Abstract
Objective: The growing number of social media users makes many companies want to get subscribers through their social media activities. There are several choices of strategies that can be done by the company to be able to take the huge market. Research Design & Methods: This study compares the effect of advertising activity on social media and user group development that has a strong tie to intention to buy. Findings: This research found that the social media advertisements has a better impact to intention to buy compared to social ties. Implications & Recommendations: This study was conducted on social media users on land Transportation Company that already has a group in social media, Facebook, and does advertising activities on it. Contribution & Value Added: The results of this study provide theoretical implications in the verification of the previous research results and managerial implications that can help the company in conducting marketing activities through social media.
Highlights
The development of the internet is growing rapidly with the number of users who increase every year
This research found that the social media advertisements has a better impact to purchase intention compared to social ties
The theoretical implication of this study is that the results of previous studies which suggest that advertising messages conveyed by people who have high social ties have a greater effect than those advertised by producers Brown & Reingen (1987) are not proven
Summary
The development of the internet is growing rapidly with the number of users who increase every year. The growing number of outstanding social media users makes producers interested in promoting their products in social media It can be seen in the amount of advertising revenue up at the end of 2016 amounted to 6.8 billion dollars with the number of advertisers about 2 million, and is expected to increase by 59% from the previous year. This is in contrast to previous research that found that advertising messages delivered by people with high social ties have a greater impact on the recipients than the advertisements submitted by producers (Brown & Reingen, 1987) Another contradictory study said that researchers conducted field experiments on Facebook and found that information and product recommendations provided by friends who have strong ties to consumers are considered to have a high diagnostic level The gap in the difference between the results of the studies relating to the large ratio of advertising influences conveyed by those who have high social ties compared to the advertisement submitted by the producers is what this study will fill
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