The Values of Online Advertisement on Social Media Sites - Essay Example

The Success of Social Media Introduction The social media and social networking have become a dominant form of communication in the last ten years. It has infiltrated almost all aspects of human life, including politics, economics, and social activities. It has also established its value in economics, in terms of advertisements. This paper aims to establish the values of online advertisement on social media sites; evaluate how Facebook is now being used for commercial purposes to reach consumers; and to establish the attitude of consumers towards Facebook advertisement. This study is being carried out in order to establish tools among businesses under the current social media conditions. Literature Review Various studies have been carried out on Facebook and how it has now been used in online advertisements and for commercial purposes. In a study by Clemons, Barnett, and Appadurai (2007), the authors set out to establish the value of social media networks such as Facebook to the future of advertising. The authors were able to establish that the social media are a tool which has allowed the consumers to determine what they want to be made aware of the products themselves without being influenced by profiteering companies. The authors, therefore, were able to point out that consumers are now using the Internet and the social media in order to carry out what they want at the time of their choosing (Clemons et al., 2007). These consumers are also able to escape TV ads through TiVO and seemingly, the social media network is the last resort for advertisers. With the growth of the Internet and the social media, consumers have now become more discerning and not totally trusting what is advertised on TV or on newspapers or magazines (Clemons et al., 2007). These consumers have now become more empowered in their consumption as they are able to use the social media to review products and determine how well a produce would work for them. This study is, however, based on secondary information gathered from a database and from the research of other authors on the subject matter (Clemons, 2007). Nevertheless, the data established by the authors are reliable as they confirm trends already established in previous studies. The authors were also able to provide a clear and valid assessment of the data, linking these to current trends in advertisement and social media applications. Gaps in the data are apparent in relation to the primary database needed to support reliable and evidence-based research. Nevertheless, the value of the social media in advertising has been apparent in this study and in other related studies. In the study by Tucker (2011), the author sought to evaluate how Internet users’ conceptualization of control over their personal data impacts the likelihood of their clicking on online advertising. The authors used data they gathered from a randomised field experiment where they sought to examine the general efficacy of personalizing ads on social networking sites including Facebook (Tucker, 2011). The authors revealed that the website gave the users the chance to have greater control over their personally identifiable data. The website also did not change how the advertisers utilised data to target and modify the ads (Tucker, 2011). When privacy measures were introduced, the users were even more likely to click on personalised ads. The study suggested that it may be important to give the users control over their private data in order to assist advertising-supported media and advertisers on said sites. This also means that privacy controls can have harmful advertising outcomes. For advertisers, such controls are not enticing prospects, but for consumers, are welcome prospects (Tucker, 2011). As a randomized controlled field study, this study provided strong primary evidence for this research. The methodology was well explained and replicable, with the design appropriate for the variables being studied. The discussion provided the correlations between the variables, allowing for the reader to make a stronger and reliable judgment of the issues raised. Mangold and Faulds (2009) discuss that the social media have become a hybrid option in the promotion of products as it helps companies communicate with consumers and for these consumers to also communicate and discuss with each other. The content and the frequency of discussions among social media users cannot be controlled by managers (Mangold and Faulds, 2009). This situation is very much different from the traditional set-up where the marketing executives have a high level of control over consumerism. The authors pointed out that under the present conditions, the social media including Facebook and Twitter have presented a challenge for managers in directing discussions towards their organizational goals (Mangold and Faulds, 2009). For managers to be successful under these conditions, they need to make their advertising and media tools available to the public, and these tools may include networking platforms and blogs (Mangold and Faulds, 2009). This study is yet another secondary research, drawing on the research of other authors and compiling these for analysis. As such, the data gathered do not provide for the best evidence for this study, although they still provide similar results established in previous researches. Wright et al. (2011) discussed how Americans are exposed to numerous advertisements on a daily basis. Due to the influx of advertising in society, consumers have become resistant to the traditional processes in advertising. Their study explored how social media trends have impacted current trends in advertising (Wright et al., 2011). The authors were able to establish that the social media trends have prompted advertisers and managers to adjust their marketing strategies in order to support consumer needs and trends (Wright et al., 2011). This study highlighted the importance and the role of Facebook and other social networking sites in consumerism (Wright et al., 2011). Where traditional marketing used to dominate the consumptions patterns of customers, such patterns have shifted in favour of the consumers who now use the social media as a helpful tool in their product choices. The need for managers to improve their performance in the social media is, therefore, also an apparent implication drawn from this study. This study is based on secondary data gathered from a diverse database; nevertheless, the information presented here is very much consistent with previous data on the subject matter. The methods applied are appropriate based on the specific design already chosen. More support data would likely be needed for future research. Gaps in this research are apparent in terms of research design where secondary research methods are applied. There is a need to study the phenomenon and the impact of social media on consumerism using primary research methods. Primary research methods would help establish