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2015 International Conference on Smart Technologies and Management

for Computing, Communication, Controls, Energy and Materials (ICSTM),


Vel Tech Rangarajan Dr. Sagunthala R&D Institute of Science and Technology, Chennai, T.N., India. 6 - 8 May 2015. pp.71-75.

Digital Brand Management — A Study on the Factors Affecting Customers’


Engagement in Facebook Pages
V. Mangala Vadivu1 and Dr. M. Neelamalar2
1
PhD Research Scholar, 2Assistant Professor
Department of Media Sciences, Anna University, Chennai, India.
Email: 1mangal1105@gmail.com, 2nmalar@yahoo.com

Abstract— The continuous growth in digital technologies has offline or online. Due to the high potential found in these
resulted in the growth of digital brand management and made social networking sites, marketers have developed the
it an essential entity for a particular brand’s success. It is concept of social media marketing to tap this huge market.
evident that Social networking sites with its user base of over Social Media Examiner in its recent report titled “Sixth
two billion stands as the most powerful and influential outlet
Annual Report on the State of Social Media Marketing”
for online branding when compared with other digital
channels. Social media marketing (SMM) is a platform where have stated that 92% of the marketers agree that social
the marketers can give a more humanizing effect (a real media marketing has gained more exposure to their business
person behind the brand pages) as a brand through which they and more than half of the marketers who have been have
can create a personal connection with the brand audience. Due been focusing on social media have recorded improvement
to this unique potential, marketers tend to leverage SMM to in their sales.
increase brand loyalty, recognition and to provide richer
customer experience. But there are still disagreements on the According to Statista, Facebook is currently having 1415
actual engagement rates of these brand pages and how they million active accounts, making it the first social network to
can be influenced by the moderator of the page by enhancing surpass one billion registered accounts. Twitter, Google+,
the online image of their brands. The study aims at building a
LinkedIn, Instagram had 228, 300, 347 and 300 million
reliable method for calculating the engagement rate of the
Facebook brand pages. Additionally the study aims to identify accounts respectively [2].
the extent to which the moderators’ post influences the
engagement rate of its audience in terms of its content, The study aims to analyze the online brand pages of one of
frequency and the number of fans present for a particular the most dominant social networking sites – Facebook – to
brand page, by analyzing Facebook pages of predominant analyze the factors that increase the flow of user activity
brands available to Indian audience. which in-turn will aid in increasing the business – customer
(B2C) relationship. It is also crucial to note that the study
Keywords— Digital Brand management; Facebook was limited to a few dominant Facebook brand pages
engagement rate; Online engagement; customer engagement; available for Indian audience and the duration of the data
Indian audience.
collected to analyze was limited to a year.

I. INTRODUCTION
II. LITERATURE REVIEW
Digital or online branding is a growing spectrum of any
Internet branding (also referred to as online branding) is a
business strategy at present. Online branding demands
brand management technique where the World Wide Web
active participation in the various online platforms –
(WWW) acts as a medium for positioning a brand in the
websites, social Networking, blogs, email etc – and
marketplace. It includes the usage of all the resources of the
understanding strategies to initiate customer interaction and
web such as blogs, video marketing, social media etc to
multi-platform marketing to voice out the brand’s message.
promote a particular brand. Internet branding is slowly
Global digital statistics of US census bureau [1], have stated becoming an essential entity in the integrated marketing
that of the 2.95 million internet users worldwide, 2.03 strategy for many organizations. According to Rowley,
million are active social media users, making social media online brand outlets have become the shop window for
the most powerful outlet over any other media outlet present many, from its prior purpose of increasing visibility and
access for the brand [3].

978-1-4799-9855-5/15/$31.00 ©2015 IEEE 71


2015 International Conference on Smart Technologies and Management for Computing, Communication, Controls, Energy and Materials

