MEASURING THE EFFECTIVENESS OF ADVERTISEMENT IN FACEBOOK AMONG ITB STUDENTS

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1 MEASURING THE EFFECTIVENESS OF ADVERTISEMENT IN FACEBOOK AMONG ITB STUDENTS By Vincent Melvin Undergraduate Program School of Business and Management Institut Teknologi Bandung

2 MEASURING THE EFFECTIVENESS OF ADVERTISEMENT IN FACEBOOK AMONG ITB STUDENTS VINCENT MELVIN Examination Date: 2 August 2010 Graduation Date: 23 October 2010 Undergraduate Program, Institut Teknologi Bandung, 2010 Thesis Advisor: Budi Permadi Iskandar, MSP ABSTRACT Nowadays internet has been the media that is very reliable, because the internet could take people from one side of the world to another side, virtually, in just a couple of click. This is one of the greatest media for advertiser to place an ad for because it also could take the advertisement from one side of the world to another side in also just a couple second. To place an ad on the internet, we need a site or a place. Facebook as one of the most popular social networks provide a place to place an ad, which further will be called Facebook advertising. But there is a need to study how is the effectiveness of Facebook advertising so that advertiser will know what should be expected once they place an ad on Facebook advertising. Therefore this study objective is to measure the effectiveness of Facebook advertising at ITB in term of the frequency of reading, clicking, and buying from Facebook advertising. The study of reading, clicking, and buying will be based on AIDA model. Attention will be positioned as reading, interest and desire will be referred as clicking, and action will be referred as buying in this research. To know the recall of Facebook advertising, brand recall theory will also be used. This is to know how deep the respondents remember about Facebook advertising. After analyzing the data, can be found that Facebook advertising is actually an effective media to place an ad for. With 76% people that are reading about the Facebook advertising, this could be good for strengthening the brand recall of the ads. There are also 26% of people that is actually clicking on Facebook advertising, which is good because people already interested about the ads and want to know more about the ads. The percentage of people that is actually buying from Facebook ads is 13%, which is also good for increasing sales. The last finding is that even people has been reading, clicking and buying, 75% respondent think that Facebook advertising did not helps them in shopping. Which is pretty interesting because there is actually 76% read, but many of them still think it did not helps them in shopping. This could also caused by either they did not find a suitable advertising at Facebook or the information given at Facebook advertising is not enough. Keywords: Facebook advertising, Recall, Reading, Clicking, Buying, SBM-ITB, AIDA i

3 MEASURING THE EFFECTIVENESS OF ADVERTISEMENT IN FACEBOOK AMONG ITB STUDENTS VINCENT MELVIN Tanggal Ujian: 2 Agustus 2010 Tanggal Kelulusan: 23 Agustus 2010 Undergraduate Program, Institut Teknologi Bandung, 2010 Dosen Pembimbing: Budi Permadi Iskandar, MSP ABSTRAK Saat ini internet telah menjadi media yang sangat handal, oleh karena internet dapat membawa seseorang dari satu bagian ke bagian dunia yang lainnya secara virtual, hanya dalam beberapa klik. Ini merupakan salah satu terobosan bagi pengiklan untuk menempatkan iklan. Untuk memasang iklan pada internet, diperlukan situs atau tempat. Facebook sebagai salah satu jaringan social paling popular saat ini menyediakan tempat untuk menempatkannya. Namun tentu saja ada kebutuhan untuk mempelajari tingkat efektivitas iklan Facebook sehingga pengiklan akan tahu apa yang harus diharapkan setelah mereka memasang iklan di iklan Facebook. Oleh karena itu penelitian ini bertujuan untuk mengukur efektivitas iklan Facebook di ITB untuk tingkat frekuensi membaca, mengklik, dan membeli pada iklan Facebook. Studi ini akan didasarkan pada model AIDA. Attention akan diposisikan sebagai membaca, Interest dan Desire akan dikategorikan sebagai mengklik, dan Action akan dkategorikan sebagai membeli dalam penelitian ini. Untuk mengetahui tingkat recall merek pada iklan Facebook, teori Brand Recall juga akan digunakan. Tujuanya adalah untuk mengetahui seberapa dalam responden ingat akan iklan pada Facebook. Setelah analisa, ditemukan bahwa iklan Facebook merupakan media yang efektif untuk menempatkan iklan. Dengan 76% orang yang membaca tentang iklan Facebook, ini baik untuk memperkuat ingatan terhadap suatu merek. Ada pun 26% dari orang yang mengklik iklan Facebook. Ini pun baik karena orang sudah tertarik terhadap iklan-iklan tersebut dan ingin mengetahui lebih banyak mengenai iklan tersebut. Persentase orang yang benarbenar membeli dari iklan Facebook adalah 13%, yang mana tentunya juga baik untuk meningkatkan penjualan. Temuan terakhir adalah bahwa walaupun seperti yang kita lihat orang-orang telah membaca, mengklik dan membeli, 75% dari responden berpikir bahwa iklan Facebook tidak membantu mereka dalam berbelanja. Ini cukup menarik karena walaupun sebesar 76% dari respondent membaca akan iklan Facebook ini, tetapi masih banyak dari mereka yang berpikir iklan Facebook tidak membantu mereka dalam berbelanja. Ini juga dapat dikarenakan baik mereka tidak menemukan iklan yang cocok di Facebook atau informasi yang diberikan pada iklan Facebook tidak memadai. Kata Kunci: iklan Facebook, Recall, Membaca, Klik, Membeli, SBM- ITB, AIDA ii

