University of Economics, Prague
Master’s Thesis
2020 Bc. Marina Toniaeva
University of Economics, Prague
Faculty of Business Administration Master’s Field: Marketing
Title of the Master’s Thesis:
Influence of social media marketing on modern youth in Russia
Author: Bc. Marina Toniaeva
Supervisor: doc. Ing. Václav Stříteský, Ph.D
.Declaration of Authenticity
I hereby declare that the master’s thesis presented herein is my own work, or fully and specifically acknowledged wherever adapted from other sources. This
work has not been published or submitted elsewhere for the requirement of a degree program.
Prague, 14
thDecember 2020 Signature
Title of the Master’s Thesis:
Influence of social media marketing on modern youth in Russia
Abstract:
The aim of the thesis is to evaluate attitude of Russian youth to marketing in social networks on the platforms YouTube, Instagram and Vkontakte and what key communication activities is better to use to influence the audience of social networks. The theoretical part will reveal the basic concepts of marketing and its role in social networks. Thus, theoretical knowledge was applied in the practical part of the thesis.
To reach the goal of the thesis, assessment of the Russian market and the qualitative method were used. Interviews were conducted with young people aged 18 to 25, in addition, interviews were also taken with experts in the field. This method allows author to evaluate the most influential social networks on consumer behaviour among young people and be aware of their preferences.
For research, books, magazines, scientific articles, as well as Internet resources, were used.
Key words:
Marketing, Social media, Social networks, Instagram
Acknowledgement
I hereby wish to express my appreciation and gratitude to the supervisor of my thesis, doc. Ing. Václav Stříteský, Ph.D. for providing me with support and
valuable recommendations during all the time of writing my thesis.
Table of Contents
List of abbreviations ... 8
List of tables... 9
List of figures ... 10
Introduction ... 11
1. Web 2.0 and Social media: main concepts and characteristics ... 13
1.1. Types of social media ...14
1.2. Social media characteristics ...19
2. Impact of social media on consumer behavior ... 21
2.1. Internet marketing and consumer behaviour ...21
2.1.1. Types of buying behaviours ...22
2.2. Influences of social media on decision making process ...23
2.2.1. Impact of social media marketing activities on consumers ...26
2.3. Word of mouth ...28
2.3.1. Buzz marketing ...30
3. Marketing in social networks ... 31
3.1. Vkontakte ...31
3.1.1. Marketing activity on Vkontakte ...31
3.2. Instagram ...33
3.2.1. Marketing activity on Instagram ...34
3.3. YouTube ...35
3.3.1. Marketing activity on YouTube ...36
4. Methodology ... 39
4.1. Secondary data ...39
4.2. Primary data ...40
4.2.1. Interviews with social media users ...40
4.2.2. Interviews with experts in the field ...41
5. Social networks in Russia ... 43
5.1. Vkontakte ...43
5.1.1. Audience ...44
5.1.2. Socio-demographic indicators and consumer behaviour ...44
5.2. Instagram ...45
5.2.1. Audience ...45
5.2.2. Socio-demographic indicators and consumer behaviour ...45
5.3. YouTube ...46
5.3.1. Audience ...46
5.3.2. Socio-demographic indicators and consumer behaviour ...46
5.4. Comparison of targeting possibilities in social networks ...47
6. Qualitative analysis of consumer behavior to social media marketing ... 50
6.1. Perception of marketing activities on social media ...50
6.2. Trust or credibility in social media marketing communications ...52
6.3. The impact on purchase behaviour (searching of information, reviews, helping with
the choice, after purchase behaviour, sharing with experience) ...54
6.4. Comparison of social media activity across platforms ...57
6.5. WOM and leading opinion ...62
7. Expert view on social media marketing in Russia ... 65
7.1. Social media audience and their reactions ...65
7.2. Ways to attract audience to interact with a company or brand ...69
7.3. Communication with the audience on social networks as a way to encourage purchase 72 7.4. Trends in social media marketing...75
Conclusion ... 79
Bibliography ... 81
List of Appendices ... 94
List of abbreviations
IT – Information Technology RSS - Real Simple Syndication SMS - Short Message Service WOM – Word of mouth B2B – Business to Business C2C – Consumer to Consumer
List of tables
Table 1: Types of social media from different Authors Table 2: Four types of buying behaviour
Table 3: Social media metrics
Table 4: Possibilities of targeting in advertising Table 5: Characteristics of respondents
Table 6: Characteristics of experts
List of figures
Figure 1: Web 1.0 to Web 2.0
Figure 2: Number of social network users worldwide from 2017 to 2025 (in billions) Figure 3: The conversation prism
Figure 4: Most popular social networks worldwide as of July 2020, (in millions) Figure 5: Most popular product categories in Russia and Europe in 2018, by category Figure 6: Top 10 most popular online resources and social networks in Russia and its audience
Figure 7: VKontakte statistics Figure 8: Instagram statistics Figure 9: YouTube statistics
Introduction
In recent years, the number of Internet users has grown significantly. According to sociological companies' surveys, 81% of the Russian population go online every day, while 48% of users have accounts on social networks (We are social, 2020). The Internet environment has provided modern society with the opportunity to interact with each other online. Social networks allow people to get in touch with their interlocutor at any time, exchange interesting information, and share impressions while in different parts of the world. Vkontakte, Instagram, and YouTube are the most popular platforms among Russian users (Statista, 2019).
Social networks make it easy and affordable to purchase goods and services with home delivery. Thanks to this, absolutely all companies worldwide can provide themselves with a comprehensive audience coverage, with a high target orientation, and the marketing communications process can be used to spread information about the promoted brand, product, or service. In this regard, marketers have increased interest in these sites as a useful source for promoting brands and companies. Thus, social media marketing has become one of the elements of the internet marketing mix.
The relevance of the chosen topic is largely determined by the fact that the advertising opportunities of social networks remain poorly studied because social networks are a huge space that includes a lot of features and multiple human resources for promoting certain goods both in Russia and around the world. The widespread use and growing trend of use have become the main reason for choosing a research topic. This work focuses on the impact of social media marketing communications on Russian youth aged 18 to 25, as this audience is the primary users of Vkontakte, Instagram, and YouTube.
The aim of the thesis is to reveal the attitude of young people to marketing in social networks on the platforms YouTube, Instagram, Vkontakte. Subsequently, the goal is to determine which communication activities are used by experts in their marketing strategies to influence the audience of social networks. And also, to assess what trends will be relevant in the near future in social media marketing.
The work consists of two parts: theoretical and practical. The theoretical part is aimed at considering the main issues related to social networks: concept, characteristics, classification.
Moreover, the main aspects of the influence on consumers are disclosed. The features of the selected platforms are also presented, and their marketing opportunities are revealed.
