Marketing Department, Business Faculty, ... Social media has enveloped society in general, and has increased the speed of communication among teens.
EFFECTIVENESS OF COMPANY/BRAND YOUTUBE ADVERTISING TO CREATE WORD-OF-MOUTH: A STUDY AMONGST SOUTH PENINSULA HIGH SCHOOL LEARNERS Isaacs CA, Maart SM, Duffett RG (Supervisor) Marketing Department, Business Faculty, Cape Peninsula University of Technology OCTOBER 2012
INTRODUCTION Social media has enveloped society in general, and has increased the speed of communication among teens. YouTube is a free service that allows users to share and watch original videos. Brands have also merged this new means of communicating with customers into their advertising strategies. The creation of YouTube in 2005 has changed conservative advertising by enhancing a basic human need to link by allowing businesses to both listen to and interact with consumers openly. Understanding of word-of-mouth (WOM) has catalysed this advertising process in Cape Town (CT) and has hence encouraged researchers to conduct this investigative research. PROBLEM STATEMENT AND RESEARCH OBJECTIVE The preliminary research findings exposed no studies on YouTube advertising and WOM in South Africa (SA). YouTube has become the fastest growing website with 12 – 17 year olds being the leading demographic group that actively visits the site, but perceptions and attitudes of the effectiveness of YouTube advertising between the ages of 12 – 17 year olds in CT have not been recorded. WOM is generated through YouTube, but the WOM reach and demographic influence in CT is yet to be documented (Freeman & Chapman, 2007; Kreutzer, 2009). Therefore, the primary research objective is to determine how learners at South Peninsula High School (SPHS) perceive the effectiveness of company/brand YouTube advertising in terms of WOM distribution. LITERATURE REVIEW YouTube allows the user to share and watch original videos. YouTube was the fastest growing website with an audience reach that more than tripled to 19.6 million during the first 6 months of the year - with its largest active demographic group falling between the ages of 12 – 17 years. Kreutzer’s study (2009) points out that mobile phone usage provides this group with the easiest medium of accessing YouTube, however, it is not known how many South African teenagers currently have access to mobile phones, let alone how they utilise it to gain information on YouTube (Freeman & Chapman, 2007). YouTube’s rapid growth and move up the ranks shows the increased interest in video content on the Internet for South Africans. It can be seen that Generation Z view YouTube as an integral way of learning and staying in touch with current trends. It has almost become a necessity for this generation to be in touch with the latest viral videos on YouTube. It is this interest in video content that advertisers are considering, as businesses are consistently trying to communicate more effectively online with South African consumers (Sweetow, 2007:28-32, 34; Anon, 2012). RESEARCH METHODOLOGY AND DESIGN A survey design was adopted and a sample of 400 Generation Z participants was randomly selected at SPHS. Structured questionnaires were utilised to interview the learners, while the researchers checked for errors and captured all valid questionnaires to produce comparative results. The information in the research is reliable as permission was obtained from the school and respondents were anonymous. This study remained limited owing to time constraints of data collection, analysis and interpretation processes, but in spite of this limitation, care was taken to ensure that the data was accurately captured and objectively reported by utilising a descriptive approach regardless. FINDINGS, DISCUSSION AND ANALYSIS The outcomes in Figure 1 displays that more than double the number of the respondents disagreed that YouTube advertising created WOM. However, research showed that businesses are investing in YouTube, as it offers an opportunity for consumers to become aware of offerings and services in an extraordinary way. WOM advertising is not a traditional form of communicating with customers, but if planned and executed effectively, it can lead to profitability (Heckman, 1999:2; Anon, 2011). A finding, as seen in Figure 2, shows that more than half of the respondents disagreed that PC usage created WOM. Further studies depict that