This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Social Media Helps Drive Traditional Media Coverage, Where Each Mention Packs A Bigger Sales Punch

CHICAGO, Nov. 9, 2012 /PRNewswire-USNewswire/ -- New research published in the Journal of Marketing Research for the first time reveals the interrelationship between earned media from traditional media sources such as press and online social media, and how these forms of earned media impact sales.

(Logo:  http://photos.prnewswire.com/prnh/20111102/DC96044LOGO)

Authors Andrew T. Stephen, of the University of Pittsburgh, and Jeff Galak, of Carnegie Mellon University, studied 14 months of sales and media data provided by Kiva.org, an online company that facilitates small loans between individual investors and people in underdeveloped countries. The authors considered a loan a sale, and categorized mentions of Kiva in newspapers, magazines, TV and radio as traditional earned media, and mentions of Kiva on blogs and online social networks and communities as social earned media.

They found that each mention of Kiva in traditional media had the largest per-event impact on sales. Over the time period studied, each unit of media publicity from a traditional media organization generated 894 additional sales from new customers and 403 additional sales from repeat customers. A blog mention, by comparison, generated 90 additional new sales and 63 additional repeat sales. A mention in an online community generated 99 additional new and 48 additional repeat sales. The authors say the disparity between media forms is not surprising because traditional media typically has a much broader reach than social media. However, since social media mentions were much more frequent than those in traditional media, the authors found that when this was taken into account earned media in social channels had a substantially larger impact on sales than traditional earned media did.

The study also found that social earned media helps drive traditional earned media. "Conventional wisdom is that traditional earned media makes a large mass of people aware of something and then gets them talking. However, our findings suggest that the reverse may be more likely than previously thought."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,915.07 -70.54 -0.42%
S&P 500 1,964.68 -8.15 -0.41%
NASDAQ 4,396.2040 -22.83 -0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs