Social media influencers & consumer trust in the UAE. Gaelle Duthler & Ganga Dhanesh College of Communication and Media Sciences Zayed University

Transcription

1 Social media influencers & consumer trust in the UAE Gaelle Duthler & Ganga Dhanesh College of Communication and Media Sciences Zayed University

2 Content Popularity of SM in the UAE Effectiveness of influencers Credibility and celebrity endorsement Parasocial interaction and influencers Influencers and disclosure of paid endorsement Disclosure and consumers persuasion knowledge Disclosure and influencerpublicrelationship Research questions Methods Preliminary insights

3 Popularity of Social Media in the UAE % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% WhatsApp Facebook Instagram Snapchat Twitter YouTube FB Messenger LinkedIn Line Viber Skype Google chat/hangout Don t use social media Dennis, E.E., Martin, J.D., & Wood, R. (2017). Media use in the Middle East, 2017: A seven-nation survey. Northwestern University in Qatar. Retrieved from

4 Type of content sent, shared or posted 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Dennis, E.E., Martin, J.D., & Wood, R. (2017). Media use in the Middle East, 2017: A seven-nation survey. Northwestern University in Qatar. Retrieved from

5 Reasons to use Social Media % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Communicate directly with specific individuals or groups Get news about current events Share news about current events Get entertainment content Share entertainment Facebook WhatsApp Twitter Instagram Snapchat YouTube Dennis, E.E., Martin, J.D., & Wood, R. (2017). Media use in the Middle East, 2017: A seven-nation survey. Northwestern University in Qatar. Retrieved from

6 Effectiveness of Influencers The Nielsen Global Trust in Advertising Survey % trust recommendations from friends and family 83% of these take action on these opinions Consumers in the MENA region have highest level of trust of consumer opinions posted online 66% online trust recommendations from consumer opinions 69% of these take action on these opinions Influencers are most effective in raising brand awareness compared to generating sales lead or increasing customer loyalty

7 Credibility and celebrity endorsement Attractiveness Trustworthiness Expertise

8 Parasocial Interaction (PSI) and Influencers Parasocial interaction: expressing interpersonal affinity for mass mediated personalities Celebrities seek liking, intimacy, and credibility from their social media followers PSI helps build consumer trust and loyalty toward a brand by promoting a lifestyle Need to post frequently Postings may enhance credibility

9 Influencers and disclosure of paid content FTC s Endorsement Guides: Truth-inadvertising and Disclosure; offers updated guidance for influencers and marketers International Consumer Protection and Enforcement Network (ICPEN) Guidelines for Digital Influencers Oct 2017: Facebook announced updated advertising transparency and authenticity efforts

10 FTC s first law enforcement action against individual online influencers for their role in misleading practices

11 Dear Influencer, s from FTC to social media influencers

12 Persuasion knowledge model (PKM) (Friestad and Wright 1994) : Refers to consumers knowledge and beliefs about what strategies marketers use to persuade them and how they deal with these strategies such as through heightened skepticism, resistance, and counter arguing Disclosure and consumers persuasion knowledge

13 Disclosure affects Ad recognition (cognitive persuasion) Distrust towards the ad/brand (attitudinal persuasion) Purchase intention Online sharing intention Credibility perceptions

14 Disclosure and influencer-publicrelationship Trust Based on Hon, L., & Grunig, J. E. (1999). Guidelines for measuring relationships in public relations. Gainesville: Institute for Public Relations Research, University of Florida. Retrieved from Commitment Satisfaction Control mutuality

15 Trust in social media advertising varies across regions Asia, Latin America, Africa Europe & US The Nielsen Global Trust in Advertising Survey

16 Are social media consumers in the UAE aware that many influencers promote content/brands they are paid for? What is the impact of such non-disclosure of paid content on the trust of social media users in the UAE? Would UAE consumers prefer that paid content be voluntarily be communicated by influencers? What difference would the impact of voluntary disclosure of paid content by brands and social media influencers be on consumers and their trust in advertising and branding? Research questions Do social media users understand when a post is sponsored, like they would with internet, radio and television advertising? Do social media users expect social media influencers to clearly state when content is financially sponsored?

17 Research model Awareness of paid content Ad recognition Influencer- Public Relationship Behavioral intentions (purchase intention, ewom)

18 Methods Surveys general population, Instagram users (ongoing) Focus groups general population, Instagram users (Spring 2018) Experiments Instagram users (Spring 2018)

19 Pilot study Surveyed only 45 people 93% female 74% between the age of Fouz Al Fahad was the most named social media personality 18% follow influencers on Instagram 38% follow influencers on Snapchat 13% follow the same influencer on multiple social media (mainly Instagram, Snapchat, Youtube)

20 Are social media consumers aware that many influencers promote content/brands they are paid for? Consumers are aware 76% know that these social media personalities receive payments for endorsing a product or service 80% agree that these endorsements are paid advertising 78.3% are aware that social media personalities are paid to endorse certain brands and products

21 Do social media users understand when a post is sponsored, like they would with internet, radio and television advertising? YES 74.3% can tell when a social media personality is paid to endorse a certain brand or product or not

22 Would UAE consumers prefer that paid content be voluntarily be communicated by influencers? YES 78.3% would prefer for social media personalities to disclose when they are paid to advertise a product or brand

23 Do social media users expect social media influencers to clearly state when content is financially sponsored? 56.7% expect influencers to disclose when they are paid to advertise a product

24 What relationship exists between voluntary disclosure of paid content by social media influencers and consumers trust in the influencer? Trust was not related to consumers expectation of disclosure by influencers

25 What relationship exists between consumers trust in the influencer and behavioral outcomes? Trust was related to how much consumers were willing to try the brands endorsed by the influencers Trust was related to how much consumers were willing to talk to others about the brand Trust was not related to how much consumers were willing to buy the products/services or willing to share posts and opinions

26 Main study: The model Awareness of paid content Ad recognition Influencer- Public Relationship Behavioral intentions (purchase intention, ewom)

27 Thank you