The practical part begins with an analysis of social networks in Russia. The main task was to show their relevance and wide distribution among the selected audience. Besides, the advertising capabilities of YouTube, Instagram, and Vkontakte are compared. It is important to understand that for the depth of research, the opinions of users and experts must be taken into account. Thus, the findings were supported by qualitative research with social media users
and experts working in the field. This allowed understanding the attitude of young people to advertise on social networks, as well as to understand the ways to influence this audience.
In conclusion, the results are summed up; conclusions are formulated on the topic of the work.
The appendix contains graphic materials that supplement the text of the work.
The research was based on scientific articles, online resources, and statistical data.
1. Web 2.0 and Social media: main concepts and characteristics
Today in IT, there are two most common terms are "Web 2.0" and "social networks". Initially, the Internet was only a means of finding dispersed information, but now it is a social place that allows people around the world to communicate with each other. (Iris Uitz, 2012)
The turning point for the Internet was 2001, when the dot-com bubble burst. O'Reilly notes that many people believed that the importance of the Internet was exaggerated, while bubbles and shake-up are the beginning of any technological revolution. The term "Web 2.0" was coined by O'Reilly's brainstorming session at MediaLive International. Moreover, the author notes that with the fall of the Internet, new interesting applications and sites began to appear.
(Tim O'Reilly, 2007). Web 2.0 - it is a completely new form of the Internet, allowing users to design content and appearance (Iris Uitz, 2012). The difference between Web 1.0 and Web 2.0 can be seen on the Figure 1. According to O'Reilly, Web 2.0 does not have rigid boundaries, rather it is a coherent set of principles and practices that are located at different distances from each other. (Tim O'Reilly, 2007)
Figure 1: Web 1.0 to Web 2.0
Source: Tim O'Reilly, 2007
The term Web 2.0 describes economic aspects and social phenomena, while "social network"
is based on the relationship of Internet users (Simon G. et al., 2011). Thus, consumers rely more on the advice of their friends and colleagues during shopping than on TV ads. Today consumers have the opportunity to communicate with each other through social channels.
(Woodcock, Green and Starkey, 2011). Kaplan and Haenlein (2010) define social media as a group of Internet-based applications that based on the Web 2.0 and which allow users to create and exchange of the content (Kaplan & Haenlein, 2010, p. 61). Social media consists of conversations, the content of which differs depending on the interests of consumers.
(Woodcock, Green and Starkey, 2011). Furthermore, users with similar interests can share useful information, news, exchange photos and music within a few minutes. Unlike traditional
mass media, users of social networks can choose an interlocutor and send him the necessary information. (Alnsour, Ghannam, Al-Natour & Alzeidat, 2018).
The consumer experience is made up of photos, videos, ideas, jokes and quickly spreads to a large number of people. Consumers have the power to discuss brand and service experiences openly, whether the organization is participating in the conversation or not (Woodcock, Green and Starkey, 2011). Kaplan and Haenlein note some methods of communication outside the organization. These methods include collaborative projects that allow people to make a common effort, which leads to better results; blogs informing employees, customers and shareholders about significant events, as well as community content that allow users to exchange different information between themselves (for example, BookCrossing –books, YouTube - video, Flickr – photos) (Kaplan and Haenlein 2010). Attractive content allows the consumer to do nothing and buy the product directly. (Woodcock, Green and Starkey, 2011).
The popularity of social networks is growing every year. This is one of the most popular activities. According to Statista on the Figure 2, in 2020, about 3.6 billion people worldwide used social media, and by 2025 the number of users may increase to 4 billion. At the beginning of 2020, about 70 million people were identified in Russia actively using social networks, and this number is growing every year (Statista, 2020).
Figure 2: Number of social network users worldwide from 2017 to 2025 (in billions)
Source: Statista, 2020
1.1. Types of social media
The emergence of social networks influenced the development of activities in its open spaces.
The number of users grows along with the number of applications. Each application is unique and has its own functions and purposes. Depending on the purpose of use, consumers choose a type for themselves that would meet the desired parameters (Iris Uitz, 2012). Figure 3 by Brian Solis (2010), displays the variety of social networks.
Figure 3: The conversation prism
Source: Brian Solis, 2010
Currently, there is no unified system in the literature that could classify social media tools and applications. (Safko, 2010). There is a wide range of classifications of types of social networks.
Table 2 presents both the authors of various scientific articles, as well as well-known social media consultants who describe these types (Kim, W. G., Jeong, O. R. & Lee, S. W., 2010, Kaplan and Haenlein, 2010, Safko, 2010, Solis, 2010). The authors divide social networks in different ways, for example, Kim et al. distinguish between two types, while Solis describes 26 types of social networks, it is represents on the Table 1.
Table 1: Types of social media from different Authors
Kim, W. G., Jeong, O. R. and Lee, S.
W., 2010
Kaplan and Haenlein, 2010
Safko, 2010 Solis, 2010
• Social
Networking sites
• Social media sites
• Social
Networking sites
• Blogs
• Collaborative projects
• Content Communities
• Virtual social worlds
• Virtual game worlds
• Social Networking sites
• Creativity works sharing sites
• User sponsored blogs
• Company- sponsored websites/blogs
• Company- sponsored cause/help sites
• Invitation only social networks
• Business
networking sites
• Collaborative websites
• Virtual worlds
• Commerce communities
• Podcasts
• News delivery sites
• Educational materials sharing
• Open source software communities
• Social bookmarking sites allowing users to recommend online news stories, music, videos, etc.
• Social Networks
• Blog/Microblogs
• Crowd Wisdom
• Q&A
• Comments
• Social Commerce
• Social Marketplace Social streams
• Location
• Nicheworking
• Enterprise Wiki
• Discussion &
Forums
• Business
• Service Networking
• Reviews & Ratings
• Social Curation
• Video
• Content /Documents
• Events
• Music
• Livecasting
• Pictures
• Social Bookmarks
• Influence
• Quantified Self
Source: Author
Young people create accounts on popular social networks such as Facebook, YouTube, WhatsApp, WeChat, TikTok, Instagram and Google. Picture 3 shows the most popular social networks, ranked by the number of users. The Figure 4 shows that Facebook is the market leader with more than 2.5 million active users, followed by YouTube and WhatsApp with an
equal number of active users - 2 million. These networks allow users to communicate and share content (Matthee, 2011; Statista, 2020).
Figure 4: Most popular social networks worldwide as of July 2020, (in millions)
Source: Statista 2020
Matthee (2011) highlights the most popular types of social networks:
Social networking sites
Online sites, platforms or servers that are based on the construction of social networks or relationships are called social networking sites (Iris Uitz, 2012). Social networking sites give people the opportunity not only to communicate with strangers, but also to express their thoughts, create content (Boyd & Ellison 2007). Individuals create a profile, add and invite friends to join them on the social network (Mayfield 2008). Moreover, social media have a different user base and differ in functionality (Boyd & Ellison 2007). The most common social networking sites are Facebook, MySpace, Bebo (Mayfield 2008). However, popular from 2005 to 2008, the social network MySpace can no longer compete. The network still exists, but it is not as popular as it used to be (Moreau, E. 2020).
