. It will also examine the
importance of online reputation and the need for organisations to develop innovative
approaches in reaching their target audience. This study will also ultimately conclude if
social media helps organisations differentiate themselves in the market place.
The significance of the study will have implications in the following areas;
11
12. 1. Spread
The survey will assess the involvement of social media in the lives of different categories of
the Nigerian populace. It will also affirm the rapid involvement of brands within the
marketplace. The study will also highlight the disposition of people to social media
marketing messages and the response of the sample population to advertising messages.
2. Traffic
This is one of the more obvious ways of measuring social media benefits for brands. While
social media evokes a community for conversations, it has tremendous potential for
driving traffic for businesses with online portals, pages and website. Once businesses
have official pages online, marketing helps drive traffic to their official website for further
communication, marketing, they can also serve as platforms to promote sales and
promotional campaigns.
3. Interaction
The differentiating factor for social media platforms is the instantaneousness and the
opportunity for brands to participate in social media two-way conversations. So many
challenges can be solved through these means. It is also a valuable indicator of public
perception and the impact of the product and marketing policies on the target market.
Negative and de-marketing information can be corrected and influenced through these
means. An engaged customer is a highly valuable one since interaction will reveal a lot
more similitude of a market research. Interaction can be anything from leaving comments,
to participating in support forums, to leaving customer reviews and ratings.
4. Sales
As Nigeria gradually shifts toward e-commerce solutions, online payment and non-
contact transactions, the study will reveal the perception of the population to online
transactions, how the new cashless policy being proposed [13] is affecting them and the
12
13. prospects of whether the target audience can respond to marketing messages of
products and services presented on social media platforms.
5. Lead Generation
While most companies in Nigeria are not fully engaging in online transactions, marketing
communication can be used to drive Leads/footprints for sales or events promotion. If
peer-to-peer interaction on these platforms have a high degree of reliability or perceived to
be respected, social media platforms serve as a potent platform to drive entry of new
projects , advert campaigns with a resultant impact on the number of people eventually
coming for the products, product sampling and event attendance.
6. Search Marketing
As most search engines favour content from social media, the Search Engine Optimisation
factor cannot be understated. Social media can be far more powerful in this regard than
can be easily realised. With Google introducing new changes to its search algorithm to
include social media and personalised history [14], Blog entries, product reviews and
consumer experiences may outrank original company websites. A well written and
optimised story / video / image on a site like Digg will generate a lot of traffic.
7. Brand metrics/Analytics
One angle with which the significance of the study will bear on is the measurement of
marketing efforts or marketing analytics. Unlike traditional media, social media and other
digital media platforms are concise and precise on measurement. The direct
measurement of digital marketing efforts is available on so many digital platforms and
offer insight into consumers' response to social media marketing communication
messages.
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14. 8. PR
The nature of public relations and reputation has changed, forever with the advent of
social media. With the advent of social networking sites (MySpace, Facebook, Twitter
e.t.c.) giving people and organisations the power to respond to branding and marketing
propositions and the attendant impact of blogs and other user-generated media. Since
Search Engines have a powerful control on influencing consumer perception and opinions
about products and services, what Search Engines tell them has a lot of impact on the
brands.
This study will have important implications for the distinct worlds of PR, Customer Service,
and Marketing.
References:
[1]. "What is Social Media Marketing". Search Engine Land, 11 January 2012
http://searchengineland.com/guide/what-is-social-media-marketing
[2]. "Seven Best Practices for Lead Generation on Social Media Networks"
[3] Neilsen: State of the Media: Social Media Report: Q3 2011
[4] Mobile Africa Report 2011 (http://www.mobilemonday.net/reports/MobileAfrica_2011.pdf)
[5] Social Bakers March update: http://www.socialbakers.com/facebook-statistics/nigeria
[6] Inmobi http://www.inmobi.com/press-releases/2011/07/18/african-mobile-advertising-
market-grows-with-37-9-over-three-months-according-to-inmobi-mobile-insights-report-
may-2011-edition/
[7]. Chow, S. and Holden, R. (1997), ―Toward an understanding of Loyalty: the
moderating role of trust‖, Journal of Management Issues, Vol. 9, pp. 275-98.
