Targeted ads experiment on instagram using user-generated content in social media

Abstract

In the wake of new communication paradigm, the need for strategic online advertising by using rich social media data is also increasing besides exposing advertising to typically large numbers of user at low cost. This paper verifies a hypothesis that concentrated target advertisement applied to online-users preferring co-referred brands with the target brand is more effective by using the actual social media data. To verify this hypothesis, this research tried to expose ads to only individuals who are potentially interested in particular products rather than general online users. More specifically, "key brands" co-mentioned with the target brand were selected and online users who have shown interest in brands with greater frequency of joint mentions with the target brand were targeted. This experiment shows that utilizing brands that are highly co-mentioned with the target fashion brand yield better click-through-rates in ad campaigns than those brands that are less frequently co-mentioned. Furthermore, this paper presents the implications that a practical effect of online advertising needs to check multiple indicators such as improving the brand image and promoting purchase beyond the existing advertisement metrics.