Blogs / Microblogging
A weblog or blog is a website designed by individuals in an informal style and displayed in reverse chronological order (Flew, 2008). Blogs differ from other websites in their nature, they are interactive, which allows visitors to engage in dialogue and exchange ideas. (Kelleher,
2006; Marken, 2005). Due to their unique characteristics, blogs are the most powerful and effective communication tool (Marken, 2005). They can contain multimedia elements, for example, links, web pages, but mostly retain text in nature, like SMS. Also, blogging resembles a personal page, which was originally a good way to introduce yourself and give your opinion.
(Herring, 2004).
The main idea of most blogs is that they are about a specific topic or event, while others resemble an online diary. (Iris Uitz, 2012). Thus, Pradhan, B. and Gupta, P. describe different types of blogs that differ in content and the way they are written. So they distinguish: personal blog, corporate, Q&A blogging, by media type, by device, by genre (Pradhan, B. & Gupta, P (2009).
According to Swist, T. et al., Microblogging is an online site that differs from a regular blog in the size of posts (Swist, T., Collin, P., McCormack, J., 2015). Microblogging has limitations in the form of a limited number of characters, but their content is different from emails, it makes them readable. The main value of microblogging is ease of use and efficiency, because it does not require much time and effort to maintain. They are easier to read than regular blogs due to their brevity, which makes them more desirable. Moreover, people use blogs in addition to their main blog. (Safko, L. & Brake, D. K., 2009).
The most popular microblogging platform is Twitter with over 1 million subscribers. (Safko, L. & Brake, D. K., 2009; Mayfield, A. 2008). Also, there are other social networks - these are Jaiku и Pownce (Safko, L. & Brake, D. K., 2009).
Wikis
Wiki is a browser-based platform that allows everyone, based on their experience and knowledge, to add information, as well as edit content in articles (Safko, L. & Brake, D. K., 2009). Like-minded people around the world arrange an electronic version of a brainstorming session among each other, thus increasing productivity (Gorman, G.E. 2005). Incorrectly added information is corrected quite quickly. Long, Sarah Ann., claims this is the best example of democracy where everyone has the freedom to write. (Long, Sarah Ann., 2006). The ease of use makes this site extremely valuable. All users need to do is edit, write and save, write Safko, L. and Brake, D. K. (Safko, L. & Brake, D. K., 2009).
The most famous wiki is Wikipedia. It contains over 10 million articles of which 2.5 million are in English and has nearly 60 million users in total (Mayfield 2008; Safko, L. & Brake D.
K., 2009).
To support collaboration, wiki is used in education. This allows students to connect and disseminate information among each other. This method engages each student in the work.
(Pradhan, B. & Gupta, P., 2009).
Podcasting
Meng, P. Defines podcasting as the process of recording a song, voice or sound and then publishing it on a blog or website using RRS 2.0 or "tape" (Meng, P. 2005). Balleste, R., Rosenberg, J. and Smith-Butler, L. define podcasts as audio or video files that are available on the internet using RSS feeds (Balleste, R., Rosenberg, J. & Smith-Butler, L. 2006).
The podcast has a subscription feature that allows users to build a loyal audience and groups around your projects. This makes podcasts a powerful social network. (Safko, L. and Brake, D. K., 2009). Also, podcasting has a number of advantages over other platforms. (Donnelly, K. M., & Berge, Z. L. 2006). First of all, it is ease of use, as well as the ability to listen to podcasts anywhere, based on consumers’ needs. Moreover, it gives the opportunity to do other important things while listening. (Mayfield, 2008).
Social bookmarking
Social Bookmarking Systems is a Web 2.0 networking community that allows users to tag and use keywords for Web resources of interest, and share them with others. (Carroll, J. 2007).
Social bookmarks let browse someone else's bookmarks to find an accomplice on the same topics. So, the main concept - to share resources (Information Today, Inc., 2007). The most common example of social bookmarking are del.icio.us, which is used to tag websites, and Flickr for images. (Carroll, J. 2007).
Content communities
Community content is the exchange of media content between users. Community content includes different types of media such as text, video, photos, and PowerPoint presentations.
Unlike other platforms, community content does not require a personal profile, only general information is required, the date of joining and the number of uploaded videos (Kaplan &
Haenlein 2010).
Flickr is the most popular service that allows users to upload photos and allow access to everyone or just the family, writes Mayfield. Another equally well-known platform is YouTube. Users of this platform have the ability to create their own channels or upload their videos (Mayfield, 2008).
1.2. Social media characteristics
Social media is changing rapidly. Everything people know about it today is different than a year ago, and accordingly it will differ a year from now (Appel, G., Grewal, L., Hadi, R., & T.
Stephen, A. 2019). Thus, Mayfield and Lister, M. et al defined social media as “new media”
referring to changes in technological, textual, traditional and cultural understanding (Lister, M.
Dovey, J. Giddings, S. Grant, I. & Kelly, 2009; Mayfield, 2008). In this case, Mayfield put forward a number of characteristics that social networks have. These include: participation, openness, conversation, community, and connectedness:
• Participation: interested people should contribute to the development of social networks, as well as give feedback to show their activity (Mayfield, 2008). Thus, the line between media and users is being destroyed. People have the opportunity to communicate freely with each other, making content more democratic than ever (Drury, 2008).
• Openness: users have no barriers to accessing content and social networks in general.
People can vote, write comments, and exchange information (Mayfield, 2008).
• Conversation: social media is seen as a two-way dialogue, while traditional media is focused on creating content for the audience (Mayfield, 2008). Rowley, J writes that customer relationships are built through communication. The main goal of such communication is to make the client feel that he is special and satisfy his needs. Today, many channels are used for communication, which include e-mail, newsgroups, chat rooms and messages (Rowley, J. 2004).
• Community: social media allows people to form communities. In such communities, users can communicate with each other and share common interests, notes Mayfield (2008). Group members pay attention to the content created by them and the organizers, and also appreciate the opportunity to share their opinions and experiences (Rowley, J.
2004).
• Connectedness: by linking to websites, people, and resources, social media users can stay connected (Mayfield, 2008). Social media not only brings people together, but also builds connections among strangers (Boyd & Ellison, 2007).
2. Impact of social media on consumer behavior
The aim of this chapter is to understand how social media marketing affects consumer behavior. To accomplish this task, it is needed to reveal the features of their behavior, as well as to disassemble the main concepts of decision-making process.
