ABSTRACT

 

Social media sites such as Facebook are potent tools in modern communication and marketing. Considering Social media’s growing popularity, particularly Facebook, this study assessed the use osf social media as advertising vehicles. The study explored the usage level of social media by consumers and advertisers in Port Harcourt and the  effect such use  has on them, especially in terms of improved patronage  for business organisations and change in  decision making process, particularly the buying behaviour of consumers . In order to generate data for this study, the survey research method was employed and the questionnaire was used as the instrument for data collection. The study revealed that 70% of business organisations in Port Harcourt are embracing social media to advertise and communicate with their customers, 30% are yet to see the promises that these new media hold. The study also found out that the credibility of social media in advertising has been successful for 35% of business organisations using them to place advertisement. Others (65%) leverage on their social media presence to get their fans/followers informed about their products/services. It was also revealed that 195% of the consumers patronise goods/services advertised on social media predominantly based on recommendations/referrals from trusted sources-their friends and that their need for such products necessitated their patronage. The work recommended among other things that more Nigerian organisations should embrace social media advertising since it has the potential of reaching their target market and should see them as good avenues to market their products, counter negative perception about their organisation’s products/services and attend to their customers and potential customers online.

 

 

 

 

 

 

 

 

CHAPTER ONE

INTRODUCTION

 1.1  Background of Study

The new media have introduced new dimensions to human communication. One of such dimensions is the introduction of the social media. Social media are media for social interaction. They are sites that are based on user participation that allow individuals or groups to generate content and engage in conversations and exchange of contents (Wikipedia). Social media are also online media that promote participation, openness, conversation, community, connectedness, interactivity, collaboration and information sharing (Mayfield, 2008: 1; Shepherd, 2009:1; Rodman, 2010: 278 and Stagno, 2010: 1)).

Social media build on the ideological and technological foundations of Web 2.0, which allows for collaboration and the creation and exchange of user-generated content (Kaplan and Haenlein 2010a: 61).  Arens, Weigold and Arens (2011: 552) remark that “these sites are called social, primarily, for their ability to connect like-individuals in a manner that have never been seen before”. Social media allow people to exchange personal comments, political views, business ideas and commercial messages using various online platforms such as blogs, microblogs and social networks.

The increasing rate of growth of these social media has made it impossible for them to be ignored by individuals and business organisations (Omeruo 2010:12). 

Giving credence to the above, Osae-Brown & Emelike (2011:12) notes that social media are changing the way some business people communicate with their customers; the same way that consumers are using the social media to take charge of their shopping experience and connect with others. They explain that these social media have become an instantaneous marketing tool used by ambitious marketers to create believability for their products and services and build strong online presence and community.

Dominick (2009:32) explains that advertisers particularly showcase their products/services on social networks and use networks such as blogads to target specific blogs whose readers would be likely customers. Some advertisers also have links or hyperlinks below their adverts to connect their customers to their websites, social networking homepages or blogs.

Social media are “undoubtedly shaping and redefining the nature of communication among people all over the world” (Nnanne 2011:5) especially, the way advertisers communicate, interact and engage with customers and the way customers also engage with business organisations/entrepreneurs they do business with . The attraction to social media by business organisations/entrepreneurs is that barriers are broken as they can relate to customers on a one-on-one basis. Prior to now advertisers hardly hear what consumers are saying about their products unless they embark on research but “social media, blogs and micro blogs have made it possible for consumers to express their opinions and experiences about a pr oduct” (Arens,Weigold and Arens, 2011:552). These possibilities stem from social media highly interactive nature.

Sometimes, friends would have to draw the attention of their friends to some services or products they have seen or used on social platforms. The degree of trust a person has for his friend might determine if he would trust an advertisement referred to him by his friend or not.  Moriarty, Mitchell & Wells (2009:343) made this clearer when they said that “your relationships with friends will affect how you respond to adverts in social media”.

The above assertion explains the genuine building of social authority which is a key component in successful social media advertising. Social authority implies that business organisations have to make people believe that they are credible, take good care of their reputation, and value their existing customers because these people are sources of information for their potential customers as they  do not only use their products/services but interact with their friends about such products on social platforms.

1.2 Statement of Problem

In recent years, more consumers have been using different types of social media to search for information that influences their purchasing decisions.  They not only extend their social networks to people they have met in person to gather opinions about products and services but also become fans of business organisations on social media sites to communicate with marketers and other consumers (Razorfish, 2009:2).

Since the introduction of Facebook, a growing number of commercial organisations are embracing them as part of their marketing strategy. They have seemingly discovered the potential of the social media in promoting customer relations and increasing product patronage.

Being that social media are a new form of advertising platforms and are still evolving in Nigeria, it is unknown the percentage of  users, entrepreneurs/business organisations in Port Harcourt that are aware of them  and utilising them to engage with their brands or customers as the case may be. It is not also known how entrepreneurs/businesses using them have fared in terms of improved patronage.

