Social sharing of sales promotions by consumers increases purchase intent but is tuned out over time

New Ideas in MarketingEssential news for marketers, summarised by YouGov
April 12, 2019, 7:22 PM UTC

Brands should be cautious about using social media to “bypass” suspicions in the long term.

Social media gives consumers opportunities to discover and share digital ads but resistance and scepticism about advertising is pushing marketers to explore new ways of distributing messages. In line with the PESO (paid, earned, shared, owned) advertising model, there is increasing interest in how people create and share content about brands and how this is received.

This paper looks at the impacts on online and in-store purchase intention of user-generated content about sales promotions, and whether the perception of these messages changes with time and frequency. Initially the authors found that consumers view posts from other consumers more positively than those from firms regardless of who the content was created by, interpreting them as “earned media”.  This was accompanied by an increase in online purchase intention.

But with time and repeated exposure, they begin to interpret these posts as “just another ad”, especially if scepticism towards advertising was high in the first place, and may even be discouraged from purchasing, especially in-store.

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