2.1. Internet marketing and consumer behaviour
Social media has changed a lot lately. It is not just a communication platform. Social media has become a consumer's assistant for creating and distributing content about products, brands and services (Akrimi & Khemakhem, 2012). Users can receive information about a product or service at any time (Mangold & Faulds, 2009). In addition, social media applications make from passive users active participants, allowing them to create and share information (Wang, Z., & Kim, H. G. 2017).
According to Solomon, consumer behavior is the process that studies the selection, purchase, use and implementation of products or services to meet the needs and desires of individuals or groups of people (Solomon, 2010). Another definition is offered by Kardes et al., they define consumer behavior as an activity that is associated with the purchase, use and sale of goods and services, but at the same time includes reactions (emotional, mental, behavioural) that contribute to these actions (Kardes, F., Cronley, M. & Cline, T., 2011).
The main task of any business is to identify the target audience (Hill et al. 2006). This allows a better understanding of consumer behavior, because the right segment brings together people with the same wants and needs in relation to the product and creates significant benefits for the company (Lantos, 2011). Geographic, demographic, psychographic and behavioral are the main factors used in market segmentation (Kotler, P. & Armstrong, G. 2014).
The use of social media has also changed. Not only people, but also companies use social media to communicate and communicate information, both for personal and professional purposes (Schaffer, 2013). Social media allows organizations to maintain better relationships with customers and be aware of their needs, and customers in turn have unlimited access to information (Rad, A. A. and Benyoucef, M. 2011). The explosive development of social media has prompted marketers and managers to integrate networks into marketing communication (Kim & Wang, 2017). Thus, 75% of companies have a page on social networks, it is said in the study «The State of Small Business Report» (Neti, S. 2011).
Chaffey, D. et al argue that Internet marketing is the use of the Internet using digital technologies in order to achieve marketing goals (Chaffey, D. et al 2000). Today, social media marketing is becoming more and more indispensable, without its help, marketing cannot achieve its goals. Most marketing programs aim to create unique content that grabs the attention of users and makes them share it with others. The disseminated information has a great impact, because it is transmitted by a trusted person, and not by a company or brand interested in the sale (Bostanshirin, S. 2014).
Moreover, social media marketing is a process that allows companies to build and maintain strong relationships with stakeholders. Companies send great deals and offer personalized promotions (Rahman, Z. and Yadav, M., 2017). Establishing relationships on social media is one of the most powerful ways to grow a business (Gruber, 2014). Also, social media marketing is consumer-oriented, not product-oriented, which is very valuable (Diamond, 2008). One of the reasons for doing business on social media is the time users spend on those platforms. On average, people spent 140 minutes on social media in 2019 (Statista 2019).
2.1.1. Types of buying behaviours
Shopping behaviour is very different. It depends on the degree of need to purchase a particular product. Kotler and Armstrong distinguish four types of buying behavior, which differ in the degree of engagement and differences in brands (Kotler, P. and Armstrong, G. 2014). Table 2 shows four types of buying behavior.
Table 2: Four types of buying behaviour
Buying behavior Characteristics of behaviour
Examples
Complex buying behaviour - High involvement of consumer
- Significant differences between brands
- Expensive - Risky
- Purchased infrequently - Highly self-expressive
- Computer - House - Car
Dissonance-reducing buying behaviour
- High involvement of consumer
- Few differences between brands
- Expensive - Infrequent - Risky purchase
- Carpet - Medicine - Furniture
Habitual buying behaviour
- Low involvement of consumer
- Little brand difference
- Food - Drinks Variety-seeking buying
behaviour
- Low involvement of consumer
- Significant differences between brands
- Restaurant - Confectionery
Source: Kotler, P. and Armstrong, G. 2014
Thus, a difficult purchase is of the greatest importance because the buyer studies the product thoroughly. He collects all the necessary information about the characteristics of the product, going through all stages of the decision-making process, and the brand image plays a
significant role in his choice. This type is relevant when the product is purchased at a high cost and for long-term use.
Dissonance-reducing buying behavior is another type of behavior. This behavior is at high risk because shoppers are involved in product choices, but the boundaries of brand differentiation are blurred. People scrutinize the characteristics, but do not consider similar products from other brands. In this case, buyers make a frivolous product choice.
Habitual buying behaviour is determined by customer loyalty to a particular brand because buying is a habit. Most often these are everyday goods. People do not study the characteristics and do not think about buying as something important.
Variety-seeking buying behavior characterized by low involvement in the buying process, but with a significant difference between brands. People of this behavior easily change the brand in the event of negative experiences or dissatisfaction (Kotler, P. and Armstrong, G. 2014).
According to Voramontri, D., & Klieb, L., the most noticeable social media impact is seen in complex buying because it is associated with high risk, where information gathering and choice evaluation play a significant role. And it differs from dissonance-reducing buying behaviour that there are differences in brands (Voramontri, D., & Klieb, L. 2018). Shoppers spend a lot of time on social media looking for product information before making a choice (Arekar, K., Jain, R., Kumar, S., & K. Ayarekar, S. 2018).
Social media has a positive effect on habitual buying behaviour as well. People don't think about looking for new information because they've already done the research they need about the product and are now making the same purchase on a regular basis. Consumers shape their shopping baskets based on their habits, reducing the time spent (Arekar, K., Jain, R., Kumar, S., & K. Ayarekar, S. 2018; Wang, R. J., Malthouse, E. C., & Krishnamurthi, L. 2015).
The positive impact of social media has been seen in variety-seeking behaviour. A large number of sites and pages are presented to consumers, where a variety of brands and the necessary information with product descriptions are displayed. Consumers can easily study the market and make a choice in favour of the product they like (Arekar, K., Jain, R., Kumar, S.,
& K. Ayarekar, S. 2018).
2.2. Influences of social media on decision making process
Social media is a tool to influence, engage and attract customers. It is the involvement of customers in social networking activities that allows for the creation of friendships between strangers (Eid & El-Gohary, H., 2013). In marketing, the term “engagement” is widely used.
When people receive a message, they comment on it, set reactions and send them to friends.
Thus, marketers' decision to create virtual communities was based on allowing consumers to disseminate and share product information, not just read it (Agresta, 2010).
Thus, online communities are becoming more and more popular. Consumers, creating groups, shape tastes and share impressions of product quality (Solomon et al., 2010). According to Hawkins & Mothersbaugh, collaborative decisions are decisions made with family, friends, and colleagues (I. Hawkins, D., & L. Mothersbaugh, D. 2010).When choosing a particular product, consumers primarily collect information in traditional media: newspapers, magazines, television advertising (Kotler, P. and Armstrong, G. 2014). However, social media is becoming more and more popular and can influence the consumer's choice to buy a product or service (East et al., 2008).