With 4.3 million, Facebook users as at November 2011 in Nigeria (www.socialbakers.com/facebook statistics) and One million, six hundred and forty six thousand, two hundred and twelve (1,646, 212) tweets generated from Nigeria; the third tweeting nation in Africa (Augoye, 2012), the researcher was interested in finding out whether the residents of Port Harcourt, one of Nigerians most vibrant commercial cities, are participating in the growing phenomenon. Are they using Facebook? Do they patronise goods/services advertised on social media? Are business organisations/entrepreneurs utilising the advantages of this “ready” and huge social market to relate with their customers on a more personal level? This study assessed the use of these new media as advertising vehicles with a focus on Facebook.

 

1.3 Objectives of Study

The objectives of this study include:

1. To determine if Port Harcourt find credible advert on social media sites like Facebook.
2. To ascertain the level of believability of the credibility of social media in advertising by those who use them.
3. To find out if Port Harcourt users patronise goods and services advertised on social media.
4. To determine whether the credibility of social media in advertising has been successful for business organisations/entrepreneurs using them in Port Harcourt.
5. To find out the factors that hamper effective believability of social media in advertising.

 

1.4   Research Questions

This study raised the following research questions:

1. Do Port Harcourt find credible advert on social media sites like Facebook?
2. To what extent are users believe the credibility of social media in advertising?
3. Do users patronise goods/services advertised on social media?
4. Has the credibility of social media in advertising been successful for business organisations/entrepreneurs using them in Port Harcourt?
5. What are the factors that hamper effective believability of social media in advertising?

1.5    Significance of Study

This study is important because it revealed the success or failure of social media advertising and thus, will help both government and private business executives to decide if social media  advertising should be part of their advertising budget or not.

This study will enlighten intending advertisers on how to package their social media advertising campaign since it will reveal the extent of believability of the credibility of social media in advertising. The factors that hamper effective believability of social media in advertising as this study will show will act as precautionary measures for intending users particularly advertisers.

This study will equally serve as a platform for further enquiries in related subject matters and as a resource material for researchers who intend to carry out studies in this and other related areas.  

 

1.6    Definition of Terms

For a proper understanding of this work, the key terms used are defined based on   their conceptual relevance to this study.

 Social Media

This refers to online social interaction sites in which messages are developed by the users and also shared by those users between or among themselves. For example Facebook.

 User-Generated Content

These are information contents that are primarily written, published or shared via  social  networks by their users.

 Social Media Advertising

This refers to a special area of advertising that uses Internet’s social platforms  (social networking sites) to deliver commercial messages to potential consumer.

 Social Platforms

This includes social websites or networking sites.

 Vehicle

This refers to a single component of a mass medium. In this study, Facebook act as our media vehicles.

 Assessment

This means the action of assessing; to estimate the nature, quality or value of something.

 Blogs

Blog is short for web blog. They are online personal journals in which people write about their interest for instance, business, politics, sports, music, movies reflections, comments etc. Readers can post and engage in conversation with the blog author and often, links to other blogs provided by the writer.

 Microblogs

Microblogs allow users to exchange small elements of content such as short sentences not more than 140 characters, individual images, or video links. Twitter is an example of a microblog.

 Blogads

This refers to an online advertising network that provides advertising services to both bloggers and advertisers.

 Web 1.0

This refers to first generation web which was static and non-participatory, where users generally consumed content provided by the website owner(s).

 Web 2.0

This refers to websites or web services that utilize “social” interaction. It is     characterized by openness, collaboration and user participation and generation of content.

 Social Authority

This is developed when individuals or organisations establish themselves as experts in their given field or area, thereby becoming an influence in that field or area.

 Facebook

A social network created in 2004 by Mark Zukerberge having more than 500 million users as at 2010 and an attractive site for advertisers.

 Twitter

A social network using microblogging tool where users post tweets of 140 characters or less that, responds to the site’s orienting question of what are you doing.

• Tweet

The message consisting of 140 or fewer characters sent by a Twitter user.

• Tweeting or Twittering

The act of composing and sending a message.

• Handle

A user’s Twitter name

 Retweet (RT)

When someone forwards your tweet, or retweets, they put RT in front of it to give proper credit to the sender.

 Tweep

 A nickname used to describe a Twitter user originating from the terms “Twitter” and “people,” or “peeps.”) Tweeps describes more than one tweep.

• Follower

           Someone who has opted in to receive a company’s tweets in their Twitter Steam.

• Following

           Those who entrepreneurs/companies have opted in to receive tweets from.

 

• Friend

When a mutual follower/following relationship exists between two users.

• Twitterverse

          Describes the Twitter community at large i.e., the Twitter universe.

 Brand

A trademark or a name of a product.

 Hyperlink.

A hyperlink, also sometimes referred to as a “hypertext link,” is simply a highlighted word, phrase or, sometimes graphic, that allows users to link to another website by simply clicking on the hyperlink.