Businesses often rely on owned social media (brand pages on networking sites) to advertise their brands, and multibrand companies frequently manage individual brand pages, rather than representing all company brands together on one firm page. Because advertising results in cross-brand effects, companies need to understand how such effects manifest across their pages. This study investigates the cross effects of owned social media advertising by distinguishing between intra- and interbrand portfolio scenarios. It also compares the effects between television advertising and owned social media advertising. With a focus on the U.S. soft drink market, this study reveals that brand page advertising results in cannibalization within company portfolios, whereas positive spillover results from television advertising. The cross effects migrate to brands outside the portfolios, thereby intensifying competition. Accounting for the combined effects of cannibalization and competition reveals that owned social media increase portfolio demand more effectively than television advertising overall, which implies some key managerial recommendations for developing brand page strategies.
AgrawalD. (1996), “Effect of Brand Loyalty on Advertising and Trade Promotions: A Game Theoretic Analysis with Empirical Evidence,” Marketing Science, 15 (1), 86–108.
2.
BalachanderS.GhoseS. (2003), “Reciprocal Spillover Effects: A Strategic Benefit of Brand Extensions,” Journal of Marketing, 67 (1), 4–13.
BrownbillA.L.MillerC.L.Braunack-MayerA.J. (2018), “The Marketing of Sugar-Sweetened Beverages to Young People on Facebook,” Australian and New Zealand Journal of Public Health, 42 (4), 354–60.
ChangH.L.ChouY.C.WuD.Y.WuS.C. (2018), “Will Firm's Marketing Efforts on Owned Social Media Payoff? A Quasi-Experimental Analysis of Tourism Products,” Decision Support Systems, 107, 13–25.
ColicevA.KumarA.O’ConnorP. (2019), “Modeling the Relationship Between Firm and User Generated Content and the Stages of the Marketing Funnel,” International Journal of Research in Marketing, 36 (1), 100–116.
11.
ColicevA.MalsheA.PauwelsK.O’ConnorP. (2018), “Improving Consumer Mindset Metrics and Shareholder Value Through Social Media: The Different Roles of Owned and Earned Media,” Journal of Marketing, 82 (1), 37–56.
12.
CooilB.KeininghamT.L.AksoyL.HsuM. (2007), “A Longitudinal Analysis of Customer Satisfaction and Share of Wallet: Investigating the Moderating Effect of Customer Characteristics,” Journal of Marketing, 71 (1), 67–83.
13.
DanaherP.J.DaggerT.S. (2013), “Comparing the Relative Effectiveness of Advertising Channels: A Case Study of a Multimedia Blitz Campaign,” Journal of Marketing Research, 50 (4), 517–34.
14.
De HaanE.WieselT.PauwelsK. (2016), “The Effectiveness of Different Forms of Online Advertising for Purchase Conversion in a multiple-channel attribution framework,” International Journal of Research in Marketing, 33 (3), 491–507.
15.
DeightonJ.KornfeldL. (2012), “Coca-Cola on Facebook,” Harvard Business School Case 9-511-110.
16.
De VriesL.GenslerS.LeeflangP.S. (2012), “Popularity of Brand Posts on Brand Fan Pages: An Investigation of the Effects of Social Media Marketing,” Journal of Interactive Marketing, 26 (2), 83–91.
17.
DubéJ.P.HitschG.J.ManchandaP. (2005), “An Empirical Model of Advertising Dynamics,” Quantitative Marketing and Economics, 3 (2), 107–44.
18.
ErdemT.SunB. (2002), “An Empirical Investigation of the Spillover Effects of Advertising and Sales Promotions in Umbrella Branding,” Journal of Marketing Research, 39 (4), 408–20.
GongS.ZhangJ.ZhaoP.JiangX. (2017), “Tweeting as a Marketing Tool: A Field Experiment in the TV Industry,” Journal of Marketing Research, 54 (6), 833–50.
22.
HausmanJ.A.TaylorW.E. (1981), “Panel Data and Unobservable Individual Effects,” Econometrica, 49 (6), 1377–98.
HuangY.JasinS.ManchandaP. (2019), “‘Level Up’: Leveraging Skill and Engagement to Maximize Player Game-Play in Online Video Games,” Information Systems Research, 30 (3), 927–47.
IlhanB.E.KüblerR.V.PauwelsK.H. (2018), “Battle of the Brand Fans: Impact of Brand Attack and Defense on Social Media,” Journal of Interactive Marketing, 43, 33–51.
27.
JanakiramanR.SismeiroC.DuttaS. (2009), “Perception Spillovers Across Competing Brands: A Disaggregate Model of How and When,” Journal of Marketing Research, 46 (4), 467–81.
KarjaluotoH.MunnukkaJ.TiensuuS. (2015), “The Effects of Brand Engagement in Social Media on Share of Wallet,” in Proceedings of the 28th Bled eConference: #e WellBeing, 436–48.
30.
KumarA.BezawadaR.RishikaR.JanakiramanR.KannanP.K. (2016), “From Social to Sale: The Effects of Firm-Generated Content in Social Media on Customer Behavior,” Journal of Marketing, 80 (1), 7–25.
31.
KumarV.ChoiJ.B.GreeneM. (2017), “Synergistic Effects of Social Media and Traditional Marketing on Brand Sales: Capturing the Time-Varying Effects,” Journal of the Academy of Marketing Science, 45 (2), 268–88.
32.
KupferA.K.Pähler vor der HolteN.KüblerR.V.Hennig-ThurauT. (2018), “The Role of the Partner Brand’s Social Media Power in Brand Alliances,” Journal of Marketing, 82 (3), 25–44.
