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DECLARATION I declare that this research project is my original work and to the best of my knowledge has not been presented for a degree award to any other university. Student’s Signature: ________________________ Date: _______________________ This research project has been submitted for examination with my approval as university supervisor. Supervisor’s Signature: _______________________ Date: _______________________ School of Art & Design pg. i AKNOWLEDGEMENT First of all I thank God Almighty for his immense help in my pursuit of higher education at the University of Nairobi. I would also like to thank my beloved parents Mr. & Mrs. Kithinji for their financial help, my siblings for their love and support together with all others who assisted me in one way or the other. Finally my special thanks goes to my supervisor Mr. Muriithi Kinyua for his tireless guidance throughout the journey of carrying out this research from the initial step of developing the idea to completion of the project. God bless you all. pg. ii ABSTRACT This research aims to find out the attitudes and perceptions that youth in Nairobi have towards advertising on the social networking sites. Facebook was chosen due to the large number of followers in Kenya, especially among the youth based on the findings of a research done by Kenya ICT Board in 2009 to establish the popularity of social media in Kenya. The study found Facebook to be the most popular social media accessed by 96% of respondent. Using questionnaire as the instrument of mining data, the respondents were sampled from the youth in three demographic groups namely: Students, Employed and Self-Employed within the city of Nairobi. Their responses were then analyzed statistically with the aim of finding out first; the extent of the use of Facebook, secondly; their general attitudes and perceptions towards advertising on the social media in general and Facebook in particular and thirdly; an inferential comparison on the responses among the three demographic groups was done to find out how they differ. Finally the findings of the survey were discussed and recommendation were stated. Key Words: Internet, Social Media, Advertising, Facebook, Youth, Attitudes, Perceptions, Demographic Group, Social Networking Sites, Students, Employed, Self-Employed, Nairobi pg. iii Table of Content Declaration……………………………………………………………………………………..….i Acknowledgement ………………………………………………………….............................ii Abstract…………………………………………………………………………………………...iii Table of contents…………………………………………………………………………………iv List of Figures……………………………………………..……………………………………...vi List of tables………………………………………………………………………………….…..vii Abbreviations………………………………………………………………………………….....ix Definition of terms….......................................................................................................x Appendices..............................................................................................................…... xi CHA PTER ONE: INTRODUCTION................................ ................................ .................. 1 1 OVERVIEW........................................................................................................................................................................... 1 1.1 Background of the Study ......................................................................................................................................... 1 1.2 Statement of the Problem ................................................................................................................................... 4 1.3 Objectives of the Study ....................................................................................................................................... 4 Research Questions ............................................................................................................................................... 5 1.4 1.5 Hypothesis ............................................................................................................................................................... 5 1.6 Justific ation of the Study ..................................................................................................................................... 5 1.7 Significance of the S tudy ..................................................................................................................................... 5 1.8 Scope of the Study ................................................................................................................................................ 6 1.9 Limitations of the Study ...................................................................................................................................... 6 1.10 Conceptual Model ................................................................................................................................................ 7 CHA PTER TWO: REVIEW OF RE LEVANT LITERATURE ................................ .......................... 8 2 OVERVIEW........................................................................................................................................................................... 8 Advertising as a Marketing Tool ....................................................................................................................... 8 Develop ment of the Internet ...........................................................................................................................11 2.1 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.3 2.3.1 2.3.2 2.4 2.4.1 2.5 2.5.1 2.5.2 The History of Internet Advertising ................................................................................................................ 13 Evolution of Internet Advertising .................................................................................................................... 14 Characteristics of Internet Advertising ............................................................................................................ 16 Internet Advertising Format ............................................................................................................................. 19 Evolution of Web as an Advertising Platform ............................................................................................28 The Social Networking sites ............................................................................................................................. 28 The Social Media and Advertising ................................................................................................................... 31 Facebook Overview ...........................................................................................................................................34 Advertising on Facebook .................................................................................................................................. 37 Attitudes towards Advertising .........................................................................................................................43 Advertising Avoidance ...................................................................................................................................... 47 Ad Avoidance on the Internet ......................................................................................................................... 48 CHA PTER THREE: RESEARCH METHODOLOGY ................................ ............................... 50 3 OVERVIEW.........................................................................................................................................................................50 3.1 Research Design ...................................................................................................................................................50 3.2 Population and Sampling Frame ....................................................................................................................50 pg. iv 3.3 3.4 3.5 3.6 Sampling Design ...................................................................................................................................................51 Data Collection Instrument ..............................................................................................................................51 Data Analysis Method ........................................................................................................................................53 Data Presentation ................................................................................................................................................54 CHA PTER FOUR: DATA A NALYSIS AND PRESENTATION OF FINDINGS ................................ ... 55 4 OVERVIEW.........................................................................................................................................................................55 PART ONE: Results of Descriptive Analysis of the Respondents ..........................................................55 PART TWO: The Respondents Extent and use of Facebook as a Social Media ..............................62 Discussion and Interpretation of the Findings ............................................................................................80 4.1 4.2 4.3 CHA PTER FIVE: SUMMARY OF FINDINGS, RECOMME NDATIONS AND CONCLUSION ................ 83 5 OVERVIEW.........................................................................................................................................................................83 5.1 SUMMARY OF FINDINGS ...............................................................................................................................83 5.1.1 5.1.2 5.1.3 5.1.4 5.2 5.2.1 5.2.2 5.3 5.3.1 The extent and use of social media among the youth.................................................................................. 83 Facebook effects on youth buying behaviors ................................................................................................ 85 Youths attitudes and perceptions among the demographic groups............................................................ 87 How attitudes and perceptions differ among three demographic groups ................................................. 93 RECOMMENDATIONS .....................................................................................................................................94 Policy recommendations................................................................................................................................... 94 Recommendations for further studies ............................................................................................................. 94 CONCLUSION .....................................................................................................................................................95 Limitations of the study .................................................................................................................................... 96 REFE RENCES ................................ ................................ ................................ ......... 98 pg. v LIST OF FIGURES Figure 1.1: Conceptual Model……………….………………………………………………………..….7 Figure 2.1: A sample of a banner advert….……………………………………………………………14 Figure 2.2 : A sample of an email advert.…………………….……..….………………………………21 Figure 2.3 : A sample of mobile advert.………………………………………………………………...22 Figure 2.4: Samples of paid listing/organic listing advert.…….…....………………………………..23 Figure 2.5: IAB/PwC Ad Revenue Report……………………………………………………………..24 Figure 2.6: A sample of Mobile Device Advert...……...……………………………………………..25 Figure 2.7: A sample of Advert-gaming advert...………………...…………………………………..26 Figure 2.8: Comparison of internet advertising formats……………………………………………..27 Figure 2.9 : Geographic and psychological context...............................................................…...33 Figure 2.9 (a): Facebook “Wall Page” advertisement extract................................................…....39 Figure 2.9 (b): Facebook interface: the advertising spaces.….......................................................40 Figure 2.9 (c): Facebook “Page sponsored” advertisement extract spaces.…................................42 Figure 2.9(d): The push-pull model of marketing communication.…..........................................47 Figure 3.1: Research Design Process schematic…………………………………………………………55 Figure 4.1: Percentage of respondents by their age…………………………………………………..56 Figure 4.2: Percentage of respondents by gender…………………………………………………….57 Figure 4.3: Percentages of students respondents by type of institution attended……….…………58 Figure 4.4: Percentages of respondents by frequency of internet use……………………………….59 Figure 4.5: Percentages of respondents by the location of internet access…………………………60 Figure 4.6: Percentages of respondents by the devices they use……………………………...……..61 pg. vi LIST OF TABLES Table 4.1: Percentage of respondents who have accounts with social networking sites..………………………………………………………………………………….…………….…62 Table 4.2: Frequency at which respondents visit Facebook website when connected to Internet…………………………………………………………………………………………….....63 Table 4.3: Percentage of respondent’s average number of friends on Facebook profile……..64 Table 4.4: Percentage of what respondent’s spend most time doing on Facebook……………………………………………………………………………………….….....65 Table 4.5: Percentage of Number of Company Pages Respondents are Members…………....66 Table 4.6: Percentage of number of respondents who notices advertisement messages………………………………………………………………………………………….......66 Table 4.7: Percentage of how respondents often come across advertisement messages….…..67 Table 4.8: Percentage of respondents who pay attention advertisement messages…..……....67 Table 4.9: Percentage of what prompt respondent to pay attention to advertisement messages on Facebook…………………………………………………………………….………...68 Table 4.10: Percentage of what does not prompt respondent to pay attention to advertisement on Facebook……………………………………………..………………….………69 Table 4.11: Percentage of how often respondent purchase goods based on advertisement encountered on Facebook……………………………………………………………………….….70 Table 4.12: Percentage of respondents who have ever advertised anything of Facebook……70 Table 4.13: Percentage of respondents approach used to advertise on Facebook……………..71 Table 4.14: Percentage of respondent’s beliefs towards Facebook advertising (Students)…….72 Table 4.15: Percentage of respondent’s beliefs towards Facebook advertising (Employed)…..73 Table 4.16: Percentage of respondent’s beliefs towards Facebook adverting (Self Employed)............................................................................................................................74 Table 4.17: Descriptive of beliefs towards Facebook adverting in all demographic groups………………………………………………………………………………………………....75 Table 4.18: ANOVA results on beliefs towards Facebook advertising in all demographic groups………………………………………………………………………………………………....75 pg. vii Table 4.19: Percentage of respondent’s Perceptions towards social media advertising in general (Students)……………..…………………………………………………………….…...76 Table 4.20: Percentage of respondent’s perceptions towards social media advertising in general (Employed)……………………………………………………………………………..77 Table 4.21: Percentage of respondent’s perceptions towards social media advertising (Self- Employed)……………………………………………………………………………….…....78 Table 4.22: Descriptive on perceptions towards social media advertising on all demographic groups………………………………………………………………………….…….79 Table 4.23: ANOVA results on perceptions towards social media advertising in general on all demographic groups………………………………………………..……………………….79 pg. viii ABBREVIATIONS AIDA…………………..…………Action, Interest, Desire and Action ANOVA………………………….One-Way Analysis of Variance ARPANET………………………..The Advanced Research Projects Agency Network ATOA…………………………….Attitude towards Online Advertising CASIE……………………………..Coalition for Advertising Support Information and Entertainment CCK……………………………….Communication Commission of Kenya CPM………………………………Cost Per Mille CTR……………………………….Click Through Rates DEL………………………….…….Digital Equipment Corporation EASSy……………………………..The Eastern Africa Submarine System FAST………………………………Future of Advertising Stakeholders FNC……………………………….Federal Networking Council HTML………………….…………Hyper Text Markup Language IAB……………………….….……Internet Advertising Barrier ICT…………………………….....Information Communication Technology KDN……………………….……..Kenya Data Networks SNS………………….……………Social Networking Sites TCP/IP……………………………Transmission Control Protocol/Internet Protocol TEAMS……………………………The East African Marine System URL………………….