Did you hear? Word-of-mouth advertising is more effective than traditional advertising

Did you hear? Word-of-mouth advertising is more effective than traditional advertising

Shannon Wells

Curtin University

Abstract

This conference paper explores the relationship between social media influencers and their followers, and how they become a community. It explores how followers are more prone to trust a social media influencers opinion on products or places because of their weak tie. This results in companies using this to their advantage by sending their products to social media influencers for them to post a review to their followers. This is called word-of-mouth advertising and companies do this because it is a cheaper way of getting their products across, and it has a more instant effect. Word-of-mouth advertising is becoming more popular than traditional advertising. Though there are still reasons as to why traditional advertising is still needed and this is due to the companies target audience, and people not having complete access to the internet. This paper uses Emily Davies, a social media influencer from Perth, as an example as to how communities can be online and offline, and how she communicates to her followers. It also uses Davies as an example on how companies use social media influencers to advertise their brands.

key words: Community, Social media influencer, Word-of-mouth advertising, weak ties.

 

Did you hear? Word-of-mouth advertising is more effective than traditional advertising

Introduction

The rise of technology and the Internet has provided a lot of opportunities for companies to advertise their products to a large amount of people (Trusov, Bucklin & Pauwels, 2009, pp. 90). It has also opened up a lot of avenues for people to communicate with others who have the same interests that they do, and this helps form communities (Rice et al, 2004, pp. 4). People can do this on a variety of different social network platforms, some of these being Instagram, Facebook, Snapchat, and blogging sites. They are able to access these sites through a range of different technologies, primarily being mobile phones and laptops. Users on these websites can post a range of different things to their friends and followers instantly. Some people choose to use these social media platforms to post their opinions on places they’ve been to, products they’ve tried or brands they’ve bought, and have gained a large number of followers by doing so. This results in these users becoming social media influencers. Companies recognise the influence these users have on their followers and choose to take advantage of this by sending them their products to promote online (Uzunoglu & Misci Kip, 2014, pp. 592.). This is called word-of-mouth advertising and it is becoming more effective than traditional advertising as it reaches people faster, and it has a lower cost (Trusov, Bucklin & Pauwels, 2009, pp. 90). Social network sites help people with similar interest’s form communities online and social media influences help bring these people together, which creates a following. The followers trust the social media influencers opinion and companies take advantage of this by getting them to participate in word-of-mouth advertising, as they know it will reach a large amount of people.

Discussion

Social media influencers are able to form communities through social networks which offer online and offline social ties. Social media influencers are users on social media websites who share their interests to a large number of followers (Freberg et al, 2011, pp. 90). Social media influencers update their social media profiles regularly to inform their followers on what they are doing, what products they’re using, what brands they’re wearing, and what places they like to go to. A community is formed by doing this, the term community branches out from not only solidarity groups of close friends and neighbours, but also social networks of people who don’t live close by (Wellman & Gulia, 1997, pp. 2). Social networks communities are created through social interactions, common interests and experiences, and through a variety of different social networks (Rice et al, 2004, pp. 4). Their followers will see their posts on the places they’ve been to and the products they like, and this usually results in them going out and experiencing or buying the same products. This is where the social media influencer name comes from as followers are being influenced to do buy or do these things. This creates a weak tie between the influencers and the followers. A weak tie is when users choose to follow and trust another person’s opinion even though they might’ve never met or don’t really know each other (Wellman & Gulia, 1997, pp. 8). Though many communities online do connect offline as well, whilst still being able to keep the weak tie in place (Wellman & Gulia, 1997, pp. 13). Communities do this by meeting up with each other to enjoy their specific interests together, for example if the interest was a certain breed of dog, they would all come together in the park to walk their dogs. This keeps the weak tie relationship as they’re only gathering together for one common thing. Users are more likely to trust the opinion of someone they have a weak tie with, then those they have a strong tie with, which is their close circle of friends or family (Wellman & Gulia, 1997, pp. 13). This is because it is exposing them to different opinions and point of views then those that are close to them, who may always have the same ones. This is why users are more attracted to a social media influencers opinion as it is different to the opinions of those in their close circle (Wellman & Gulia, 1997, pp. 13).