14
15. [8]. Fournier, S. and Yao, J. (1997), ―Reviving brand loyalty: a re-conceptualization within
the framework of consumer brand relationships‖, International Journal of Research in
Marketing, Vol. 14, pp. 451-72.
[9] Cone. (2008, September 25). Cone finds that Americans expect companies to have a
presence in social media. Boston, MA: Author. Retrieved October 9, 2008, from
http://www.coneinc.com/content1182
[10] Outing, S. (2007, September). Enabling the social company. Boulder, CO: Enthusiast
Group LLC.
[11] Heinze, N. & Hu, Q. (2006). The evolution of corporate web presence: A longitudinal
study of large American companies. International Journal of Information Management, 26,
313-325.
[12] Ibid.
[13] Further Clarifications on Cash-less Lagos Project: http://www.cbn.gov.ng/cashless/
[14] Google SEO: Algorithm Changes - February 2012:
http://www.websitemagazine.com/content/blogs/posts/archive/2012/02/27/google-
algorithm-changes-february-2012.aspx
15
16. Chapter 2:
Review of Related Literature
Social media will include all web-based and mobile technologies used to turn
communication into interactive dialogue. Andreas Kaplan and Michael Haenlein define
social media as "a group of Internet-based applications that build on the ideological and
technological foundations of Web 2.0 and that allow the creation and exchange of user-
generated content."[1] Social media is media for social interaction as a super-set beyond
social communication. Enabled by ubiquitously accessible and scalable communication
techniques, social media has substantially changed the way organizations, communities,
and individuals communicate [2]. The strength of these platforms is owing to the fact that
it enhances the consumers‘ ability to communicate with one another and subsequently
limits the amount of control companies have over the content and dissemination of
information about their brands [3].
Social Media Platforms
Social Media platforms are online portals driven by technology and enhance the use,
streaming and sharing of multimedia content (data, voice, and video). These platforms
have become the fast growing 'virtual communities' in the emerging global village. The
easy accessibility to anyone anywhere across the world with internet access makes it a
potential marketplace where brands also come to promote their products and engage the
target audience. Increased communication on social media platforms for organizations
fosters brand awareness and often, improved customer service. Additionally, social media
serves as a relatively inexpensive platform for organizations to implement marketing
campaigns.
16
17. Social Media platforms include Blogs, Social Networks, Newsgroups, Photo-sharing, Blog
Aggregators, Micro-communities and Wikis. Some examples of these include;
Blogs
Perhaps the best known form of social media, blogs are web applications built as shared
online journals where people can post daily entries of information: personal experiences,
business, hobbies or pleasure.
i. WordPress iii. Typepad
ii. Blogger/BlogSpot iv. Movable Type
Social Networks
These sites allow people to build personal web pages and then connect with
friends to share content and communication.
i. Facebook v. Bebo
ii. Google Plus vi. LinkedIn
iii. MySpace
iv. Hi5
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18. Newsgroups/ Forums
These are web applications built for online communities and promote discussion. They are
built around specific topics, interests or location. Forums came about before the term
―social media‖ and are a powerful and popular element of online communities.
i. Nairaland iii. Naijapals
ii. Naijabestforum iv. Warriorforum
Blog Aggregators/ Communities
i. Vox vi. Blogged
ii. BlogCatalog vii. B5Media
iii. MyBlogLog viii. Afrigator
iv. NetworkedBlogs
v. Bloglines
Content communities (multimedia)
These are online communities which organise and share particular kinds of content. Most
of them allow for people to upload, download and share different kind of content; music,
video and photos.
