In "likes" we trust: likes, disclosures and firm-serving motives on social media

Abstract

Purpose This paper aims to examine when and how the number of "likes" can exert significant influence on consumer evaluations of social media advertising. It sheds a novel perspective on how social media "likes", advertising disclosures and the presence of firm-serving motives influence advertising effectiveness. Design/methodology/approach Study 1 examines how the number of "likes" influences consumer attitudes towards the sponsoring brand by strengthening advertising credibility, when social media ads are effectively (vs non-effectively) disclosed. Study 2 further establishes how the influence of the number of "likes" for effectively disclosed ads varies depending on whether the company states (vs does not state) its firm-serving motives. Findings The authors found that a social media ad displayed with a higher number of "likes" is perceived to be more credible, which can then yield more positive attitudes towards the brand. However, the use of effective disclosures moderates this relationship. To offset this effect, companies can restore the value of "likes" by stating their firm-serving motives openly when they develop social media advertising messages. Originality/value The study illustrates a novel mechanism behind how and when the number of "likes" can influence the effectiveness of social media advertising.