1.

Untuk TUGAS 1 ini anda akan diberikan pilihan topik untuk membuat sebuah essay dengan
panduan sbb:

1. Buatlah essay dengan paling tidak 3 paragaph (1 buah paragraph awal, 1 buah paragraph isi dan 1 buah
paragraph penutup).
2. Tulislah jawaban anda pada rentang antara 150-200 kata.
3. Jawaban essay di upload dalam bentuk pdf

Pilihlah salah satu topik berikut:

A. Social Media advertising is more effective than traditional advertising

Do you agree or disagree to the statement?
B. Lack of knowledge of the Business Cycle leads to failure in operating business
Do you agree or disagree to the statement?
C. Political turmoil is the main cause of capital flight
Do you agree or disagree to the statement?

ANSWER:

1.) Social Media advertising is more effective than traditional advertising

Do you agree or disagree to the statement?

Answer:

A. Introduction

Kotler, Wong, Saunders, & Armstrong (2005) defined advertising as “any paid form of non-personal

presentation and promotion of ideas, goods or services through mass media by identified sponsor to

provide information of the products, to persuade consumers, to build selective demand and to

remind consumers to keep thinking about the product/ brand” (p.1). There have been broad

researches on the most effective between social media advertising (Facebook, Twitter, You tube,

Facebook, Twitter, MySpace, LinkedIn, Flickr and so on) and traditional media advertising such as

television, newspaper, radio and magazine. Due to the fact that, most marketers and consumers

have social media platforms like Facebook with 400 million users (Martinez, 2010), some

commentators believe that social media advertising is the most effective while others are on the
side that traditional media advertising is better than social media advertising. Take for instance;

Zarrella (2010) believes that social media advertising is more effective while Eliot and Speck (1998)

are on the side that traditional advertising is better. However, Pavlou and Stewart (2000) believe

that there is no significant difference between social media and traditional media advertising.

The main purpose of this essay is examine the most effective between social media advertising and

traditional advertising according to previous findings from different researchers. Specifically, this

essay will discuss the advantages and disadvantages of social media and traditional media

advertising as well as their effectiveness based on customers’ satisfaction, profitability and sales

volume. Hence, the information was largely sourced from academic journals, online articles and text

books. The findings will contribute to the existing literature and will possibly increase the current

knowledge regarding the effectiveness of social media advertising and traditional advertising. This

essay will be organized into three sections (introduction, literature review and conclusion).

B. Literature Review

Several scholars, researchers and commentators had justified and substantiate the effectiveness of

social media advertising and traditional advertising. Therefore, this section discusses different views

about the effectiveness of both medium advertising. Social media and traditional media have several

advantages and some disadvantages which advertisers cannot ignore.

There are some advantages of social media advertising. For instance, social media permit customers

to express and circulate their opinions easily and faster by producing unrestricted flow and

information exchange channel (Forouhandeh et al., 2011). Freberga, Graham, McGaughey, &

Freberg (2011) say that increasing acceptance of social media influence consumers´ attitudes and

are recognized to promote a brand or organization. Zheng and Yeqing (2002) observed that social

media users have control on the amount of information that can be derived from the site while

consumers have no control on traditional media. Social media advertising is cheaper than other
media and marketers can achieve an exposure to a targeted audience by a mere click (Yoon and

Klim, 2001). Social media advertising create platforms for consumers to review product, opinions

and comment from other consumers and as well as to gain access to corporate marketing materials

(Smith, 2010). Ronald and Barbara (2002) found that the effectiveness of online advertising including

social media is determined generally from its interactive nature to increase levels of familiarity with

the consumers or audience in a favourable way and can in turn raise the profitability of the

campaign rises. Pepsi and Coca-Cola which are the two well-known global beverage brands like any

other big and small companies use social media advertisement to get recognized as they also

attempt to reach online consumers. Coca-Cola always directs their audiences to social media sites

linked to its charitable activities on their outdoor advertisement during the Super Bowl (WARC,

2010b). Luo et al (2013) found that social media-based metrics had a significant effect on firm equity

value and increased sales. Mangold and Faulds (2009) also claimed that respondents had a

significant positive attitude towards social media which in turn have dramatic influences on

consumer decision-making.

On the other hand, there are quite a few disadvantages of social media advertising. The most

noticeable disadvantage is perhaps the “lack of user privacy” as a result of the way marketers track

users’ activities online and send advertisements that relate to their interests despite without the

users’ wishes (Tavor, 2011). Another disadvantage is that there are many types of social media

advertisements that disrupted the users’ activities and force users’ to watch unwanted

advertisements which makes consumers’ to have negative attitude towards the ad and transferring

that frustration to the company (ibid). In addition, some consumers still believe that the online

information’s is meant to achieve goals and tasks which make them avoid looking at the

advertisements approximately (ibid). Moreover, it is easy for customers to say anything they and

vent their anger concerning the company or brand through social network account as it is not

censored as mainstream media, individuals (Assaad and Gómez 2011).