a. Video Sharing
i. YouTube iii. Vimeo
ii. Ustream iv. Hulu
18
19. b. Music Sharing
i. iTunes
ii. Napster
iii. Notjustok
c. Photo Sharing
i. Flickr
Micro communities
Social networking platforms which allow small-sized blogging, where small amounts of
content (‗updates‘) are distributed online. People can share and distribute among friends.
i. Twitter vi. Jaiku
ii. FriendFeed vii. Microblogs
iii. Identi.ca viii. Tumblr
iv. Plurk ix. Posterous
v. Yammer
Micromedia (Subset of micro communities, driven by multimedia)
i. 12 seconds iii. Twitpic
ii. Seesmic iv. Twitvid
19
20. v. Twitpic vii. Lifestream.fm
vi. SocialThing
Instant Messengers
i. Black Berry Messenger iv. Skype
ii. Whatsapp v. Google Chat
iii. Yahoo Messenger
The top three social media platforms include the following;
Facebook:
Facebook, an online social networking service is the world's largest and most used online
community and website (January 2009, Compete.com) was launched in February 2004.
The company is operated and privately owned by Facebook, Inc. [4] and was founded by
Mark Zuckerberg alongside his college roommates and fellow students; Eduardo Saverin,
Dustin Moskovitz and Chris Hughes. The Web site's membership was initially limited by the
founders to Harvard students, but was expanded to other colleges in the Boston area, the
Ivy League, and Stanford University. It gradually added support for students at various
other universities before opening the platform up to high school students, and eventually
anyone aged 13 and above [5]
The Facebook online platform allows users to create personal profiles, own their own
virtual spaces, invite and add others as friends, exchange messages, receive automatic
20
21. notification of friends' activities. These boutiques of technical functionalities were
expansive enough to attract a wide variety of early adopters which later extended into
friends, acquaintances and associates regardless of race, colour and gender. This online
community has resulted in creating the largest online community with more than 800
million active users making it; if it were a country, the third largest in the world [6].
Social Media Marketing Communications is a major channel through which Facebook
makes its money [7]. This source of revenue for Facebook evolved when businesses and
brands found a place within this online communities; creating pages, pushing messages,
pictures and videos to pre-defined target audience. It also allowed individuals to offer their
products and services to the online community through social media advertising
campaigns to sell their offerings through display, word and banner advertising.
Microsoft which owns 1.3 % of Facebook ownership structure [8] is responsible for serving
banner advertising, [9], [10]. It is reported that Facebook makes over $9 million per day
from advertising [11].
YouTube:
YouTube is a video-sharing website, founded by three former employees of PayPal (Chad
Hurley, Steve Chen, and Jawed Karim) in February 2005[12]. It is built on a technology
that allows users (individuals and organisations) to view, display and share a wide variety
of user-generated video content, including movie clips, TV clips, and music videos, as well
as amateur content such as video blogging and short original videos which users can
upload, view and share videos [13].
As a result of this explosive growth, media corporations now use the platform in sharing
content through a partnership programme; CBS, the BBC, VEVO, Hulu including Nigeria's
Channels TV. The site grew rapidly, and in July 2006 the company announced that more
21
22. than 65,000 new videos were being uploaded every day, and that the site was receiving
100 million video views per day [14]. Google Inc. bought YouTube for US$1.65 billion the
same year and started operations as a subsidiary of Google in November 2006 [15].
Social Media marketing through YouTube can either make use of the user-generated
videos or through YouTube's Advertising platform. This advertising platform is managed by
Google through its AdSense. An example of user generated videos was used for building
awareness for D'Banj's 'Oliver Twist' album. [16]
LinkedIn:
This is a business-related social networking site. Founded in December 2002 and
launched in May 2003 [17]. It is mainly used for professional networking and extending
into a recruitment platform. With LinkedIn reporting more than 135 million registered users
in more than 200 countries and territories. [18, 19]. The site is available in English, French,
German, Italian, Portuguese, Spanish, Romanian, Russian, Turkish and Japanese and has
over 21.4 million monthly unique U.S. visitors and 47.6 million globally [20]. Users use it to
connect with friends and professional colleagues, to find jobs, business opportunities,
employers now use it to find prospective employers and prospective employees can
establish their profiles, Curriculum Vitae, experience and competence on the website. Web
applications are increasingly being used to develop platforms that use LinkedIn for
recruitment and selection for employment by organisations and are gaining wide adoption
[21].