The rapidly evolving means of communication have changed many aspects of life. In the 21st century, social media is helping people to express their beliefs, thoughts and ideas in new ways (M. Saravanakumar and T. SuganthaLakshmi, 2012). In addition, they influence the decision- making process, namely, they affect the attitude towards advertising, consumer buying intentions and attitude towards the brand. The level of consumer involvement not only influences the decision-making process, but also mediates (Taining, Y. 2012). It is needed to understand that every consumer is also an Internet user. The online consumer is more demanding, strong and practical in relation to their choice than the offline consumer (Koufaris, 2003).
People have to make many decisions every day that are related to their daily life. The buying decision-making process can be influenced not only by cognitive and emotional aspects, but also by family, friends, advertisements, idols, as well as mood and situation. Consumer preferences change with a variety of factors affecting life (Schiffman, L., & Kanuk, L.L. 2010).
Thus, Kardes, F., Cronley, M. and Cline, T distinguish several stages in the purchase decision- making process: problem recognition, information search, evaluation of alternatives, purchase decision and post purchase evaluation (Kardes, F., Cronley, M. and Cline, T., 2011). In order to feel satisfaction from the perfect purchase, the consumer needs to go through all the stages of the process, because the stages are interconnected (Karimi 2013).
• Problem recognition: the need, desire or problem to buy something new is the first stage in the decision-making process. There are several factors that can influence problem recognition such as social, cultural, environmental, and control groups (Kardes, F., Cronley, M. and Cline, T., 2011).
• Information search: the stage at which the buyer begins to look for additional information about a product or service, showing increased attention or actively collecting information (Kotler, P. and Armstrong, G. 2014). The source of information can be both internal and external. The internal is based on existing experiences and memories, while the external is characterized by shopping, word of mouth and social media (Kardes, F., Cronley, M. and Cline, T., 2011). The Internet has become an integral part of information retrieval. Thus, search direction and level depend on the type of purchasing decision (Hawkins & Mothersbaugh, 2010).
• Evaluation of alternatives: the stage at which the collected information is used to evaluate alternatives. Consumers base themselves on the satisfaction of their needs and
desires, and also appreciate the importance and significance of the selected products (Kotler, P. & Armstrong, G. 2014).
• Purchase decision: the stage at which the consumer has made their choice and is ready to buy a product (Kotler, P. & Armstrong, G. 2014). The choice is based on certain criteria that consumers have collected from various sources. The Internet remains the most effective (Hawkins & Mothersbaugh, 2010).
• Post purchase evaluation: the stage at which the consumer evaluates their satisfaction with the purchase made. Every aspect is taken into account from the information found to the product characteristics (Hawkins & Mothersbaugh, 2010; Kardes, F., Cronley, M. & Cline, T., 2011).
A study by Fauser et al. showed that at each of the stages, marketing activities can be carried out that influence the purchasing decision (Fauser, S.G. Wiedenhofer, J. & Lorenz, M. 2011):
• There are a product overview and many applications provide exclusive offers to consumers (e.g. Twitter) on social media at the problem recognition stage. In addition, the pages of popular platforms contain content that acts as a media hub, it is encouraging the consumer to make a purchase;
• In the information search phase, blogs and wikis are the most commonly used by consumers, because these platforms generate the most information about a product or service. Useful information can also be found in fan pages of social networks or while watching videos on YouTube;
• During evaluating of alternatives, the consumer may be influenced by the reviews and ratings of other users in the social networking communities. Also, users can get an independent opinion, as well as feedback and participation in active communication, which facilitates the decision;
• At the purchase decision stage, the role of social networks is weakened, however, users can still ask a question about the product on the fan pages of companies, before the final decision;
• The most important stage is the post-purchase. At this stage, customer loyalty increases, turning regular customers into brand fans. On social media platforms, companies connect with consumers and also strengthen relationships (Fauser, S.G.
Wiedenhofer, J. & Lorenz, M. 2011)
Social media has significantly influenced the purchasing decision-making process, from post- purchase behavior to the problem recognition stage (Mangold, W.G. & Faulds, D.J. 2009).
After all, social networks are not only advertising, but also the connection between the user and the brand, which is established through communication (Vinerean, Cetina & Tichindelean, 2013; Mersey, R., Davis, Malthouse E. & Calder B., 2010). Such a connection is two-way, because it is created between the company and the consumer, allowing the transfer of information or a product, and also to receive feedback (Leeflang P., 2014). More and more consumers are turning to social networks for information about new brands, products, promotions (Kunz, M.B. & Hackworth, B.A., 2011).
The buyer can solve the arising problems with goods or services with the help of feedback in social networks. Comments and responses create a brand image in which other people make a purchase decision. In this case, every detail is important, because the purchase decision depends on it (Sema P., 2013).
Figure 5: Most popular product categories in Russia and Europe in 2018, by category
Source: Statista, 2018
Figure 5 shows that in 2018, the largest sales volume was in the clothing sector, the indicators were comparatively the same in both Russia and Europe. The top three in terms of sales also included beauty products and electronics. In Europe, in addition to demand for clothing, there was also a demand for books and shoes, respectively (Statista, 2018).
2.2.1. Impact of social media marketing activities on consumers
In the vastness of social networks, people connect with each other, creating a consumer group (Trusov, M. Bucklin, R.E. and Pauwels, K., 2009). Social media marketing is attractive because brands can influence consumers. It was social networks that opened up the possibility of direct communication between the brand and the consumer (Brandz, 2010).
Gruber notes that one of the most effective marketing tactics today is social media marketing (Gruber, F., 2014). 88% of marketers say social media use is “very important” or “somewhat important” (State social, 2019). Statistics show that 78% of consumers make a purchase decision based on social media posts (Saleh, K. 2018). While 54% of those surveyed use social networks to get information about products (Beer, C., 2019).
Haque, Khatibi and Mahmud have identified the main factors that drive consumers to shop online:
• Internet marketing environment: attractive interface and variety of platforms;
• Product characteristics: the presence of product characteristics that meet Internet criteria: appearance and sound.
• Brand familiarity and confidence: determine customer satisfaction from the purchase made;
• Promotional offers: inform the consumer about the existence of the brand in the market, as well as about possible discounts and promotions (Haque, Khatibi and Mahmud 2009).
The presence of the above factors has a positive effect on consumer buying behaviour, increasing brand loyalty (Haque, Khatibi and Mahmud 2009). Moreover, people perceive product information better in two-way communication. Consumers not only receive a message about the product, but also establish a connection with them (Gruber, F. 2014). Companies receive inquiries, complaints and compliments about the brand, which they process and respond immediately. Feedback is a good opportunity to be closer to people and communicate with them faster (Melbourne 2019; Kaushik, R. 2012). Another integral part of marketing is honest reviews and brand evaluation (Smith, K. 2020). Products and services can be described with different characteristics, but customer reviews and comments are likely to attract the most attention (Evans, 2008). Therefore, it is very important for companies to treat any comments professionally, this will lead to a positive reaction from the buyer (Smith, K. 2020).
