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Clicks and purchase effects of an embedded, social-media, platform endorsement in internet advertising

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  • Arch G. Woodside
  • Pedro Bernal Mir

Abstract

This study describes the use of a true (not quasi or “natural”) field experiment to test the impact of a third-party endorsement message embedded in an email advertisement on customer behavior – the message embed calls attention to reviews of third-persons’ hotel-stays, mostly positive assessments, and a high overall rating (i.e. four stars in TripAdvisor for a national (Spanish) hotel chain. Applying a between-subjects experiment design, each of two versions of the email advertisement was sent to one of two random samples of treatment (embed) and control (no embed) groups of hotel’s customers (n = 97,451 and 97,662, respectively). The study includes five dependent variables (DVs): clicks-to-open email; clicks-to-open offer; clicks-to-purchase room rental; number-of-nights stayed; and total revenue generated for the treatment versus control groups. Behavior was higher for all dependent measures per participants in the treatment versus control groups. Revenue per study participant was 0.083 € for members in the control group versus 0.134 € for members in the treatment group. Total revenue was 13,097 € in the treatment group and 8,143 € from guests in the control group. The share increases in the DVs may be useful as baseline share changes in future studies on behavior influences of social media embeds in internet advertisements.

Suggested Citation

  • Arch G. Woodside & Pedro Bernal Mir, 2019. "Clicks and purchase effects of an embedded, social-media, platform endorsement in internet advertising," Journal of Global Scholars of Marketing Science, Taylor & Francis Journals, vol. 29(3), pages 343-357, July.
    • Handle: RePEc:taf:jgsmks:v:29:y:2019:i:3:p:343-357
    DOI: 10.1080/21639159.2019.1622437
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    Cited by:

    1. Zahra Ghorbani & Sanaz Kargaran & Ali Saberi & Manijeh Haghighinasab & Seyedh Mahboobeh Jamali & Nader Ale Ebrahim, 2022. "Trends and patterns in digital marketing research: bibliometric analysis," Journal of Marketing Analytics, Palgrave Macmillan, vol. 10(2), pages 158-172, June.
    2. Kim, Alex Jiyoung & Jang, Sungha & Shin, Hyun S., 2021. "How should retail advertisers manage multiple keywords in paid search advertising?," Journal of Business Research, Elsevier, vol. 130(C), pages 539-551.
    3. Ko, Woo Li & Kim, Sang Yong & Lee, Jong-Ho & Song, Tae Ho, 2020. "The effects of strategic alliance emphasis and marketing efficiency on firm value under different technological environments," Journal of Business Research, Elsevier, vol. 120(C), pages 453-461.
    4. Yuan, Chun Lin & Moon, Hakil & Kim, Kyung Hoon & Wang, Shuman, 2021. "The influence of parasocial relationship in fashion web on customer equity," Journal of Business Research, Elsevier, vol. 130(C), pages 610-617.
    5. Kim, Jikyung (Jeanne) & Song, Hyeasinn & Choi, Jeonghye & Kim, Yongseob & Hong, Jeonghan, 2021. "Channel stickiness in the shopping journey for electronics: Evidence from China and South Korea," Journal of Business Research, Elsevier, vol. 130(C), pages 506-516.
    6. Kim, Juran & Kang, Seungmook & Lee, Ki Hoon, 2021. "Evolution of digital marketing communication: Bibliometric analysis and network visualization from key articles," Journal of Business Research, Elsevier, vol. 130(C), pages 552-563.

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