The impacts of communication on these platforms have huge impact on brands and
consumer perception. In Gillin's Book, The New Influencers, he opined that ‗‗Conventional
marketing wisdom has long held that a dis-satisfied customer tells ten people. But that is
out of date. In the new age of social media, he or she has the tools to tell 10 million‘‘ (p. 4)
consumers virtually overnight [22]. Social media is increasingly playing an important role in
22
23. how consumers search, research, and share information about brands and products. In
fact 60 percent of consumers researching products through multiple online sources
learned about a specific brand or retailer through social networking sites. Active social
media users are more likely to read product reviews online, and 3 out of 5 create their own
reviews of products and services. Women are more likely than men to tell others about
products that they like (81% of females vs. 72% of males) [23]. Overall, consumer-
generated reviews and product ratings are the most preferred sources of product
information among social media users [24]. According to a research conducted by
Nielsen, a global research firm, it gave empirical evidence that social media is increasingly
a platform consumers use to express their loyalty to their favourite brands and products,
and many seek to reap benefits from brands for helping promote their products. Among
those who share their brand experiences through social media, at least 41 percent say
they do so to receive discounts [25].
It is not whether businesses and organisations will evolve to meet these challenges, it is
how. This is because the primary customers of their businesses, the customers are
already evolving in their habits and attitudes and it will affect businesses. In the United
States, most people rely on various types of social media websites as much as company
websites for product and brand information. Seven out of ten (70%) consumers have
visited social media websites such as message boards, social networking sites, and blogs
to get information. Further, nearly half (49%) of these consumers made a purchase
decision based on what they gathered [26].
References:
[1] Kaplan, Andreas M.; Michael Haenlein (2010). "Users of the world, unite! The
challenges and opportunities of Social Media". Business Horizons 53 (1): 59–68.
23
24. [2] Kietzmann, Jan H.; Kris Hermkens, Ian P. McCarthy, and Bruno S. Silvestre (2011).
"Social media? Get serious! Understanding the functional building blocks of social media".
Business Horizons P.54
[3] Christopher Vollmer and Geoffrey Precourt (2008). Always on: Advertising, marketing,
and media in an era of consumer control. New York: McGraw-Hill
[4] Eldon, Eric, "2008 Growth Puts Facebook in Better Position to Make Money" -
December 18, 2008)
[5] www.wikipedia.com
[6] Socialnomics Report http://www.socialnomics.net/category/statistics/.
[7] "Facebook's Ad Revenue Hit $1.86B for 2010"January 17, 2011 by Jolie O'Dell
[8] Kirkpatrick, David (2010). The Facebook effect: the inside story of the company that is
connecting the world. New York: Simon & Schuster
[9] http://en.wikipedia.org/wiki/Web_banner
[10] "Product Overview FAQ: Facebook Ads". March 10, 2008
[11] http://www.thesocialmediatoday.com/how-much-revenue-does-facebook-make-per-
day/
[12] http://en.wikipedia.org/wiki/YouTube#cite_note-usatoday-5
[13] (Hopkins, Jim (October 11, 2006). "Surprise! There's a third YouTube co-founder".
USA Today. Retrieved November 29, 2008)
[14] http://en.wikipedia.org/wiki/YouTube#cite_note-13
[15] http://en.wikipedia.org/wiki/YouTube
24
25. [16] http://en.wikipedia.org/wiki/LinkedIn#cite_note-3
[17] http://en.wikipedia.org/wiki/LinkedIn#cite_note-4
[18] http://en.wikipedia.org/wiki/LinkedIn#cite_note-5
[19] http://en.wikipedia.org/wiki/Quantcast
[20] www.quantcast.com/linkedin.com. December 17, 2010.
