20/04/2019
Social advertising uses information about consumers’ peers, including peer affiliations with a brand, product, organization, etc., to target ads and contextualize their display. This approach can increase ad efficacy
for two main reasons: peers’ affiliations reflect unobserved consumer characteristics, which are correlated
along the social network; and the inclusion of social cues (i.e., peers’ association with a brand) alongside ads
affect responses via social influence processes. For these reasons, responses may be increased when multiple
social signals are presented with ads, and when ads are affiliated with peers who are strong, rather than
weak, ties.
We conduct two very large field experiments that identify the effect of social cues on consumer responses
to ads, measured in terms of ad clicks and the formation of connections with the advertised entity. In the first
experiment, we randomize the number of social cues present in word-of-mouth advertising, and measure
how responses increase as a function of the number of cues. The second experiment examines the effect of
augmenting traditional ad units with a minimal social cue (i.e., displaying a peer’s affiliation below an ad in
light grey text). On average, this cue causes significant increases in ad performance. Using a measurement
of tie strength based on the total amount of communication between subjects and their peers, we show
that these influence effects are greatest for strong ties. Our work has implications for ad optimization, user
interface design, and central questions in social science research.
EYTAN BAKSHY†, Facebook
DEAN ECKLES†, Stanford University & Facebook
RONG YAN, Facebook
ITAMAR ROSENN, Facebook