Moreover, engaging in social media content creation has a positive impact on consumers. They are part of the marketing efforts because they create, edit and share information about products and services. Believing that their information is more trustworthy than messages generated by companies. Thus, consumers who interact with social media respond better to social media marketing because they feel belonging and involved (Ziyadin, S., Doszhan, R., Borodin, A., Omarova, A., & Ilyas, A. 2019; Akar, E., & Topçu, B. 2011). Therefore, the number of subscribers on social networks, reviews and “likes” allow consumers to find all the necessary information about the product and to be involved in the process (Fauser et al., 2011).
Social media marketing can measure customer satisfaction. Thus, companies have to constantly monitor market trends in order to assess the quality of their marketing campaigns. Companies track reader growth, click-throughs, and time spent on a page. Table 3 presents social media metrics across different social networks. All these indicators can be measured by analytical tools StatCounter or Google Analytics, which indicate the effectiveness of the interaction of marketing strategies (Brown, E. 2012).
Table 3: Social media metrics
Social Activity
Blogging
- Number of subscribers - Number of web views - Number of comments - Number of reports
Volume of conversation
- Number of followers
- Number of conversations to @ - Number of retweets
- Number of URL click-throughs - Range of Influence – your people who
follow your followers
- Number of page fans (people who like the page)
- Number of topic discussions - Number of comments / likes YouTube
- Number of views
- Number of channel subscribers - Number of comments
- Volume of conversation Photo sharing sites
- Number of comments - Number of views - Ranking
Source: Brown, E. 2012.
Despite all the benefits, it is needed to be careful when using marketing. One cannot deny that, today people are overloaded with information. They receive messages from private, government and non-profit companies. The media, social media and online blogging are making their mark. (Peter Ling, Steven D'Alessandro and Hume Winzar, 2015). On the one hand, companies strive to create attractive advertising on social networks and attract as many new customers as possible, creating all the conditions for comfortable communication. On the other hand, aggressive marketing and invasion of privacy have negative consequences for people (Bolotaeva, V. and Cata, T., 2010).
2.3. Word of mouth
Today on the market there is a large selection of formal means of communication, such as magazines, newspapers, television, but despite this, people transmit most of the information on an informal basis. This is what people discuss with friends, family and colleagues, namely, exchange recommendations. This communication is called word of mouth (Solomon et al., 2010). Consumers trust the opinions of their loved ones or acquaintances more than marketing communications because personal sources tend to express their true emotions about a product or service (Hawkins & Mothersbaugh, 2010).
Word of mouth creates powerful communication between people each time provoking powerful perceptions in people's heads. It is an integral part of social communication. Rumor is also defined, writes Balter, as an opportunity to exchange ideas, experiences, and views (Balter, 2004).
In contrast to traditional forms of communication, word of mouth is more reliable. People stopped believing in the traditional type because most of the commercial communications undermined their trust. They increasingly turn to trusted sources that they can rely on (Solomon et al., 2010).
In addition, direct information is better understood, credible and can influence purchasing decisions. However, WOM can both negatively affect a new product or service and increase its performance. It all depends on the degree of customer satisfaction. (Solomon et al., 2010;
Hawkins & Mothersbaugh, 2010). Moreover, as noted by Solomon, negative and positive WOM are rapidly spreading online (Solomon et al., 2010).
Word of mouth is an important part of communicating with a consumer on social media. It allows the sharing of experience and knowledge about a product or service, and also influences consumer purchasing decisions (Brown Jo, Amanda J. Broderick, & Nick Lee, 2007).
There are some factors that can influence purchasing decisions (Brown, et al, 2007):
• Tie strength: This is a term used in the analysis of social networks and characterizes the connection between people. This type is associated with the degree of intimacy and the level of trust (Petróczi, A., Nepusz, T., & Bazsó, F., 2007).
• Homophily: communication between similar people (Bisgin, H., Agarwal, N., & Xu, X. 2010).
• Source credibility: defined as the competence and reliability of the source providing information (Brown, et al, 2007).
Consumers have a wide variety of channels through which they communicate and share information about a product or service. Similar activities take place through social media, online communities, blogs, chat rooms and mail (Goldsmith, R. E., & Horowitz, D. 2006). This allows people to receive information not only from friends, but also from strangers (Kimmel, A., & Kitchen, P. 2014). In their study “How Consumers Use Social Networks”, Li, C. et al states that two-thirds of young people using social networks tell their friends about the products they are interested in (Li, C., Bernoff, J., Pflaum, C., & Glass, S., 2007).
Social networks are helping the consumer in making a purchase decision. They knowingly collect information about the desired product to avoid uncertainty and risk. Buyers look at other people's opinions (WOM) about a product and make decisions based on that (Peterson &
Merino, 2003; Kim & Srivastava, 2007).
2.3.1. Buzz marketing
Buzz marketing is a heightened form of word of mouth to spread the word about a new product (Solomon 2010). Also, Buzz marketing is like a virus that spreads quickly and creates a hype around a product or service, as well as causes large-scale discussions on social networks.
(Hawkins & Mothersbaugh, 2010; Chebli Leila & Gharbi Abderrazak 2013; Mohr 2017).
People who spread information most often have a large number of contacts in different circles and can have a certain impact on others. Buzz marketing attracts attention by the fact that during the conversation people are engaged in a dialogue, this communication is fun and deserves special attention (Mohr, I. 2007). For a better impact on consumers, companies combine word of mouth with social media, all of these factors driving sales, profits and traffic (Mohr, I. 2017).
3. Marketing in social networks 3.1. Vkontakte
The social network Vkontakte was founded in 2006. Initially, the platform was created to attract alumni, but thanks to its rapid development, it has become the most popular social network in Russia. Thus, Vkontakte is the most widespread network on the Russian Internet.
Currently, 97 million users are registered, 73 millions of them are Russians. The platform has 42 million daily visits, with an average time spent at 35 minutes per day (Mediascope 2020).
Vkontakte allows users to create a profile by posting personal information there, exchange messages, information, photos, and also join interest groups. Most of the features are free, but there is a charge to send gifts, place ads, and display ads. People appreciate Vkontakte for being very user-friendly and easy to use (Wizard.Sape. 2014). Vkontakte has a lot of multimedia related features. They include audio, video, text messages, images, polls, geographic location, and merchandise (Morozova, A. 2019).