[21] http://en.wikipedia.org/wiki/Linked_in
[22] Gillin, P. (2007). The new influencers: A marketer‘s guide to the new social media.
Sanger, CA: Quill Driver Books
[23] Ibid.
[24] How Social Media Impacts Brand Marketing October 14, 2011, Nielsenwire
http://blog.nielsen.com/nielsenwire/consumer/how-social-media-impacts-brand-
marketing/
[25] Ibid.
[26] The Impact of Social Media on Purchasing Behaviour, United States 2008 Volume
One: Initial Findings, United States 2008
25
26. Chapter 3:
Research Methodology
A quantitative and qualitative research is designed to determine Nigerian consumer's
perception towards organizations that use social media. Through this study a safe
conclusion can be arrived at on the involvement of brands on social media. This research
will also help organizations determine the potency of their social media campaigns and to
anticipate the response of their target audience.
Sample Selection
The research will be conducted using an online survey. The survey will be designed using
an online survey platform, Google Docs. Promotion and Publicity for the survey will be
through online influencers and other social media platforms. Everyone receiving the
information will be asked to fill the survey and also broadcast the message. i.e. take the
survey, pass it along and ask others to complete it.
This will result in a non-random, convenient, self-selected sample population.
Data Collection Method
The survey instrument itself will include 20 close-ended questions. The instrument will
probe consumers‘ awareness, behaviour, opinions and perception toward social media
platforms and how they want organizations to interact with them.
The survey is available for review via http://www.yrn.me/4nw or
https://docs.google.com/spreadsheet/viewform?formkey=dFZLRUdPRUpBa3RkRHk2a1U
26
27. 1XzM4WHc6MQ&theme=0AX42CRMsmRFbUy1mYWM4NjFhMS1kMGY2LTRjODMtOGNj
Ni02YjVjYmI0NGNiMDQ&ifq.
A copy of the survey instrument can be found in Appendix A.
Data Analysis Method
The filled online form, which is automatically collated in a tabular form. This is then
analysed using www.docs.google.com. The analysis will help us determine frequencies
and percentages of the responses. The analysis will reveal and help evaluate the Nigerian
consumer attitudes and behaviours towards brands that use or participate in digital
conversation. This research will also determine if consumers want organizations to use
social media to communicate with them and how they perceive organisations already
using the platforms.
The results from this four-part research, alongside conclusions and recommendations are
found in the next chapter.
References
[1] Google Docs https://docs.google.com
27
28. Chapter 4:
Data Presentation and Analysis
A total of 164 respondents were collated between February 12 and March 4 2012. The
results of the survey was collated and re-presented in Pie and Bar charts using the same
online platform.
Each hypothesis was tested and the findings were as follows;
H1 – It is expected that people find social media advertising as a very useful channel
in getting information about products and services.
In the survey completed by Nigerian Consumers, 47% of the respondents say they have
resonded to online advertsements displayed by organisations or individuals about
products and services.
Figure 1: Pie Chart showing if respondents respond to online advertisement (%)
H1 – Supported
28
29. H2 – It is opined that social media is a veritable tool to nurture brand loyalty
During the survey, 57% of the respondents say they are registered fans or followers in
support of causes, brands, people or businesses on Facebook.
Figure 2: Pie Chart showing respondents' responses to their membership
of Brands' social pages (%)
In another question proposed in the survey, 41% of the respondents say they are 'fans'
because they want to show Solidarity or loyalty to the brands they 'like' ; 27% of the
respondents say they are 'opt-in' fans on Social Media to see if the businesses will offer
some kind of post-purchase or customer service support for their products or services
Figure 3: Bar Chart showing respondents' responses to their motives
for enlisting on Social Media pages (%)
29
30. while 16% of the respondents say they are hoping to get some kind of freebies/discount;
another 19% say they follow/'like' brands to stay up-to-date with information and news
coming directly from the company.