……………Uniform Resource Locater USENET…………………………..User's Network WWW……………………….......World Wide Web pg. ix Definition of Terms Adver-gaming – is a new advertising media that is being used by many companies to brand and market their products. This is basically a video game in form of an advertisement. Attitudes – A predisposition or a tendency to respond positively or negatively towards something. Attitude influences an individual's choice of action. Blog – a regularly updated website or web page, typically one run by an individual or small group, that is written in an informal or conversational style. Cost per mille – a terminology that stands for cost per 1000 viewers. A mechanism used to determine the cost of advertising on the internet. Facebook – a popular free social networking website that allows registered users to create profiles, upload photos and video, send messages and keep in touch with friends, family and colleagues. Graphic Interface – a computer program designed to allow use of icons and other visual indicators to interact with users instead of using the only text based command line. Impressions – the number of individuals who see an advert in their devices screen when browsing. A mechanism used to determine the cost of advertising on the internet. Online advertising – Use of internet as an advertising medium where promotional messages appear on a computer screen. Perception – the way in which something is regarded, understood, or interpreted. Rich Media – Advertisements that incorporate animation, sound, and/or interactivity in any format. Social Media – a computer-mediated tools that allow internet users to create, share or exchange information, ideas, and pictures/videos in virtual communities and networks. Social Networking Site – a kind of a website described as a virtual community that allows users to interact and share content with each other in an online environment. Web 1.0 – a terminology that denotes the early version (classified as version 1) of web technologies that offered one sided communication over the internet. Web 2.0 – a version of web technologies that offer dynamic interactive environment e.g. a comment system and sharing of content. Website – an interconnection of web pages usually containing hyperlinks to each other and made available online by an individual, company, educational institution, government, or organization. World Wide Web – is an information space where documents and other web resources are identified by URIs, interlinked by hypertext links, and can be accessed via the Internet. pg. x APPENDENCES Appendix i: Questionnaire……………………………………………………………………….105 Appendix ii: Letter to respondents for questionnaire administration………………………..108 Appendix iii: Research budget…..……………………………………………………………….109 pg. xi CHAPTER ONE: INTRODUCTION 1 Overview This chapter discusses the background of the study by looking at the state of internet access in Kenya in order to understand the arising phenomena of online advertising in particular on the social media. The statement of the problem is also outlined, objectives specified, the scope, limitations and justification of the study stated. 1.1 Background of the Study Although TV and print media are the two preferred mediums of advertising in general, today Internet is emerging as a major competitor. According to the latest IAB internet Advertising Revenue Report (2014), Internet advertising revenues in the United States increased by 14% in the fourth quarter of 2013 with a full year internet advertising revenues totaling to $42.78 billion which is a 17% increase from the $36.57 billion reported in 2012. While the use of the internet was initially restricted by ARPANET, the first example of online advertising was posted via electronic mail by Gary Thuerk, the marketer for Digital Equipment Corporation (DEL) in 1990. The development of World Wide Web (WWW) in 1989 by a British Physicist Tim Berners-Lee changed the sharing and dissemination of information worldwide. The graphical interface innovation made the Internet much more user friendly and by the mid-1990s, many businesses and consumers began to use the technology. Today internet is a world-wide broadcasting capability, a mechanism for information dissemination, and a medium for collaboration and interaction between pg. 1 individuals and their computers without regard for geographic location (Leiner et al., 2009). The innovation of the World Wide Web has provided a flexible platform for advertising over the internet infrastructure. Bergemann and Bonatti (2011) argue that this has allowed many advertisers to address a targeted audience beyond the reach of traditional media. According to Kotler and Armstrong (2010), a new version of the internet referred to as web 2.0 has emerged and involves a more reasoned and balanced approach to marketing online. It offers a set of new web technologies for connecting with customers, such as Weblogs (blogs) and Vlogs (Video-based-blogs), social-networking sites, and video sharing sites. The interactive, community building nature of these new technologies makes them ideal for relating with customers. Among all platforms enabled by advancement of Web 2.0, social media is perhaps the most significant application that has grown exponentially in many population segments with Facebook emerging as the most popular with a following of 845 million monthly active users worldwide of whom over half (425 million) logged into the Social Networking Sites every day (Facebook, 2012). Facebook Annual Report of 2013 confirms that Facebook generates substantial majority of its revenue from selling advertising placements to marketers. This SNS focuses on providing value for all kinds of marketers including brand marketers, direct marketers, small and medium-sized businesses, and developers (Facebook 2013). In Kenya, Facebook started gaining popularity in 2006 and by 2013 it had amassed 2,018,560 users, a representation of 19.24 per cent of the online population. pg. 2 Although the high rate of internet connectivity across the country has seen millions of Kenyans get access, online advertising still remains unexplored. The government efforts to connect Kenya to the rest of the world via high speed fiber optic cables registered the first success when the TEAMS cable landed in Mombasa in 12th June 2009, The SEACOM cable in July 2009 and The EASSy cable in 16th July 2009. This increased internet coverage in Kenya to over 5000 kilometers of terrestrial cable all around with over 500 kilometers of metropolitan fiber optic cable in Nairobi, 50 in Kisumu and Mombasa, 20 in Nakuru, Eldoret and Thika. In addition Kenya Data Networks (KDN) has extend this coverage to other towns in Kenya. Private companies like Safaricom have also provided alternative forms of connectivity e.g. wireless internet access. According to a Quarterly Sector Statistics Report 2011/12 by Communication Commission of Kenya (CCK), Internet has become an important tool of accessing information and communicating. Its usage has been on the rise with the quarter (2012) under review recording estimated 17.38 million users representing an increase of 21.55 per cent from the previous period. This translates to 44.12 per cent of the population that has access to the Internet with majority accessing the service through mobile phones. Despite the tremendous growth in ICT, marketers in Kenya are yet to tap into the power of online advertising as it is the trend in the western countries. The use of internet in Kenya especially among the youth continues to grow. A recent study by the Consumer Insight titled Holla (2013) reveals that Kenyan urban youth spend at least $250 million (Sh2.2 billion) annually to purchase data for accessing Facebook and Twitter on their mobile phones. The study which targeted 1,301 respondents aged between pg. 3 7 and 25 years from seven major urban areas: Nairobi, Mombasa, Kisumu, Nakuru, Eldoret, Nyeri and Meru reveals that 87 per cent strictly used internet for social interaction with 57 per cent using it to download music, while only 55 per cent used internet to send email. 1.2 Statement of the Problem Although internet advertising is gaining acceptance among consumers in Kenya and people are evidently spending most of their browsing time on the social networking sites (especially the youth), there is a knowledge gap that need to be filled through researching on various internet user aspects of online advertising e.g. their knowledge of advertising platforms such as social media, their attitudes and perceptions towards internet advertising specifically in different user demographics. 1.3 Objectives of the Study The general objective of this research is to investigate the perceptions and attitudes of the youth towards advertising on the social media, particularly Facebook. The Specific objectives are to: Establish the extent and use of Facebook among the Nairobi youth Establish whether Facebook has an effect on youth buying behavior Establish the extent to which attitudes and perception towards social media advertising differ among the youth. pg. 4 1.4 Research Questions The proposed investigation will try to answer the following questions: What is the extent and use of Facebook as a social networking site among the youth in Nairobi? To what extent does advertising on Facebook influence youth buying behaviors? To what extent does the youth’s attitudes and perceptions towards social media advertising differ among demographic groups? 1.5 Hypothesis The attitudes and perceptions that youth in Nairobi have towards advertising on the social media and in particular Facebook differ across the three demographic groups. 1.6 Justification of the S tudy A study of online advertising is important for the following reasons; first most young people in urban centers subscribe to social networking sites especially Facebook and Twitter which are also platforms for advertising online among the youth. Secondly, adequate research on the implication of advertising on the social media in Kenya, especially among the youth is scarce. 1.7 Significance of the S tudy Understanding online social networking sites and how advertising is perceived on the social media is an important area of research for academic, government and marketers alike. This is because the finding of this research will provide knowledge towards improved pg. 5 media efficiency in advertising and spur creative direction to advertisers and enlightenment to consumers. The findings will be beneficial to different entities as following: The Kenyan Marketer – the findings of this study will avail information to help marketers when deciding on weights to give to social media advertising in apportionment of the total promotional budgets. The Government – the need to monitor consumer attitudes towards online advertising in order to regulate online advertising practice in Kenya especially regulating advertising on Facebook. The Advertising industry – the findings of the study will help advertising agencies in creating adverts that meet the expectations of the emerging social media community. The Researcher/Scholars – this research will open other gaps that spur more research in this field. 1.8 Scope of the Study The research covers the perceptions and attitudes that youth have towards advertising on their online social networking personal space. The people surveyed will be youth aged between 19 to 34 years who have subscribed to Facebook and live within the city of Nairobi. Facebook is appropriate for this study because it enjoys a large following among the youth in Kenya. The city of Nairobi on the other hand is home to many technology savvy youth in Kenya. 1.9 Limitations of the Study The research is limited to the youth studying and working within the city of Nairobi. This study being academic in nature (and therefore carried out under constrained funds) pg. 6 might not be comprehensive enough to give a generalization of its findings within the entire nation of Kenya due to the following: Inadequate time; the research has a specific academic time-frame in which the study must be carried out Non occupied youths who use Facebook were not considered in the survey Limitation of resources. It will be constrained by lack of availability of ICT publications locally Incomplete responses from respondents who might not have enough time to respond to all the questions due to the comprehensive nature of the research. 1.10 Conceptual Model This study is based on a proposed model of ATOA (Attitude Towards Online Advertising) in a cross-cultural context. Figure 1.1 below presents the conceptual model underlying the study as per existing literature. The model posits that belief factors (e.g., information, entertainment) influence ATOA, which in turn affects consumers’ behavioral responses. The model also theorizes that culture influence belief factors, ATOA, and consumer responses. As discussed above, past research suggests consumers’ beliefs about online advertising are positively associated with their ATOA. Beliefs e.g. Information, Entertainment etc. Attitudes towards Advertising Behavior Responses Figure 1.1: Conceptual Model adopted from Azeem and Haq (2012) pg. 7 CHAPTER TWO: REVIEW OF RELEVANT LITERATURE 2 Overview This section details the theoretical framework that provides the researcher with the required background for investigating the perceptions and attitudes of young people towards advertising on the social media. The review starts by providing a brief background of advertising as a tool of marketing through establishing the arising differences between traditional and online advertising. Secondly, the origin and evolution of internet advertising is discussed and a comparison between the different internet advertising formats explained with the aim of finding out the differences that have arisen as advertising in general evolves over time. Also forming a key part of review is the evolution of internet technology that led to the emergence of social networking sites as the new avenues of online advertising. Thirdly, the general attitudes of consumers towards advertising are established together with advertising avoidance, a phenomena common in online advertising, is discussed as a core concern in internet advertising strategies. All these areas of literature are referenced with a view to establishing a background for studying the attitudes and perceptions of advertising over the social media with a focus on Facebook. 2.1 Advertising as a Marketing T ool Kotler and Armstrong (2010) defines marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. To give a simpler definition, McDaniel and Gitman (2008) defines marketing as the process of getting the right goods and services to the right people pg. 8 at the right place, time and price, using the right promotion techniques. This concept is called “right” principle. They urge that today’s best organizations have adapted the marketing concept, which involves identifying customer needs and then producing the goods or services that will satisfy them while making profit. Today advertising remains one of the key elements of marketing. There exist many definitions of advertising. According to Vysekalova (2011) what the above definitions have in common is the fact that advertising is a communication between sponsors and to whom are the products or services offered through any medium with commercial aim. To make this communication link understandable, Richard and Curran (2002) states that advertising is a paid, mediated form of communication from identifiable sources, designed to persuade the receiver to take some action, now or in the future. ‘Mediated communication’ in this case is clarified as that which is conveyed to an audience through print, electronics or any method other than direct person-to-person contact. Today advertising is considered a key component of what is known as the marketing communication mix where Belch and Belch (2004) argue that advertising has the ability to reach a wide audience in a cost effective manner, creating brand awareness and incite reaction or action from customers. The objectives of advertising are however closely linked with the strategy of the firm on which it is based (Johnova 2008). Johnova states that this may be in areas of awareness about the firm, its knowledge, popularity, belief, intent, or about its activities. pg. 9 Building on the concept of advertising Dudinska (2000) states that the role of advertising on the product life circle (based on the primary goal of adverting message) can be defined as follows: Informative aims – where advertising informs the public about new product and its features. The sole purpose of this being to raise demand and interest Persuasive advertising – aims to bring success in a period of increased competitiveness where the pressure to convince customers to buy products becomes necessary Reminder advertising – purposes to keep a company’s products and it brand in the mind of customer before upcoming season. Bacik, Fedorko and Simovas (2012) argue that advertising can influence human behavior only if it passes the adoption process (is perceived) and processing (is understood) i.e. one can create an internal mental image of the message in the advertising. Vysekalova (2006) supports these facts by further arguing that positive advertising affects a person only when the picture is connecting the current message with past experience, past perceptions and has motivating quality that becomes an incentive to purchase a product or a service. On the other hand advertising has taken a shift in today’s market mainly due to advancement in technology inventions which has led to creation of entirely different vehicles of advertising. Among the modern concerns that markets are still trying to come to terms with is the phenomena of online advertising in particular the social media. In pg. 10 order to explore advertising over this new vehicle, it is critical to understand the internet and the technologies that revolve around it making it the undisputable channel of advertising. 