Social Networks and Online Advertising: Should Companies Promote Their Brand Fan Page or Their Brand Website?

The use of social network systems as an advertising medium is an important issue that remains poorly investigated in academic research. Social networks, such as Facebook, offer companies the possibility to communicate through banners either with links to an ad that brings consumers to the "fan page" of their brand on the social network system, or with a link to a brand website which is external to the social network. In this research, we investigate the effectiveness of these two options from the user perspective. Our investigation addresses users' attitude, perceived credibility, irritation, perceived originality, liking toward the ad and intents of purchase toward the related brand. Data was collected using an online survey. Results show that advertising the "fan page" of the brand is better perceived than advertising the brand website. Banners with links to the "fan page" of the brand are indeed perceived as less irritating and more original. Moreover they generate higher approval and a more positive attitude toward the brand. All this in turn encourages intention to purchase and recommend the brand. Theoretical and managerial implications of these findings as well as limitations and future directions for research are discussed.