provocative campaigns can ignite a buzz that can sometimes be successful for mediums such as the Internet. WOM cannot be regarded as a marketing strategy, but businesses with creative campaigns have a better chance of succeeding (Heckman, 1999:2; Anon, 2011; Ferguson, 2012). A reasonable sum of respondents in Figure 3 agreed that utilizing YouTube for 1 year or more does not bring about WOM of brand YouTube advertising, but this decreased by 10% when the period of usage of 2 years or more was applied. Microblogging can be seen as a vital online tool for a consumer’s WOM communications and, furthermore, encourage implications for corporations that use microblogging as part of their strategy. Microblogging on YouTube advertisements will increase the period of usage and, therefore, brand WOM (Jansen, 2009; Dumenco, 2010:16). An interesting result revealed that a large number of respondents showed that using YouTube 2 to 4 times per month does not bring about WOM, as seen in Figure 4; however, daily usage will increase WOM. A study determined that the strongest site influences in brand-related UGC seem to stem from YouTube’s culture of self-promotion. Furthermore, YouTube can provide factual information about brands, which are often peripheral to the main messages that posts convey (Ferguson, 2012; Smith et al., 2012). Respondents’ findings shown in Figure 5 exposed that the log-in duration of YouTube of 3 hours does not raise WOM, but decreased by more than 25% during 4 or more hours. This is supported by research that advises that longer periods of time on a specific social network site increases the likelihood of consumers generating WOM. Brands should keep their marketing messages as creative and as attractive as possible in order to attain and retain viewers (Anon, 2011; Smith et al., 2012). In Figure 6, a reasonable group of respondents demonstrated that watching 11 to 15 advertisements on YouTube raised WOM. However, increasing the number of advertisements watched to 16 or more decreased WOM. This finding is validated since the research revealed that there are too many advertisements in the public media, and that customers are not paying attention to advertisements. This limits the power of WOM, as consumers are unable to recall and transfer the advertisements to others. This, therefore, concludes that the more advertisements a viewer is exposed to, the less WOM takes place (Chen, 2011; Smith et al., 2012). The research shown in Figure 7 substantiated that both males and females disagreed that WOM was created. It can be seen from results from an investigation on social demographics that men share more information on social networks than women therefore it is probable that men will contribute more towards creating more WOM than women. Businesses should pilot a campaign, which target men through sports/action clips, and then examine whether WOM occurs (Bullas, 2012; Ferguson, 2012). The research results in Figure 8 show that as respondents age, their opinion and belief regarding YouTube advertising does not cause WOM. Further research illustrate that WOM has been a powerful tool, but has transformed over the last decade. Companies that can leverage the muscle of WOM in the social media age can move fast. Therefore, WOM is significant to online communication, as consumers trust their family and friends’ recommendations more (De Clerk, 2010; Chen, 2011). No significant results were found for White, Black and Indian races. Therefore, only the Coloured race group was investigated. The research validated that a sum of Coloured respondents advised that YouTube advertising does not create WOM, which can be seen in Figure 9. A study confirmed that WOM is a key element of user interactions, particularly within online communities. Identifying patterns within these communities will assist researchers in reflecting specific group cultural values, roles and beliefs of advertising. Businesses should include consumer online behaviour research when studying its target markets (Brown, 2007; Smith et al., 2012).
GRAPH KEYS: DISAGREED AGREED
FIGURE 1: GENERAL WOM
FIGURE 6: HOW MANY TELEVISION ADS DO YOU WATCH ON YOUTUBE PER LOGIN SESSION (ON AVERAGE)?
FIGURE 2: HOW DO YOU ACCESS YOUTUBE?
FIGURE 7: GENDER
FIGURE 3: HOW LONG HAVE YOU USED YOUTUBE?
FIGURE 8: AGE
FIGURE 4: HOW LONG HAVE YOU USED YOUTUBE?
FIGURE 5: HOW MANY HOURS DO YOU SPEND ON YOUTUBE PER LOG-IN?