Marketers have started using social network sites as an example, carries more weight than a comment). Time Decay
active platform for brand management to capture the huge refers to post timeliness. Hence it is crucial for the page
online presence of its customers. Brands that engage in moderators and brands to focus on these elements and keep
social media marketing tends to gain higher loyalty from its their page engaged to get a higher brand recognition and
customers [4], higher Brand Authority, decrease in value in the virtual world of social networking.
marketing expense [5], increased brand credibility and seem
to provide a richer customer experience. There four ways through which a Facebook user can
interact/ engage with a Facebook brand pages are (1) Posts
Customer engagement is defined as a sequential – Posting their content/views/opinion/enquires directly in
psychological process in which customers move through to the brand pages, (2) Likes – Hitting the “Like” button of the
become loyal towards a brand [6]. In the case of online moderators’ post, (3) Comments – Posting their
customer engagement in social media platforms is content/views/opinion/enquires relating to the moderators’
characterized with interactivity of customer with the brand post in the comment’s section and finally (4) Shares – by
[7]. Facebook being the largest social networking platform sharing the moderators posts on to their own profile
with almost 1.4 billion user profiles provides an option of timeline. Hence the study has included only these four ways
creating a dedicated fan page for any particular band, of engagement to analyze the overall online engagement of
through which the brand can interact with its fans and users for a particular brand page.
customers to engage them with the brand. But brands have
started to realize that the acquiring only ‘likes’ is not There are still many debates on developing a concrete
enough in the long run. If the users never return or interact formula for calculating the overall engagement for a
with the brand’s content, it’s not an efficient investment [8]. particular Facebook page. Facebook officially measure
“engagement rate” as the percentage of people who saw a
As a result of which, companies have started focusing more post that liked, shared, clicked or commented on it.
on online customer’s engagement in their social networking
pages. Social media agencies such as socialbakers, has been Engagement rate = #likes +#comment+#shares (1)
testing and developing brand engagement rates based on the Post Reach
customer’s interaction with the page.
This engagement rate is available in all Facebook pages in
the “pages insight” section, but it is accessible only to the
III. METHODOLOGY page moderator. The formula cannot be considered as an
ideal measure of engagement as it gives the same weightage
A. Data Collection for all factors of engagement (likes, shares and comments).
The data collection for the study was done using an online Rationally, it is not possible to equate the engagement level
application named “Netvizz” [9]. Netvizz is a data miner of a “like” with that of a “comment” or a “share”.
application, which allows researcher to extract and export According to Edgerank checker, Facebook comment is four
Facebook network data in various standard file formats for times more valuable than a “like” i.e., For every Like a post
analysis. Data from twenty official Facebook brands pages gets, it received 3.1 clicks on an average and every
available for Indian audience were mined and data for a Comment a post receives, it results 14.678 Clicks on an
time period of a year (01/Jan /2014 to 01/Jan/2015) was average [10]. Hence a hierarchical weightage for all the
extracted for the study. The brand selection for the study engagement factors should be incorporated while analyzing
was done in a way such that almost all the prominent the overall engagement in Facebook pages. More over this
industries in India got covered. The industries taken for the formula cannot be taken in to consideration as; the formula
study include Aviation, Automobile, FMCG, Hospitals and doesn’t consider ‘user’s posts’ - content/ views/ opinion/
Healthcare, Banking and finance, Consumer Durables and enquires posted directly in the brand pages – as a factor of
e-retail. engagement. It is also important to note that all four
engagement factors are relative to the number of page fans
B. Measure of Online Engagement at the moment of posting and not absolute measures. Social
Bakers, a popular social media agency follows above
Facebook’s new EdgeRank algorithm developed in 2011 principle by calculating engagement rate relatives to a
consisted of three components (affinity, weight, and time page’s fan base
decay (or timeliness)), each referred to as an “edge” guides
what appears in users’ news feeds. Affinity is determined by Daily engagement rate
the amount of interaction between any two given Facebook = # likes+#comments+#share X 100 (2)
users. Weight refers to the type of post (a share, for Total fans on a given day

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Digital Brand Management — A Study on the Factors Affecting Customers’ Engagement in Facebook Pages

To overcome all the above short coming and to enhance the presumed to be engaging. In the online world, though many
existing measure of engagement rate, the researcher has studies have indicated that followers/ fans add credibility
developed a new formula. Primarily the methods of and trust to the pages, no study has been done correlating
interaction – like, comment, share and post – were given a brand engagement with the strength of fan base/followers
hierarchical value. Users’ post are given the highest value - for a particular brand.
“four” for each post, since posts are considered the highest
level of user engagement where the customer themselves
initiate the engagement process with the brand page without IV. ANALYSIS AND DISCUSSION
any influence from the page’s moderator. Shares stand next
to post with an engagement value to “three/share”. Through The data mined from the twenty brand pages were analyzed
sharing the customers not only engages themselves with the and overall engagement rate of each page was calculated.
brand but also influence their friends by sharing the brand From Fig. 1 it can be inferred that of all the brands, Nestle
message on their own profile wall. Comments becomes the had the highest number of fan with 7566216 followers and
next level of engagement with a value of “two/comment”. Prestige has the least number of followers of 138916 users.
Finally the least hierarchical value of “one” is given to post
likes. By aggregating all the four, the total engagement
value that a user/customer can offer to a particular
moderator’s post would be ‘ten’. By providing an
hierarchical value to each engagement element, the
disagreement of providing equal weightage to
like,comment, share and post can be nullified.

Secondly, in order to calculate the engagement rate


incorporating the above hierarchical value system, the
mathematical concept of weighted mean is used - mean in
which each item being averaged -is multiplied by a number
(weight) based on the item's relative importance. The result
is summed up and the total is divided by the sum of the Fig. 1. Total Fans Persent in the Selected Brand Pages During
weights and with the number of fans for a particular brand the Time of Study
page. Hence the overall formula used for the study is:
The moderators’ posts acts as a crucial element in any
Engagement rate Facebook page, as they act as the initiator of any form of
engagement from the users. The frequency and quantity of
= (TL x 1) + (TC x 2) + (TS x 3) + (TUP x 4) (3) the moderator ‘s post vary from page to page. Figure 2
10 x Total fans shows that brands such as Apollo, Fortis healthcare, State
bank of India (SBI), Flipkart and Yepmee had the most
Where TL= Total likes number of posts, posted during the study period. Relatively
TC = Total comments the same brands seemed to have a higher frequency rate –
Apollo (1.60), Fortis healthcare(1.64), SBI (1.64),
TS = Total shares
Flipkart(1.63) and Yepmee (1.57) – compared to the other
TUP = Total user’s post

C. Frequency of Moderators’ Post


According to a study done by Buddy Media, pages with less
frequency of posts (less than 3 posts per day) was found
more engaging than the page with more number of posting
[11]. The present study proposes to analyze whether the
above finding applicable to the Indian audience at larger
time span.