41% of the respondents say they 'like'/follow brands on social media to show solidarity.
H2 - Supported
H3 - Conversations going on in social media platforms have a great influence on
consumer perception and buying behaviour
Of the Nigerian Social Media consumers surveyed, 82% of the respondents say they have
posted, commented and broadcast their experiences about a brand on Social Media
platforms.
Figure 4: Bar Chart showing their propensity to share brand experiences (%)
30
31. Figure 5: Bar Chart showing respondents' motive for sharing brand experiences (%)
In another question exploring why respondents share brand experiences on social media,
31% of the responents say they do that to protect others from having the same
experiences. Another 31% of the responents also said they share brand/product
experiences to bond with others having the same experiences. About 15% however hope
that the company responds/reacts to their feedback. These experience sharing however
has effects on the purchasing behaviour of their peers.
In another question proposed to test this hypothesis, more than 70% of the respondents
said the opinions, experiences tweets and comments of others on social media is
somewhat significant, significant and very significant to their purchasing decisions.
31
32. Figure 6: Bar Chart showing the significance of others' experiences on their buying decision (%)
69% of the respondents also say they trust the recommendation of others through their
comments on forums, status updates and tweets ahead of company websites.
Figure 7: Bar Chart showing which information platforms influence their buying decision on brands (%)
32
33. This also agrees with the results of Nielsen‘s Global Online Survey which established that
when researching products, social media users are likely to trust the recommendations of
their friends and family most [1]. It also opined that consumer feedback on social media
has a significant role to play in influencing the perception of brands. While 48% of the
respondents say they will eagerly commend a good job on social media, 31% say they will
broadcast poor product experiences in order to bond with others with the same issues.
31% also say they write reviews, make public digital complaints so as to protect others
from experiencing the same. The Nielsen Report also concluded that nearly 1 in 4 say they
share their negative experiences to ―punish'' companies [2].
In another report, it was demonstrated that consumers trust their friends and peers more
than anyone else when it comes to making a purchase decision[3]. This type of peer
recommendation is passed along as earned media (advertising that is passed along or
shared among/to friends and beyond)
H3 - Supported
Other general findings from the research include the following;
A. Gender Distribution:
62% of the respondents were Male and 38% are Female. There were more males than
females among the respondents.
33
34. Figure 8: Pie Chart showing gender ratio of the respondents (%)
This outcome agrees with a report from Social Bakers (Pie Chart above) which also
conducted an analysis of all Nigerians on Facebook and opines that there are more males
(68%) than females (32%) on Facebook, which is Nigeria's most widely used Social
network [4].
Figure 9: Doughnut Chart showing the gender of the respondents (%)
from Social Bakers Analytics
34
35. B: Age Distribution
The survey revealed that the 30 - 39 age bracket accounts for about 40% of the
respondents. This also agrees with the report from Social Bakers which puts the most
active users of Facebook between the ages of 18 and 24(36%); and between 25 and
34(35%) [5].
Figure 10: Bar Chart showing the age range of the respondents (%)
C : Income Distribution
The survey also revealed that about 24% of the respondents earn between 2,000,001 and
5,000,000 million naira annually. Respondents with income less than 250,000 per annum
represents 22% of the sample size.
35
36. Figure 11: Bar Chart showing the age range of the respondents (%)
from Social Bakers Analytics
Figure 12: Bar Chart showing income range of the respondents (%)
36
37. D: Popular Social Media Platforms
99% of the respondents say they have a profile on Facebook. Out of all the different social
media platforms existing, almost all the respondents use Facebook. Thisaffirms the
popularity of the platform in Nigeria. Social Bakers Analytics puts the number of Nigerians
on Facebook at 4.3 million [6].