FIGURE 9: RACE
CONCLUSIONS To conclude, findings revealed that PC usage does not create WOM, but a daily usage of 4 hours for a period of 2 years or more will bring about WOM of brand YouTube advertising. As Coloured males and females become older, watching 11 - 15 advertisements on YouTube improved their opinions regarding a brand. RECOMMENDATIONS Therefore, it is recommended that brands should create YouTube advertisements that are short, creative and attractive to ensure that a greater target audience of 12 – 17 year olds is reached during their 2 hour weekly visits, focusing key communication strategies around product and services to mobile devices. PC applications that can feed into YouTube – video comments – should be researched, as it will lead to creative thinking and possibly improve consumer WOM. Customer retention and a callto-action is highly important with regard to ROI, therefore, studying consumer online behaviour and preference will aid marketers in personalizing communication messages to consumers in their campaigns on YouTube. In order to be seen as trusted and valued by consumers online, companies/brands should develop key strategies to hold a strategic advantage over competitors, and hence win the hearts of consumers, making each viewer of a YouTube advertisement a brand ambassador.
REFERENCES 1. Freeman, B. & Chapman, S. 2007. Is “YouTube” telling or selling you something? Tobacco content on the YouTube video-sharing website. http://tobaccocontrol.bmj.com/content/16/3/207.full [20 February 2012]. 2. Kreutzer, T. 2009. Internet and Online Media Usage on Mobile Phones among Low-Income Urban Youth in Cape Town. http://mobileactive.org/files/file_uploads/final-paper_kreutzer.pdf [20 February 2012]. 3. Sweetow, S. 2007. YouTube Generation: Creating Viral Videos Via User-Generated Content Sites: The Magazine for Electronic Media Producers & User. EventDV, 20(7):28-34, July. 4. Anon. 2012. Social media Referrals Trend. http://marketshare.hitslink.com/social-media.aspx?qprid=90 [15 April 2012]. 5. Heckman, J. 1999. Word-of-Mouth Advertising: Cheap, Credible, Created. Marketing News (33)3: 2, February 1. 6. Anon. 2011. Top 10 Social Networking Sites by Market Share of Visits. http://www.dreamgrow.com/top-10-social-networking-sites-by-market-share-of-visits-february-2012/ [15 April 2012]. 7. Ferguson, R. 2012. Word-of-mouth and viral marketing: taking the temperature of the hottest trends in marketing. http://www.emeraldinsight.com/journals.htm?articleid=1723319&show=abstract [28 July 2012]. 8. Jansen, B. 2009. Twitter power: Tweets as electronic word-of-mouth. http://onlinelibrary.wiley.com/doi/10.1002/asi.21149/full [28 July 2012]. 9. Dumenco, S. 2010. How Twitter users defied Twitter’s creators-and saved them and the platform in the process. Advertising Age, (81)39: 16, November 1. 10. Smith, A., Fischer, E. & Yongjian, C. 2012. How Does Brand-related User-generated Content Differ across YouTube, Facebook, and Twitter? http://www.pgsimoes. net/Biblioteca/How%20does%20brand%20related%20user%20generated%20content%20differ%20across%20YouTube%20Facebook%20and%20twitter.pdf [28 July 2012]. 11. Chen, S. 2011. Understanding the effects of technology readiness satis faction and electronic word. http://www.ajbmr.com/articlepdf/ajbmrv01n0301.pdf [28 July 2012]. 12. Bullas, J. 2012. 72 Fascinating Social media Marketing Facts and Statistics for 2012. http://www.jeffbullas.com/2012/07/24/72-fascinating-social-media-marketing-facts-and-statistics-for-2012/ [28 July 2012]. 13. De Clerck, J. 2010. Word-of-Mouth Marketing in the Social media Age. http://www.focus.com/briefs/word-of-mouth-marketing-social-media-age/ [28 July 2012]. 14. Brown, J. 2007. Word-of-mouth communication within online communities: Conceptualizing the online social network. http://onlinelibrary.wiley.com/doi/10.1002/dir.20082/abstract [28 July 2012].