2.2 Development of the Internet Leiner et al., (2009) observes that the communications world has been revolutionized by Internet like nothing before. But to understand internet advertising, it is prudent first to separate the two terms; internet and advertising and define them independently before exploring the concept of internet advertising. First, what is Internet? On October 24, 1995, the Federal Networking Council (FNC) unanimously passed a resolution defining the term Internet. The council agreed that the following language reflects their definition of the term "Internet". Internet (according to FNC) refers to the global information system that: First; is logically linked together by a globally unique address space based on the Internet Protocol (IP) or its subsequent extensions/follow-ons. Second, is able to support communications using the Transmission Control Protocol/Internet Protocol (TCP/IP) suite or its subsequent extensions/follow-on, and/or other IP-compatible protocols and thirdly, provides uses or makes accessible, either publicly or privately, high level services layered on the communications and related infrastructure described herein (NITRD, 1995). This technical definition can be deduced to simply define internet as the “network of networks” that operates on a set of technical protocols that enable people from around the world to access and exchange information using tools such as the World Wide Web, e-mail, chat rooms, etc. pg. 11 The genesis of internet (Paul 1996) is traced back to the year 1968 as the International Electronic Network. According to Almagor (2011) internet was developed through research grants from the U.S. Department of Defense’s Advanced Research Projects Agency by Scientists who wished to maintain communication links between distant locations in the event of an electrical rout. Although Almagor argue that the early Internet was devised and implemented in American research units, universities, and telecommunication companies that had vision and interest in cutting-edge research, Clinton and Gore (1997) gives credit to the World Wide Web Consortium Director Tim Berners-Lee as the “Inventor” of the internet. Nevertheless the program grew in the 60s and 70s, becoming a network of computers that transmitted information by “packet switching.” Leiner et al (2009) on the other hand urge that internet began as a project of the United States military establishment that wanted a communication system that was robust and non-centralized. The communication protocol (TCP/IP) was in operation by the 1970s, then this technological outburst, referred to by some as the computer revolution or the Internet revolution, created a global network of computers (and later on, advanced mobile communication devices such as smart-phones, tablet computers, etc.) which allow instant connectivity, ignoring geographical barriers or distances which had previously served as impeding factors in any type of international transaction (Prussak, 2013). The graphical interface innovation made the Internet much more user friendly and by the mid-1990s, many businesses and consumers began to use the technology. Barr (2000) states that today internet has become a myriad of networked interconnected computers forming an open communication medium which has proved to be essential and without regard to geographic location (Leiner et al., 2009). pg. 12 2.2.1 The History of Internet Advertising Richards and Curran (2002) states that “Advertising is a paid, mediated form of communication from an identifiable source, designed to persuade the receiver to take some action now or in the future.” It would therefore seem moderately logical to define Internet advertising as any form of communication that meets the definition of advertising and can be found on the Internet. However McMillan (2004) argues that though this sounds simple, Internet advertising is a multi-faceted phenomenon. He states that the same could be said of many other kinds of advertising. Print advertising comes in many colors, shapes, and sizes while television advertising might range from a simple 10-second message to a long-format infomercial. Internet advertising has all these kinds of variations too but also spans time and space (unlike print which is space bound and broadcast which is time bound) and seems different in other fundamental ways as well (McMillan 2004). The first publicized example of online advertising was conducted via electronic mail when a marketer from Digital Equipment Corporation (DEL), Gary Thuerk, sent an email to most of the ARPANET’S American West Coast users, advertising an open house for a new model of DEL computers, see Figure 2.1 below. Though a number of recipients were okay with the notification, the majority were not pleased with Thuerk’s access into their computers and for the unsolicited contacts. However the first known large-scale noncommercial spam (an unsolicited often commercial, message transmitted through the internet as a mass mailing to a large number of recipients) message was sent on 18 th January by an Andrews university systems administrator by cross-posting a religious message to all USENET Group (Microsoft 2009). pg. 13 Figure 2.1: Adopted from www.AdPushup.htm (2014). 2.2.2 Evolution of Internet Advertising Before the early 1990s, the internet was for the most part a closed network with access restrictions, and commercial uses were forbidden by the Acceptable Use Policy of the U.S. National Science Foundation. However In the middle of the decade, the internet was opened to commercial operations through a process of privatization that affected all levels of the net - from infrastructure to content - and advertising soon became a significant source of revenue (Bermejo, 2011). Evans (2009) states that online advertising started in 1994 when HotWired, a web magazine, sold a banner ad to American multinational telecommunications corporation and displayed it on their web page. The ad was sold based on the number of “impressions” i.e. the number of individuals who saw the ad. Many web ads were subsequently sold based on “cost per mille,” a terminology that stands for cost per 1000 viewers of the advertisement and often referred to as CPM. The pg. 14 exploding supply of web pages led to the birth, in 1994, of several search engines that also sold advertising to make money. At first, they sold banner ads on a cost-per-mille basis. However that approach led to a conflict for the search engines between helping people find things quickly and keeping eyeballs trained on the ads. According to Bermejo (2011) the advertising industry made a concerted effort to rationalize online advertising and permeate the internet. This effort included the creation of a series of ad-hoc organizations such as the Coalition for Advertising Supported Information and Entertainment (CASIE), the Future of Advertising Stakeholders (FAST), and the Interactive Advertising Bureau (IAB) - aimed at promoting a regulatory framework for the advertising industry endorsing advertising as an essential element of online communication and businesses, and creating the necessary tools for online advertising. Bermejo (2011) states that these tools included the development of an online audience ratings system, to guarantee advertisers that they were getting what they were paying for, and to allow targeted ads based on socio-demographic characteristics. Evans (2009) states that during this period, fairly traditional methods of advertising were mimicked on the web. These included web versions of business directories similar to the yellow pages such as yellowpages.com; web versions of newspaper, classified ads such as Dairy Nation online etc. In U.S.A, online advertising revenue increased from $8.1 billion in 2000 to $21.2 billion in 2007 and from 3.2 percent of all advertising to 8.8 per cent over the same period (based on Interactive Advertising Bureau Press Releases 2000-2007). pg. 15 According to Hart (2007) the rapid growth in online social networking communities has caught the attention of advertisers and are now harnessing their potential for advertising purposes. However the case, there is little academic research addressing community organizers on how to convince users to be more receptive to advertising in online social communities (Zeng et al., 2009). Since banners and buttons have become a prevalent form of promotion on the web, the main goal of Web banners is to inform users about the existence of particular Web sites, products/services and to persuade customers to visit the advertised sites (Azeem and Haq, 2012). Research done within the dispensation of static websites (i.e. website created using web 1.0 technologies) reveals that user’s reaction to banners had been disappointingly low. Azeem and Haq concurs with the findings of Nielsen (1997) that clickthrough rates constantly decreased from 2% (1995) to 0.5% (Oct. 1998), and reached 0.2% in May 2000. This trend was later turned around in 2001 as web technologies turned web advertising platforms from static to more interactive ones. 2.2.3 Characteristics of Internet Advertising As new methods of advertising on the Internet are developed, Internet advertising is becoming more diverse. It includes all the aspects of traditional advertising as well as many functions that were previously relegated to specialists e.g. direct marketing and retail marketing. While the bulk of the advertising literature focuses primarily on Internet-based brand-building messages, advertising scholars are also recognizing the importance of pg. 16 features that make this new advertising media unique. The following characteristics are viewed as the most important: Interactivity: Carriers of online advertising are basically multimedia and hypertext documents. If consumers are interested in a specific product, they can explore detailed information by just clicking the mouse, so as to “experience” in person the product, service and brand. New technologies and applications such as virtual reality can be used in online advertising; this allows customers to experience goods or service, and conduct booking, transaction and settlement on the Internet. Interactivity is a multi-faceted concept that involves two-way communication, control and engagement, and timely information. Practitioners see the future of Internet advertising as being more interactive with increases on all of these dimensions. One of the keys to successful Internet advertising is the ability to enable and encourage consumer interaction with brands. As advancements in digital technology continue, consumers are demanding more interactivity with the brands they patronize. Internet advertising is becoming more ‘real time’ and response rates and interaction with the consumer is taking on a complete one-to-one experience. Interactive marketing gives the consumer new levels of control. Successful online marketers communicate and demonstrate value to the consumer to capture their interests and develop ongoing two-way relationships. Corporate communication must increase interactivity by moving away from simple online brochures to communication that allows consumers to engage and build relationships with brands. Direct response must lead pg. 17 directly to transaction and those transactions must allow for full-featured consumer interactions (Silk et al. 2001). Intrusiveness: McMillan (2004) states that researchers have examined intrusiveness or lack of it, as a unique characteristic of internet advertising. Although some felt that it lacked enough intrusiveness to be effective. McDonald (1997) urges that an internet message intended to persuade is often positioned at least one click away from the banner, hyperlink etc. contrary to that, intrusiveness in internet advertising is becoming a big concern with pop-up ads that appear on top of a message, pop-under ads that stay on a screen after target Website is closed, interstitial ads that take over the screen etc. (McMillan, 2004). This Intrusiveness has been found to be a direct cause of advertising annoyance with the degree of forced exposure to banner ads. Schumann and Thorson (2007) observe that banner ad presented in the format of the highest forced-exposure level also yielded the most desirable advertising effects. Today internet surfing experience is marred with adverts in form of pop-up widows and short video adverts preceding a user’s target videos especially on YouTube. Recent research suggests that these more intrusive forms can lead to irritation and ad avoidance (Edwards, Li, & Lee, 2002). Personalization: Practitioners predicted that the trend to personalized Internet advertising would continue. For many, this was a counterpoint to intrusiveness. The more personalized the content, the less likely it is to be perceived as intrusive. Tracking and measurement is key to being able to build personalized communication. Schumann and Thorson (2007) states that messages placed in non-advertiser sites can easily be personalized if marketers buy advertising based on specific viewers in specific situations pg. 18 rather than simply buying time and/or space on a content provider’s Web site. Schumann and Thorson further argue that if the messages based in external content environments are more personalized, they may be not only less intrusive but more effective allowing marketers to have more control over the location. In these environments, communication can be customized so that consumers consistently see the information that is most valuable to them. Independence: Online advertising belongs to on-demand advertising, featuring the nature of newspaper classification advertising. It enables free viewing and collectively presents information needed saving time and avoids vain and passive attention concentration. This is unlike newspaper, magazine, TV, radio, and outdoor advertising which absorb user’s vision and hearing and compulsively instilling content to the brain. Statistical Accuracy: Online advertising can allow marketers to conduct accurate statistics on how many times the user is exposed to advertisement, how many further clicks user makes after they are interested in the advertisement, and when and where these users look up the advertisement. This can help customers correctly evaluate advertising effects. This is unlike traditional advertising. 2.2.4 Internet Advertising Format According to Silk et al. (2001) the range of advertising formats has exploded as a result of increased sophisticated Internet audience, increased internet access through bandwidth connections and influx of talent ready to exploit the creative potential of digital possibilities of web advertising. The following is the current array of internet advertising formats: pg. 19 Banners: The early days of internet advertising are synonymous with banner ads usually a rectangular ad placed within another content page where a viewer clicks on the particular banner and he is directed to the advertiser’s web page, see an example on Figure 2.2 below. They can be static or animated and interactive. The newest “rich media” banners allow users to interact with ads without leaving the current Web site. Advertisers are devoting increasing amounts of resources to creating ads that will attract attention, especially as click-through rates for traditional banner ads decline. This has been attributed to several factors, including: consumer advertising overload and more directed search on the Internet by consumers. On-line advertiser quest to combat consumer inattention has stimulated efforts to improve banner ads through the use of animation, graphics, and entertainment (Silk et al. 2001). pg. 20 Figure 2.2: Extracted from http://www.businessdictionary.com (2015) Email: Banner ads, links, or advertiser sponsorships that appear in email newsletters, email marketing campaigns, and other commercial email communications. See Figure 2.3 blow. This format includes all types of electronic mail e.g. basic text or HTML-enabled. Direct e-mail is usually sent to consumers who have requested product-related news, while sponsored e-mail is sent to consumers who are subscribers to a specific content-focused pg. 21 electronic publication. According to Silk et al. (2001) a recent Jupiter Report suggests that direct e-mail can cost as little as a tenth of the charge for traditional direct mail. Figure 2.3: Extracted from: https://us-mg6.mail.yahoo.com (2015) Search: Fees advertisers pay Internet companies to list and/or link their company site domain name to a specific search word or phrase (includes paid search revenues) is enormous. Search categories as shown in Figure 2.4 below include: Paid listings: - text links appear at the top or side of search results for specific keywords. The more a marketer pays, the higher the position it gets. Marketers pay only when a user clicks on the text link. Organic listing: comprise webpage listings that are based on a user’s search. All the listings pg. 22 are determined by the engine's search algorithms. According to Internet Ad Revenue report (2013) Search continues to lead ad formats, see Figure 2.5. Figure 2.4: Extracted from http://www.enhancify.co.uk (2015) pg. 23 Figure 2.5: Adopted from IAB/PwC Internet Ad Revenue Report ( 2013) Mobile Advertising: Advertising tailored to and delivered through wireless mobile devices such as smartphones (e.g. Blackberry, iPhone, Android), feature phones (e.g. lowerend mobile phones capable of accessing mobile content), and media tablets e.g. iPad, Samsung Galaxy Tab. Typically taking the form of static or rich media display ads, text messaging ads, search ads, or audio/video spots, such advertising generally appears within mobile websites i.e. websites optimized for viewing on mobile devices, mobile applications. See Figure 2.6 below which shows a Coca Cola advert designed specifically for mobile devices. pg. 24 Figure 2.6: Extracted from http://ibrandstudio.com (2015) Interstitials: These are pop-up animated