Massachusetts Institute of Technology (MIT) - Management Science (MS)
February 15, 2012
In social advertising, ads are targeted based on underlying social networks and their content is tailored with information that pertains to the social relationship. This paper explores the effectiveness of social advertising using data from field tests of different ads on Facebook. We find evidence that social advertising is effective, and that this efficacy seems to stem mainly from the ability of targeting based on social networks to uncover similarly responsive consumers. However, social advertising is less effective if the advertiser explicitly states they are trying to promote social influence in the text of their ad. This suggests that advertisers must avoid being overt in their attempts to exploit social networks in their advertising.
Number of Pages in PDF File: 31
Keywords: Social Networks, Social Targeting, Advertising
Date posted: December 23, 2011 ; Last revised: February 16, 2012
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