33.
LarocheM.HabibiM.R.RichardM.O. (2013), “To Be or Not to Be in Social Media: How Brand Loyalty Is Affected by Social Media?” International Journal of Information Management, 33 (1), 76–82.
34.
LiB.LiX.LiuH. (2018), “Consumer Preferences, Cannibalization and Competition: Evidence from the Personal Computer Industry,” MIS Quarterly, 42 (2), 661–78.
35.
LiuH.LiuQ.ChintaguntaP.K. (2017), “Promotion Spillovers: Drug Detailing in Combination Therapy,” Marketing Science, 36 (3), 382–401.
36.
LovettM.J.StaelinR. (2016), “The Role of Paid, Earned, and Owned Media in Building Entertainment Brands: Reminding, Informing, and Enhancing Enjoyment,” Marketing Science, 35 (1), 142–57.
37.
MasonC.H.MilneG.R. (1994), “An Approach for Identifying Cannibalization Within Product Line Extensions and Multi-Brand Strategies,” Journal of Business Research, 31 (2/3), 163–70.
38.
MochonD.JohnsonK.SchwartzJ.ArielyD. (2017), “What Are Likes Worth? A Facebook Page Field Experiment,” Journal of Marketing Research, 54 (2), 306–17.
39.
NelsonP. (1974), “Advertising as Information,” Journal of Political Economy, 82 (4), 729–54.
40.
NevoA. (2000), “A Practitioner’s Guide to Estimation of Random-Coefficients Logit Models of Demand,” Journal of Economics & Management Strategies, 9 (4), 513–48.
41.
NevoA. (2001), “Measuring Market Power in the Ready-to-Eat Cereal Industry,” Econometrica, 69 (2), 307–42.
42.
PauwelsK.AksehirliZ.LackmanA. (2016), “Like the Ad or the Brand? Marketing Stimulates Different Electronic Word-of-Mouth Content to Drive Online and Offline Performance,” International Journal of Research in Marketing, 33 (3), 639–55.
SanchezJ.AbrilC.HaenleinM. (2020), “Competitive Spillover Elasticities of Electronic Word of Mouth: An Application to the Soft Drink Industry,” Journal of the Academy of Marketing Science, 48 (2), 270–87.
45.
SethuramanR.TellisG.J.BrieschR.A. (2011), “How Well Does Advertising Work? Generalizations from Meta-Analysis of Brand Advertising Elasticities,” Journal of Marketing Research, 48 (3), 457–71.
46.
ShapiroB.T. (2018), “Positive Spillovers and Free Riding in Advertising of Prescription Pharmaceuticals: The Case of Antidepressants,” Journal of Political Economy, 126 (1), 381–437.
47.
SharpB. (2010), How Brands Grow: What Marketers Don’t Know. Oxford, UK: Oxford University Press.
48.
SohH.ReidL.N.KingK.W. (2009), “Measuring Trust in Advertising,” Journal of Advertising, 38 (2), 83–104.
49.
SrinivasanS.RutzO.J.PauwelsK. (2016), “Paths To and Off Purchase: Quantifying the Impact of Traditional Marketing and Online Consumer Activity,” Journal of the Academy of Marketing Science, 44 (4), 440–53.
50.
SrinivasanS.VanhueleM.PauwelsK. (2010), “Mind-Set Metrics in Market Response Models: An Integrative Approach,” Journal of Marketing Research, 47 (4), 672–84.
51.
Statista (2020), “Product Brands with the Most Facebook Fans as of February 2020 (in Millions),” (accessed June 30, 2020), https://www.statista.com/statistics/265657/leading-product-brands-with-the-most-fans-on-facebook.
52.
Statista (2021a), “Market Share of Leading Carbonated Soft Drink (CSD) Companies in the United States from 2004 to 2019,” (accessed June 1, 2021), https://www.statista.com/statistics/225464/market-share-of-leading-soft-drink-companies-in-the-us-since-2004.
53.
Statista (2021b), “Number of Active Advertisers on Facebook from 1st Quarter 2016 to 3rd Quarter 2020 (in Millions),” (accessed June 1, 2021), https://www.statista.com/statistics/778191/active-facebook-advertisers.
54.
ThornhillM.XieK.LeeY.J. (2017), “Social Media Advertising in a Competitive Market: Effects of Earned and Owned Exposures on Brand Purchase,” Journal of Hospitality and Tourism Technology, 8 (1), 87–100.
55.
TirunillaiS.TellisG.J. (2017), “Does Offline TV Advertising Affect Online Chatter? Quasi-Experimental Analysis Using Synthetic Control,” Marketing Science, 36 (6), 862–78.
56.
UnclesM.EhrenbergA.HammondK. (1995), “Patterns of Buyer Behavior: Regularities, Models, and Extensions,” Marketing Science, 14 (3), 71–78.
57.
VakratsasD.AmblerT. (1999), “How Advertising Works: What Do We Really Know?” Journal of Marketing, 63 (1), 26–43.
58.
VanMeterR.A.GrisaffeD.B.ChonkoL.B. (2015), “Of ‘Likes’ and ‘Pins’: The Effects of Consumers’ Attachment to Social Media,” Journal of Interactive Marketing, 32, 70–88.
59.
WilburK.C. (2008), “A Two-Sided, Empirical Model of Television Advertising and Viewing Markets,” Marketing Science, 27 (3), 356–78.
60.
ZhengY.KaiserH.M. (2008), “Advertising and US Nonalcoholic Beverage Demand,” Agricultural and Resource Economics Review, 37 (2), 147–59.
