Renren.com has developed a comprehensive study and set of metrics called Renren Effect, in cooperation with CR-Nielsen, Dell, Nike, as well as other global brands and media groups.
This study is the first impartial study designed to assess the value of social advertising in China and was conducted jointly by all the parties involved in SNS marketing. The research report includes results of three months of extensive tracking, detailed surveys and deep analysis of social advertising and marketing on Renren.com.
“Our research shows that social advertising can significantly drive brand value and its fan growth and that this paid media combined with organic earned media is much more powerful than display advertising alone,” said Spencer Hong, CR-Nielsen’s senior director of product research.
“Our finding also shows that becoming a brand’s fan can tie the consumers closer to the brand and raise all brand value in every indicator, especially preference, purchase intent and recommendations,” he added.
According to Alvin Chiang, Renren’s CMO, “The Renren Effect clearly explains the value derived from social media advertising products and their communication mechanisms. These social media ad products are built around real connections between people, and are designed to allow people to spread information quickly and easily to the entire network of their social connections.”
“With the Renren Effect, advertisers do not only get return on their initial investment in paid media by impressions and clicks, they get much more.” he said.
He said on social networks, advertisers also get free earned media through news feeds, a built-in mechanism which allows users to not only interact with a brand, but to share the brand’s own messages with their friends automatically and therefore, become brand advocates. In addition, the brand may eventually accumulate and gain owned media through fan pages, another powerful marketing tool available on Renren.