Moreover, Vkontakte is used not only for personal purposes, but also for business. According to Vkontakte, about 1 million companies are actively doing business on the vastness of the social network (Vkontakte.com, n.d.). Business pages allow you to additionally interact with the client through a button to contact a consultant. In addition, there is a simplified system for promoting a product or service. All is needed is to determine the budget, the rest of the social network will do automatically: it will select the target audience and interests. VK Business also offers training courses that are linked by advice on working with social network tools (Khabibrakhimov, A. 2018).
Also, Vkontakte has a discussion section where all participants can express their opinion and see the opinion of other people on a topic. People are united by interests and have the opportunity to communicate on common topics (Baturin, A. 2019).
3.1.1. Marketing activity on Vkontakte
The social network Vkontakte is not only the most widespread platform in Russia, but also a unique marketing tool. The social network has a variety of thematic groups that enable users to communicate and exchange information. In addition, Vkontakte has a number of options for adding photos, documents, audio and video files, as well as conducting surveys. Another interesting fact is that the audience is diverse, so it allows you to reach as many people as possible with different characteristics and needs. However, the main audience is young people aged 18 to 35 (Ageeva, Y. A., et al. 2016).
Since 2015, the Vkontakte platform has a product function. It enables users to create their own online stores. The products are divided into categories and range from fashion to real estate. In addition, each category has a number of subcategories. For example, the category “Services”
might include training, video filming and development. In addition, the social network
Vkontakte has its own payment system VK Pay since 2018. This service allows you to buy and sell products within a social network (Morozova, A. 2019).
Since 2017, the platform has been offering to use ads on Vkontakte in order to attract new subscribers, promote a page or brand (Kukharenko, J. 2018). Ganeev identifies several types of advertising on Vkontakte (Ganeev, R. 2016):
Community Ads: Ads are placed in groups or communities. Most often, such ads exist for a day, and then are deleted by the creators of the group. But there are exceptions, at the discretion of the administrators, the advertisement may remain, but it must correspond to the main content. The main indicators of effective advertising are the number of participants and their activity. In addition, you can see how many people viewed and commented on an ad post.
Targeting: allows you to focus on a specific audience that matches the selected criteria.
Vkontakte targeting is used to promote groups, posts, posts. When setting up such an ad, the social network offers about 25 different parameters, including a picture, link, poll, audio, etc.
Targeting is created based on the personal information of users, which is indicated in the personal profile. This type of advertising allows you to reach the desired target audience.
Retargeting: one of the most effective advertising tools. Using this mechanism, advertising is displayed only to people familiar with the brand, or it is achieved in a targeted manner. Thanks to retargeting, you can push people to buy a product, reminding them of new promotions and discounts.
Additionally, Vkontakte uses viral marketing. The main idea is to distribute a picture, video or text message without the participation of the creator. In other words, the content should be shared by readers with likes and reposts. It is worth noting that such a post should be interesting and unique in order to spark discussion among users (Kukharenko, J. 2018; Krinchiyan, N. A.,
& Kataev, A. V. 2015).
Thus, it cannot be said which method will be most effective. The most important thing is to know the target audience, fill in the criteria correctly and target groups with a large number of active participants (Ganeev, R. 2016).
A company can communicate directly with customers through a group or page. People can see expertise and interest, so it is very important to create a friendly atmosphere and be constantly in touch with the consumer. In addition, people always appreciate additional information related to the desired topic (Baturin, A. 2019). Also, companies must constantly update content, making it unique, and it must also encourage people to dialogue and discussion in order to have a constant demand among consumers (Krinchiyan, N. A., & Kataev, A. V. 2015).
Products of any category are sold on social networks. However, Vkontakte sells the most services. In addition, people also buy clothes and gifts, a little less cosmetic (Chizhov, A. 2019).
Thanks to a wide range of features and capabilities, Vkontakte finds a response among its users, who are very loyal to their platform, so their churn is minimal (Ageeva, Y. A., et al. 2016;
Morozova, A. 2019). Thus, VKontakte is one of the fastest growing in the Russian market.
This is the undisputed leader of social networks.
3.2. Instagram
Instagram was introduced to users in October 2010. This social network is for a mobile application that allows people to take photos or shoot 15 second videos and share them with other users (Instagram.com). Instagram allows users to be closer to each other, reducing space and time. People have the opportunity to take a photo anytime, anywhere and post it on their profile (Jadhav, N.P.; Kamble, R.S. & Patil, M.B., (n.d). The number of Instagram users by January 2020 reached 1 billion people and this is just 10 years of existence of platform (Statista 2020).
Instagram allows to post not only new photos, but also those that are already in your phone's camera roll. Thanks to the filters the app offers, people can improve their photography. And geo-tagging lets others know where the photo was taken. Also, users can create unique clickable links - hashtags that allow them to find the desired account (Jordan, M. 2013; Rohrs, J. K., & Morgan, S. 2013). In addition, users can control their subscriptions, as well as monitor their page updates, likes and comments (Hu, Y., Manikonda, L., & Kambhampati, S. 2014).
In 2012, Facebook bought Instagram, which was one of the significant events for the company (BBC News 2012). Another important date for Instagram was 2016, when stories were launched. And today, about 500 million users use stories daily (Statista 2019). Instagram allows to share moments of your day without posting them to your main account. Users can enhance their stories with stickers, polls, music, and add text. They allow a person to be creative and creative, giving complete freedom of action (Mohsin, M. 2020). Their main feature is that they disappear after 24 hours, but at the same time another user can leave his reaction to the viewed photo or video using an emoji or a text message (Tillman, M. 2018; Delfino, D. 2020).
Instagram is a popular platform among young people aged 18-29, accounting for 67% (Perrin, A., & Anderson, M. 2020). This platform helps them learn what their friends are doing, as well as recent events (Becker, T. 2016).
What's more, blogging on Instagram provides a great opportunity to create engaging content and establish a close bond with its readers. Unique blog idea will increase engagement and success on the platform (BlogTyrant. 2020).
Instagram is used not only for personal purposes, but also in business. Companies create business accounts that contain various functions necessary to promote their brand, as well as communicate with their customers (Chan, J. 2019). Today there are about 25 million business profiles on Instagram. At least one of these accounts is watched by 90% of users, and 83% say that, thanks to them, they discovered new products. Thus, Instagram helps to increase brand
awareness and strengthen loyalty to it, creating a friendly environment when communicating with customers (Decker, A. 2017). The most popular products on Instagram are baby products, clothing and shoes, as well as cosmetics and jewelry. (Chizhov, A. 2019).
3.2.1. Marketing activity on Instagram
Companies around the world are using social media to create strong brand-consumer connections and promote their products. Instagram marketing is one of the tools that is used in order to communicate with the client (M. Saravanakumar and T. SuganthaLakshmi, 2012).
BBC News notes that Instagram is being used to create marketing communications for many well-known brands (BBC News 2012).