An example of a social media influencer who demonstrates a community network is Emily Davies who uses Instagram, Snapchat and YouTube to communicate with her followers. Davies is a fashion blogger who lives in Perth and has 143,000 followers on Instagram (Davies, 2018). Davies offers a weak tie with her followers as she shares with them her opinions on products, places and brands. Davies primarily uses Instagram to post photos of her favourite outfits to show her followers, and to promote the brands she’s wearing (Davies, 2018). Davies uses the Snapchat application on Instagram to inform her followers when she has a new post up, and to also show her viewers all the new clothes she has been sent (Davies, 2018). Davies has also just released her first vlog on YouTube which shows her followers the process she goes through when getting ready for a festival (Davies, 2018). Davies social networks also offers an offline relationship as well as an online one. The social media influencer recently just had her own pop up store at the Little Market Place in Perth where her followers from Perth could come meet her, and buy some of the clothes brands she always promotes. This shows how a weak tie can also be offline, as all her followers came together for one specific interest, and that was her clothes and sense of fashion. Davies also mentions at the end of her vlog that she loves meeting her followers, and that whenever they see her at a festival to come have a chat with her (Davies, 2018). This shows the followers how much she loves and cares for them and will result in her followers always supporting her and maintaining the weak tie.

Companies use social media influencers to promote their brands and they do this through word-of-mouth advertising. Word-of-mouth advertising is when businesses choose specific social media influencers who align with their brand, to promote their products as they know it will reach a large amount of like-minded people (Trusov, Bucklin & Pauwels, 2009, pp. 90). Marketers are turning more towards word-of-mouth advertising as it is proving more effective than traditional advertising (Trusov, Bucklin & Pauwels, 2009, pp. 90). This is because the cost is lower, and the message can be received faster as a post on a social media website can be uploaded instantly (Trusov, Bucklin & Pauwels, 2009, pp. 90). Companies will send their products to social media influencers for free, and the social media influencer will post their views, preferences, or experiences on the product to their followers (Trusov, Bucklin & Pauwels, 2009, pp. 90).  Social media influencers do this by uploading photos, videos, or written posts on their chosen social media platform. These posts contain a tag to the company’s page, or a link to the specific product to make it easier for the followers to buy if they choose to. Companies know that followers will be influenced by these particular posts and will be more likely to buy it because they trust the social media influencers opinion (Uzunoglu & Misci Kip, 2014, pp. 592.). Word-of-mouth advertising is also more attractive because it offers a way to advertise their products in a different and not so obvious way, this is effective because followers don’t feel like the posts are direct advertisements from the company. Companies can do this by holding a competition with a social media influencer, or by even sponsoring their outfit for a day out as they know it will get a lot of attention.

Emily Davies uses Instagram and Snapchat to promote specific beauty and fashions brands. Davies does this by always tagging the clothes brand she is wearing in her Instagram posts, and by presenting the photo in an attractive way to show followers her specific style (Davies, 2018). Davies also uses Instagram’s snapchat application to post photos of the clothes she has been sent fresh out of the package, and always tags the brands that send them to her (Davies, 2018). Davies also uses Instagram’s snapchat application to talk to her followers in a series of Snapchat videos about her thoughts on some of the products she uses and her recommendations (Davies, 2018). The brands she promotes then reuse her photos by either posting it or sharing it to their profile, for their followers to see so it reaches a larger amount of people. Davies will also participate in competitions with specific brands, Davies will post a photo which informs her followers on what they will win and will caption it with what they need do to win it. This usually includes having to follow her, follow the brand and tagging a friend in the comments which are all things that will help the post reach more people. Davies is also being sponsored by a clothing brand who is paying for her trip to Coachella where she will wear the brands clothing for the festival, this will prove to followers her support for that specific brand.

Counter-argument

Traditional advertisements are still an effective way to advertise in society today. This is because not everyone has access to the Internet or have social media accounts where social media influencers could have an impact on them (Tater, 2016). Therefore, their source of advertisements would come from print, television or radio (Tater, 2016). Also depending on what the target audience is, depends on which type of advertising the company chooses to use (Tater, 2016). If the company is going for an older demographic, they would use traditional advertising methods as they know that would be more effective (Tater, 2016). Whereas if the company is advertising to a younger demographic they would use word-of-mouth advertising, as it is more likely they would see or be affected by advertisements on their social media websites (Tater, 2016).

Conclusion

Social media influencers have become the new advertisers for companies. Social media influencers have many followers on their social network sites, and these followers have come to care and trust what they say. This forms a weak tie between the influencer and the follower, which can be online and offline in some cases. Industries recognise the power social media influencers have over their followers and have chosen to use this to their advantage. They do this by sending their products to social media influencers who then write a post or upload a photo or video giving their opinion on the product. This forms a community as there is a whole group of people who are being influenced because they all have the same interests, and want to be using the same products or going to the same places. Emily Davies is a good example of how a community can be formed through common interests, as she has over 140,000 followers on Instagram. These followers participate in an online and offline relationship as Davies communicates with them regularly online, but also offers chances for them to meet her offline. Davies is also a good example of how brands use social media influencers to promote their products. Davies does this by wearing their clothing, uploading a stylistic photo and then tagging the brands so her followers can see and be inspired. The rise of technology and the obsession of social network sites has resulted in word-of-mouth advertising being more effective as users create weak ties with social media influencers who promote a wide range of products and places.

Reference list

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