Figure 13: Bar Chart showing social presence of the respondents (%)
E: Time Spent Online
Figure 14: Pie Chart showing daily hours spent online by respondents (%)
37
38. Figure 15: Pie Chart showing daily hours spent on social media platforms by respondents (%)
56% of the respondents say they use Social Media to find and share information about
brands and products.
To keep in touch with friends and family. 88%
To meet new people and share my experiences about life. 49%
To make professional and business contacts (gaining leads,members,customers) 48%
To share photos, videos, music and play games. 34%
38
39. To find information and share feedback about brands and products. 56%
To promote a business or cause 43%
To search for jobs and other available opportunities 48%
Figure 16: Pie Chart showing why respondents joined social networks (%)
F: Device Accessibility
78% of the respondents say they access social networking platforms through their mobile
phones
Figure 17: Pie Chart showing why respondents joined social networks (%)
This agrees with the Inmobi report which established that Nigeria shows the fastest mobile
growth in mobile markets in Africa from February to May 2011 representing 2 of every 5
mobile ads across the continent [7].
G: Interaction with Online adverts
73% of the respondents say they have at one time responded to online adverts.
39
40. Figure 18: Pie Chart showing if the respondents have ever responded to online advertisements (%)
These kinds of responses may include following a link, clicking a 'like' button, making a
purchase, phone call, taking part in a competition, attending an event e.t.c.
Over 90% of the respondents say they have found these online adverts somewhat useful
(45%), very useful (46%) and love adverts (2%) on social media platforms.
Figure 19: Pie Chart showing how respondents feel about online advertising (%)
40
42. Chapter 5:
Conclusion and Recommendation
Social Media has created a powerful platform for consumer engagement. It has become a
platform to turn a prospective consumer into a volunteer marketing army. It is also
however a nightmare for cognitive dissonace, an unsatisfied customer can do more harm
to a brand in seconds than it was ever possible before. This report tells us how much more
power the consumers have in influencing a brand/prduct perception. Businesses will need
to stay at the top of their game and improve the quality of products and services or their
consumers will fight back.
The social media space also presents a basket of customer opinions, perceptions and
customer feedback. Businesses can reap a lot of user opinions or preliminary research for
products/services in order to find suggestions, core values and propositions that can
satisfy the cutomers' needs. Some businesses are still hesitating and some others are not
sure how to aproach the ever dnamic worls of social media. If your business isn't creating
dedicated online experiences for mobile devices and social network integration, you might
be looking over a tremendous opportunity to connect with consumers.
As Brian Solis, a foremost Social Media enthusiast opined in his book, The End of
Business as Usual, '' Social media democratized information and empowered consumers
to take control of not only their online experiences but also those in the real world. As a
result, social media is changing how customers shop, refer products and services, and
ultimately make decisions. The relationship between customers and business is changing
and will continue to evolve as new media permeates our culture and society'' [1].
Social Media as a form of marketing will present a whole new phase challenges. It will
require businesses to develop their marketing strategy genuine relationship building.
Some businesses have jumped into the uncharted world and they are raising
ambassadors and advocates for brands through social media. They are increasingly
42
43. recruiting their fans and followers to spread word-of-mouth recommendations about their
products and services, and they are tapping into the large youth market.
It wil be great to see how things pan out. The marriage between social media and
technology is fundamentally shifting the way business is done and businesses that plan to
stay for a long time need to move - very fast and strategically too.
Twenty years ago, it was the age of mass media; one-way massive broadcast, massive
budgets, and not so massive ROI analysis. If you happen to be dissatisfied with a
company's product or business practices, you'd probably stop buying from them. You
might write an angry letter. You might even tell your friends and family not to patronize that
business. But that was then; the game has changed, media is becoming more personal
and the ROI is noew a common requisition in advertising budgets. If you are angry with a
company, product or personality, the tools are there an the world is waiting to listen. The
only limit is our creativiy and how far we want to go.