D. Number of Fans
It is a common notation that when there are increased Fig. 2. Total Number of Moderator’s Post Posted During the
number of fans/ followers of any particular entity it is Study Period in the Corresponding Band Pages.

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2015 International Conference on Smart Technologies and Management for Computing, Communication, Controls, Energy and Materials

Table I. Overall Data and Analysis of Selected Brands


Frequency
Total no Total Moderators’ User's Total Total Total Engagement
Brand Moderators’
of fans Post post post likes comments shares Rate
post/day
Air India 211180 152 152 0.41 0 140746 6868 14660 0.093
Airasia India 765404 269 222 0.60 47 26843 2917 1874 0.005
Jet airways 1826028 469 469 1.28 0 241435 11407 14304 0.016
Ford_India 672948 634 114 0.31 520 42568 1256 1396 0.007
Toyota_India 609077 520 407 1.11 113 195540 3099 9244 0.037
Volkswagan_India 2167168 153 152 0.41 1 524687 6320 9475 0.026
Amul 1244795 108 93 0.25 15 185806 1745 31963 0.022
Nestle 7566216 169 39 0.10 128 32925 726 587 0.0004
Himalaya_herbals 166248 777 495 1.35 282 54659 4314 3691 0.045
_ India
Asian paints 783279 523 384 1.05 139 114253 3531 9703 0.019
Samsung_India 4868021 503 82 0.22 421 26137 1736 1215 0.0007
Prestige 138916 485 485 1.32 0 16726 2361 1181 0.071
Vasan_eye care 221400 225 35 0.09 190 8512 410 580 0.005
Apollo 2111099 931 586 1.60 345 137548 5731 15091 0.009
Fortis Healthcare 182404 735 599 1.64 136 72622 1218 6098 0.051
State bank of India 1385608 600 600 1.64 0 296998 24343 38345 0.033
HDFC 2318630 570 534 1.46 45 206488 5005 26572 0.012
ICIC 3533040 288 288 0.78 0 2392342 31562 116267 0.079
Flipkart 4499275 914 595 1.63 319 1460975 91488 168183 0.038
Yepmee 4609137 574 574 1.57 0 1030739 15410 7164 0.023

brands. Vasan Eye care was calculated of having the least The overall data and analysis is compiled in the below table.
frequency rate of 0.09. From Table. 1 it can be inferred that the most engaged page,
Air India with an engagement rate of 0.093 has a rather low
Fig. 3 shows the line graph obtained by integrating the frequency of moderator post (0.41) and comparatively a
engagement rates - calculated through the formula derived very low fan base of 211180 ( i.e., 2.79% of Nestlé’s fan
for the study - of all the brands selected for the study. The base). Nestle which topped the list of having the highest fan
three prominent peaks of the graph shows the three most base found was have an engagement rate of only 0.0004
engaged pages – Air India, Prestige and ICICI bank. The which is also the least engagement rate found in the study.
two trough touching the base line of the graph – Nestle and Whereas Prestige having the least fan base of 138916 was
Samsung – constitute the least engaged pages of the study. seen to hold an engagement rate of 0.071 (almost eighteen
times greater than the engagement rate of Nestle)

Fortis Heathcare and SBI which tops the list in terms of


frequency of post (1.64), have a relatively low engagement
rate of 0.051 and 0.033 when compared with Air India.

Vasan eye care had the least frequency of 0.09 but had an
engagement rate of 0.005 which is the same as Airasia with
a frequency of 0.60 (over six times the frequency of vasan
eye care). Nestle having a frequency rate of 0.10 had the
least engagement rate of 0.0004.Hence the study done by
Buddy media(2011), becomes redundant in terms of Indian
audience engagement rate of yearly analysis, as the results
shows no proportionality in frequency of posts and
Fig. 3. Engagement Rate of All the Facebbook Brand Pages
Selected for the Study.
engagement.

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Digital Brand Management — A Study on the Factors Affecting Customers’ Engagement in Facebook Pages

V. FINDINGS AND CONCLUSION [3] Rowley, Jennifer (2004), “Online Branding,” Online
Information Review, Vol. 28, No. 2, pp. 131-138,
The study paved way to develop a balanced method to ISSN: 1468-4527.
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gaining a huge fan base becomes futile if the brand fails to [7] Justina Malciute, Customer brand engagement on
make the fans interact and engage with the page online social media platforms - A Conceptual Model
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[9] Bernhard Rieder, Studying Facebook via Data
Extraction: The Netvizz Application, University of
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