Furthermore, there are still some benefits of traditional media advertising. Riegner (2007)

established that “media like television offer well established and accepted means to measure and

manage marketing campaigns that facilitate investment in marketing communications campaigns”

(pp.439). The fact that the audience cannot click away from traditional media and the distinct

technique of presentation is thus an advantage to the advertisers (sponsors) (Lichtenthala et. al.,

2006). The most significant characteristic of traditional media is its ability to provide specific

information to target markets in specific geographic areas (ibid). Bhargava & Donthu (1999)

confirmed that traditional media increase consumers’ awareness very rapidly. Sánchez (2001) also

notes that messages are easily and quickly understood as a result of the locations and context in

which print-based traditional media materials are viewed due to its capacity to summarise the idea

of an advertisement, message, campaign and creativity (p.12). Krugman et al (1994) clarify that

special interest magazines is an effective advertising platform and unique opportunity to reach a

selected audience, that it also have a longer life span and are read by more than one individual at

different places. Kotler & Keller (2009) explained that the major reason why radio should still be

considered as important form of advertisement is the fact that most people still have radios in their

homes and cars which make it easy to reach large number of people. Fills (2005) says billboards is

one of the simplest and most adaptable forms of tradition media of advertisement which have the

ability to easily catch public’s eyes and convey the information easily.

Traditional media advertising also have some demerits. One major disadvantage is the physical

limitation of radio which makes it to have less on other forms of advertisements is its (Bonsor,

2001). Billboards can only reach people who pass by and actually see and or read the message

(Kotler & Keller 2009). Language barrier is a major challenge faced with television advertising which

means different advertisement must be dubbed and subtitled to be shown in numerous countries

which in turn leads to high cost of advertisement production (ibid).

Literatures show some mixed result on the effectiveness of social media advertising and traditional

media. Take for example, Latif and Abideen (2011) say that all advertising mediums have a

significant impact to stimulate the consumers, but believed that television which is a form of

traditional advertising is most effective medium of advertising as a result of its large usage by people

which in turn influence on individual’s attitude, behaviour, life style, exposure and culture. Cho, et

al., (2001) claim that social media advertising is more effective in terms of the exposure as it had

extremely changed the “advertisement business landscape”. Yoon and Kim (2001b) in their study

which compared the effectiveness of the social media traditional media revealed that social media

advertising is more suitable for highly involved and realistically oriented consumers. Nasir, et al.

(2012) in their study on the effectiveness of traditional media advertising and social networking sites

among female Pakistan showed respondents consider traditional media advertising more effective

than social media for purchase of textile garments. Meanwhile, Bush, et al (1998) in their study

revealed that advertisers were still unsure about the effectiveness of the social media advertising as

security, privacy and measurement of ‘effectiveness’ were the main “barriers to utilizing the social

media as a marketing tool” (p.25). In the same vein, Leong et al. (1998) also examined the managers’

perception among Web managers to compare the effectiveness of the social media with other eight

traditional media and found out that the social media is more effective than the traditional media

advertising. Adamopoulos and Todri (2014) in their study on the effectiveness of social media found

that social media platforms result in substantial positive returns and economically significant to the

organization. Bond, et al, (2010) investigated consumer perceptions, attitudes, and preferences for

Engagement on social media advertising found that social media is an appropriate platform for

advertising. Vukasovič (2013) examined the relationships between brand developing and social

media notes that internet advertising and social media inclusive is added benefits over the

traditional mediums. Hence, the study concluded that social media had a significant positive

influence on brand developing. Naidoo (2011) investigated the effectiveness of advertising through
the social media in Gauteng confirmed that social media marketing as the ability to connect and

network people than through traditional marketing. He concluded that Facebook is more profitable

and gives organizations competitive advantages (ibid).

Woessner (2011) notes that the profitability of a company called “Dessert Gallery” increased by 20%

per month after its social media marketing well promoted. Similarly, Aaron Deckrow, a wedding

photographer from Michigan, gets new customers after uploading a portfolio of pictures on

Facebook page (Yankee, 2009 cited in Pradiptarini, 2011). Pradiptarini (2011) found that

messages/contents quality is the essential driver of social media marketing effectiveness as well as

company’s involvement and its relationship with other marketing platforms. Rooney (2011) further

notes that social media sites enhance customer interaction with their customers and were able to

get in touch with new customers. Pikas and Sorrentino (2014) in their study on the effectiveness of

Facebook, Twitter and YouTube and confirmed that social media are not effective methods for

advertising. In same vein, Creamer (2011) testified that Apple is still one of the best brands despite

the fact that the organization did not have an account on any of the social media sites. Furthermore,

Blanchard (2011) found a significant positive relationship between Twitter usage and business

performances. For example, an organization called AT&T created its Twitter account a year early

before Verizon Wireless which is a competitor. AT&T had more tweeter followers than Verizon’s and

had more sales because of the increase in number of customer from the tweets (ibid). Vaynerchuk

(2011) argues that the effectiveness of social media advertising can be measured with human

interactions that there is no need to calculate social media advertising Return on Investment (ROI),

as Word of Mouth too cannot be calculated using mathematical calculation (pg. 53). He believes that

social media is cost effective and more effective than traditional advertising. Social media sites build

trust as most individuals trust their peers more on information which influence their buying

decisions than the traditional advertisements” (ibid; p.80). Ochman (2011) revealed that 40% of

Fortune 50 companies are yet to integrate their social media accounts into their company’s websites
and they still have good sales turnover. This signifies that a company can still grow without social

media advertising. Marketers are particularly interested in better understanding word of mouth

because traditional forms of communication appear to be losing effectiveness (Nail, 2005).

C. Conclusion

Based on most of the studies, both social media and traditional media were considered as an

important marketing communication tool for consumer and as well as the manufacturer. Both

advertising media have different strengths and weakness. Therefore, I hereby conclude that

traditional media is the most effective because of the fact that there are different types of

traditional media marketers can choose from and most people had been used to these media.

Hence, it can be suggested that social media advertising should be complemented by traditional

media (such as radio or print media) to reinforce communications and provide credibility for brands.