reliable and first-hand information relevant to this discussion. The studies above do not provide primary data on the impact of Facebook on consumerism either. Most of the data presented from previous literature discuss other social networks in general; they do not specifically study Facebook and how it affects consumerism. Based on these considerations, this research now seeks to study the impact of Facebook on consumerism, including the impact of online advertisements on Facebook. It also seeks to establish how Facebook is now being utilised for commercial purposes to reach consumers. Discussion Advertising on social media sites serves different values. According to Reese (2011), about $2 billion was spent in 2008 alone on social network advertising by corporations and small businesses. This venture is set to grow and reach about $3.8 billion in 2011 (Reese, 2011). The benefits of advertising in the social media will mostly be felt in America and in other developed territories where Internet access can be easily gained and where online marketing is a common market trend (Williams, 2006). Advertising in the social media provides an opportunity for various businesses – big or small – to penetrate the market. Social media advertising has a far and globally significant reach and for businesses, this is all the advantage they need in order to launch into a larger market (Lampe et al., 2006). Advertising in the social media gives a chance for direct advertising to take off. Direct advertising is based on one’s friend network. It can be a very effective format for almost anyone wanting to start a business; however, it is also controversial because of its exploitative nature where personal relationships are concerned (Mazer et al., 2007). Moreover, issues on privacy have also been raised in the use of the social media for advertising. Nevertheless, it is undeniable how social media advertising has allowed small businesses to promote their products and services with minimal costs incurred for advertising (Mazer et al., 2007). The social media are also used as direct advertising tools for businesses. This is already easily apparent with the pages of the social media themselves which contain various banner ads (Ellison et al., 2007). Businesses also utilise the demographic data from user’s profile in order to directly target the consumer, and then send advertisements via electronic mails and Facebook pages (Ellison et al., 2007). The social media are also used as a tool for indirect advertising with the creation of groups or pages. For companies seeking to advertise their products, they often create pages or groups for these products and entice social media users to “like” or to join their page (Ellison et al., 2007). Through this medium, the fans or the subscribers to a particular product usually get updated about the new features of the products they ‘like.’ Moreover, these pages and groups can also be used by businesses and marketers to promote and advertise their new products. In other words, there is an easier and more accessible means for the marketer and the consumer to reach each other. Facebook is being used for the above purposes and for most businesses, they have found a strong consumer base in Facebook and the social media (Lampe et al., 2007). It costs these businesses practically nothing to open up and maintain their Facebook page. They can also easily and quickly reach consumers and inform the latter about the updates and changes on their products (Lampe et al., 2007). This utilization in many ways is very much convenient for marketers; however, it can be an overwhelming bombardment of advertisements for consumers. Privacy issues are also apparent where information of social media users is used in order to advertise products (LaRose et al., 2005). However, it is often up to Facebook and social media users to secure their privacy in their pages. By implementing restrictions on their email addresses and by avoiding membership and ‘likes’ on business-related pages or groups, it is possible to prevent intrusions into their social media use. Despite the measures which consumers can take to ensure their privacy, they may still be accessible to businesses because of their use of the social media (Mazer et al., 2007). For marketers, the social media have become the newest and most effective tool for advertisement and they are doing all they can in order to ensure that this access to consumers is maintained. Various advertising promotional activities are often carried out among ‘fans’ of the page, via trivia questions, prize contests, giveaways, and similar activities which continue to draw in ‘likes’ and members (Mazer et al., 2007). Through these tools, the businesses can easily promote their products and provide avenues for their consumers to voice their opinions, complaints, and reviews. The attitude of consumers in relation to social media advertising is mixed. For the younger consumers, they are very much engaged in the interactivity they find in the social networks (Boase et al., 2006). They are also the ones who are most likely to be involved with the promotional tools and activities of the marketers. For the older and more cautious crowd, they are more likely to avoid advertising considerations which they see in the social network (Cummings et al., 2006). Nevertheless, they are still likely to consider the social network features of various products, especially those they use and patronize. More females are also likely to use the social network features of various products and businesses in order to consider their marketing choices (Ellison et al., 2007). Some older consumers consider social network ads a significant intrusion in their privacy, especially when they are often bombarded by spam in their inboxes from these marketers. The fact that at some point many social websites sell email addresses to marketing firms makes the practice of social network advertising an even more unfavourable element of the social media (Ellison et al., 2007). Nevertheless, many users also believe that social media advertising is an inevitable part of the current social network use, and most users have learned to make the necessary adjustments to reduce the intrusive qualities of these social networks. Conclusion The social media have become a powerful advertising tool. Based on the above discussion, it is apparent to note that the social media have become an effective means for consumers and marketers to establish links with each other and to communicate with each other. More importantly, for marketers, the social media have become a cheap and effective means for them to reach their consumers and advertise their products. The social media also have become a more personal means for consumers to also voice out their opinions on particular products. In other words, the social media have given a face to the consumers, making their impact on the businesses more significant and more apparent. 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