Refrences:
[1] The End of Business as Usual, Brian Solis
43
44. Appendix A:
Online Customer Service Survey:
This is a simple social customer survey. It involves simple and straight forward questions
to highlight your habits, preferences and response to the emergence of business brands
on Social Media platforms. Your honest and frank response is craved. It is designed not to
waste your time.
Social Media Channels include: Social Media Networks, Blogs, Forums, Microbloggers,
Instant Messengers, Multimedia (Voice, Data, Music and Video) Sharing Online Platforms,
Newsgroups and Aggregators.
Questionnaire:
A: Personal Data:
1. Please specify your gender
a. Male
b. Female
2. Please specify your age bracket
a. Under 18 years
b. 18 - 25
c. 26 - 29
d. 30 - 39
e. 40 - 49
f. 50 + above
44
45. 3. Please specify your marital status
a. Single
b. Married
c. Divorced
4. Please specify your income bracket
a. Less than NGN 250,000 annually
b. NGN 250,001 to NGN500, 000 annually
c. NGN 500,001 to NGN 1,000,000 annually
d. NGN 1,000,001 to NGN 2,000,000 annually
e. NGN 2,000,001 to NGN 5,000,000 annually
f. More than NGN 5,000,000 annually
B: Awareness
5. Please select all social networks for which you have created a personal profile
(Select all that apply)
a. Facebook
b. Twitter
c. LinkedIn
d. MySpace
e. Any online forum
f. Other
45
46. 6. How many hours do you spend online each day?
a. 0-3 hours
b. 4 - 9 hours
c. 10 - 15 hours
d. 16 - 24 hours
7. How many hours do you spend on social networks per day?
a. 0-3 hours
b. 4 - 9 hours
c. 10 - 15 hours
d. 16 - 24 hours
8. Why do you use an online social network? Select all answers that apply.
Please select all that apply.
a. To keep in touch with friends and family.
b. To meet new people and share experiences about life
c. To make professional and business contacts (gaining leads, members,
customers)
d. To share photos, videos, music and play games.
e. To find information and share feedback about brands and products.
f. To promote a business or cause
g. To search for jobs and other available opportunities
46
47. 9. How many friends do you have on your primary social network
a. 1 - 500
b. 501 - 1000
c. 1001 - 2500
d. 2501 - 5000
10. How do you access Social Media Platforms?
a. Desktop Computer
b. Laptop Computer
c. Tablets (iPad, Galaxy Tab and others)
d. Mobile Phones
e. I use a cafe
f. Other
Perception
11. Have you ever responded to an online advertisement?
a. Yes
b. No
12. How do you feel about advertising on social networks?
a. Very annoying
47
48. b. Somewhat annoying
c. Somewhat annoying
d. Somewhat useful
e. Very useful
f. Interesting
13. Have you ever purchased a product or service based on an advertisement on a
social network?
c. Yes
d. No
14. Do you use social media in an official business or professional capacity?
a. Yes
b. No
15. Are you a member of a fan page for a brand or product on Facebook?
a. Yes
b. No
16. Why do 'like' brands on Facebook?
a. To show solidarity
b. To try and see it they can solve a challenge you have (Customer service)
48
49. c. To be updates on latest news
d. Discounts/freebies
e. I don't know
f. To open communication lines
17. Where do you go to as a preferred source for information about
products/services you want to buy?
a. Company's website
b. Newspapers
c. Send a mail to the Company
d. Blogs and Forums
e. Other Social Networks ( Facebook, Twitter)
f. I consult Google first
18. Which has more influence on your perception of people, products and places
online?
a. Online Adverts
b. Company/Brand Social Pages
c. Company Websites
d. Recommendation of others (forums, status updates, tweets)
e. They all don't matter
49
50. 19. Do you share your experiences and perception of people/brands/products/services
online?
a. No
b. Yes
20. Why do you share your brand experiences on Social Media
a. To feel empowered
b. To protect others
c. To commend a good job
d. To bond with others with the same experiences
e. Expect the company to react/respond
f. To punish the company
50