151. Engaging in Real Time: Understanding the Effect of "Real-Time" Social Media Messages on Consumer Engagement.
- Author
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Omar Rodriguez-Vila, Bharadwaj, Sundar, and Myoung-Jin Chae
- Subjects
INTERNET marketing ,MARKETING strategy ,SOCIAL media - Abstract
Research Question The practice of real time marketing (RTM) messages has grown significantly during the past several years, along with the rise of brands' marketing activities on social media such as Facebook or Twitter. However, little academic research exists to help understand the effect of RTM on relevant brand outcomes. The "real-time" opportunity has received some attention by scholars, primarily from the perspective of the role that marketing plays in turning "real-time" market data into customer knowledge (Achrol and Kotler, 1999; McKenna, 1995), developing customized offerings (Oliver, Rust, and Varki, 1998) and managing improvisation in the new product development process (Moorman and Miner, 1998). However, "real time" marketing activities in social media and its impacts on consumer outcomes have not been systematically examined to date. In this research we aim to answer the following research questions. First, we try to better understand types and characteristics of real time messages that brands deliver on social media. Second, we explore how these real time messages have an impact on consumer engagement. Third, we explore how brands can use real time messages more effectively by suggesting factors that could reduce the negative impact of real-time marketing (RTM) messages on engagement. Method and Data For analysis, a database of 4,639 Facebook messages from 18 brands in the food and beverage industry in Mexico was built working with a social media agency to test the effect across social media platforms. Based on the two databases, a simultaneous equation Tobit regression with robust standard errors is used to test the hypotheses. Summary of Findings There are two types of RTM practices based on the level of improvisation, which are planned RTM--messages created in anticipation of an established event or situation (e.g., a relevant moment of the day or a special event such as the SuperBowl) but deployed at a time when the context is most relevant, and improvised RTM--messages that are created and deployed in close proximity to an unpredictable event or situation. We find that contrary to articles in the popular press, RTM activities have a negative effect on social media engagement in Facebook. We suggest several explanations on why RTM messages are less engaging compared to non-RTM messages on average. (1) RTM messages are more difficult to understand, (2) RTM messages are less creative, (3) consumers' perceptions of manipulative intent for RTM messages are greater compared to non-RTM messages. Supporting those hypotheses, we also find these three content characteristics (understanding, creativity, and manipulative intent) have a negative effect on consumer engagement in social media. Our findings suggest that when seeking to compete in "realtime," managers need to be particularly careful about potential risks. Specifically, managers should ensure that the product is playing a primary and clear role in the message. Also, managers should consider their audience in a way that the posts attract their core consumers. Key Contributions Industry reports indicate that the use of "real-time" messages in social media is on the rise with more brands using transient environmental contexts (e.g. news events, cultural events, etc.) as context for their messages. However, little academic research exists to help understand the effect of RTM on relevant brand outcomes. Drawing our work from extant advertising, social media, and brand literatures, this research will be the first to explore RTM activities systematically and provide understandings of real time messages. We then show that RTM activities have a negative impact on consumer engagement (likes, shares, and comments on Facebook). We also explore factors that will reduce the negative impact of RTM activities on consumer engagement. [ABSTRACT FROM AUTHOR]
- Published
- 2016