Attracting Comments: Digital Engagement Metrics on Facebook and Financial Performance

Gunwoo Yoon, Cong Li, Yi Grace Ji, Michael North, Cheng Hong, Jiangmeng Liu

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

Many companies are now using social media such as Facebook for advertising and marketing purposes. To understand how using social media affects a company's business performance from a digital engagement perspective, this study examines how user comments on company Facebook posts influence company revenue. S&P 500 companies' revenue information in a five-year time span (from 2010 to 2015) is collected, and this information is matched to more than 24 million user comments directed at these companies' Facebook posts. The hypotheses are tested using static (fixed effects [FE] and random effects [RE]) as well as dynamic (generalized method of moments [GMM]) panel data analyses in econometric methods. The estimation results indicate that digital engagement volume, defined as the total number of Facebook comments a company received, has a significant and positive effect on revenue. In addition, digital engagement valence, defined as the average tone of Facebook comments directed toward a company, also has a significant and positive effect on revenue. Implications and directions for future research are discussed.

Original languageEnglish (US)
Pages (from-to)1-14
Number of pages14
JournalJournal of Advertising
DOIs
StateAccepted/In press - Jan 24 2018

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facebook
performance
Industry
revenue
social media
Marketing
Financial performance
Facebook
Revenue
econometrics
Method of moments
marketing
Social media

ASJC Scopus subject areas

  • Business and International Management
  • Communication
  • Marketing

Cite this

Attracting Comments : Digital Engagement Metrics on Facebook and Financial Performance. / Yoon, Gunwoo; Li, Cong; Ji, Yi Grace; North, Michael; Hong, Cheng; Liu, Jiangmeng.

In: Journal of Advertising, 24.01.2018, p. 1-14.

Research output: Contribution to journalArticle

Yoon, Gunwoo ; Li, Cong ; Ji, Yi Grace ; North, Michael ; Hong, Cheng ; Liu, Jiangmeng. / Attracting Comments : Digital Engagement Metrics on Facebook and Financial Performance. In: Journal of Advertising. 2018 ; pp. 1-14.
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