The main distinguishing feature of Instagram from other social platforms is that it provides visual content to its users. Instagram allows to avoid link spam, something that many platforms have been struggling with for a long time. Instead, it allows businesses to communicate via photo or video (Nesbit Marketing. 2020). Thus, Instagram marketing is effective because the image says more than the words (Silva, T.H. & de Melo, P.O.S.V. & Almeida, J.M. & Salles, J. & Loureiro, A.A.F. 2013). In addition, the availability of the tools needed to create high quality images will reduce the cost of a graphic designer (Herman, J. 2020).
For better search or promotion of your Instagram account, hashtags exist. This is a keyword starting with the # symbol and is used when searching for either a photo or video. This feature provides image view related to a specific topic. The popularity of the hashtag is growing along with the number of uses. Thus, marketers can identify the most suitable target groups for their business (Na, Y., & Kim, J. 2019). Thus, the hashtag is a valuable resource for brand awareness (Page, M. 2012). People can express their joy in purchasing a product or using a service by using a brand tag. These markings make the brand recognizable (Rohrs, J. K., & Morgan, S.
2013).
Instagram also has a direct messaging feature. With its help, a user can send a message to 15 users at the same time. This feature is unique in that only recipients can view the message. In addition, it can be used to distribute promotions and exclusive offers to VIP clients (Herman, J. 2020).
In addition, Instagram has expanded its app with features like IGTV, which allows people to post videos up to one hour in length. This feature was created to counter YouTube (Jenny 2019). This type of video is used by marketers to gain attention and connect with their audience for longer. Thus, it is a relatively new platform where companies can expand their audience and connect with customers (Stallworth, T. 2019).
Both large and small businesses can benefit from using Instagram as their marketing strategy.
This platform invites customers to see what is happening behind the scenes of a company or brand, to become part of something special. Such actions allow companies or brands to create
more trusting relationships with its customers and promote the product by word of mouth, expanding the customer base.
Moreover, Instagram opens the door to free marketing research. Companies can track comments, subscribers, likes, this allows to find out what consumers think and track their reaction to a product or service. Correct identification of customer desires helps to create the most attractive content (Zimmerman, S. 2013).
Consumers more likely to rely on the opinions of people they know and trust (Zimmerman, S.
2013). Companies are teaming up with influencers and putting pressure on target audiences.
Bloggers post information about the product in their account, increasing the interest of their subscribers to the product, as well as raising the company's image. Statistics show that 70% of Millennials are influenced by bloggers (Smith, C. 2020). In this way, influencers can significantly influence purchasing decisions (Rohrs, J. K., & Morgan, S. 2013). Influencers offer discounts or giveaways to boost engagement. By offering to participate in the contest for free, bloggers get their subscribers interested. The only thing that is required from the participant is to share the publication in his account and subscribe to the contest account (Miles 2014).
In 2020, about 51 million Instagram users were identified in Russia. Of these, 14 million go to the social network every day. A large proportion of people are between the ages of 25 - 34 (Statista 2020; Mediascope 2019). It's also worth noting that 80% are subscribed to at least one business account (HubSpot. 2020).
3.3. YouTube
YouTube is the most popular video platform on the Internet. The social network was founded in 2005, but already in 2006 it was bought by Google (YouTube). Thanks to constant growth and development, in 2019 there were about 1.68 billion registered users, of which 62% are men. YouTube is most popular among young people who use the platform daily for entertainment and news purposes (Statista 2020). YouTube is also used to create, download and watch videos. Such videos contain recommendations, musical, educational and organizational content (Alias, N. et al. 2013). Formerly used as an entertainment and video sharing site, today it also includes TV shows, promotions, product reviews, interviews, and live events. YouTube is widespread among students and schoolchildren who use it for educational purposes, and channels with incredible recipes can also be found there (Jarboe, G.
2011). It should be noted that one of the biggest advantages of YouTube is that the platform provides people from all over the world with free access to videos. Thus, people can watch, upload, comment and rate the video (Jong, D. D. 2019).
The social network is used by people not only for inspiration and communication, but also for creating and distributing entertaining content for advertisers (Jarboe, G. 2011). Well-known brands use the platform as a message to their customers (YouTube 2017). The main reason is that the social network is the second largest search engine, followed by Google (Google 2017).
Companies use celebrities and influencers to talk about and give feedback on a product, thereby driving brand awareness and consumer engagement. In addition, companies insert promotional videos at the beginning or during viewing, which last about 30 seconds and most of them cannot be missed. Also, many brands upload their promotional videos for consumers to watch in their free time (Duffett, R. 2020).
YouTube is considered the fastest growing platform today. The number of users is expected to reach over 3 billion by 2026. It is the second most popular social network in the world, followed by Facebook (Statista 2020). 80% are users aged 18 - 49 years. Another equally important fact is that about 300 hours of video are uploaded to YouTube every minute (HubSpot 2020). It’s worth noting that 5 billion videos are viewed daily. Due to its worldwide popularity, the social network is represented in 91 countries of the world and is available in 80 languages (Rutnik, M. 2019).
3.3.1. Marketing activity on YouTube
One of the distinguishing features of YouTube is that all content is presented in the form of video, while other social networks such as Instagram, Vkontake, Facebook, as well as traditional TV and radio media are focused on text-based communication (Fitriani, WR, Mulyono, AB, Hidayanto, AN, & Munajat, Q. 2020). YouTube is considered an important tool in modern marketing as people spend one third of their time watching videos. Therefore, YouTube allows marketers to create unique content on their platform that is interesting to viewers (HubSpot 2020). However, it is shouldn't expect all the videos are posted to be entertaining. The main rule is to create quality content that will be updated regularly. After all, regularity creates a rhythm for the audience. Thus, people will constantly come back and check the channels (Agrawal, A. 2017).
As mentioned above, the main goal of companies is to create not viral, but interesting and high- quality content that attracts attention. People should find answers and solutions to their questions in the video. In addition, potential clients should not spend a lot of time and effort searching for the desired video, everything should be accessible and simple. Therefore, companies must put their keywords correctly. Also, it is necessarily to promote the distribution of videos through other social networks, such as Twitter, Facebook, Vkontakte, blogs, this will increase traffic and engagement. Each video is an opportunity to attract new customers and turn them into loyal ones (BarCharts, Inc. 2013).
According to Smart Insights, in 2020, 93% of marketers found video to be an important part of marketing. This decision was based on the fact that 83% of companies are confident their customers came from videos posted on social networks (Chaffey, D. 2020). Another statistic shows that 85% of consumers (18 to 34 years old) decide to purchase a product after watching a video (Brightcove 2018). Therefore, large companies such as Lego, Disney, BMW, Nike have an average of 2.5 channels and use YouTube in addition to their marketing strategy (Shayon, S. 2015; Moreno, L. 2019).