ads that appear in full screen without any user action to activate them. They are short, animated messages which may interrupt the user’s current tasks. Forms of interstitials can include splash screens, page takeovers, and pop-up windows. Silk et al. (2001) urges that with sponsorships, advertisers offer content that is somehow related to their products or services and valued by the target audience. For example, pharmaceutical companies may sponsor bulletin boards where consumers with specific ailments can share information and offer support. Digital Video Commercials: TV-like advertisements that may appear as in-page video commercials or before, during, and/or after a variety of content in a player environment including but not limited to streaming video, animation, gaming, and music video content. This definition includes digital video commercials that appear in live, archived, and downloadable streaming content. pg. 25 Sponsorship: - Represents custom content and/or experiences created for an advertiser, which may or may not include ad elements such as display advertising, brand logos, advertorial, or pre-roll video. Sponsorships fall into several categories: (1) Spotlights: are custom-built pages incorporating an advertiser’s brand and housing a collection of content usually around a theme. (2) Adver-gaming: can range from an advertiser buying all the ad units around a game or a “sponsored by” link to creating a custom branded game experience. Figure 2.7 below shows the interface for the Fanta (a product of coca cola) gutter hero world tour of 2009 adver-gaming campaign. Figure 2.7: Extracted from http://2.bp.blogspot.com (2015) (3) Content & Section Sponsorship: is when an advertiser exclusively sponsors a particular section of the site with the advertiser’s branding e.g. Facebook.com which reserves the right-hand side as a section for placing advertisements. See Figure 2.7. pg. 26 Rich Media: Advertisements that incorporate animation, sound, and/or interactivity in any format. It can be used either singularly or in combination with the following technologies: sound, Flash, and with programming languages such as Java and JavaScript. It is deployed via standard Web and wireless applications including e-mail, static (e.g. .html) and dynamic (e.g. .asp) Web pages, and may appear in ad formats such as banners, buttons, and interstitials. Other upcoming formats of online advertising includes Lead Generation: - Fees advertisers pay to Internet advertising companies that refer qualified purchase inquiries or provide consumer information (demographic, contact, behavioral) where the consumer opts into being contacted by a marketer. These processes are priced on a performance basis (e.g. cost-per action, -lead or -inquiry) and can include user applications e.g. for a credit card, surveys, contests e.g. sweepstakes or registrations. Finally, Figure 2.8 below is a summary of a few comparison between the different forms of internet advertising. Format Comparable formats in traditional media Banners Magazine/newspaper ads Interstitials Television ads Sponsorships Promotions/Sponsorships Directories Yellow Pages Email Direct mail Web Site Retail display/ merchandising Figure 2.8 pg. 27 2.3 Evolution of Web as an Advertising P latform The World Wide Web, commonly abbreviated as WWW, is an infrastructure that takes advantage of a global computer network that connects thousands of computers throughout the world making sharing information both easy and attractive by combining text, graphics, sound, and film clips into a single multimedia document. The ability of the web to use hypertext links to connect to other sites around has encouraged a lot of people and many organizations to place information on the Web (Çuhadar, 2005). The dynamic nature of advertising on the web is synonymous with the evolution of web technologies. The technologies that propelled the web early on are classified as version 1 - commonly referred to as web 1.0. The term Web 2.0 was coined to popularize trends in the internet that marked post dot com revolution in 2001. Web 1.0, the predecessor of Web 2.0, had one sided communication from the website owner where visitors could only read content published by the authors for example advertising (O’Reilly, 2005). Web 2.0 on the other hand revolutionized how users interact on the web platform especially on matters advertising. Today customers are able to give a firsthand feedback through a mechanism called comment or like/dislike on products or services being advertised on the web especially over the social media platforms. 2.3.1 The Social Networking sites Social Networking Sites (SNS) are a type of virtual community that allows users to interact and share content with each other in an online environment. They are heavily user centered and user driven. Social networking sites share in the features of virtual pg. 28 communities. A widely-used definition is provided by Boyd and Ellison (2007) who characterizes SNS as web-based services that allow individuals to: construct a public or semi-public profile within a bounded system; articulate a list of other users with whom they share a connection; and view and traverse their list of connections and those made by others within the system. Barreto (2013) explains that while social networks refers to the interconnection of nodes, the expressions “social networking sites”, “social network sites” refers to the specific online software that are synonymous with web 2.0 capacity to allow social interaction between individuals on the online environment. Although the term social network has been carried along through the human civilization, nowadays the term is popularly used interchangeably with the term social networking sites. According to Lenhart and Madden (2007), SNS are effective platforms on which individuals create visible personal profiles, build personal networks and maintain social relationships. Stenger and Coutant (2009) on the other hand claim that SNS are not focused on any particular activity. Barreto (2013) argue that the definition given by Lenhart and Madden (2007) focus on the role of SNS as a social communication platform between members of a social network and thus neglect the new found use of SNS especially by organizations who rely on the very platform to communicate and engage with target audiences. It is on this account that Barrote (2013) goes on to suggests a more complete definition of SNS as: “Web-based services with three main functions: personal, social and pg. 29 in some cases, ‘infomercial’”. Infomercial can be viewed as the newest function of SNS if examined in the light of the increased interest and participation of private and public organization in its use. Barrote (2013) also argue that SNS can be described as a “infomercial” medium through which brands share information with users whether consumers/clients or not. SNS such as Facebook, Myspace and LinkedIn continue to amass popularity and attract millions of users in various age groups, Lorenzo-Romero et al (2011) argue that the perceived usefulness of SNS have a direct impact on intention to use them and indirect impact through attitude. In additional to this, various studies (Boyd and Ellison, 2007; Lenhart and Madden, 2007; Pinho and Soares, 2011 and Barrote, 2013) conclude that SNS are easy to use. Study carried out by Wangiku (2011) revels that social networking sites have turned out into platforms of marketing. Many of SNS rely on advertising revenue because they are free for their members to join. The revenue is mostly generated from demographic information they collect from their members and sell to advertisers who are able to target their advertisements to a particular audience. Based on recent research (Kodjamanis and Angelopoulos, 2013) it can be argued that social networking sites form undisputable medium for promoting products and services and in effect increase consumption and brand awareness. Chan (2012) states that paying for advertisement placement on SNS is one obvious tactic and this method has been exploited to a greater extent by commercial enterprises. Boyd and Ellison (2007) support pg. 30 the argument that social networking potential to reach consumers directly and in their private environment has meant that marketers are keen to advertise in this new medium. 2.3.2 The Social Media and Advertising Berthon et al. (2012) defines social media as a series of technological innovations both hardware and software that facilitate online content creation, interaction and interoperability of online users in an inexpensive way. As the World Wide Web continues to evolve, the usage pattern of Internet users has shifted from that of passive readings to active building of contents, illustrating the user-centric, interactive and collaborative nature of Web 2.0 capabilities (Sharma, 2008). Among all platforms enabled by the advancement of Web 2.0, social media is perhaps the most significant application that has grown exponentially in many population segments. According to Mayfield (2008), the characteristics of social media include: Participation, Openness, Conversation, Community and Connectedness. Most kinds of social media make use of links to other sites, resources and people. Basic forms of social media are blogs, Social network sites e.g. Facebook, Myspace, wikis, podcast, micro blogging e.g. tweeter, content communities e.g. YouTube, forums etc. Barnes et al. (2012) observes that there is trend towards social media usage among corporations as well as individual brands. He points to a study conducted by the University of Massachusetts Dartmouth which reveals that among the so called Fortune 500 companies in the USA, as many as 73 percent of them have official corporate account in Twitter while 66 percent have a corporate Facebook page. pg. 31 Though to date advertising on the internet is a heavily researched topic in international advertising, the opposite is true for social media advertising. Okazaki & Taylor (2013) state that there has only been a limited number of cross-national or cross-cultural studies on this topic. He argues that this could be due to the fact that researchers might view internationalization of social media as being premature in light of the very recent evolution of social media as a significant advertising platform. Based on the fact that only limited research has been done on social media advertising, there is lack of clear theoretical perspective from which research hypotheses can be formulated and tested by an empirical study. As Okazaki & Taylor (2013) point out, a theoretical development in a research area is often cumulative, and takes time for useful theories to be articulated in the literature. Nevertheless some studies carried out on this area has been based on the perspective of three principal theoretical foundation: Networking Capability, Image Transferability, and Personal Extensibility. See the conceptual framework on Figure 2.9 below as used by Okazaki & Taylor (2013) in their study: “Social media and international advertising: theoretical challenges and future directions”. pg. 32 Geographical and psychological context Networking capability Image transferability Personal extensibility Figure 2.9 : Adopted from Okazaki & Taylor (2013) In this theory, Networking Capacity is the foundation because it is the most capitalized upon benefit of web 2.0 technologies. It is upon this functionality that consumers are in control of how information is generated, created, organized and shared. Web 2.0 has made it possible for large and small firms to establish social networks among users and thus reach the largest communities with their brands (Bell and Loane, 2010). On the other hand, Image Transferability is the second principal on this theory based on the fact that this capacity (web 2.0 is rich with image sharing functionalities)facilitates a crucial aspect of brand image construction where images hold the key to attract similar consumer segments across borders (Okazaki et al, 2006). Finally, Personal Extensibility is the principal which is easily justified by the fact that what sets social media apart from pg. 33 traditional media is its high mobility nature based on the design and capacity of web 2.0 (Parameswaran and Whinston, 2007). Though such a theory is applicable locally, the aspect of scarcity of research carried out to establish the use of social media for advertising remains one of the key concerns for advertisers in Kenya. It seems that at this day and age, the studies being done are those aimed at finding out the popularity of social media platforms. An example of such studies according to Njonjo (2010) was done in 2009 by TNS Research International and Kenya ICT Board with a view to establishing the popularity of social media in Kenya. The findings were as follows: Facebook is the most popular social media accessed by 96% of the respondents followed by Hi5 (38%), twitter (37%), LinkedIn (30%), YouTube (30%), Tagged (23%), Yahoo 360 (20%), Myspace (20%) and others (10%). 2.4 Facebook Overview Facebook was developed by Mark Zuckerberg, a then student at Harvard University in 2004 with the sole intention of helping fellow students at the university to communicate efficiently with each other (Krivak, 2008). In their book “The Ultimate Guide to Facebook Advertising” published by entrepreneur magazine, Marshall and Meloche (2012) state that when Zuckerberge and his friends launched the website in 2004, then known as “The Facebook”, they had no idea that the platform could eight years later topple dictators or even create a new channel of advertising. Their sole purpose it is argued, was simply to build a digital medium for their fellow students at the university to see and connect to each pg. 34 other by means of real names, pictures and email addresses as the requirement for registration. Interestingly, within the next 30 days, more than half of undergrads at Harvard had subscribed to Facebook. Its growth could no longer be restricted as students from Boston colleges, the Ivy League and Stanford University and later other countries joined Facebook. In September 2006, Facebook opened its doors to anyone who was above 13 years and had a valid email address (Marshall and Meloche, 2012). According to Zuckerberg’s own words: “when you give everyone a voice and give people power, the system usually ends up in a really good place. So what we view our role as, is giving people that power”. So the question is; has this power been tapped by advertiser? Today Facebook is the most successful social networking site and generates its revenue from companies that want to reach its members through marketing and advertising activities on its web pages. Marketing via Facebook is an efficient functioning concept that offers optional platform for companies of all sizes to achieve marketing and branding goals at a relatively low cost (Lilley et al, 2013). According to Facebook (2013) annual report, this SNS focuses on providing value for all kinds of marketers including brand marketers, direct marketers, small and medium-sized businesses and developers. Facebook as a web platform aims to help marketers achieve their business objectives such as increasing online sales, in-store sales or awareness of their brands, products or services. Facebook generates substantial majority of its revenue from selling advertising placements to marketers. pg. 35 “Our ads offer marketers the opportunity to communicate their messages to consumers and to direct them to specific destinations such as a web page or a Facebook Page. Marketers purchase ads that can appear in multiple locations including in the right-hand side of most page types on personal computers and in the News Feed on personal walls.”