4 VALIDATION PAGE MEASURING THE EFFECTIVENESS OF ADVERTISEMENT IN FACEBOOK AMONG ITB STUDENTS By: VINCENT MELVIN ID No: Undergraduate Program School of Business and Management Institut Teknologi Bandung Validated By Ir. Budi Permadi Iskandar, MSP iii

5 FOREWORD First of all, I want to thank you God, for all that I have received from you, and also for every blessed you give every morning. Thank you for this healthy body and also for every strength You give to me in every difficult time that has passed. Only because of your love to me that I still be able to finish this final project. Second, I want to thank you to my Father, Dede Melvin and Mother, Vigin for every loved you give to me everyday, and also made me who I am today. Without the present of you, I will not be able to accomplished this final project. God bless always. Also, to my adviser, Bpk. Ir. Budi Permadi Iskandar, MSP. Thank you very much for every patient in guiding, correcting, and also the courage and spirit you plant in my head since the first meeting. Without the help of you, this very heavy last months is feel so much light. My eldest brother Anthony Melvin and my older brother Kent Melvin, for the inspiration and courage, and also I can learn a lot from you guys. May God always bless you. Also thank you to Robeta, Andi, and Ikhsan Nurhadi, my comlabs friend in hard time together, sharing, giving courage, and mostly being in a relaxing time together! I also want to thank you to Irdra, Ikhsan Pratama, and Mysikat for every helps you gave to me! I also want to thank you to Pak Muji for making it easier to photocopy which really help me a lot for completing this research! This final project would not have been possible without the help and support from my SBM ITB Class of 2010 whose name I cannot mention one by one. I am really proud to be the part of you guys. You guys make this three full years worth remembering for the rest of my life. Regards, Vincent Melvin iv

6 LIST OF CONTENTS ABSTRACT i VALIDATION PAGE... iii FOREWORD.... iv LIST OF CONTENTS.. v LIST OF FIGURES... vii LIST OF TABLES. viii LIST OF APPENDIXES.. ix CHAPTER I INTODUCTION Background Problem Identification Research Question Research Objectives Problem Limitation Report Structure.. 4 CHAPTER 2: LITERATURE REVIEW Brand Communication and Media Strategy Advertising as a Communication Media Strategy AIDA Models Brand Recall CHAPTER 3: RESEARCH METHOD Effectiveness Data Gathering Questionnaire Sample and Population Population Sample. 14 CHAPTER 4: DATA ANALYSIS General Characteristic of Respondent Respondent Profile Analysis Device that is Used Mostly Time Spent for using Facebook v

7 4.2 Respondent Awareness of Facebook Advertising Respondent Awareness towards Facebook Advertising Recall Data from Respondents Respondent Opinion Anomaly of Cell Phone User Findings.. 22 CHAPTER 5: CONCLUSION Conclusions Recommendations REFERENCES 27 APPENDIX.29 vi

8 LIST OF FIGURES Figure 2.1 Advertising Communication Model (Mass communication Model) 6 Figure 3.1 Picture Showed in the Questionnaire. 12 Figure 4.1 Demography Figure 4.2 Main Devices Used Figure 4.3 Times Spent in Using Facebook Figure 4.4 Picture Showed in the Questionnaire. 17 Figure 4.5 Respondents Answer from the Picture Figure 4.6 Respondents Opinion Figure 4.7 Total Respondent Divided by Gender Figure 4.8 Total Respondent divided by SBM and Non-SBM vii

9 LIST OF TABLES Table 3.1 Population Composition Table 4.1 Product Category Recalled Table 4.2 Brand Recalled Table 4.3 List of Respondent That Used Cell Phone as Main Device..21 viii

10 LIST OF APPENDIXES APPENDIX A QUESTIONNAIRE....1 APPENDIX B FACEBOOK PROFILE..2 ix