(Facebook, 2013). By the year 2012, Facebook retained the number one position as the most popular SNS in the world. In its recent filing with the US financial authorities, (ahead of a planned initial public offering of shares in the company) Facebook revealed that it had 845 million monthly active users. Additionally, it reported that over half of these users (425 million) logged into the SNS every day (Facebook, 2012). This is a big audience for marketers to target with advertisements. “With Facebook Adverts, you choose the type of people you want to reach and we deliver your adverts to them. This makes your adverts more relevant for the people who see them, and brings you real results.” (Facebook, 2015) In Kenya Facebook gained traction in 2006 and has the youth as the majority actively using it on a daily basis. A social media metrics tracker called SocialBaker states that by 2013 Kenya had 2,018,560 Facebook users, a representation of 5.04 per cent of the total population, a 19.24 per cent of the online population. The largest age group on Facebook in Kenya is the 18-24 year. pg. 36 2.4.1 Advertising on Facebook When an individual signs up to be a member of Facebook (it is free to date) he/she creates an account and is ready to maintain a personal profile with one of the leading social networking site. While still on the process of registration and even after, one is allowed to upload photos and list a number of his/her interests. After a user is done with configuring his/her account by also providing other information (e.g. further demographic data, geographic information etc.) as required by Facebook at this point a user can proceed and connect with other already subscribed members by adding friends through a process known as sending a friend request. In return these friends must accept the request before any further exchanges can occur. Furthermore, one reason why it is possible for one to connect to many people is the fact that based on the demographic data that users provide when signing up for Facebook, it is possible to search friend based on their names, schools they attended, companies they work for or basically through an email address that a friend maintain. Although it is possible for a Facebook member to search for anybody’s profile on Facebook, as long as they are members, only friends gotten through the formal request process are able to see full information on each other’s side. This also depends on a user’s individualistic account settings. This means that though Facebook has been accused of not being very private with users’ content, at least to some extent individuals can control who views some of their information. pg. 37 Additionally, in Facebook every person’s account (by design) has a designated space called the Wall which is one of the most visited pages in Facebook. The Wall is dedicated to user profiles and it is at this page where users are able to interact with friends through posting short messages, sharing videos and even long texts (of not more than 1000 words) in form of articles uploading. But although users can communicate to their friends through exchange of such content which can also be used by subscribers to promote their business interests, see Figure 2.9(a), it is on the right-side of the Facebook pages as shown in Figure 2.9(b), where sponsored ads are displayed in a vertical column format. pg. 38 Figure 2.9(a) Extracted from https://www.facebook.com/anne.mbature (2015) pg. 39 Facebook well known for its innovativeness added one of the most useful features in 2012 which has set it apart from other social networking sites. This feature is an information aggregation system known as Newsfeed, see Figure 2.9(b) below. Figure 2.9(b): Adopted from Marin Software Inc. (2014) Based on the filtering configuration defined by an individual user, each person’s newsfeed shows a personalized accumulated display of recently updated information from the friends one is connected to, together with messages directly written on his/her wall by friends together with targeted advertisement messages. In additional, by default all new pg. 40 messages appear at the top of newsfeed page thus allowing a user to monitor changes at a glance instead of having to browse to each friend’s wall to catch up with them. Elsewhere in Facebook, although by layout design of the website, the area designated for advertisers to display paid adverts (known as sponsored ads) is on the right-side of the wall/page as explained early, Facebook offers another way (which has made marketing on this platform more open) mainly for organizations who could want to create messages that will appear in someone’s newsfeed. That option is by creating what is called a Facebook “Page”. Though Facebook page is much like a user profile, the difference is that it comes with some few extra benefits that help in self-promotion. First, Facebook pages are publicly accessible to anyone with a Facebook account without any form of pre-authorization. Second, Facebook page is configured in a way that people can become “Fans” of a page. It is out of this functionality that organizations can maintain a page in Facebook where they are able to interact with their fans whether they are promoting brands, events, services or other things. Figure 2.9(c) shows an example of Facebook Page advertisement post. pg. 41 Figure 2.9(c). Extracted from www.facebook.com (2015) One big benefit of this function to organizations is its ability to get feedback from their fans through a mechanism called liking/disliking or better through posting comments. By default, the number of comments that fans can post on a page is equal to the number of pg. 42 fans a page has i.e. if a page has 200 fans and one fan posts a comment, the message is going to reach 200 fans. 2.5 Attitudes towards Advertising Before reviewing some studies that discuss issues pertaining attitudes towards advertising, it is important to examine theories that have been adopted in research on this area. Although a number of such theories exist with the aim of predicting consum er purchase decision only one theory namely the Hierarchy of Effects will be reviewed in relation to its application in social media as an advertising medium. Hierarchy of Effects theory developed by Lavidge and Sterner (1961) is the commonly referenced theory in advertising research. Their theoretical essay explores the influence on consumer decision-making and basically explains the consumer thought-process. Acting as a consumer model of advertising, the theory conceptualizes advertising as a long-term process countering the common opinion that all advertising should incite immediate action from the consumer to be successful. The theory is grounded around six hierarchical steps namely Awareness, Knowledge, Liking, Preference, Conviction and Purchase. It states that individual consumers go through these steps at own speeds depending on the level of individual motivation and product involvement among other factors (Lavidge and Sterner, 1961). Although Mabry (2010) argues that the hierarchy of effects theory evolved from the AIDA model (another consumer decision-making model) with the steps of Action, Interest, Desire and Action, Lavidge and Sterner (1961) believed that understanding consumers pg. 43 decision-making process allowed advertisers to construct more persuasive messages. Mabry (2010) further observes that the hierarchy of effects theory was influenced by the popular Cognitive, Affective and Conative Psychology model which describe the behavioral dimension of decision-making suggesting that individuals first think, then develop feeling which finally leads to act when influenced by stimuli. Notwithstanding the fact that various other models have been developed since the hierarchical model, particularly with interest in cognitive processes of consumer in relation to psychological and behavioral dimension, Lavidge and Steiner’s hierarchy of effects has proved to be the most influential (Mabry, 2010). In fact, several studies have recently used the theory as a background in their advertising research work. For example a study aimed at finding out how advertising affects consumers by examining hierarchies associated with the consumer decision-making process, included the hierarchy of effects model together with all other models following the Cognition, Affect, and Behavior model together with the AIDA model (Vakratsas and Ambler, 1999). In their study, Vakratsas and Ambler (1999) found out five main areas of research that stemmed from the original models. These areas include the brand attitude formation, advert likeability and attitudes towards the advertisement, the effects of message repetition on awareness, recall, and attitude formation among others. In summary, according to Mabry (2010), although there are several conclusions made based on the analysis of these hierarchies, first, emotions as well as past beliefs affects a consumer attitude towards a brand. Second, ad likeability and brand preference are highly correlated. And finally, advertisers can maintain recall and attitudes using a series of slightly pg. 44 different advertisements within a product campaign. Based on the findings of a recent study titled “Engaging Audiences: An Analysis of Social Media Usage in Advertising”, Mabry (2010) states that according to the advertisers survey, the entry of social media as a medium of advertising have changed the process consumers go through when making decision on whether to purchase goods or not. This means that the hierarchy of effects as a consumer model still applies to consumers who engage with social media. However, many of the respondents (i.e. sampled advertisers in Mabry study) indicated that achieving consumer response at each level has become more challenging since the creation of social media a fact attributed to the differences in which consumers interact in these platforms. Based on the established theories on consumer purchase decision theory, consumer’s attitude towards advertising remains one of the focus areas of research (Homer, 2006; Dutta-Bergman, 2006; Shavitt et al., 2008; Metta, 2000; Speck & Elliot, 1997). The findings of these studies reveal that there are various factors that influence customer’s attitudes towards advertising. Dutta-Bergman (2006) states that demographic and lifestyle determines attitudes that customers exhibit towards advertising but suggests that younger customers rely less on advertising for decision making compared to their older counterparts. Shavitt et al. (2008) argues that consumers are aware of the fact that the cost of purchased products reflect the advertising expenses and thus believe that products that are not advertised give a higher value to customers. pg. 45 Mehta (2006) also found out that consumers perceive advertising to be more manipulative than informative and therefore believe that products do not perform as well as portrayed in advertising. However according to Shavitt et al. (2008) study on psychographic variables related to attitudes towards advertising, younger people were more likely to show positive attitudes towards advertising and were less likely to feel offended or insulted by advertising which Melta (2000) argues translates to better message recall. According to Schultz (2008) as illustrated by Figure 2.9(d) below (the push-pull model of marketing communication) consumers react to oversaturated advertising message clutters in both traditional and nontraditional media such as internet. He posits that customers control the content flow by electing shields to block out the increasing cluster and avoid the “push” of the advertisement messages from the marketers. He argues that doing so leaves the customers free to “pull” the information they desire from the internet or other media at a convenient time. This mechanism is called advertising avoidance which Speck and Elliot (1997) defines as “all actions by media users that differentially reduce their exposure to ad content.” pg. 46 Employees/Recommendations/Distributions/Influencers Web Search Competitors Competitors Agency Research MediaProducts/Services Marketer Messages and Incentives Consumers/ Prospect Competitors Competitors Word-of-Mouth New Media Forms Figure 2.9(d): Adopted from Schultz (2008) 2.5.1 Advertising Avoidance In their study “Avoidance of advertising in social networking sites (the case of teenage perspective)” Louise, Kerr and Drennan (2000) observe that based on consumer attitudes towards advertising, advertising avoidance has become a likely consequence. Although the believability or trustworthiness of the medium of advertising influences how customers will view the credibility of its information, Moore and Rodgers (2005) and also Cho and Cheon (2004) confirm that several studies have recognized that the explosion of ads has caused consumers to avoid ads in traditional media (Zanot, 1984) while cluster-bomb approach of ads on the internet has led to decline towards consumer responsiveness to internet ads. pg. 47 Gritten (2007) and Schults (2006a) state that consumers today are exposed to thousands of commercial messages everyday especially through guerrilla media campaigns, blogs, podcasts, online social networking sites besides traditional media such as television and newspapers. This has led to what Gritten (2007) terms as consumers editing of information through empowerment of technology to avoid both content and advertising messages that don’t interest them; a phenomena that Cheon and Grant (2005) refers to as advertising avoidance and points out the fact that it has not received much study on the online environment so far. Advertising avoidance is said to occur by cognitive, behavioral and mechanical means (Speck & Elliot, 1997; Neal et al., 2004; Homer, 2006) and some examples as stated by Louise et al. (2010) includes choosing to ignore a newspaper or magazine advertisement (cognitive method), leaving the room during an advertising break (behavioral method) and deleting pop-ups on the internet (mechanical means). 2.5.2 Ad Avoidance on the Internet Cho and cheon (2004) state that much research on ad avoidance has been mostly restricted to traditional media such as television, radio, newspaper, magazines hence there is limited academic research on internet ad avoidance. However according to Miller (1996) internet is viewed as a convergent medium for all other media i.e. a hybrid of television, radio, newspapers, magazines, billboards, direct mail and so forth. This is supported by Cho and Cheon (2004) who observes that through the internet, people can watch pg. 48 broadcast programs, listen to radio, read newspapers, read direct e-mail ads, a fact that makes it interesting to study ad avoidance on the internet today. To understand this phenomenon, it is necessary to look at the various forms of advertising that exist on the internet. Zeff and Alonso (1999) outlines some of advertising forms on the internet to includes buttons, banner ads, pop-ups ads, paid text links, sponsorships, target sites, superstitials ads, E-mail ads among others. But though banners have become the most prevalent format of advertising on the internet (Briggs and Holli, 1997) since the appearance of the first commercial banner ad on Hotwired.com in 1994, Nielson (2000) states that the click-through rates (CTRs) of banner ads declined from 2% in 1995 to 0.5% in 1998. pg. 49 CHAPTER THREE: RESEARCH METHODOLOGY 3 Overview This chapter discusses the method that was used to collect primary data and how the data was analyzed to give the expected findings of the study. The questionnaire, which is the main instrument used to collected the data is justified as to why it is the preferred tool of caring out a survey of attitudes and perceptions. The research design is explained, the population, the sampling design, research procedure, data analysis and presentation tools and techniques are outlined appropriately. 3.1 Research Design Descriptive Survey which adopts a case study mode, is the preferred design for this research as the study is concerned with finding out “what” of a phenomena. According to Donald and Pamela (1998), a study concerned with finding out who, what, which and how of a phenomenon is referred to as descriptive design. Maina (2012) confirms that this type of research attempts to describe attitudes towards an issue. 3.2 Population and Sampling Frame The population of this study is the youth who use internet in Nairobi. The sample is drawn from those who use social media from Nairobi (being the capital city of Kenya, it provides a diversity of population that cuts across different ethical considerations and at the same time have savvy internet users) and maintain personal accounts with Facebook. pg. 50 This is done with the intention of generalizing the findings at least within the boundaries of Nairobi County. The demographic group is segregated into three youth groups: Students of higher learning institutions, employed and self-employed youth aged between 19 – 34 years. This age bracket was arrived at after considering the definition of the youth according to the constitution of kenya which states that all individuals who have attained the age of 18 years but have not attained the age of 35 are youth and the UN which on the other hand defines youth as persons between the age of 15 to 24 (Njonjo, 2010). According to Davis (1999) college students who comprise the largest internet user segments, have acted as opinion leaders about internet content and thus act as a lucrative consumer group for online marketers. 3.3 Sampling Design A Sample of 180 respondents through purposive sampling technique will be used. 60 students will be picked from 5 institutions of higher learning within the CBD, 60 among the employed youth and 60 among the youth doing businesses within the city of Nairobi which is estimated to have a population of 3.1 million according to the 2009 National Census. This is a fair representation of youth that live in the city of Nairobi. 3.4 Data C ollection Instrument Most of the academic researches done to study the phenomena of perceptions and attitudes towards online advertising have been quantitative and thus made use of questionnaire as a tool for collecting primary data. According to Kodjamanis and pg. 51 Angelopoulos (2012) many questionnaires aimed at collecting data towards online advertising studies are designed based on the work of Schlosser et al. (1999), which has been one of the most prominent studies on online advertising. In this survey primary data was therefore collected through open and close-ended structured questionnaire (with a few open-ended questions) using the Likert scale rating method. The questionnaire being the main tool for collecting primary data was designed through a pilot test of 10 respondents who were picked through convenience sampling method to ensure that the tool gave the required response and that the respondents understood the questions. The finding of the test questionnaire were very helpful. The test exercise pointed out to a number of concerns as follows: first, since the questionnaire was initially a seven page booklet, the researcher realized that the respondents were being turned-off from participating because they thought it was a demanding exercise, also a number of those who took the questionnaire in this form did not respond to all the questions. This forced the researcher to redesign the layout of the questionnaire whereby the content was compressed to fit into a two page A4 standard paper through reducing the font size and line spacing but only to a level that maintained legibility (see appendix I). Secondly, since the questionnaire had many questions based on the objectives of the study, the researcher found it necessary to change the third specific objective from one that had many questions to one which required the comparison of the responses of the general objective of the survey. Technically, this was possible due to the fact that the survey aimed pg. 52 to investigate a similar phenomenon across three demographic groups. Finally the newly structured two page questionnaire was tested again on a sample of ten respondents and with other minor grammatical mistakes having been corrected, the response was good and thus deemed effective to present to the final respondents. The official questionnaire was now physically presented to the target respondents. Some respondents (who were first asked if they have subscribed to Facebook and if not were not qualified for this survey) offered to fill the questionnaire on the spot while others were willing to participate if only the questionnaire was given to them only to be collected on a later date. The researcher was flexible to work with the two groups on either way. The questionnaire was made up of 3 main parts. Section A which collected demographic data, Section B collect data on awareness and knowledge of online advertising and the extent of the use of Facebook among the youth. Section C aimed to collect data on key elements of attitudes based on the established online advertising perception model i.e. Informative-ness, entertainment, credibility, social & economy role and value based on previous researches. 3.5 Data Analysis Method Quantitative data analysis methods were employed to tabulate data from the structured questions with the aim of graphically presenting the outcomes of the study. SPSS and Ms. Excel were deployed as statistical computer applications of choice for analysis of data. Ms. Excel was used carry out descriptive analysis in form of percentages. SPSS was used to perform One-Way Analysis of Variance (ANOVA), an inferential analysis aimed to pg. 53 compare the means among the three demographic groups of the youth. This analysis will lead to acceptance or fail to accept the hypothesis of the survey. 3.6 Data Presentation Finally, the analyzed data was presented through graphical illustrations. These are in form of tables, graphs and pie charts depending on how convenient and easy to interpret each of them was and also understood by the researcher. Figure 3.1 below shows a schematic summarizing the research design process. Research Design •Evaluation of research objectives •Operationaliz ation of Variables •Determination of procedures •Determination of sample Collection of Data Analysis of Data •Questionnare generation •Questionare testing •Approval for study •Recrult of participants •Conduct Study •Coding/ Entering Data •Data preparation •Analysis Data •Interpreting results Findings & Discussion •Recommend ations & Conclusions Figure 3.1 pg. 54 CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION OF FINDINGS 4 Overview Presented in this chapter are the findings of the data analysis of the study together with their interpretations. The chapter has two parts. The first part gives the descriptive analysis of the data. Means (averages) and percentages of the relevant variables used to determine the extent and use of Facebook among the youth in Nairobi. The second part gives the results of attitudes and perception of the youth towards Facebook advertising and social media advertising in general. All themes discussing the same objectives across the three demographic groups were presented and analyzed together. The chapter begins with the demographic information of the respondents followed by presentations, interpretation and discussions of research findings based on the objectives. 4.1 PART ONE: Results of Descriptive Analysis of the Respondents 4.1.1 Questionnaire completion rate Completion rate is the proportion of the population that participated as intended in all the research procedures. Out of target of 180 respondents i.e. 60 Students, 60 Employed and 60 Self-Employed in the city of Nairobi that constituted the entire population, 150 returned the questionnaires; 50 students, 50 employed and 50 self-employed which was 83% return rate. This return rate was deemed adequate and effective for the study especially since the return rate among the three groups was equally distributed. pg. 55 4.1.2 General Description Analysis of Respondents Characteristics Demographic information of the Students, Employed and Self-Employed respondents in Nairobi city was among other factors based on their age, occupation and type of institution attended. Figure 4.1: Percentage of respondents by their age Source: Researcher Survey 2014 From the respondents who filled the questionnaire, it was noted that in the group of students, 58% were aged between 19 - 22 year, 38% aged between 23 – 26 years and 2% aged between 31 – 34 years. Among the Employed youth 38% were those aged between 27 – 30 years, 34% aged between 23 – 26 years and 2% between 19 – 22 years. SelfEmployed respondent aged 23 – 26 years were 34%, between 27 – 30 years were 28%, 19 – 22 years 10% and 31 - 34 years 28%. Thus the respondents who took part in the study were mature enough to make sound judgments. pg. 56 Figure 4.2: Percentage of respondents by gender Source: Researcher Survey 2014 It was noted that respondent findings as indicated in Figure 4.2 show that most of respondents in all the three demographic groups were male: Students (56%), Employed (56%) and Self-Employed (62%). Females were (44%) for Students, (44%) for Employed and (38%) for Self Employed. pg. 57 Figure 4.3: Percentage of students respondents by type of institution attended STUDENTS 42% 58% 0% College Polytechnic University Source: Researcher Survey 2014 It was noted from the respondent’s findings as indicated in Figure 4.3 show that a majority of students are from universities at 58%, 42% from colleges. The Figure above show a 0% for polytechnics, an occurrence that can be explained based on the fact that my the time the researcher had gone to collect data based on the accepted research proposal, the government of kenya had elevated polytechnics in the country to technical universities. pg. 58 Figure 4.4: Percentage of respondents by the frequency of i nternet use Source: Researcher Survey 2014 It was indicated from the respondent’s findings that most of them use internet daily. The Employed were found to use the internet more per day at 94% daily and 6% weekly. Student followed at 90% daily, 8% weekly and 2% monthly. The use of internet daily could be attributed to the fact that many people are now days able to access internet through their mobile phones pg. 59 Figure 4.5: Percentage of respondents by the location of internet access Source: Researcher Survey 2014 It was indicated from the findings that most of the respondents access internet mostly at their places of work and these were found to be the Employed at 82%. Home location came second at 54% by the students. The findings also indicate that the Self-Employed access the Internet from their places of work at 38%, home 26% and 22% from cyber cafes. This indicate that it is the Self-Employed youth who access the internet most from different locations. pg. 60 Figure 4.6: Percentage of respondents by the devices they use Source: Researcher Survey 2014 It was indicated from the respondent’s findings that most of the devices used to access internet are Desktop computers by the Employed respondents at 52%, followed by Smartphones used by Students at 38% and Self-Employed respondents used laptops at 28%. The least used device was tablets perhaps due to the fact that it is the latest device in the market and could be scares and expensive. pg. 61 4.2 PART TWO: The Respondents Extent and use of Facebook as a Social Media This section of the report presents the extent and use of Facebook among the youth in general. It indicates the hours spent on the social site, the nature of interaction, how they respond to advertisement messages and their general attitudes and perceptions towards advertising on Facebook Table 4.1: Percentage of respondents who have accounts with social networking sites Social Networking Site Student Employed Self-Employed Facebook 100% 100% 100% WhatsApp 86% 66% 60% Twitter 58% 64% 34% YouTube 54% 44% 38% LinkedIn 34% 38% 22% Flicker 8% 2% 6% Myspace 8% 0% 2% Tagged 6% 6% 0% Hi5 2% 2% 2% Source: Researcher Survey 2014 Table 4.1 above show that Facebook is the only social networking site that everyone (100%) in the three demographic groups have accounts, followed by WhatsApp with Students at 86%, Employed at 66% and Self-Employed at 60%. This was also closely pg. 62 followed by Twitter with Students 58%, Employed 64% and self Employed 34%. Hi5 was least with very few members as little as 2% in all the three demographics groups. Table 4.2: Frequency at which r espondents visit Facebook website when connected to internet Frequency Student Employed Self-Employed Once a day 28% 14% 20% Several Times a day 54% 74% 72% Once a week 6% 4% 4% Several times a month 4% 2% 2% Once a month 8% 2% 2% Source: Researcher Survey 2014 It was noted from Table 4.2 above that most respondents visits Facebook site several times a day; 54% for Students, 74% for Employed and 72% for Self-Employed. This is a clear indication that most of respondents are so addicted to Facebook site. pg. 63 Table 4.3: Percentage of respondent’s average number of friends on Facebook p rofile Range Student Employed Self-Employed Less than 10 0% 4% 4% 51 to 100 4% 14% 16% 101 to 150 6% 2% 4% 151 to 200 6% 8% 4% 201 to 250 4% 4% 2% 251 to 300 6% 2% 6% 300 to 350 8% 18% 12% 351 to 400 12% 4% 2% More than 400 60% 48% 48% Source: Researcher Survey 2014 It was noted from Table 4.3 above that most of the respondents had an average number of friends above 400. 60% for Students, 48% for Employed and 48 for Self-Employed respondents. This shows that Facebook allows its subscribers to connected to many people. pg. 64 Table 4.4: Percentage of what respondent’s spend most time doing on Facebook Activity Student Employed Self-Employed Conducting Business 16% 10% 26% Keeping in touch with friends 76% 74% 70% Sharing Videos, Articles, Pictures 40% 24% 28% Passing time 26% 12% 10% Getting Information on new products and brands 48% 30% 36% Keeping up to date with social events 52% 54% 54% Making new friends 38% 20% 22% Others 0% 0% 0% Source: Researcher Survey 2014 It was noted from Table 4.4 above that most of the respondents spend their time on Facebook getting in touch with friends at 76% for Students, 74% for Employed and 70% for Self-Employed. This is followed by keeping up to date with social events at 52% for Students, 54% for Employed and 54% for Self-Employed respondents. Getting Information on new products and brands at 48% for Students, 30% for Employed and 36% for Self-Employed, Sharing 40% for students, 24% Employed and 28% for SelfEmployed. pg. 65 Table 4.5: Percentage of number of company pages respondents are m embers Number Student Employed Self-Employed None 12% 8% 26% Less than 10 42% 54% 38% 11 to 20 36% 32% 24% 21 to 30 2% 2% 8% More than 30 8% 4% 6% Source: Researcher Survey 2014 It was noted from Table 4.5 above that most of the respondents are members of less than 10 companies: Students 42%, Employed 54% and Self Employed 38% followed by 11 to 20 companies: Student 36%,Employed 32% and Self-Employed 24%. The least was 21 to 30 companies: Student 2%, Employed 2% and Self-Employed 8%. However 12% of Students, 8% of Employed and 26% of Self-Employed had none. Table 4.6: Percentage of number of respondents who notices advertisement messages Response Student Employed Self-Employed Yes 98% 94% 96% No 2% 6% 4% Source: Researcher Survey 2014 It was noted from Table 4.6 above that most respondents notice advertisement messages while using Facebook: Student 98%, Employed 94% and Self Employed 96%. pg. 66 Table 4.7: Percentage of how respondents often come across advertisement messages Frequency Student Employed Self-Employed Very often 28% 42% 48% Often 36% 38% 26% Sometimes 22% 12% 18% Rarely 10% 4% 8% Very rarely 4% 2% 0% Source: Researcher Survey 2014 It was noted from Table 4.7 above that most respondents come across advertisement messages very often: Students 28%, Employed 42% and Self-Employed, this was closely followed by those who said they come across advertisement messages often: Students 36%, Employed 38% Self-Employed 26%. Table 4.8: Percentage of respondents who pay attention advertisement messages Response Student Employed Self-Employed Yes 64% 74% 64% No 36% 26% 36% Source: Researcher Survey 2014 It was noted from Table 4.8 above that most of the respondents pay attention to the advertisement messages: Students 64%, Employed 74% and Self-Employed 64%. pg. 67 Table 4.9: Percentage of what prompt respondent to pay attention to advertisement messages on Facebook. Student Employed Self-Employed 40% 52% 58% I am captivated by the advertising 18% design Out of curiosity 18% I recognize the brand/company/product 28% 18% 20% 18% 10% 38% 34% To find out if the adverts are for free things Others 4% 4% 12% 0% 0% 0% Relevance to something of my interest Source: Researcher Survey 2014 It was noted from Table 4.9 above that what prompts respondents most to pay attention to advertisement messages is relevance to something of their interest: Students 40%, Employed 52% and Self-Employed 58%, followed by if they recognize the brand/company/product: Students 28%, Employed 38% and Self-Employed 34%. pg. 68 Table 4.10: Percentage of what does not prompt respondent to pay attention to advertisement on Facebook Student Employed Self-Employed It’s completely irrelevant to me 20% 14% 26% Message in the advert not always clear 4% 6% 2% I am so used to adverts 8% 10% 8% The quality of advert design is poor 8% 0% 2% Others 0% 0% 0% Source: Researcher Survey 2014 It was noted from Table 4.10 above that what makes most respondents not to pay attention to advertisements on Facebook is because it’s completely irrelevant to them Students 20%, Employed 14% and Self-Employed 26%. They also stated that they are used to adverts Students 8%, Employed 10% and Self-Employed 8%. pg. 69 Table 4.11: Percentage of how often respondent purchase goods based on advertisement encountered on Facebook Frequency Student Employed Self-Employed Never 44% 44% 48% Rarely 36% 38% 28% Sometimes 18% 14% 16% Often 2% 4% 4% Always 0% 0% 0% Source: Researcher Survey 2014 It was noted from Table 4.11 above that most respondents have never purchased anything on Facebook or as a result of advertisement encountered of Facebook. Students 44%, Employed 44% and Self-Employed 48%, followed by rarely at Students 36%, Employed 38% and Self-Employed 28%. Sometimes at Students 18%, Employed 14% and SelfEmployed 16%. Table 4.12: Percentage of respondents who have ever advertised anything of Facebook Response Student Employed Self-Employed Yes 32% 38% 38% No 68% 62% 62% Source: Researcher Survey 2014 pg. 70 It was noted from Table 4.12 above that most respondents have never advertised on Facebook Students 68%, Employed 62% and Self-Employed 62%. Table 4.13: Percentage of respondents a pproach used to advertise on Facebook Approach Student Employed Self-Employed Created a post on my wall page 32% 38% 36% Paid for advertising space as per Facebook commercial advertising guide 2% 0% 2% Source: Researcher Survey 2014 It was noted from Table 4.13 above that those who have ever advertised on Facebook created an advertisement message and posted it on their wall pages. Students 32%, Employed 38% and Self-Employed 36%. pg. 71 Table 4.14: Percentage of respondent’s beliefs towards Facebook advertising (Students) Aspect Agree Disagree Indifferent Advertising on Facebook is informative 76% 14% 10% Ads placed on Facebook are creatively designed 40% 32% 28% Facebook advertising is annoying 22% 60% 18% Advertising on Facebook is entertaining 60% 24% 16% Facebook ads are time wasting 24% diversion 56% 20% Facebook advertising violates privacy 30% 50% 20% Adverting authorities should put restriction on what is advertised on Facebook 70% 24% 6% Facebook offers good ad avoidance mechanisms 40% 36% 24% I can recommend my friends to certain advertising on Facebook pages 74% 16% 12% Source: Researcher Survey 2014 Table 4.14 shows Percentage of respondent’s beliefs towards Facebook advertising for the Students demographic group. pg. 72 Table 4.15: Percentage of respondent’s beliefs towards Facebook advertising (Employed) Aspect Agree Disagree Indifferent Advertising on Facebook is informative 80% 10% 30% Ads placed on Facebook are creatively designed 62% 20% 18% Facebook advertising is annoying 14% 48% 28% Advertising on Facebook is entertaining 42% 30% 28% Facebook ads are time wasting 8% diversion 70% 22% Facebook advertising violates privacy 18% 64% 18% Adverting authorities should put restriction on what is advertised on Facebook 74% 18% 8% Facebook offers good ad avoidance mechanisms 40% 30% 30% I can recommend my friends to certain advertising on Facebook pages 68% 20% 12% Source: Researcher Survey 2014 Table 4.15 shows Percentage of respondents Beliefs towards Facebook advertising for the Employed demographic group. pg. 73 Table 4.16: Percentage of respondent’s beliefs towards Facebook adverting (SelfEmployed) Aspect Agree Disagree Indifferent Advertising on Facebook is informative 80% 12% 8% Ads placed on Facebook are creatively designed 70% 12% 18% Facebook advertising is annoying 18% 70% 12% Advertising on Facebook is entertaining 56% 32% 12% Facebook ads are time wasting 14% diversion 66% 20% Facebook advertising violates privacy 22% 56% 22% Adverting authorities should put restriction on what is advertised on Facebook 74% 20% 6% Facebook offers good ad avoidance mechanisms 54% 26% 20% I can recommend my friends to certain advertising on Facebook pages 80% 14% 6% Source: Researcher Survey 2014 Table 4.16 shows Percentage of respondent’s beliefs towards Facebook advertising for the Self-employed demographic group. pg. 74 Table 4.17: Descriptive of beliefs towards Facebook adverting in all demographic groups N Mean Std. Deviation Std. Error 95% Confidence Interval for Mean Lower Bound Upper Bound Mini mum Maxi mum Students 9 48.44 21.766 7.255 31.71 65.18 22 76 Employed 9 45.11 27.333 9.111 24.10 66.12 8 80 Non Employed 9 52.00 27.148 9.049 31.13 72.87 14 80 Total 27 48.52 24.711 4.756 38.74 58.29 8 80 Source: Researcher Survey 2014 SPSS Output Table 4.18: ANOVA results on beliefs towards Facebook advertising in all demographic groups Sum of Squares df Mean Square Between Groups 213.630 2 106.815 Within Groups 15663.111 24 652.630 15876.741 26 Total F .164 Sig. .850 Source: Researcher Survey 2014 SPSS Output The realized ANOVA value was F= 0.164, p=0.850 thus the beliefs towards Facebook advertising were not significantly different among the three demographic groups in Nairobi. The study found Students (M=48.44), Employed (45.11), Self-Employed pg. 75 (M=52.00) since the p value was less than 0.05. Further the study established that Employed and Self-Employed respondents had a bigger standard deviation of above 27 which implies that there was a bigger difference on how respondents gave their responses. Table 4.19: Percentage of respondent’s Perceptions towards social media advertising in general (Students) Aspect Strongly Agree Indifferent Disagree Strongly agree disagree Timely 38% 40% 4% 12% 6% Effective 24% 48% 14% 8% 6% Useful 38% 40% 16% 6% 0% Informative 40% 42% 8% 8% 2% Friendly 30% 46% 14% 10% 0% Accurate 10% 26% 28% 34% 2% Enjoyable 26% 38% 22% 12% 2% Interesting 24% 48% 18% 8% 2% Credible 18% 36% 18% 18% 10% Source: Researcher Survey 2014 Table 4.19 shows Percentage of respondent’s perceptions towards Social Media Advertisement in general for the Students demographic group. pg. 76 Table 4.20: Percentage of respondent’s perceptions towards social media advertising in general (Employed) Aspect Strongly Agree Indifferent Disagree Strongly agree disagree Timely 48% 40% 10% 2% 0% Effective 32% 50% 14% 4% 0% Useful 30% 46% 22% 2% 0% Informative 40% 40% 12% 8% 0% Friendly 26% 42% 28% 4% 0% Accurate 18% 24% 16% 22% 0% Enjoyable 22% 36% 28% 14% 0% Interesting 28% 48% 16% 6% 2% Credible 10% 32% 40% 16% 2% Source: Researcher Survey 2014 Table 4.20 shows Percentage of respondent’s perceptions towards Social Media advertising for the Employed demographic group. pg. 77 Table 4.21: Percentage of respondent’s perceptions towards social media advertising (SelfEmployed) Aspect Strongly Agree Indifferent Disagree Strongly agree disagree Timely 52% 32% 6% 2% 8% Effective 46% 34% 10% 10% 0% Useful 42% 40% 8% 10% 0% Informative 50% 40% 8% 0% 2% Friendly 52% 44% 16% 8% 0% Accurate 28% 30% 24% 12% 6% Enjoyable 32% 34% 36% 8% 2% Interesting 48% 32% 12% 4% 4% Credible 22% 34% 20% 22% 2% Source: Researcher Survey 2014 Table 4.21 shows Percentage of respondents Aspects towards Social Media Advertisement for the Self-employed demographic group. pg. 78 Table 4.22: Descriptive on perceptions towards social media advertising on all demographic groups N Mean Std. Deviation Std. Error 95% Confidence Interval for Mean Lower Bound Mini mum Maxi mum Upper Bound Students 9 68.00 14.697 4.899 56.70 79.30 36 82 Employed 9 68.00 17.029 5.676 54.91 81.09 42 88 Non Employed 9 76.89 13.896 4.632 66.21 87.57 56 96 27 70.96 15.276 2.940 64.92 77.01 36 96 Total Source: Researcher Survey 2014 SPSS Output Table 4.23: ANOVA results on perceptions towards social media advertising in general on all demographic groups Sum of Squares df Mean Square Between Groups 474.074 2 237.037 Within Groups 5592.889 24 233.037 Total 6066.963 26 F 1.017 Sig. .377 Source: Researcher Survey 2014 SPSS Output The realized ANOVA value was F= 1.017, p=0.377 thus the perceptions towards social media advertising were not significantly different among the three demographic groups in pg. 79 Nairobi. The study found Students (M=68.88), Employed (68.00), Self-Employed (M=76.89) since the p value was less than 0.05. Further the study established that respondents had a bigger standard deviation of 17.029 which implies that there was a bigger difference on how respondents gave their responses. 4.3 Discussion and Interpretation of the Findings The study found that Facebook is the only social networking site that everyone (100%) in the three demographic groups have accounts, followed by WhatsApp: Students 86%, Employed 66% and Self-Employed 60%. It was also noted that most respondents visit Facebook site when connected to the internet several times a day; 54% for Students, 74% for Employed and 72% for Self-Employed. The average number of friends each respondent had were above 400. 60% for Students, 48% for Employed and 48 for Self-Employed. It was also noted that most of the respondents spend time on Facebook to get in touch with friends; 76% for Students, 74% for Employed and 70% for Self-Employed, this was followed by Keeping up to date with social events at 52% for Students, 54% for Employed and 54% for Self-Employed respondents. Most of the respondents are members of less than 10 companies: students 42%, Employed 54% and Self Employed 38%, It was also noted that most respondent’s notice advertisement messages while using Facebook: Student 98%, Employed 94% and Self Employed 96%. Most of these respondents come across advertisement messages very often: Students 28%, Employed 42% and SelfEmployed, this was closely followed by those who said they come across advertisement messages often: Students 36%, Employed 38% self-employed 26%. Most of the respondents pay attention to the advertisement messages: Students 64%, Employed 74% pg. 80 and self-employed 64%. What prompts respondents most to pay attention to advertisement messages is relevance to something of their interest: Students 40%, Employed 52% and Self-Employed 58%, followed by if they recognize the brand/company/product: students 28%, Employed 38% and self-employed 34%. While what makes most respondents not to pay attention to advertisements on Facebook is because it’s completely irrelevant to them: Students: 20%, Employed 14% and SelfEmployed 26%, they also stated that they are used to adverts Students: 8%, Employed 10% and Self-Employed 8%. It was also noted that most respondents have never purchased anything on Facebook or as a result of advertisement encountered of Facebook Students: 44%, Employed 44% and Self-Employed 48%, followed by rarely Students: 36%, Employed 38% and Self-Employed 28%. For Sometimes: Students 18%, Employed 14% and Self-Employed 16%. Most respondents have never advertised on Facebook Students: 68%, Employed 62% and Self-Employed 62%. Those who have ever advertised on Facebook created a post on their wall page Students: 32%, Employed 38% and SelfEmployed 36%. How ANOVA was calculated The calculation for ANOVA was computed as the differences between certification indexes levels of all items being investigated for all the three groups (Certification index was computed as the percentage of those who agreed on a particular item). For the Beliefs towards Facebook Advertising: The realized ANOVA value was F= 0.164, p=0.850 thus the beliefs towards Facebook advertising were not significantly different among the three demographic groups in Nairobi. The study found Students (M=48.44), pg. 81 Employed (45.11), Self-Employed (M=52.00) since the p value was less than 0.05. Further the study established that Employed and Non Employed respondents had a bigger standard deviation of above 27 which implies that there was a bigger difference on how respondents gave their responses. For Perceptions towards Social Media Advertising: The realized ANOVA value was F= 1.017, p=0.377 Thus the Aspects towards social media advertisement were not significantly different among the Three demographic groups in Nairobi. The study found Students (M=68.88), Employed (68.00), Self-Employed (M=76.89) since the p value was less than 0.05. Further the study established that respondents had a bigger standard deviation of 17.029 which implies that there was a bigger difference on how respondents gave their responses. pg. 82 CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION 5 Overview This chapter presents the summary findings of the study, recommendations and conclusion. The overall research problem addressed in the study state that although many young people are familiar with internet advertising and spend most of their internet browsing time social media, more research on their practices, attitudes, perceptions and buying behaviors can inform strategic advertising on the internet. To investigate the statement, the researcher sought to determine: (i). The extent and use of social media among the youth. (ii). Facebook effects on youth buying behaviors. (iii). Attitudes and perceptions towards advertising on the social media and Facebook in particular. The researcher used descriptive research methodology and a questionnaire was used to collect data from the respondents. Data collected represented their perceptions, attitudes and buying behavior practices. 5.1 5.1.1 SUMMARY OF FINDINGS The extent and use of social media among the youth The study found out that social media is popular among the youth in Nairobi. Among the social networking sites that most of them have subscribed to include: Facebook, Linkedln, Youtube, Tagged, Twitter, WhatsApp, Flicker, Hi5 and Myspace. Facebook is the only social networking site that every respondent in the three demographic groups have an active account. WhatsApp and Twitter follow closely with the most respondents as their members respectively. WhatsApp is the latest invention of social networking site and this pg. 83 shows that the rate at which new social media platforms are being developed and accepted by the youth is rapid and therefore more studies need to be done to examine their effectiveness as platforms of advertising. It was noted that most of the youth visit Facebook site several times a day and only a few visits the site once a month. Most of the respondents spent time getting in touch with friends and keeping up to date with social events. Other activities that the respondents did when logged in to Facebook among the three demographic groups are as follows: Most time on Facebook among the youth was spent on: 1. Keeping in touch with friends 2. Keeping up to date with social events 3. Getting information on new products and brands 4. Sharing videos, Articles, pictures 5. Making new friends 6. Passing time 7. Conducting business Most time on Facebook among the employed youth was spent on: 1. Keeping in touch with friends 2. Keeping up to date with social events 3. Getting information on new products and brands 4. Sharing videos, Articles, pictures 5. Making new friends pg. 84 6. Passing time 7. Conducting business Most time on Facebook among the self-employed youth was spent on: 1. Keeping in touch with friends 2. Keeping up to date with social events 3. Getting information on new products and brands 4. Sharing videos, Articles, pictures 5. Conducting business 6. Making new friends 7. Passing time The findings show that among the three groups of the youth, the students and the employed have the same order of priorities unlike the self-employed who gave higher priority to conducting business as opposed to making new friends and passing time. These finding show that the youth are using Facebook as a platform for social reasons more than business oriented reasons. The findings also show that there is no significant difference regarding the way youth across the three demographic groups spend their time on Facebook. Finally it was noted that most of the respondents are connected to over 400 Facebook friends and are members of less than 10 companies. 5.1.2 Facebook effects on youth buying behaviors The study found out that most of the youth noticed advertisement messages while on Facebook. Most of them acknowledged the fact that they come across advertisement pg. 85 messages very often. This shows that Facebook as a social media platform is appropriate for advertising. The study also found that most of the respondents pay attention to the advertisement messages. The finding show that among the three youth groups, the reasons why the students pay attention to advertising messages are: 1. Relevance to something of their interest 2. They recognized the brand/product/company 3. Out of curiosity 4. Were captivated by the advert design 5. To find out if the advert were for free goods and services Among the employed: 1. Relevance to something of their interest 2. They recognized the brand/product/company 3. Out of curiosity 4. Were captivated by the advert design 5. To find out if the advert were for free goods and services Among the self-employed: 1. Relevance to something of their interest 2. They recognized the brand/product/company 3. Were captivated by the advert design 4. To find out if the advert were for free goods and services 5. Out of curiosity pg. 86 The findings show that the students and the employed share the same order of priority on why they pay attention to advertisement messages encountered on Facebook. On the other hand, the self-employed youth were noted to differ slightly by giving less priority to curiosity as a reason for paying attention to the adverts. However, the findings reveal that most of the youth (i.e. half of the respondents) have never purchased anything as a result of advertisement encountered on Facebook. This was equal across the three demographic groups. This finding directly answers this study’s second research question: To what extent does advertising on Facebook influence youth buying behaviors? It was found out that advertising on Facebook has less influence on the youth’s buying behavior. Finally, the findings noted that among the respondents, 35 percent have ever advertised something on Facebook while 65 percent have never. The findings show that most of those who advertised on Facebook created advertisement messages and posted them on their “Wall Page” while 2 percent officially paid for an advertising slot on Facebook. It is worth noting that adverting on the wall pages by established business enterprises is discouraged. Facebook achieves this through filtering mechanisms which blocks such adverts from appearing on the newsfeed. 5.1.3 Youths attitudes and perceptions among the demographic groups The hypothesis of this research study states: “The attitudes and perceptions that the youth in Nairobi have towards advertising on the social media and in particular Facebook differ across the three demographic groups.” is driven from the research question number three which aimed at answering the question: To what extent does the youth’s attitudes and pg. 87 perceptions towards social media advertising and Facebook in particular differ among the three demographic groups? To capture the data that was analyzed to answer this question, the following two areas were considerd: 5.1.3.1 Part A: Attitudes towards Facebook advertising The following dispositions of Facebook advertising were inquired from the respondents across the three demographic groups: Advertising on Facebook is informative Ads placed on Facebook are creatively designed Facebook advertising is annoying Facebook ads are time wasting diversion Facebook advertising violates privacy Adverting authorities should put restriction on what is advertised on Facebook Facebook offers good ad avoidance mechanisms I can recommend my friends to certain advertising on Facebook pages The following findings show that the youth across the three demographic groups don’t differ much in their attitudes towards Facebook advertising. A look at each dispositional variable independently shows the following: Dispositional Valuable 1: Advertising on Facebook is informative It was noted that among the three demographic groups, most of the respondents agreed that Facebook advertising is informative. This confirms an earlier finding where a majority of the respondents give a high priority to the fact that most of their time on Facebook is spent getting information on new products and brands. pg. 88 Dispositional Valuable 2: Ads placed on Facebook are creatively designed The finding note that most of the respondents across the three demographic groups agreed that Facebook adverts are well designed and that means that they were appealing and thus grabbing the attention of people. This also means that Facebook as a social media provides a good platform for advertisers to display their advertising messages. Dispositional Valuable 3: Facebook advertising is annoying The findings note that most of the respondents across the three demographic groups disagree with the notion that Facebook advertising is annoying. This fact strengthens the earlier disposition that Facebook advertising is informative. This finding reveal that although most of the respondents were found not to have been influenced by Facebook advertising in their buying behavior, the general attitudes towards advertising on social media (which a majority of them use mainly to keep in touch with their friends) is positive. Dispositional Valuable 4: Advertising on Facebook is entertaining Most of the respondents across the three groups agreed that the advertisement messages on Facebook offers a source of entertainment. This can be interpreted to mean that as a platform, Facebook offers to its clients diverse forms of advertising for example video adverts, 2d and 3d animated advertising together with other more traditional forms of e.g. banners are supported in Facebook. This gives more room for creativity in advert production. Dispositional Valuable 5: Facebook ads are time wasting diversion Most of the respondents disagreed with the notion that Facebook ads are a time wasting diversion. This means that the interface layout of this social media platform is designed in a way that its users can focus attention to whatever activities they are engaged in without pg. 89 the unnecessary intrusions by advertising messages. This can also explain why most of the respondents have not shown negative attitudes towards Facebook advertising. Dispositional Valuable 6: Facebook advertising violates privacy Most of the youth across the three groups disagreed with the notion that Facebook advertising tampers with their privacy while online. This could mean that although earlier on during its formative stages Facebook had issues to do with privacy of its member’s data, the respondents don’t seem concerned about it. However the Facebook management moved very quickly and solved the problem. Perhaps that is why most of the respondents don’t have a problem with privacy. Dispositional Valuable 7: Advertising authority should put restriction on what is advertised on Facebook Most of the youth agreed that there should be a restriction on what should be advertised on this social media. This raises an issue of the content of Facebook advertisements in relation to ethical concerns in different geographic locations where Facebook is accessible. Otherwise this could be a good area of further research in the field of online advertising in general. Dispositional Valuable 8: Facebook offers good ad avoidance mechanism Most of the respondents were satisfied with the mechanism that Facebook offers for avoiding (mainly through blocking) advertisement messages which the user is not interested with. This means that most of the respondents are technology savvy and are efficient internet surfers. pg. 90 Dispositional Valuable 9: I can recommend my friends to certain advertisements on Facebook pages The findings note that most of the respondents can recommend their friends to certain advertisements on Facebook pages. This further reveals that the youth in Nairobi does not hold negative attitudes toward Facebook advertising. 5.1.3.2 Part B: Perceptions towards social media advertising in general The following aspects of perceptions towards social media advertising in general were inquired from the respondents across the three demographic groups: Timeliness Effectiveness Usefulness Informativeness Friendliness Accuracy Enjoyability Interesting Credibility The following findings shows that the youth across the three demographic groups don’t differ much in their perception in the outlined aspects of social media advertising in general. A look at each variable independently shows the following: pg. 91 Variable 1: Timeliness The findings note that most of the youth perceive advertising on the social media to be timely. This means that given chance to give advice on the choice of media to advertise on, the youth in Nairobi could give a priority to social media. Variable 2: Effective Most of the students and employed respondents perceived that social media advertising is effective while the self-employed were seen to be highly discerning on the same. This means that going by the nature of their occupation this group perhaps is trying to market some of their business activities via Facebook. This also means that a study done to investigate the effectiveness of advertising on the social media is viable. Variable 3: Useful The most respondents among the students and employed perceive social media advertising to be useful while the self-employed group had a strong perception on the usefulness of social media advertising. Variable 4: Informative and Others Most of the respondents have strong perception that social media advertising is informative. This confirms the earlier finding that the youth in their different groups find value in being members of various social media platforms especially Facebook and though they many not yet have been influenced in making buying decisions. Most of the youth also perceive social media advertising to be Friendly, Accurate, Enjoyable and Interesting. Finally, the interpretations based on the variables used by the researcher to gain insight into the attitudes and perceptions that the youth have towards advertising on Facebook and other social media websites in general, overwhelmingly show that the students, pg. 92 employed and the self-employed youth in Nairobi have positive attitudes and perceptions towards social media advertising. 5.1.4 How attitudes and perceptions differ among three demographic groups ANOVA statistical technique was used to compute the differences between certification indexes levels of all the items (aspects) investigated for all the three groups in Part A and Part B and the following results were realized: Part A: Computation on how the attitudes towards advertising on Facebook differ among the three groups The realized ANOVA value of F=0.164, P=0.850 shows that there was no significant difference among the three demographic groups (it was found that students (M=48.44), Employed (45.11), self-Employed (M=52.00)) since the P value is less than 0.05. Part B: Computation on how the perceptions towards advertising on social media in general differ among the three groups The realized ANOVA value was F= 1.017, p=0.377 of the aspects towards social media advertisement were not significantly different among the three demographic groups (it was found that Students (M=68.88), Employed (68.00), Self-Employed (M=76.89)) since the p value was less than 0.05. Finally the findings of part A and Part B above show that there was no significant differences among the attitudes and perceptions of the respondents across the three demographic groups, respectively, and leads to the Rejection of the H ypothesis of the pg. 93 study which states that: “The attitudes and perceptions that the youth in Nairobi have towards advertising on the social media and in particular Facebook differ across the three demographic groups.” 5.2 RECOMMENDATIONS 5.2.1 Policy recommendations In light of these findings, it is therefore recommended that businesses be sensitized on social media advertisement attitudes and perceptions that youth and other demographics have on this internet phenomena. Organization’s policy makers should also promote these factors in enhancing their organization’s interaction with their customers over the social media platforms if they have to enhance their market performance. 5.2.2 Recommendations for further studies The study collected data from the Students, Employed and Self-Employed respondents in Nairobi. However, the findings on the attitudes and perceptions of Facebook and social media in general as a medium of advertising in Nairobi could be different compared with other regions. Thus a similar study should be undertaken in other regions to get a better understanding of the attitudes and perceptions of social media as a medium of advertising in Kenya. The study recommends that other similar studies be done on County by County basis so as to compare user’s attitudes and perceptions towards Facebook and other social media as a medium of advertising. The study also recommends that similar studies be done on user’s attitudes and perceptions towards social media as a medium of advertising among pg. 94 those who know about it, in particular Facebook, but don’t have access to internet or have refused to subscribe to these platforms. Finally a similar survey can be done to find out how professionals e.g. top company’s CEO, government institutions and other executives in Kenya use social media. 5.3 CONCLUSION The findings of the study overwhelmingly support the fact that Facebook advertisement plays a big role in advertising. The failure of any organization to use Facebook and other social media platforms for reaching out to its customers will lock out many of them from expanding their brand visibility. The results also revealed that once an organization decides to use the social media for the sole reasons of advertising, it should be very conversant with the attitudes and perception formed among users of the social media used. If the target is the youth, then their attitudes and perception in various demographic groups need to be established in order to significantly reach them through advertisement messages. Also it is important to establish the influence that advertising on a particular social media has towards a target group in terms of buying behavior. The study notes that a majority of youth are conversant with social media advertising and many of those who are members of Facebook acknowledge that advertising on the social media is prudent. However, although the majority of youth in Nairobi (students, employed and self-employed) have not been influenced by Facebook advertising in making personal buying decisions, their attitudes and perceptions towards advertising on the social media is positive. pg. 95 Finally, the findings clearly show that the best way for organizations to use Facebook to reach the youth, is mainly as a platform of interacting with them on matters concerning their products and services instead of targeting them with advertisement messages. In doing so an organization is able to get feedback through the “comments” system. This enables them to comprehend the needs of their customers better and make good decisions in future. 5.3.1 Limitations of the study The study was able to identify four limitations: First, the study collected data from the Students, Employed and Self-Employed respondents in Nairobi city only. The study was limited to youths with an occupation within the city at the time of the study thus nonworking youth were not considered. Therefore, questionnaires that landed into the hands of those who knew about Facebook as a social media platform but were not subscribed members did not submit the questionnaire. This lead to waste of resources and the fact that their views were not captured in this study. Secondly, the study findings are difficult to compare due to differences in nature of the youths occupation since the survey did not inquire of the particular specialty of the respondents. Therefore it would be interesting to examine whether there are differences in the degree of social media use with regard to occupation. Thirdly, the study analyzed only the attitudes and perceptions of the youth towards social media as an advertising media. 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New York: Wiley Websites http://www.2.bp.blogspot.com http://www.facebook.com http://www.AdPushup.htm http://ibrandstudio.com http://www.businessdictionary.com https://us-mg6.mail.yahoo.com http://www.enhancify.co.uk pg. 104 APPENDENCES APPENDIX I: Questionnaire This study is a requirement for the partial fulfillment of the award of the Master of Arts Degree in Design from the University of Nairobi in the School of Art and Design. This is an academic research and all information collected from you will be treated with strict confidentiality. SECTION A Kindly respond to all the questions by ticking in the boxes and writing in the spaces provided. 1. What is your Age? [ ] 19 – 22 [ ] 23 – 26 [ ] 27 – 30 [ ] 31 – 34 2. What is your Gender? [ ] Male [ ] Female 3. What is your Occupation? [ ] Student [ ] Employed [ ] Self-employed 4. If you are a student, what type of Institution do you attend? [ ] College [ ] Polytechnic [ ] University SECTION B 1. How often do you use the internet? [ ] Hourly [ ] Daily [ ] Bi – Weekly [ ] Weekly [ ] Monthly 2. Where do you access the internet most of the time? [ ] School [ ] [ ] Cyber Cafes [ ] Home [ ] Other Places (Please specify) ............................... 3. What kind of device do you mostly use to access the internet? [ ] Desktop computers [ ] Laptop [ ] Mobile Phones [ ] Smartphones [ ] Tablets SECTION C 1. Which of the following Social Networking Sites do you have an account with? (You can select more than one) [ ] Facebook [ ] LinkedIn [ ] YouTube [ ] Tagged [ ] Twitter [ ] WhatsApp [ ] Flicker [ ] Hi5 [ ] Myspace [ ] Others (Please specify) ............................... pg. 105 2. How many times do you visit Facebook when connected to the internet? [ ] Once a day [ ] Several times a day [ ] Several times a month [ ] Once a month [ ] Once a week 4. How many connections (friends/followers) do you have on Facebook profile on average? [ ] Less than 10 [ ] 51 to 100 [ ] 151 to 200 [ ] 201 to 250 [ ] 300 to 350 [ ] 351 to 400 [ ] 101 to 150 [ ] 251 to 300 [ ] more than 400 5. What do you spend most of your time doing on Facebook? (You can tick more than one answer) [ ] Conducting business [ ] Getting information on new products and brands [ ] Keeping in touch with friends [ ] Keeping up to date with social events [ ] Sharing videos, Articles, Pictures [ ] Making new friends [ ] Passing time [ ] Others (please specify) .............................. 6. How many organizations’/companies’ Facebook pages are you a member of ? [ ] None [ ] Less than 10 [ ] 11 to 20 [ ] 21 to 30 [ ] More than 30 7. When browsing in Facebook, do you notice any form of advertisement messages? [ ] Yes [ ] No 8. If you answered “Yes” in the Question 7 above, describe how often you come across advertisement messages on Facebook? [ ] Very often [ ] Often [ ] Sometimes [ ] Rarely [ ] Very Rarely 9. Do you pay attention to some of the adverts you encounter on your Facebook page? [ ] Yes [ ] No 10. If you answered “Yes” to Question 9, what prompts you to? (You can tick more than one answer) [ ] Relevance to something of my interest [ ] I recognize the brand/company/product [ ] I am captivated by the advertising design [ ] [ ] Out of curiosity [ ] Others ( please specify) .......................................... 11. If you answered “No” to Question 9, what prompts you not to? (You can tick more than one answer) [ ] It’s completely irrelevant to me [ ] I’m so used to the adverts [ ] Message in the advert not always clear [ ] The quality of advert design is poor [ ] Other (please specify) ...................................... 12. How often do you purchase goods/service or attend events based on advertising messages you encounter on Facebook? [ ] Never [ ] Rarely [ ] Sometimes [ ] Often [ ] Always 13. Have you ever advertised anything on Facebook? [ ] Yes [ ] No 14. If your answer to question 13 above is Yes, which approach did you use? [ ] Created a post on my wall page [ ] Paid for advertising space as per Facebook commercial advertising guideline pg. 106 15. To what extent do you agree/disagree with each of the following aspects of advertising on Facebook Agree Disagree Indifferent • Advertising on Facebook is informative [ ] [ ] [ ] • Ads placed on Facebook are creatively designed [ ] [ ] [ ] • Facebook advertising is annoying [ ] [ ] [ ] •Advertising on Facebook is entertaining [ ] [ ] [ ] • Facebook ads are a time wasting diversion [ ] [ ] [ ] • Facebook advertising violates privacy [ ] [ ] [ ] • Advertising authorities should put restrictions on what is advertised on Facebook [ ] [ ] [ ] • Facebook offers good ad avoidance mechanisms [ ] [ ] [ ] • I can recommend my friends to certain advertising on Facebook pages [ ] [ ] [ ] 16. Social media advertising in general possess the following attributes listed below: (please indicate your level of agreement/disagreement) S trongly agree Agree Indifferent Disagree S trongly disagree • Timely [ ] [ ] [ ] [ ] [ ] • Effective [ ] [ ] [ ] [ ] [ ] • Useful [ ] [ ] [ ] [ ] [ ] • Informative [ ] [ ] [ ] [ ] [ ] • Friendly [ ] [ ] [ ] [ ] [ ] • Accurate [ ] [ ] [ ] [ ] [ ] • Enjoyable [ ] [ ] [ ] [ ] [ ] • Interesting [ ] [ ] [ ] [ ] [ ] • Credible [ ] [ ] [ ] [ ] [ ] Thank you for responding to all the questions pg. 107 APPENDIX II: LETTER TO THE RESPONDENTS OF QUESTIONNAIRE MARTIN MUTUMA KITHINJI University Of Nairobi, P.O BOX 43844. NAIROBI. THE DIRECTOR, P.O BOX. NAIROBI Dear Sir/Madam REF: RESEARCH: REQUEST FOR ADMINISTRATION OF QUESTIONNAIRE I am student of University Of Nairobi pursuing Master of Arts in design, a Kenya citizen of national ID number 23635878. In regard to the above mentioned subject, I am working on my Project entitled: Advertising on the social Media: an Analysis of the Youth’s Responses to Facebook Advertising in the City of Nairobi . It is for this reason that I kindly request to administer a questionnaire to the Students and Employees in your School or company Your assistance will be highly appreciated Yours sincerely MARTIN MUTUMA KITHINJI pg. 108 APPENDIX III: RESEARCH BUDGET ITEM/ACTIVITY PRICE PER UNIT QUANTITY (Ksh.) TOTAL COST(Ksh.) a) Notebooks 100 20 2000 b) Pens 10/pen 20 pens 200 c) Markers 25/marker 10 markers 250 2. Typing Services 15/page 200 pages 3,000 3. Printing services 5/page 500 pages 35000 4. Binding Services 50/booklet 30 booklets 1500 5. Photocopying services 2/page 800 pages 1,600 6. Internet Services 1/minute 1500 minutes 1,500 7. Telephone Services 8/minute 500 minutes 14000 8. Travel expenses 500/day 40 40,000 9. Research Assistance n/a n/a 30,000 10. Miscellaneous expenses n/a n/a 10,000 1. Stationary TOTAL COST 139,000 pg. 109